Complaints to the Property Ombudsman about both letting and sales agents are on the rise – and the complaints are translating into ‘live’ investigations.
This morning, Ombudsman Christopher Hamer revealed that there are more complaints from sellers about touting, and also about having to pay for HIPs when houses haven’t sold.
On touting – the practice of targeting properties for sale with other agents – many of the complaints come from agents themselves about their competitors. Hamer said touting could be an irritant to consumers and leaflets needed to explain to vendors the risk of a double liability to fees.
Consumers in the lettings market are now making 129 calls a week to his office, compared with 77 a week this time last year.
Hamer said he is investigating almost 79% more lettings cases (127) than in the same period last year (71).
Cases involving sales that are being investigated rose 17% in the third quarter from 104 to 122, but, reflecting market conditions, are almost 32% below last year’s level (179).
Main causes of disputes over lettings are about tenant references, agents not explaining that deposits are forfeited if the tenant does not go ahead with renting the property, and inspection visits not being frequent enough to prevent deterioration of the property.
With regard to sales, complaints have risen from sellers who have been asked to pay for a HIP when the property is still unsold, and from sellers paying double fees after switching agents.
Complaints about touting to Ombudsman on rise
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Comments
i agree mike we have a big corporate in our town who touts all the time! really all they pick up is everyones dross!! touting is dispicable practice and should be banned
Aggressive and certain Pro-active Agents depend on touting other Estate Agent's properties in the same way that Police Authorities depend on speeding motorists to boost their coffers. It's a jungle out there! Only the strongest will survive - unless a code of practice whether voluntary or compulsory stops this abhorrant unethical and unprofessional practice which is all too common with certain agencies.
If your on the receiving end of touting, you hate it. But it works both ways, give as good as you get. You normally find they quickly stop as they loose more than they gain (works everytime)and why people didn't go to them in the first place.... they were the weaker agent.
Well said Monkey Tennis.
Richard is suggesting that good agents are open for their fees to be undercut. I put it to Richard "this is not true", Only GREEDY agents leave themselves open.
For example, If I were selling a £1mil. house and the first agent came in at,say, 1.5-2%, then another came in at, say,0.75-1%, thats a saving to me of around TEN THOUSAND, when I then go back to the first agent and ask "what are you doing extra that costs 10K", the answer is "not very much". So who will I choose?
Before agents start whining about touts they should put their own house in order, stop bieng so greedy and actually do some work for a change.
It costs very little to give a VERY good service and by reducing your fee's you may find an increase in turnover."Well fancy that".
"Oops" I forgot that means more work.
There is nothing wrong with touting, the watering hole is shrinking so its natural more agents do this, however, they have a duty to represent the industry in a professional manner and musn't cross the line to harrassment.
Fine Tim, but an agent who touts as the clients did want them in the first place, will do the classic EA masterful trick of undercutting the good agents fees!
Having your (vulnerable) customers poached is what happens in the big wide world. Clients will however only leave you for a better offer, never a worse one.
If you were the poacher, would you have the balls to approach the clients of of a rival who offered better than you. No ... you would pick on the weak and the vulnerable.
"Touts"(if you dont like them).
"People using initiative to increase business"(if you do).
Bottom line. If you are offering the best service, the best online presentation, at reasonable fees, why on earth are you worried by
touts?
How funny that there is an article that highlights touting as a major source of complaint in the same release as an article about Countrywide signing up to Vizzihomes, a major cause of touting, or so they would have us believe. Another big monthly cost for Countrywide at a time when they are increasing their headcount and opening new offices, ignoring the obvious declining market conditions. I would bet £5 of my hard earned money that they will be back at their paymasters, cap in had, before Easter.
There are new agents opening around us, not sure if there will be enough business to go round and am sure we will get more silly fees again. As for complaints, quite agree with Boo Hoo, unfortunately The Ombudsman ends up justifying his existence by finding for the complainant, but for very small sums. This has happened to us, so again, sure it happens across the industry. Its fun being an Estate Agent!!!
What will crawl out of the primeval swamp?
Will the fish that are left thrashing about in the mud sprout legs and turn into lizards?
Will the people that are better suited to the home improvement industry come out and become what they were destined to be - double glazing salesman?
Seriously, I think there are still too many agents out there. If you're not completely committed to the industry now's the time to take a running jump and re-train.
The same ols complaints surfice year after year, decade after decade. Its amazing that the OEA has the time and patience to deal with these issues. Real complaints must of course be dealt with however for other agents to use the OEA for petty point scoring against rivals is pathetic. As for most of the other complaints I bet 9 out of 10 are merely Clients trying to be clever soa s to avoid having to pay a fee for a job well done....its happened to us so assume its happened to many others.