A multi-branch estate agency boss in London has begun offering vendors four-week sales contracts, saying the industry practice of locking in clients for months should stop.

Benjamin Stevens boss Steve Wayne (main image) has made the comments during an interview with The Neg, saying long lock-in periods for vendors remains a significant problem.

“If we all limited ourselves to four-week sole agency lock-ins then the problem of over-pricing would disappear very quickly,” he says.

Stevens adds that lengthy lock-ins prevent vendors from moving to a new estate agency if their existing one is struggling to attract offers, saying that this significantly lengthens the time it takes to sell a home.

“Too many agencies in this industry use high valuations to get instructions knowing full well the property is unlikely to sell at that price, and that they’ll have to ask the vendor to drop the price later on, in the knowledge they’re safe because the contract locks the vendor in for, in one instance I saw recently, 24 weeks,” says Wayne.

Bad name

He is inviting agents in North London and beyond to follow his example, saying long sales contracts are one of the reasons that estate agents have a bad name.

“It’s about being honest with people in the first place but because they know they are going to tie people in for so long, they don’t have to be honest, they just want to get the instruction,” he says.

“We’re all not doing this in the right manner – and are trying to get the listing and not what’s right for the client

“If you do what’s right for the client, then you get the repeat business. Agents overall need to take a long hard look at themselves and be more honest with their clients.

“I get the idea of trying a higher price, but when it doesn’t attract offers change it quickly – if you leave it for eight weeks at the wrong price then it loses energy and, more importantly, house hunters can now see – via the portals – how long a property has been on the market and, when it’s not sold, think there’s something wrong with it – when in reality it’s just been marketed at the wrong price point.”

Benjam Stevens has now begun offering a four-week sole estate agency agreement when pitching to potential vendors because “if I can’t sell a house in four weeks then I think we’re doing something wrong and I hope that other agents will join us in their approach,” he adds.

“I’m not saying we walk away after four weeks – just that vendor clients now have the option to do so if they feel it’s not all going in the right direction.”

Watch the interview in full