Selling your home is a significant life event, but for too many sellers, the process is made unnecessarily stressful by estate agents tying them into long, restrictive contracts.
As an agent in the property industry for more than 30 years, I’ve seen firsthand how these agreements can leave sellers feeling trapped and powerless. Unfortunately, I’ve also recently been on the receiving end of one of these contracts myself.
Recently, I appointed an estate agent to sell a property I own in another region. The process should have been straightforward, but from the start, it was anything but.
I received the contract via DocuSign with no explanation about the type or length of the agreement. The document was set up to push me straight to the ‘SIGN’ button without reviewing the details.
But I never sign anything without reading the fine print first!
What I found was shocking. The contract was a Sole Selling Rights agreement, which meant that even if I found a buyer myself - whether it be a friend, a relative, or even my own child - I’d still be required to pay the agent’s fee. Not exactly a fair deal.
Then came an even bigger shock - the length of the contract. It locked me in for 26 weeks. That’s half a year! So, even if I was unhappy with their service, I would have been unable to instruct another agent for six months.
When I challenged the agent, they initially refused to change a thing, insisting it was the only contract they offered. Only after pushing back did they agree to switch it to a Sole Agency contract, which at least allowed me the option to sell privately without paying them, and reduce the term to three months including the notice period.
However, they didn’t even have a contract template for this change so quite frankly, it was a mess, and the whole process took far longer than it should have.
Did they deliver? No. Three months, a handful of viewings, and getting feedback was like pulling teeth. You’ve guessed it - no offers.
This experience opened my eyes even further to the unethical practices that too many estate agents get away with. Contracts that lock sellers in for long periods with no guarantees of effort or service are not just unfair, they actively work against home sellers trying to move on with their lives.
The process should be transparent, fair, and focused on getting the best outcome for the seller, not just the agent’s commission. Sadly, as I’ve witnessed firsthand, that’s not always the case.
Unfortunately, too many estate agents lock sellers into lengthy contracts, knowing full well that once a homeowner is committed, they have little choice but to ride it out - even if the service is poor. Here’s what happens:
Overpromising on Price: Some agents entice sellers with inflated valuations, only to push for price reductions later. If you’re locked into a contract, you have no escape.
Minimal Effort: Once a seller is tied in, the motivation to go above and beyond fades. Some agents take a ‘list it and leave it’ approach, hoping a sale will come eventually.
Lost Time and Money: If your agent isn’t performing, you could waste months with no progress, potentially missing better market conditions or eager buyers.
Restricted Selling Options: Certain contracts, like Sole Selling Rights, mean you’ll owe a fee even if you find a buyer yourself.
But, one of the biggest mistakes sellers make isn’t just signing a long contract - it’s choosing an agent for the wrong reasons in the first place. Too often, decisions are made based on fees rather than value, and this short-sighted approach can cost thousands. Overvaluation is a common tactic used by some agents to win instructions, promising an inflated price to secure your business, only to push for reductions later when the market doesn’t respond.
Consider this: if you're selling a home worth £500,000 to £600,000, the total fee difference when an agent is charging an extra 0.25% to 0.5% + VAT is around £1,500 to £3,600. In the grand scheme of things, that’s a small figure compared to what’s truly at stake - your biggest asset. The real difference comes in the quality of service, negotiation skills, and marketing expertise. A top-tier agent can secure tens of thousands more for your home, making a low-cost option a false economy.
The journey also matters. A bad agent can make the process stressful, frustrating, and chaotic.
A good agent, on the other hand, ensures a smooth, professional experience - one that feels more like a luxury cruise than a sinking ship!
For those selling high-value properties for £1million+, the stakes are even higher. The cost of choosing the wrong agent can be astronomical, both in financial loss and the sheer frustration of a botched sale.
Even as an industry professional, I thought I had chosen the right agent - but I was wrong. Fortunately, I didn’t fall into the trap of negotiating the lowest fee or signing a contract with no escape. I also didn’t sell my property - but at least I didn’t sell my soul in the process!
Often, sellers don't even realise they're in trouble until it's too late which is frustrating, unfair, and completely avoidable - if you know what to look out for.
Before signing a contract, always:
1. Read Every Word: Never sign a contract you haven’t read in full or completely understand.
2. Question the Length: A rolling contract with a reasonable notice period is far better than a fixed six-month agreement.
3. Know Your Rights: Ask if the agent will allow you to negotiate terms and get everything in writing.
4. Understand the Fees: Make sure you know when and how an agent earns their commission.
5. Don’t Be Pressured: If an agent is rushing you to sign, that’s a red flag.
At Shinerocks, we don’t impose rigid contracts! We believe in offering you choices that fit your individual needs and preferences, ensuring transparency and flexibility in our fee structures.
By offering varied fee structures, we aim to provide flexibility. This approach reflects our commitment to transparency and our personalised service, setting us apart from estate agencies that enforce ‘one-size-fits-all’ contracts.
Over the years Shinerocks has worked on many variations of our fee structures with huge success.
Speak with us and we will always work with you to achieve the best results.
Many sellers end up stuck in contracts that do more harm than good. Sadly, some become so frustrated that they give up trying to sell their home altogether. Others are pressured into price reductions that leave them selling for less than their home is worth.
You don’t have to be one of them! Choose an estate agent in Purley who puts your interests first - one who values service over contracts.
Generate a full report on your own property including an instant estimated valuation (indicative only) or contact us on 020 8660 2010 or email enquiries@shinerocks.co.uk Choose wisely. Choose Shinerocks.
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You can also call us on 020 8660 2010, or email enquiries@shinerocks.co.uk.
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