13SEP

The 'financial incentive' from estate agents that costs both buyer and seller

Wed 13 Sep 2017 by Frances Traynor

The benefit of using an independent conveyancing service such as those introduced by Homeward Legal has never been more clearly demonstrated after exclusive revelations in the national press recently about the relationship between estate agents and mortgage brokers.

The story in the Telegraph exposed the financial incentives available to estate agents for introducing clients to its chosen financial and conveyancing services, a situation that benefits the agent but leaves both buyer and seller out of the pocket.

Many property buyers will attest to the pressure they are often put under by estate agents to use either in-house or favoured financial services.

However, in the Telegraph, estate agent Jenny – not her real name – said both buyers and sellers are being sold short.

One practice involves offering buyers an incentive of £1,000 if they use the agents' preferred conveyancing and mortgage brokers. However, that cash is then taken off the actual selling price, meaning the seller is paying for the buyer's incentive.

Buyers placed at a disadvantage

Buyers lose out because the estate agent controls what offers and bids the seller sees. So those who have arranged their mortgage without using the agent's broker are placed at a disadvantage with the agent often telling sellers that only certain offers are "financially verified", according to Jenny who has worked for an estate agent in the south-east of England for 10 years.

Those verified offers only come from clients who have sorted out a mortgage and conveyancing service through the agent, meaning buyers who have found those services independently of the agent in reality have no chance of securing the property.

Jenny told the Telegraph that selling houses comes second now to selling mortgages for estate agents, a revelation that most definitely puts both cash buyers and those of an independent mind at a disadvantage.

Only acting with client’s best interests in mind

Clients who choose to find a conveyancing solicitor through Homeward Legal can be assured that their legal representative will be acting only with their best interests in mind from the very outset of the process with no middle man pocketing anything.

Every firm on our panel of specialist property solicitors, based throughout England and Wales, is committed to delivering fast, low-cost conveyancing services to buyers, sellers and investors. There are no hidden costs, no unexpected extra charges and with our expert sales team available seven days a week, no concerns over a lack of communication.

Call Homeward Legal now on 0800 038 6699 or get an instant quote by clicking here.

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