Seller beware!
How do you choose the right property agent to sell your pub? Steve Rodell of property agents Fleurets outlines ways to ensure all runs smoothly.
If you decide it is about time to start looking for a new pub, you will probably start with a property agent. You can avoid unnecessary costs and aggravation by following a few simple rules when appointing an agent to sell your business.
Choose the right company
Before you invite an agent to inspect your property check the professional integrity of the firm. A reputable firm will be associated with a governing body whose rules and regulations or code of conduct must be adhered to. Remember, anyone can become an estate agent and checking that a firm is a member of an association helps ensure you are dealing with a reputable business.
What should you look for in a good agent?
Professionalism, in short. The agent should be able to demonstrate that it can sell your property at the best price and within the optimum time frame. This will depend on your personal circumstances and a good agent will spend some time finding out about these.
Look for a good working knowledge of the market along with evidence of recommendations. Remember, you are going to have a working relationship with this person that may last quite a while, so do you get on well?
Ask yourself: "Would I want to be dealing with this person if I were a buyer?"
It is also key to remember the best agent is not always the one who values your pub at the highest price. It is easy for an agent to pitch on the "high side" and get the instruction, but it will be you who loses out if your business hangs around on the market because it is not realistically priced. Trust is an important factor between agent and client.
The marketing campaign
A good structured marketing campaign is essential if the sale of your property is to proceed smoothly and you should expect a presentation from the agent outlining the activities it will undertake to sell your business.
This will include the content and format of sales particulars, where the property will be advertised and what other marketing tools it will be using. A helpful hint is to use an agent which has an extensive and interactive website, as the internet is fast becoming the most popular method for searching for property.
Should I expect feedback?
Absolutely! Ensure the agent you choose will personally keep you updated with progress. Many agencies pass your file to office staff once they have secured your instructions, so it is unlikely you will deal with the person you first met.
Even if there is little interest in your property, you, as the vendor, need to know why. Feedback from viewers will help you address any issues or problems that are putting off prospective buyers.
It is a legal obligation for the estate agent to pass any offers on to the vendor as soon as is practicably possible. Therefore, check that the agent has a suitable office procedure to deal with offers.
How much will this cost?
A good agent will provide initial advice free of charge, furnishing you with recommendations to help you decide whether to market your business through that agent. Ask your agent to carefully explain how fees will be payable.
There are two generally accepted methods. Firstly, a "no sale, no fee" approach with no up- front marketing costs. In this case the agent is dependent on securing a sale to receive any money. This has the advantage of incentivising its staff to do a good job for you. The agent will also ensure that his advice is accurate and reflects the current market position.
The second method is to pay for an advertising contribution or budget prior to the commencement of marketing.
What about the contract?
You can expect two types. "Selling rights" is where you pay the agent if he successfully introduces a buyer who completes a sale. This enables multiple agency, but has the distinctive disadvantage of being more expensive (you have to pay for more than one agent to promote your property).
It also introduces an element of uncertainty for the agent, who is less incentivised to sell your property. You then run the risk of the agent spending less time and commitment on your instruction.
The second method is "sole selling rights" where the agent will be entitled to his fees no matter how the buyer is introduced to the property - it could be through the agent or someone else entirely.
This has the advantage of being cheaper (with one agent promoting the property) and the agent can control the marketing of the property and is the only point of contact for the vendor, which tends to make life simpler and less time consuming for the client.
In a good market, where there is more than one buyer, a good agent on a sole selling rights agreement will also be able to orchestrate bidding to achieve the best price.
Insider tip
Ask the agent how his salary is paid. If it is success-related (for example, based on a percentage of the commission achieved), he is more likely to be incentivised to get your property sold at the best price in the shortest time.
Pictured: The Tavistock Inn, Dartmoor National Park, is up for sale through property agent Bettesworths.
