Navigating Conditional Selling: How to Avoid Pressure from Estate Agents
Purchasing a property, whether you’re a First Time Buyer or a home mover, is an exciting experience – but it can also come with its challenges. One frustration many buyers face is feeling pressured by estate agents to use their in-house services, like mortgage advisers or solicitors. This practice, known as conditional selling, adds extra stress for buyers and can even be against the law.
As an Independent Mortgage & Protection Adviser, I often hear from clients who feel this kind of pressure . But here’s the good news: You have the freedom to choose your own mortgage adviser. In this blog, we’ll break down what conditional selling is, why it’s a problem, and how you can confidently handle this tricky situation.
- What is conditional selling?
- Why is it a problem?
- How estate agents try to justify conditional selling
- Know your rights
- How to combat conditional selling
- Download: Code of Practice for Residential Estate Agents
What Is Conditional Selling?
Conditional selling occurs when estate agents try to pressure buyers into using their in-house mortgage advisers, solicitors, or other services as a condition of purchasing the property. In many cases, buyers are told or led to believe that unless they use these services, their offer won’t be considered, or they may lose out on their dream home.
While estate agents may market this as a “convenient” one-stop shop, the reality is that it can trap you into using services that might not be in your best financial interest. Often, this pressure comes because estate agents earn referral commissions when buyers use their in-house services, which gives them a financial incentive to push these options. Even worse, this kind of pressure is illegal under UK law, including the Estate Agents Act 1979.
Why Is It a Problem?
1. It Undermines Your Negotiating Position
You might hear some estate agents saying their in-house mortgage adviser needs to “financially qualify” your offer before they can put it forward to the seller. When you let an estate agent’s in-house adviser review your finances, they gain insight into exactly how much you can afford. This gives them the power to push the seller for a higher offer, weakening your position during negotiations.
2. Limited Mortgage Options
In-house mortgage advisers, especially those tied to large corporate estate agents, often don’t have access to a broad range of mortgage products. Many of these advisers are restricted to a limited panel of lenders, which can narrow the options available to you. This means you might not receive access to the most suitable or competitive products for your individual circumstances.
3. Disruption of Trusted Relationships
Many buyers have already taken the time to build a relationship with an independent mortgage adviser they trust, someone who understands their financial situation and long-term goals. Being pressured to switch to an in-house adviser undermines this trust and can leave buyers feeling unsettled and vulnerable. The relationship with a trusted adviser is based on transparency and personal service, while an estate agent’s adviser may not have the same level of insight into your needs or provide the same quality of service. This disruption can lead to confusion and uncertainty at a critical point in the home-buying process.
How Estate Agents Try to Justify Conditional Selling
Estate agents might use several tactics to convince you to use their in-house services:
- Claiming it will “speed up the process”: They may suggest that using their mortgage adviser or solicitor will make the sale smoother or faster.
- Hinting at preferential treatment: Some agents imply that you’ll get preferential treatment – such as early access to properties or a better chance of securing the home – if you agree to use their in-house services. In reality, this is both unethical and illegal.
- Implying your offer might not be passed on: Perhaps the most concerning tactic is the suggestion that your offer won’t be passed on to the seller unless you use their mortgage adviser. Remember, this is illegal. Estate agents are required by law to pass on every offer to the seller.
Know Your Rights
You are never obligated to use an estate agent’s mortgage adviser or other services. Under the Estate Agents Act 1979 and guidelines from The Property Ombudsman, estate agents must:
- Pass on every offer to the seller, regardless of whether the buyer uses in-house services.
- Avoid any form of discrimination against buyers who choose to use independent services.
- Never pressure you into taking out services like mortgages, conveyancing, or surveys from their partners.
How to Combat Conditional Selling
1. Get Your Decision in Principle Ready
Before you start viewing properties, make sure you have a Decision in Principle from an independent mortgage adviser. This document proves your financial readiness to buy a home and reduces the likelihood of an estate agent pressuring you to use their services.
2. Ask Your Mortgage Adviser to Communicate with the Agent
If an estate agent tries to pressure you into using their mortgage adviser, inform them that your chosen adviser will be happy to confirm your financial readiness and offer via email. When assisting my clients in navigating these situations, I always include a copy of the Code of Practice for Residential Estate Agents in my correspondence. This highlights the illegality of conditional selling and ensures the agent understands that you are aware of your rights. You can download my copy of this document, with the relevant sections highlighted, below:
Final Thoughts
Conditional selling is a growing issue, and buyers often feel trapped into using services that aren’t in their best interest. But remember: you have the right to choose your own mortgage adviser and solicitor. By being informed and seeking the support of an independent mortgage adviser, you can secure the most suitable and cost-effective mortgage for your future home – without compromising your financial well-being.
If you need help navigating the mortgage process or want to ensure you’re getting the most suitable advice, feel free to reach out. As Independent Mortgage & Protection Advisers, we can help you find the right mortgage for your unique situation – without the pressure.
Contact us today for a free initial consultation and let’s discuss how we can help you navigate the homebuying process – on your terms.
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A fee may be charged for mortgage advice. The exact amount will depend on your circumstance.