Even with the emergence of the property ‘self sell’ websites on the internet, the majority of vendors and buyers in the residential property market still use the services of Estate Agents.

Dealing with Estate agents can at times be an intimidating experience, especially for first time buyers. To make things less daunting it is important to be familiar with the role of the estate agent and the terminology that is used in the house buying process.

Two words that are often heard in the house buying process are ‘Gazumping and Gazundering’.

Gazumping is the situation where, having formally accepted an offer on a property, the seller accepts a better offer elsewhere. Despite this being a frustrating, and potentially expensive experience, the practice is perfectly legal in England, Wales and Northern Ireland and often happens in a buoyant market.

In Scotland however, a sale is considered legally binding from the point an offer is accepted.
Many people blame estate agents for the practice of gazumping, feeling that once an offer has been made they should not entertain others. Estate agents are however obliged to obtain the best price for the seller and they have a legal duty to pass on any other offers received, unless specifically told not to by the seller.

Gazundering is the situation where, having had an offer accepted, the potential buyer finds a reason for reducing the offer. In some cases this will be down to factors identified in a survey. In other cases it takes place for no other reason than to reduce the price.
As with gazumping, this practice is not illegal.

Estate agents usually advertise properties through local press advertising. These properties can also be found on the company’s website. Prospective buyers will usually make appointments in which to view the property.

Generally estate agents will guide the vendor on the progress and the interest shown in the property. If the demand is high for the particular type and area of the property, then the seller will of course be more likely to obtain the price sought, or even obtain a higher one. If demand is ‘flat’ then the estate agent may recommend advertising at a lower price.

Once a provisional offer is made, the estate agent will liaise with the seller’s solicitor to secure the formal sale.

The estate agent is usually paid on a commission only basis. This will usually be expressed a percentage of the sale price. This is usually 1.5% to 3%. Some estate agents will charge the vendor a flat selling fee and in some cases a fee is charged whether a sale is obtained or not.
Estate agents must state either the exact amount you will be charged, or when this is not possible, provide details about how the costs will be worked out or give an estimate.