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  • FIRST POST
    • E&G
    • By E&G 8th Jan 18, 4:53 PM
    • 29Posts
    • 12Thanks
    E&G
    Estate agent fees - how much could/should it cost?
    • #1
    • 8th Jan 18, 4:53 PM
    Estate agent fees - how much could/should it cost? 8th Jan 18 at 4:53 PM
    Hi

    Looking to sell a property and wondering what sort of fee I should be looking at. Sale price will likely be 80-85k, property in Scotland. Happy to do viewings ourselves.

    Thanks
Page 1
    • kingstreet
    • By kingstreet 8th Jan 18, 5:25 PM
    • 32,617 Posts
    • 17,559 Thanks
    kingstreet
    • #2
    • 8th Jan 18, 5:25 PM
    • #2
    • 8th Jan 18, 5:25 PM
    1% + VAT for a local independent.

    £2,500 - £3,500 + VAT for national chain with "minimum fee."
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Morata_
    • By Morata_ 8th Jan 18, 5:40 PM
    • 25 Posts
    • 6 Thanks
    Morata_
    • #3
    • 8th Jan 18, 5:40 PM
    • #3
    • 8th Jan 18, 5:40 PM
    Anything over 1% would be too much. You should be able to negotiate any % quoted.

    We’ve achieved 0.5% NO VAT! High street, just takes a bit of communication.
    • anselld
    • By anselld 8th Jan 18, 5:44 PM
    • 5,497 Posts
    • 5,081 Thanks
    anselld
    • #4
    • 8th Jan 18, 5:44 PM
    • #4
    • 8th Jan 18, 5:44 PM
    £99 online if you are happy to do the work yourself.
    • Margot123
    • By Margot123 8th Jan 18, 6:32 PM
    • 529 Posts
    • 537 Thanks
    Margot123
    • #5
    • 8th Jan 18, 6:32 PM
    • #5
    • 8th Jan 18, 6:32 PM
    Whatever figure you are quoted, remember you can negotiate.
    They want your business, so even if the deal sounds good, you can always ask for a better one.
    Without you, they will earn nothing on the transaction.
    • E&G
    • By E&G 8th Jan 18, 8:01 PM
    • 29 Posts
    • 12 Thanks
    E&G
    • #6
    • 8th Jan 18, 8:01 PM
    • #6
    • 8th Jan 18, 8:01 PM
    Thanks all.

    I presume the nationals offer nothing more than local independents for the money? I shall definitely be negotiating but am I right in saying not to go for whoever gives the highest valuation (as the market dictates anyway)?

    Also, for the online only option, what additional work does that entail (and does it include an advert on rightmove)?
    • JoJo1978
    • By JoJo1978 8th Jan 18, 8:13 PM
    • 235 Posts
    • 251 Thanks
    JoJo1978
    • #7
    • 8th Jan 18, 8:13 PM
    • #7
    • 8th Jan 18, 8:13 PM
    We were quoted 1% and we negotiated down to a flat fee and no VAT (0.8%), London local independent, full service
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Second career (what TBD!) 2018
    • googler
    • By googler 8th Jan 18, 11:28 PM
    • 14,551 Posts
    • 9,428 Thanks
    googler
    • #8
    • 8th Jan 18, 11:28 PM
    • #8
    • 8th Jan 18, 11:28 PM
    If you're in one of the main cities, or very local to one, you should consider going with a local member of one of the SPCs. Solicitor Property Centres.

    There's no point in going with a national estate agency, nor a standalone estate agency in Scotland, because you still need a solicitor to complete the transaction, and you'll either need to hire your own, as a separate entity, or be referred to one by the agency.

    For convenience, and ease of admin, it's tempting to suggest you find a local solicitor who is active in property sales and get it all done under one roof.

    Many of the city-based firms, at least in the capital, offer fixed-price agency fees regardless of property value. It shouldn't be too difficult to find them with a short google session

    The valuation provided by any agency will largely be a guide only - the factor which will influence your eventual selling price the most will be the Home Report valuation, so yes - you shouldn't anyone on the basis of their valuation figure
    • Riggyman
    • By Riggyman 9th Jan 18, 12:15 AM
    • 171 Posts
    • 160 Thanks
    Riggyman
    • #9
    • 9th Jan 18, 12:15 AM
    • #9
    • 9th Jan 18, 12:15 AM
    1% +vat or sod off
    • LandyAndy
    • By LandyAndy 9th Jan 18, 9:59 AM
    • 24,072 Posts
    • 50,899 Thanks
    LandyAndy
    We were quoted 1% and we negotiated down to a flat fee and no VAT (0.8%), London local independent, full service
    Originally posted by JoJo1978

    How did you persuade them to break the law by not charging you VAT?


    Or did they actually charge you 0.667% + VAT?
    • Aylesbury Duck
    • By Aylesbury Duck 9th Jan 18, 10:18 AM
    • 1,351 Posts
    • 1,758 Thanks
    Aylesbury Duck
    How did you persuade them to break the law by not charging you VAT?


    Or did they actually charge you 0.667% + VAT?
    Originally posted by LandyAndy
    Or possibly 0.83% +VAT to make it 1% inc. VAT.
    • anselld
    • By anselld 9th Jan 18, 10:29 AM
    • 5,497 Posts
    • 5,081 Thanks
    anselld
    Thanks all.

    Also, for the online only option, what additional work does that entail (and does it include an advert on rightmove)?
    Originally posted by E&G
    It includes Rightmove and Zoopla.

    Do your own viewings, photos, floorplan and advert text.

    Or for £199 they will do photos, floorplan and advert text so just viewings.

    I won't mention them by name, but given the founder was a millionaire by 19 you do wonder what the rest are blowing their fees on!
    • googler
    • By googler 9th Jan 18, 10:41 AM
    • 14,551 Posts
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    googler
    It includes Rightmove and Zoopla.

    Do your own viewings, photos, floorplan and advert text.


    .... and find a surveyor to do the Home Report. Provide the HR to all enquirers in accordance with legislative reqts and timescales. And find a solicitor to handle the legals.


    Or for £199 they will do photos, floorplan and advert text so just viewings.

    I won't mention them by name, but given the founder was a millionaire by 19 you do wonder what the rest are blowing their fees on!
    Originally posted by anselld
    On the basis that this is a firm operating in E&W, I would always caution Scots sellers against using an E&W-based online seller, in view of the different legal system and procedures around Scottish sales.

    EDIT - if it's this crowd, the closest they have is a "North East England" team.

    https://doorsteps.co.uk/index.php
    Last edited by googler; 09-01-2018 at 10:47 AM.
    • E&G
    • By E&G 9th Jan 18, 11:09 AM
    • 29 Posts
    • 12 Thanks
    E&G
    Thanks. I have two nationals, a solicitor member of GSPC and a couple of independents in the local area so I'll call on them all and get a rundown of fees and do a wee bit of negotiation. (From a friend, I know one of the independents is VAT-free, presumably as they don't hit the VAT threshold, which in itself could ring alarm bells, or could mean they really need the business and to get a good price for you - not sure). Presumably with solicitor/estate agents there's a bit more scope to negotiate fees down as they have estate agency fee plus 2 x legal fees?

    I'd definitely consider DIYing it and instructing the surveyor myself but the only concern I have is at the negotiation end - is it simply a matter of going to a closing date when you have a few interested parties or what?
    • NineDeuce
    • By NineDeuce 9th Jan 18, 11:35 AM
    • 683 Posts
    • 600 Thanks
    NineDeuce
    How much should estate agents cost?

    Well, what exactly do they do, given that their fees are 3 times that of a solicitor?

    They take some photos, stick a post outside the property, put an ad on Rightmove (that is potentially misleading) and then let people into a house and follow them round a few times. Oh and then they are religiously held to convince people that the properties they are selling are worth more than they actually are...

    Hardly a skill set of a lawyer....
    • googler
    • By googler 9th Jan 18, 11:52 AM
    • 14,551 Posts
    • 9,428 Thanks
    googler
    ... the only concern I have is at the negotiation end - is it simply a matter of going to a closing date when you have a few interested parties or what?
    Originally posted by E&G
    If you're going to DIY it, then as far as I'm concerned, it's a matter of pleasing yourself. Solicitors have pages and pages of guidelines concerning the ethics of closing dates, prevention of gazumping, etc., but if you're going to do this yourself and hire your solicitor on a 'conveyancing-only' basis, you can pretty much please yourself.

    Or ... you may be able to hire your solicitor on the basis that they will handle this for you in accordance with all the applicable rules and guidance, even though they're not doing the marketing for you. This will depend on you and your solicitor, and where you draw the line between what each of you are doing.

    However, if you are going alone, at some point, your buyer's solicitor will submit a written offer to your solicitor, and if you haven't established that all the conditions in that offer are satisfactory to you, then you may have to instruct your solicitor to reject it or qualify their acceptance; and your buyer may be unhappy that what they thought was acceptable to you is now being rejected.

    Buyers and their solicitors may also be put out by you handling things your own way when they expect them to be done in accordance with Law Society guidelines, the way that other sellers do.

    Make sure you understand enough of the offer/missive process to be confident in your negotiations if you're going it alone.
    • googler
    • By googler 9th Jan 18, 12:07 PM
    • 14,551 Posts
    • 9,428 Thanks
    googler
    How much should estate agents cost? Well, what exactly do they do, given that their fees are 3 times that of a solicitor?

    They spend a lot more of their time than a solicitor does with people who do not actually pay them for their work.

    - Valuations which don't result in a listing
    - Viewings with viewers who don't buy
    - Enquiries from enquirers who don't view and who don't buy.
    - Enquirers who just want to quiz the EA - "What's the market like", "How the buying and selling system works", "How much are your fees" and other casual enquiries.

    How many solicitors would drive to someone's house, along with two or three other competing solicitors, to pitch against each other for business? None, I would wager. They work in their offices, and prospective customers come to them (mostly referred through EAs)

    The EA spends most all their time with the general public on the above activities, not with the seller who pays them. The solicitor spends their time on only the work for the people who pay them, and deals only with them and other solicitors.

    The EA spends more on travel than the solicitor does. The EA spends more on marketing than the solicitor does. etc etc


    They take some photos, stick a post outside the property, put an ad on Rightmove (that is potentially misleading) and then let people into a house and follow them round a few times. Oh and then they are religiously held to convince people that the properties they are selling are worth more than they actually are...
    Originally posted by NineDeuce
    As a seller, wouldn't you want your EA to do this? Or are you happy to sell your home for less than you really want to?
    • E&G
    • By E&G 9th Jan 18, 12:08 PM
    • 29 Posts
    • 12 Thanks
    E&G
    Thanks googler, appreciated.
    • bertiewhite
    • By bertiewhite 9th Jan 18, 12:11 PM
    • 772 Posts
    • 823 Thanks
    bertiewhite
    I have a related question on this subject -

    What incentive do the "flat-fee, upfront" EA's have to sell your house as opposed to the "percentage of final price" EA's?

    Surely the upfront ones can just sit back once they've got your money?
    • NineDeuce
    • By NineDeuce 9th Jan 18, 12:17 PM
    • 683 Posts
    • 600 Thanks
    NineDeuce
    As a seller, wouldn't you want your EA to do this? Or are you happy to sell your home for less than you really want to?
    Originally posted by googler
    So basically you think that an estate agent's client should pick up the tab for another, a complete stranger?

    Is this listed in the fees? Does it state 'House Sale Fees' and then 'Negligent Client Tax'? And how much they pay?

    In what other sector do you think this happens?

    In regards to the remark that the EA drives to the house in order to pitch... is another cost then extra-terrestrial cost that the client has to pick up? More costs for work carried out of any agreed piece of work?

    What a complete load of cobblers....
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