My Shout
Barry Gillham has some advice on how to avoid being ripped off by rogue property agents
Following its campaign to root out 'rogue pub companies', the Federation of Licensed Victuallers has turned its attention to 'rogue property agents'. In a new publication, The FLVA/BIIAB accredited staff induction programme, it is directing members to use recognised and professional agents.
I have looked at the problems and have come up with a few issues that need some attention:
l Agents are telling sellers to name their own price and collecting 'upfront marketing costs'. The rogue agent does little or nothing to promote the sale of over-priced properties but has its advertisements paid for by unsuspecting 'sellers'. In turn, this brings in more enquiries and more up-front money for the rogue agent. Sometimes, desperate sellers will take a low offer because they need a quick sale. The market has not been effectively tested because sensible purchasers have been deterred by the unrealistic asking price.
l Some rogue agents demand a further fee before a seller can cancel the instruction and go to an alternative agent.
And here are a few ideas for a seller's checklist before instructing an agent:
l It's a good idea to get a personal recommendation either from a fellow licensee who has recently sold or alternatively your BDM, stocktaker or possibly your accountant or solicitor.
l Ask the agent for details of similar local properties that he or she has sold in the past few months to support the price he is recommending that you ask.
l Ask to see the contract you will sign and ask for a few days to consider it. If necessary, show it to your solicitor for guidance.
l Ask to see how your property will be promoted, namely, the sale particulars, the agents' website, the media used for advertisements.
l Check where the property will be internally promoted. Is the agent part of a 'joined up' national firm or is he a franchisee essentially working on his own with no liaison with other offices listed?
l Consider who are the likely buyers and will they be able to secure finance based on the business accounts and the recommended guide price?
l Ask who will be personally responsible for your sale. Will it be the person you are talking to or is it passed down the line to a faceless person in a central enquiry office?
Rogue agents rely upon (a) licensees being busy people who are happy to pass a task to a seemingly helpful person and (b) few licensees having previous experience of selling a pub to go by. The great majority of the firms dealing with licensed property sales are experienced and honest. Most are here for the long term and rely upon repeat business. Some have national presence and local representation. Others are very strong in local or niche markets.
With a little careful checking, no licensee need be 'ripped off by a rogue agent'.
