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What is the role of an estate agent when buying a property in the UK?

Zane

Zane

2023-05-12 10:48:00 Have read:331 Interesting:0

In recent years, the UK property market has become highly sought after by overseas buyers from around the world, but as many buyers are not familiar with the UK property market, they often seek the help of an agent to purchase a property. So what exactly can an agent do to help in the UK property buying process? The editors of UK Property will give you a brief overview.

  1. The role of agents

  One of the distinctive features of the UK property market is its openness and transparency, whether it is through publicly available websites such as Rightmove and Zoopla, or through regularly updated regional data and house price studies by major property and mortgage lenders, ensuring that there is no information asymmetry in the UK property market, i.e. "zero information gap ".

  The UK property market is equal for overseas buyers and local buyers, and prices are transparent and open. In addition, lawyers on both sides of the process are involved and review the entire process to ensure the legality and fairness of the entire purchase process in order to maximise the protection of consumers' interests.

  Property brokers in the UK are different from what we traditionally think of as agents. They are not just a bridge between buyers and sellers and a conduit of information, but are also seen as 'agents'. Where a developer does not have enough staff to meet the needs of all their clients, they will appoint a broker to assist in moving forward on their behalf to better serve their clients. The broker is therefore a key player in the whole process of buying a home for overseas buyers, acting as a gatekeeper for the whole transaction, with the effect of "1 (developer) + 1 (agent) > 2 (better service)".

  2. Difficulties in buying a home

  One of the major challenges facing overseas buyers in the UK property market is how to choose the right property for them from a wide range of projects and properties. While some clients may choose to visit different developers' projects on site themselves, there is an obvious disadvantage to this approach, namely that they can only learn about the specifics of each project and lack an understanding and judgement of the London market as a whole.

  This is where the client needs an objective, third-party voice to help him analyse each project on a case-by-case basis, and this voice should not be biased towards any particular developer or property, so broker comes into play.

  Having identified the property and the type of property you want, the second key challenge facing overseas buyers is bargaining, or 'haggling'. It is important to note that without the help of an agent, it is not easy for an individual buyer to secure the desired discount. This phenomenon can be analysed in two ways.

  When we put ourselves in the shoes of the developer, we see that the buyer is usually buying 1-5 properties, which is an individual action, and the volume of individual buyers is very small compared to the volume of clients that the agent brings together to buy. As a result, developers are more willing to offer more price concessions to agents as they can bring in a larger volume and a higher frequency of transactions. As a result, agents are usually able to help their clients get better discounts.

  Many developers will release information about events through agents during specific celebrations and moments. Customers who have strong connections with agents will have access to more sources of information about limited-time discounts, providing them with the opportunity to get more discounts in the bargaining process. In short, they will be able to get a further "haircut" in the buying process.

  3. Pre-transaction

  The preliminary stage of a property transaction includes a series of steps, such as the signing of a reservation form, the provision of anti-money laundering materials, the opening of an account and the transfer of funds.

  In the process of purchasing a property, some customers may think they are very independent and can complete all the processes on their own, but in fact, there are many details in these processes that need attention, such as the terms of the booking form, the choice of lawyers, the provision of documents in the anti-money laundering investigation and so on. All of these require the skills of an experienced person. A professional broker can help clients through all the processes, providing advice and assistance to ensure that the whole process is efficient and streamlined, and that the service is also very good.

  4. Mid-term property transactions

  The main difficulty that overseas buyers may face in the middle of the transaction is the issue of delays.

  For example, if on day 21 of the purchase process the buyer is unable to turn in all the required information, then they will need to apply for an extension. This is not uncommon as in just 21 days the buyer has to complete a number of tasks including the provision of documents, transfer of funds, posting of contracts overseas and so on, and any delay in any one of these can cause a delay in the whole process. Each step of the process requires a certain level of skill and experience in how to submit the appropriate documents and plan the funds, such as paper utility bills which are no longer common in China but are required for purchasing a home in the UK, or how to meet a solicitor's requirements for proof of financial income, etc.

  In such cases, the agent can help the client to go through all the procedures in an organised manner and advise accordingly. If the exchange of contracts cannot be completed on time at this stage, the agent can apply to the developer for an extension in a structured and tactful manner, depending on the progress of delivery and the nature of the extension. From the developer's point of view, the agent wants to move the client's purchase process forward and make the whole process smoother, so the agent will be more forgiving and understanding and happy to help with extensions.

  And more importantly, this stage usually takes a year, two years or even five or six years, and some clients may forget the timing of each payment, even on the day of payment. Agents can help their clients develop a long-term monitoring and planning to ensure that the property transaction can proceed smoothly.

  5. Later stages of a property transaction

  The later stages of a property transaction are when you come to the point of delivery.

  Secondly, agents helping buyers in the process of buying a property will usually plan each stage of the process in advance and remind their clients of the tasks that need to be completed at key points in time. Although the developer will usually inform the buyer 10 days before handover, these 10 days are not enough to deal with everything, for example the processing of the loan may take longer. Therefore, agents will alert their clients much earlier to ensure that all tasks are completed smoothly and that the client feels at ease at the time of handover.

  At the handover stage, the agent will help the client with the intake and inspection of the home. If there are any cracks or damage to the house, the agent will give feedback to the client at the inspection stage and raise the quality issue with the developer for repair.

  In the case of buyers overseas, the agent will also help with a one-shot whole house shoot.

  6、Property rental

  Once the above process is completed, it is time for rental management. Some agents will provide a complete rental service, which usually includes a one-stop shop for quality rental agents, furniture suppliers, tax accountants, property companies, etc., providing all the resources needed for rental and completing everything for the landlord.


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