Customer Satisfaction
The study, published yesterday (23 March 2004), assessed customer satisfaction with estate agents by interviewing a number of consumers [see notes to editors] who had recently bought or sold a property.
According to the OFT:
- 9 out of 10 people use an estate agent to sell their house and the majority felt the process was ‘positive’
- Two thirds of customers felt that the service they received met their expectations
- Less than 10% of home buyers felt that their agent was responsible for delays in the transaction
- Almost half of home buyers would defintiely use the same agent again in future
Lowest fees in Europe
Surpisingly, 38% of sellers felt that agents were offering poor value for money. However the OFT reported that no evidence was found that estate agents are making excess profits over the housing cycle. The average fee charged by agents was found to be only 1.5% - the lowest in Europe. In addition, home buyers who shopped around (as 61% did) or negotiated their fees paid on average 14% less than those who did not. There was futher evidence that agents are offering accurate valuations and securing good prices for properties, with homes selling for an average of 98.3% of the initial valuation and 84% of sellers believing that their agent’s valuation was accurate.
Other findings
The report praised the efforts of the NAEA for establishing strict rules of conduct for its members and encouraged the Association to continue to promote standards and quality of service alongside OFT and statutory regulations. It emphasised the need for the public to be more aware of these rules of conduct in making their choice of estate agents. The NAEA is running a national advertising campaign over the next few months to emphasise the importance of using NAEA estate agents when moving house.
Room for improvement
The NAEA also welcomed the report’s recommendations for improving the estate agency market. Many of the changes suggested are issues the NAEA has been campaigning on for many years, including modernising the Estate Agents Act to fully encompass modern day practice, maintaining documented audit trails of activity and making contractual terms clearer.
Peter Bolton King, Chief Executive of the NAEA said: "Whilst we are pleased with the majority of this survey’s results, we recognise the need to continue to work for increased customer satisfaction. We have spent many years campaigning for more stringent controls over estate agency, to oust rogue agents and ensure that the public receive the levels of service they deserve. Our own rules of practice provide a guarantee of minimum standards, however although we can expel and heavily fine members, we cannot stop them from continuing to practice. We were disappointed that the OFT have not taken their recommendations further with the introduction of minimum qualifications and self-regulatory licensing. In the meantime, home buyers and sellers looking for reassurance should look for the NAEA logo.”
For further information on the NAEA and to find registered agents in your area, visit www.naea.co.uk.
