If you’re thinking of buying a new home, then you may well have been tempted by For Sale adverts on social media. The rise of the DIY agent – individuals, who usually have no real estate experience, who choose to sell properties on sites such as Instagram and Facebook – is attracting growing criticism from organisations such as the National Association of Property Buyers (NAPB).

While it may seem like an attractive option to sell or buy direct, with some listings getting over 100,000 daily impressions, there are some major problems – and financial dangers – that can impact both buyers and sellers.

These DIY agents put out regular streams of images, videos and ideas to promote properties. A bit like the increasing popularity of online influencers, people buy into these individual DIY agents and want to be a part of their brand. As a result, there’s a risk of buyers being overly influenced and going down the road of buying something completely unsuitable for their individual requirements.

No Due Diligence = No Protection

Perhaps even more concerning is that the process cuts out the regulated requirements of estate agents. In the UK, estate agents have to work to a strict Code of Practice and implement all of the legal due diligence to protect both buyers and sellers. They also have the experience to help avoid the pitfalls and disagreements that can easily result during the sales process. For buyers who choose to buy from a DIY agent there is no such protection should things go wrong and they can go majorly wrong.

The starting point for any sale is for the estate agent to verify that the property actually belongs to the person claiming to be the owner. We’ve all read stories of fraud and money laundering – such as this report in the Daily Mail where a vicar discovered his house had been sold by fraudsters impersonating him. DIY agents don’t need to make any such checks, meaning there is always the danger that you are not purchasing from the real owner.

Misrepresentation of properties can also be common. Pictures and videos are all very well, but they can easily be doctored with filters and software readily available on most laptops or mobile phones. An electrical pylon can be made to disappear from a garden, mould on walls can be removed – in reality the property may be very different to the photography and description provided.

Adding Real Value

Estate agents are legally obliged to ensure their details are accurate – something that does not apply to these DIY agents. They must also legally provide key information such as energy efficiency ratings, Council Tax band status, property tenure and more; ensuring the buyer has a complete overview of the property and associated costs going forward. This also includes making buyers aware of any material facts that could affect their buying decision before they even view the property, known as the Consumer Protection from Unfair Trading Regulations 2008 (CPRs), enforced by the Trading Standards Services. 

Furthermore, when it comes to making and accepting an offer, an estate agent will qualify the buyer, ensuring that they have the funds in place to substantiate their offer on a property. This safeguards the seller, as it makes sure the buyer actually has the money (or mortgage) in place to proceed with the purchase.

Estate agents provide a wide range of additional services as well – things which DIY agents are unable – or unwilling – to offer. Chasing up solicitors on the behalf of buyers, working with professional mortgage advisors, surveyors and energy assessors, and even advising on architects or craftsmen for renovation projects, a good estate agent will add real value at every stage of the buying and selling process.

They also tend to have a much better understanding of the local property market, so will have far greater insight into the pros and cons of certain areas and the intricacies of pricing. As a result, estate agents help speed up the sales process, with far less chance of a sale falling through. DIY agents don’t have the experience or know-how to identify and react to the various potential challenges of the sales process.

Tania, one of the founders of Cardigan Bay Properties who has worked in the West Wales estate agency market for 20 years, says: “We are active across social media and regularly see these DIY agents posting content. The problem is that they just don’t have the same understanding of the local market that we do, the experience we have, or the strict legal requirements that we work to. It’s a real danger for both buyers and sellers, with the potential for unsuspecting buyers to lose a lot of money because of these DIY agents.” 

You can read more about the work Cardigan Bay Properties does on behalf of sellers who are approached by a private buyer in this blog.