Beware of Conditional Selling
What is Conditional Selling?
Conditional selling occurs when an estate agent strongly encourages a home buyer to use their in-house services. This could be a recommended mortgage broker, solicitor or financial advisor, for example.
Estate agents may claim that choosing to use their in-house providers will speed up the process of buying a home, make it more cost effective or both. But this is not necessarily true.
Why is Conditional Selling a Problem?
Conditional selling can limit your options. Most estate agents offering in-house mortgage options tend to work with a small number of brokers. This can limit the number of options available, which can lead to them paying more for their mortgage.
Conditional selling is dishonest. Estate agents who work in this way will often disguise the fact that they stand to benefit from a buyer choosing their in-house services in the form of commission or bonuses paid either to the estate agency or to the agent themselves. This can encourage estate agents to recommend products or services which are best for them, not you.
How Can You Protect Yourself from Conditional Selling?
- Educate yourself. Find out about the local market conditions and estate agency practices.
- Ask questions. When discussing a property with an estate agent ask whether the property is subject to a sale clause. Once your offer has been accepted ask whether it has been truly accepted by the seller, or whether there’s a risk of being outbid at a later date.
- Be ready to buy. Having a mortgage agreed in principle can put you in a better position as a buyer and reduces you the likelihood of you accepting financial services recommended by an estate agent.
- Act cautiously but with confidence. If you find a property you want act quickly to secure it, but don’t be pressured into accepting services offered by the estate agent. Prioritise getting the best deal.
- Get independent advice. Working with a conveyancer or solicitor who is not connected with the estate agent can help protect you from underhand tactics.
- Use an independent mortgage broker. You don’t need to use the broker recommended by the estate agent. Choosing to work with an independent broker your trust can ensure you get better advice, access to a wider range of lenders and ultimately a better deal.
How Choice Mortgages Can Help
As an independent broker, Choice Mortgages has access to a wide range of mortgage lenders. We work hard to get you the best deal.
Our team has decades of experience helping first time buyers and home movers. We’re here to help make your property dreams come true, and will always offer our clients the best advice for their particular circumstances.