Understanding estate agency fees
If you’re thinking about selling your property, it’s always best to do so with the help of an estate agent, and this will require paying a fee from the percentage of your sale.
To help you understand the cost of estate agency services and how they fit with the overall cost of selling, we’ve pulled together a guide on estate agency fees.
How much are estate agent fees?
The current average estate agent fee in the UK is 1.42% of the final selling price, which includes VAT. For example, if your property sold for £275,000 then your estate agent fee would be 1.42% of the final sum, which is £3,900. *
However, this average figure only applies if you enter into a sole agency agreement. If you choose more than one estate agent, the fee would typically be higher – 3% higher, to be exact. It’s important to take this added cost into account before entering into a multi-agency agreement.
What do estate agent fees usually include?
It’s important to ask what will be included in the fees, as services can vary by agent. In general, you should expect that your agent will provide the following:
Valuation of your property based on expertise and extensive research.
Drawing up floor plans.
Accumulating interest from their own list of appropriate buyers.
Marketing on property portals (such as Zoopla and Rightmove) and other traditional advertisement outlets.
Negotiating a suitable sales price.
Professional photographs of your home.
Installing a For Sale sign.
An enticing written description of your property.
When do you pay estate agent fees?
In the event that the estate agent is unable to sell your property, you will not be charged. Most high-street estate agents work on what is known as a ‘no sale, no fee’ basis when selling properties. Therefore, you should only pay the estate agent the fee once the property has been sold and contracts have been exchanged.
Should I choose the cheapest estate agent?
Selling a property means placing your most valuable asset in someone else’s hands. Therefore, you want to feel confident that you have hired the best possible people for the job.
If an estate agent is offering to sell your property for a suspiciously low commission fee, this is a clear red flag and the reasoning behind the small fee will soon become clear. The best agents will most likely charge higher fees as the value is reflected in the quality and efficiency of the service.
Moreover, paying a higher fee for a reputable agent will benefit you more in the long run, as they may be able to sell your property for a higher amount than a cheaper estate agent. In this case, while you may be paying a higher commission, the amount of money gained from your home’s achieved price could be higher than that of a cheaper estate agent who would have sold the property for a lower amount.
There’s no guarantee that the most expensive agent on the market will be the best one, which is why thorough research is so important before choosing an agent that is right for you. Take your time reviewing your options, always check online reviews, and make sure any agent you consider has your best interests at heart.
Have you been looking for an agent? Get in touch to discuss selling your property today.
*Home Owners Alliance
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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