Increased lender requirements and a shortage of surveyors have slowed down the transaction leaving vendors in the dark over the length of the sale process.
Ron Radway, owner and mortgage adviser at the One Call Financial Advice Centre, said: “Chains can’t stand up to lenders’ forensic bank statement assessments without the support of the estate agent.
“They need to negotiate on an adult level with the vendor. If the vendor stamps their feet and wants it completed straight away the agent must be brave enough to tell them truth – it takes longer than it used to.”
Practices such as demanding a valuation be carried out within seven days to prove a commitment to buy and persuading vendors to put properties back on the market have been reported.
Matt Fleming-Duffy, mortgage broker at Cherry Mortgage & Finance, said that while he has largely had a positive experience with estate agents standards vary because the sector is unregulated.
He said: “It all boils down to that firm’s take on the market. Even the larger more reputable firms are at the mercy of an individual’s perception of how long the transaction should take.”
Mark Hayward, managing director of the National Association of Estate Agents, said all its members adhere to a code of conduct but the NAEA does not represent all agents.
He said the association is aware of some agents encouraging vendors to remarket their property once the sale process has begun.
“As the process becomes delayed the seller begins to think the price they have agreed has become historic,” he said.
“Some unscrupulous agents are targeting these vendors telling them they could get more for their home because prices have gone up in the last six to eight weeks.”
Findings from the last NAEA survey showed that for every one property there were eight buyers but Hayward cautioned that this was a national average.
Hayward added: “Sellers outside of London will read these headlines and think it applies to them but in a lot of areas it doesn’t.”
Rob Clifford, owner of estate agency chain Century 21, said agents are advising vendors of the time delays but it often falls on deaf ears.
He said: “Estate agents could be even more explicit with vendors about potential purchaser delays but vendors often ignore our advice.
“We are hearing of many tough conversation with vendors who are frustrated with delays because they are getting a lot of interest in their property from other buyers.”
Clifford said his estate agents have been guided through the Mortgage Market Review changes and the delays it will cause.
Colin Payne, associate director of Chapelgate Associates, said brokers have a responsibility to keep the lines of communication open between them and the estate agents.
“I have estate agents that introduce leads to me which I meet with on a fortnightly basis.
“I go through all the changes which have occurred during that time to keep them fully aware. Brokers need to educate their introducing agents.”
