These comprise a survey of estate agents, a survey of trading standard services and both qualitative and quantitative consumer research.
Evidence from the research suggests that consumers are increasingly open to alternative methods of buying or selling a home. While the large majority of sellers used a traditional estate agent, more than a third initially considered selling privately, using an online estate agent, or selling at auction. There is a marked increase in interest in online estate agents relative to the OFT’s previous survey in 2004.
Consumer satisfaction with the services provided by estate agents has improved – 88% of both buyers and sellers were satisfied with the service provided by estate agents, a higher level of satisfaction than five years ago (72% of buyers and 74% of sellers). The majority of consumer complaints in the sector are about the individual buyer or seller on the other side of the transaction or their solicitor, rather than with the estate agent involved.
The research also covered the question of fees received by estate agents on services provided to buyers such as referrals for mortgages, surveys, legal advice and other services. On average, estate agents made recommendations about the providers of such ancillary services to 65% of buyers and 36% of buyers took up these recommendations and went on to use at least one of these services.
Nineteen per cent of buyers said they had experienced a purchase falling through after they had made an offer that the seller had accepted - the most common reason for a sale falling through was another buyer made a better offer, followed by the buyer withdrawing after a survey showed problems with the house, and problems elsewhere in the chain.
The OFT intends to publish the study in early 2010.
