Over the years, we’ve been approached countless times by businesses offering incentives such as referral fees in exchange for recommending their services. Our response has always been a firm no.
But what exactly are referral fees, and why should you be aware of them when choosing an Estate Agent?
What are referral fees?
A referral fee can be money, gifts or another form of benefit given to an Estate Agent in return for recommending a particular service provider or business, such as a solicitor, mortgage broker or surveyor, to a buyer or seller.
The practice of accepting referral fees is often hidden from customers, meaning they may not even realise a referral fee is involved. In some cases, this can lead to buyers and sellers being pressured into using a recommended provider who may not be the best fit or offer the best value.
Why it matters
At Follwells, we firmly believe that an Estate Agent’s priority should be to work in the best interests of their vendors, purchasers and landlords. When an agent is offered a fee or incentive, it can introduce an element of bias, potentially compromising the quality of service and distorting competition.
When choosing an Estate Agent, you should expect:
Transparency: In the interest of fairness, information on referral fees should be provided to you before any transaction-based decisions are made.
Visibility: Referral fees should be clear in property particulars online and offline, including who they receive fees from and the value of each referral.
Choice: Agents should provide information about fees in writing and inform you of your right to choose different providers.
Our approach
Unlike many Estate Agents, we never accept referral fees. Instead, we recommend local solicitors, conveyancers, brokers, and surveyors based purely on their merit.
Our priority is seamless communication and the ability to understand and efficiently manage your full chain. For us, collaborating with professionals who share our dedication and provide regular updates is worth far more than financial incentives.
What you can do
Before choosing an Estate Agent, review their terms of business and website for information on the incentives they may benefit from. If nothing is mentioned, don’t be afraid to ask the question. Under consumer protection regulations, agents are required to be transparent.
Choosing an agent who prioritises your interests over financial incentives ensures you receive genuine recommendations and advice. For a personal, transparent service you can trust, get in touch with Follwells Independent Estate Agents on 01782 615530.
