If you’re a first-time buyer, navigating estate agents can feel like learning a new language. From registering your details to making offers and dealing with “best and finals,” understanding how the process works puts you in control.
Most estate agents are professional and helpful, we work directly with some outstanding agents!
But it’s worth knowing your rights and spotting the red flags that could indicate illegal practices.
What do estate agents do?
Estate agents act on behalf of the seller to market and sell their property. They’re paid by the seller (typically 1-3% of the sale price plus VAT), which means their priority is to get the best price for their client, not to help you as the buyer.
That doesn’t mean agents are against you! Good agents want smooth transactions and happy buyers who might become future clients. This often means making sure your journey as a buyer is clear, helpful and all above board.
Registering with an estate agent
Before you can view properties or make offers, most agents will ask you to register. This involves providing your contact details, budget, property requirements, and proof that you’re a serious buyer.
What agents typically ask for:
- Proof of deposit. Bank statements showing your savings or a gifted deposit letter.
- Proof of funds for cash buyers. If you’re not getting a mortgage, you’ll need to show you have the money.
- Agreement in Principle (AIP). This shows a lender has indicated they’d lend to you. If you don’t have one yet, check out our guide to getting an Agreement in Principle.
- ID and address verification. Passport or driving licence and a recent utility bill.
Agents need this information for anti-money laundering checks and to ensure they’re not wasting the seller’s time with unqualified buyers. It also helps them match you with suitable properties.
Red flag: “You must use our recommended mortgage adviser”
This is where things can get murky. Some agents will say you must be “qualified” by their in-house or recommended mortgage adviser before they’ll show you properties or pass on your offer.
This is conditional selling, and it’s illegal.
We’ll cover this in more detail below, but the key point is this: you have the right to use any mortgage adviser you choose. An agent cannot refuse to work with you because you won’t use their recommended broker.
They can however, understand your circumstances, spot that you may need the support of a great broker and ask if you’d like them to set up a call/ meeting with a broker they work with, like we mentioned above – we work with some great agents that do just that. For many buyers, this makes the journey smoother as they can get mortgage ready before making any offers, but remember, you can decline.
Viewing properties
Once you’re registered, you can start viewing. Agents will either accompany you or give you access to view independently, depending on the property and their policies.
What to look for during viewings:
- Structural issues. Cracks, damp, wonky floors, or signs of poor maintenance.
- The area. Visit at different times of day. Is it quiet? Is parking available? How close are schools, shops, transport?
- Your gut feeling. Does it feel like home, or are you trying to convince yourself?
Take photos and notes. After viewing several properties, they all blur together, so having a record helps!
Don’t be afraid to ask questions. How long has it been on the market? Have there been any offers? Why is the seller moving?
Making an offer
When you’ve found a property you want to buy, it’s time to make an offer. This is where strategy comes in.
Initial offers
Your first offer doesn’t have to be the asking price (or the maximum you’re willing to pay). In fact, most buyers offer below asking, particularly if the property has been on the market for a while or if there are obvious issues.
How much below asking depends on the market, the property, and how motivated the seller is. In a hot market, you might need to offer at or above asking. In a slower market, 1-5% below asking is reasonable.
The agent will present your offer to the seller along with your AIP, proof of deposit, and any other relevant information (this could be that you’re a first time buyer as it tends to mean you can move quicker than those selling).
The seller can accept, reject, or counter your offer. Negotiation is normal, so don’t be discouraged if your first offer isn’t accepted.
Best and final offers
In competitive situations where multiple buyers are interested, agents often ask for “best and final” offers. This is exactly what it sounds like: your final, highest offer.
Here’s the strategy:
- Don’t assume others are offering more. Set your own maximum, and try your best to stick to it.
- Be prepared to walk away. If you go to your absolute maximum and still lose out, that’s okay. There will be other properties.
- Don’t get emotionally attached. Easier said than done, but overpaying because you’ve fallen in love with a house isn’t ideal if you need a mortgage (as the bank will need to agree to the purchase price too). It doesn’t mean you shouldn’t pay more than the asking price, as this is always a ‘marketing price’ the amount a house is worth will vary as it is somewhat down to opinion.
If your offer is accepted, the agent will send you a memorandum of sale confirming the agreed price and terms. This document outlines the details of the agreed sale, along with the seller and buyers details. At this point, you’ll instruct a solicitor and proceed with your full mortgage application.
Conditional selling: what it is and why it’s illegal
Conditional selling is when an estate agent refuses to progress your offer or provide services unless you agree to use a specific third-party service, such as their recommended mortgage broker, solicitor, or surveyor.
Examples of conditional selling:
- “We can’t accept your offer unless you’re qualified by our mortgage adviser.”
- “You need to use our recommended solicitor to proceed.”
- “We won’t pass your offer to the seller unless you get a survey through our partner.”
Why it’s illegal
Under the Estate Agents Act 1979 and the Consumer Protection from Unfair Trading Regulations 2008, estate agents cannot make the provision of their services conditional on you using a particular third party.
You have the right to choose your own mortgage adviser, solicitor, and surveyor. Agents can recommend services, but they cannot refuse to work with you if you decline.
This practice was recently highlighted in a BBC Panorama investigation, which found that some estate agents were using high-pressure tactics and misleading buyers into using expensive, poor-quality services.
What to do if it happens to you
If an agent tells you that you must use their recommended services:
- Push back politely. Explain that you already have a mortgage adviser (or solicitor) and that you’re aware conditional selling is illegal.
- Get it in writing. If they insist, ask them to confirm their position in an email. Most won’t, because it creates evidence of illegal behaviour.
- Report them. You can report the agent to the Property Ombudsman, Trading Standards, or the National Trading Standards Estate Agency Team.
- Walk away if necessary. If an agent is engaging in illegal practices, it’s a red flag about how they operate more broadly.
Protecting yourself
The best way to protect yourself is to be prepared before you start viewing properties.
- Get your Agreement in Principle from an independent broker (like us) before you register with agents. This shows you’re qualified without needing their “help.”
- Have your solicitor lined up. Knowing who you’ll use removes the pressure to accept their recommendation.
- Be informed. Understanding your rights makes it harder for unethical agents to take advantage.
At Ernest Grant Mortgages, we’re completely independent. We work for you, not the estate agent, and we’ll never work with agents that could compromise our advice. For the agents we do work with, we often provide training to staff to make sure they understand the line between helpful and unethical.
If an agent is pressuring you to use their recommended broker, get in touch with us and we’ll make sure you’re properly qualified and protected.
Working with estate agents effectively
Most estate agents are professional and want to help facilitate a smooth transaction. Here’s how to get the best out of the relationship:
Be responsive. If an agent calls or emails, respond promptly. Buyers who are slow to communicate get deprioritised.
Be realistic. If your budget is £250,000, don’t ask to view £300,000 properties hoping for a huge discount. Agents will quickly lose interest.
Build rapport. Estate agents are people too. Being polite, friendly, and reasonable makes them more likely to advocate for you with the seller.
Stay in touch. If you’re actively searching, check in with agents regularly. New properties come on the market all the time, and agents often alert their favourite buyers before listings go live.
Ready to start your property search?
Understanding how estate agents work takes the mystery out of the process and puts you in a stronger position as a buyer.
Whether you’re just starting to look or you’re ready to make an offer, having your finances sorted and an Agreement in Principle in place shows agents you’re serious.
If you’re getting ready to buy, make sure you’ve checked your credit file, understood your budget, and have your deposit ready to go. The more prepared you are, the smoother the process will be.
At Ernest Grant Mortgages, we work with buyers across Solihull and beyond to make sure they’re mortgage-ready before they start viewing. Book a free consultation with our team, and we’ll get you qualified the right way, with no pressure and no hidden agendas.