Front windows of a small estate agency in Mons, Belgium.
An estate agent is more than just a person who facilitates property transactions. They play a crucial role in the buying, selling, renting, and management of properties. While estate agents are primarily involved in marketing properties for sale, they also ensure that all legal aspects are taken care of through the assistance of solicitors or licensed conveyancers. In Scotland, it's common to find solicitors who also act as estate agents, but this is rare in England and Wales.
The term "estate agent" was originally used to refer to someone responsible for managing a landed estate. However, it eventually expanded to include individuals involved in buying and selling homes. In the United States, an estate agent is synonymous with a real estate broker. To excel in their profession, estate agents need to have a deep understanding of their local area, including factors that can affect property prices such as infrastructural developments or improvements in the neighborhood.
Regulation is an important aspect of the estate agency industry. In the United Kingdom, residential estate agents are regulated by the Estate Agents Act 1979, as well as the Consumers, Estate Agents, and Redress Act 2007. Trade associations like INEA (The Independent Network of Estate Agents) and NAEA Propertymark (formerly known as the National Association of Estate Agents) further contribute to maintaining standards and ensuring ethical conduct among estate agents.
Estate agents who handle lettings of commercial property charge a fee of 7% to 15% of the first year's rent, plus the whole of the first month's rent. On the other hand, residential letting agents charge fees ranging from zero to £300 in non-refundable fees such as application, administration, or processing fees. However, letting agents are prohibited from charging fees in Scotland. It's crucial for estate agents to conduct thorough tenant referencing checks, including credit history, employment references, and previous landlord references to ensure the right tenants are chosen.
When it comes to selling residential property, estate agents charge between 0.5% and 3% of the achieved sale price plus VAT. High Street agents typically do not charge upfront costs or fees for withdrawing a property from the market. Online estate agents have also emerged as alternative options, offering fixed-fee selling packages and leveraging digital marketing techniques to advertise properties on major portals.
The real estate industry has evolved with the advent of technology. Estate agents now utilize estate agency software to manage various aspects of their business, from property viewings to marketing and sales. These software solutions enable agents to prepare property particulars, distribute them to property portals, and effectively manage property chains. This technological shift has also facilitated the rise of online agents who cater to private property sellers.
Becoming an estate agent in the UK does not require formal qualifications, although local property knowledge and strong customer-service skills are highly valued in the industry. With their deep expertise and understanding of the market, estate agents are there to guide you through every step of your real estate journey.
References:
- Estate Agents Act 1979
- Consumers, Estate Agents, and Redress Act 2007
- The Independent Network of Estate Agents (INEA)
- NAEA Propertymark
- Matterport
Tags: estate agent, real estate, property, renting, buying, selling, management, regulations, industry, technology
