With estate agents acting primarily for sellers and land owners, buyers get poor advice or representation all too often.
Even though they are the ones raising (and usually borrowing) the money for each transaction, they are often the last ones to be told how things are progressing, especially where chains of other sales are involved. A lot of patching up of interlinked chains is frequently going on behind the scenes which is not necessarily to the advantage of buyers further down the chain.
This is inefficient and unproductive and needs to change so that the various local housing markets across England and Wales can begin to function more like perfect marketplaces; as they truly should.
All this is because estate agents are primarily motivated to try and obtain the best price they can for whatever asset it is they are selling since they are contracted to act on behalf of the seller. The buyer is often the last person to be told when things are going against them and by then the only remedy remaining is for them is usually to find more cash to feed into the situation!
House prices are now returning to all time highs, but they are also increasing beyond average couples’ annual earning capacities for borrowing requirements. This is a big problem. It’s vital that a more holistic approach is offered to everyone embarking on a house move, especially if it’s a first-time purchase.
The only way this could be done would be to change the way residential property is sold by having agents acting for buyers instead of only for sellers.
What stands in the way of this happening is that existing estate agents are naturally going to be reluctant to consider such a change for as long as they can continue to control sales progress in the way they have done historically, essentially since the 1920s.
It would need the buying public to start seeing the anomalies they are having to contend with when using agents and to lobby government to make the necessary improvements to bring about fairer competitive pricing across all residential property markets. Only then could house prices more appropriately track buying power in the locality in which a particular property is located.
This situation does need further in-depth explanation in order for the concept to be fully understood.
For a fully reasoned explanation about this, explaining exactly how this should be achieved please go to:
The Hendry Solution: Full details of our proposals for properly reforming the UK housing market..
Peter Hendry, Consultant in Housing Valuation