Fresh warning over rogue selling agents
Another property firm has warned vendors to beware of rogue agents that over-value properties and demand upfront advertising fees.
Property agent Browns managing director Annie Brown said the lack of regulation governing the set-up of an agency has lead to a surge in rogue traders.
Brown, a former Fleurets agent who set up on her own at the start of the year, has warned that there are still many agents who lack integrity and licensed property experience. She said a number of agents over-value properties to get the instructions to sell from vendors.
"An alarming amount of alleged agents seem to creep out of the woodwork with particularly strong sales backgrounds and little or no licensed agency experience but manage to convince clients that their property is worth far more than market value, just to obtain the instruction, upfront fee and market presence," she said. "Usually clients are so pleased with the valuation they are happy to part with an upfront advertising contribution."
Brown added that anyone considering selling their pub should enquire about the agent's background.
"Ask them how long they've been in the licensed trade and about their track record. This will help to make a valued decision as to their suitability," she said. "Most agents worth their salt will have a number of years' experience and if they have confidence in their ability to sell the business, they will not need to ask for money up front."
Brown said many hosts don't realise the consequences of over-valuing. "Most don't realise the advice and valuation is completely unrealistic and even if someone did offer to buy at the over-inflated price, the sale would more than likely fall through at the point of the purchaser instructing a bank valuation," she added.
