Beware of Conditional Selling: a Warning for First-Time Buyers and Home Movers
Written on 9 March 2025 by
Buying a home, whether you're a first-time buyer or an experienced mover, is an exciting but often stressful journey. From navigating mortgage options to handling legal paperwork, the process can be overwhelming. Unfortunately, some estate agents take advantage of this complexity by engaging in conditional selling - a practice that can add unnecessary pressure and even jeopardise your purchase.
In this guide, I’ll explain what conditional selling is, why it’s a concern, and how you can protect yourself from falling into this common trap.
What Is Conditional Selling?
Conditional selling occurs when an estate agent pressures or strongly encourages a buyer to use their in-house services - such as their recommended mortgage broker, solicitor, or financial adviser. Often, they claim this will make the process faster or cheaper, even when that’s not necessarily true.
If you’ve already secured a Decision in Principle from a lender or arranged legal representation, you shouldn’t feel obligated to switch just because an estate agent suggests it. Estate agents promote their preferred services because they earn commission from referrals - not necessarily because it’s in your best interest.
The Risk of ‘Subject to Sale’ Clauses
Another form of conditional selling comes in the form of a “subject to sale” clause. This happens when a seller accepts your offer but keeps marketing the property in case a better offer comes along.
For buyers, this can be risky. You might think you’ve secured your dream home, only to find that another buyer swoops in with a higher bid before you’ve completed the purchase. This can lead to wasted time, financial loss, and emotional frustration.
Why Conditional Selling Is a Concern
1. Delays and Uncertainty
Being pushed into using an estate agent’s mortgage broker or legal services doesn’t necessarily speed up the process. In many cases, it can lead to unnecessary delays and additional costs. If your mortgage application takes longer than expected, the seller might decide to move on to another buyer.
2. Limited Mortgage Options
Estate agents often work with a limited panel of lenders. While they may have access to mainstream banks, they might not offer the best deals for buyers with complex financial situations.
As an independent mortgage broker, John Charcol has access to over 120 lenders, ensuring you get the best possible mortgage deal tailored to your needs.
3. Emotional and Financial Stress
Buying a home is already an emotionally charged experience. Conditional selling can add unnecessary pressure, making you feel like you must accept terms that don’t suit your financial situation. In some cases, buyers have been forced into rushed decisions or higher costs than necessary.
How to Protect Yourself from Conditional Selling
1. Do Your Research
Educate yourself about local market conditions and standard estate agent practices. The more informed you are, the easier it will be to spot high-pressure sales tactics.
2. Ask Direct Questions
When making an offer, ask the estate agent upfront whether the property is subject to a sale clause. Clarify whether your offer is truly secured or if there’s a risk of being outbid later.
3. Have Your Finances Ready
Ensure your mortgage is pre-approved and your finances are in order before making an offer. This makes you a stronger buyer and reduces your reliance on estate agent-recommended services.
4. Move Quickly but Cautiously
If you’re serious about a property, act fast to secure it. However, don’t be pressured into using services you’re uncomfortable with - your priority should be getting the best deal, not just the easiest option.
5. Get Independent Legal Advice
Work with a solicitor or conveyancer who isn’t connected to the estate agent. This ensures they represent your interests, not the agent’s commission.
6. Request an Exclusivity Agreement
If possible, ask the seller to sign an exclusivity agreement, preventing them from accepting other offers during a set period. While not always possible, this can provide peace of mind.
7. Use an Independent Mortgage Broker
Remember, you don’t have to use the mortgage broker recommended by the estate agent. Working with an independent broker gives you access to a wider range of lenders, often resulting in better rates and more tailored advice.
At John Charcol, we work on your behalf to secure the best mortgage deal and liaise with all parties, including lenders, solicitors, surveyors, and estate agents, to keep the process smooth. If in doubt, always seek a secondopinion before agreeing to anything.
Final Thoughts
Conditional selling is a common but frustrating issue that many home buyers and movers face. By staying informed, asking the right questions, and taking proactive steps, you can protect yourself from being pressured into unnecessary services or risky agreements.
Category:Nicholas Mendes
