Estate agent reveals dirty tricks

Katherine Barney, Evening Standard

A disillusioned former estate agent has blown the whistle on underhand tricks of the trade.

Pav Sheen says he was so outraged by what went on behind the scenes that he wants to warn others before they buy or sell their properties.
During his time as an estate agent in London Mr Sheen says he saw several dubious tactics, including colleagues undervaluing properties to sell them to each other at a lower price. He also said he witnessed people taking cocaine to 'psych themselves up' before making a sale.
Other tricks included arranging two viewings at the same time and, after one potential buyer had left, getting the office to call pretending to be that buyer putting in an offer.
Mr Sheen, 25, from Gerrards Cross, is still in the property business but now helps consortiums find business investments. He said: 'I went into the business completely oblivious to what went on. It was very obvious it was a way of life and people blindly went along with it.
'We'd be told we'd lose our job if we didn't comply and an estate agent's basic wage isn't very much so if we didn't play along and make the sale we would lose out.'
Eventually Mr Sheen said he found the corruption too much, especially when it came to taking advantage of buyers who had put their trust in him. He said: 'The most vulnerable people are first-time buyers at the lower end of the market because they're really in the hands of the estate agent.'
Mr Sheen has written a book, Tips, Tricks And Traps. He initially intended it as advice for his cousins who were buying a house but what began as a series of pointers soon grew to more than 100 pages.
He spent more than two years as an estate agent, first working for a big chain in Harlow, then in Walthamstow and elsewhere in north and east London. He is planning to launch a website, www. IHateEstateAgents.co.uk where people can share their experiences.
Under home information packs legislation, all estate agents who handle packs must be regulated by an ombudsman which can award up to £25,000 compensation against offending agents.
As a result, since June, 80% of agents have joined the Ombudsman for Estate Agents scheme. Agents who fail to join are breaking the law and could be prosecuted, fined and banned from operating.
10 ways they cheat
1. Gazumping. When a deal has been agreed some agents still show people around the property hoping for a better offer.
2. Value a property at a low price - and then sell it to a friend or colleague.
3. Use scare tactics such as pretending to receive offers to get people to make a higher offer.
4. Neglect to pass on all offers to vendor in hope of achieving a higher one later on.
5. Refuse to reduce commission if the price is reduced.
6. Overvalue houses to secure business from sellers.
7. Supply customers with fake documents to help them secure a mortgage.
8. Make up a very low offer. This shocks the seller into accepting a genuine offer which is far lower than the original valuation.
9. Fake evidence that other properties in the area have sold for an overly high price.
10. Erect for sale/sold signs at homes the agent had nothing to do with to give a false impression.