LOOK OUT SELLERS ! Home owners are being charged "unnecessarily" high prices for Home Reports as experts warn that estate agents are creaming off hidden profits from the sale of the controversial packs.
The warning from the Law Society suggested that estate agents could be receiving a "hidden commission" on selling HR's.
Dave at Moray Property has confirmed to me that this is quite a common practice amongst local agents - "Moray Property simply put the seller in contact with the Home Report provider directly, which allows the customer to negotiate the best price - which we believe to be the fairest solution for all".
Though not all agents are as upfront, the hidden commission normally comes from estate agents paying a HR provider a lower amount for the pack than it charges home owners.
The Royal Institution of Chartered Surveyors is now investigating the matter. It told the Daily Telegraph that the matter was "worthy" of investigation and is "something we need to look into".
For example, if an estate agent is paying £300 to a HR provider, but charging £400 to a home owner, then the home owner is out of pocket to the tune of £100.
The Law Society explained that while this is not a criminal offence, problems arise when estate agents fail to openly declare to home owners that they are taking a commission in this way.
The packs cost in the region of £450 and contain a home's survey, property questionaire and an energy performance certificate, which rates the property's energy efficiency.
The National Association of Estate Agents condemned the practice of adding commissions to HR's without sellers being informed.
Peter Bolton King, chief executive of the NAEA, said: "If a member is found taking undisclosed commissions then they will be put in front of a disciplinary panel. If they're found guilty then we fine them up to £1,000 per breach. If it's very serious we will expel them."
Speak with your agent about this, especially if you suspect you are paying an inflated price - But beware, some have 'longer noses' than others !
Until next time.
Jackson.
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With too many years to recall under my ever expanding belt in the landlord, property investment and estate agent business the chaps at Moray Property asked if I would endeavour to write a blog for their website. I agreed, providing they kept me topped up with mugs of tea, homemade cake and a Wi-Fi connection. I hope that buyers, sellers, landlords and tenants, both existing and prospective may find it useful and informative.
About Me
- Mr Jackson
- Findhorn, Moray, United Kingdom
- Full time Property Investor / Speculator / Renovator from 'Down South'. Husband, Dad & Grandad. Kids Entertainer & Taxi Service
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