EA wants a fixed fee not a percentage

frible

Our house is about to go on the market for about £200k. Have had the first EA round to have a look and they want to charge a fixed fee rather than a percentage. Now I have paid this way before, but that was in a buoyant market where we could be pretty sure that we could achieve a good price, that's not the situation today.

Does anyone have experience of insisting on a percentage and if so what is a good deal (for what I hope is a good agent), I know 1% is talked about on the board as the number to aim for, is that still the case in this market?

minimike2

It depends how much the fixed fee is for.....

Neillgb

frible wrote: »

Our house is about to go on the market for about £200k. Have had the first EA round to have a look and they want to charge a fixed fee rather than a percentage. Now I have paid this way before, but that was in a buoyant market where we could be pretty sure that we could achieve a good price, that's not the situation today.

Does anyone have experience of insisting on a percentage and if so what is a good deal (for what I hope is a good agent), I know 1% is talked about on the board as the number to aim for, is that still the case in this market?

Tell them to stuff their fixed fee. 1% max or go elsewhere.

By fixed fee do u mean the fee is payable only on sale of property or are they trying to scam you with the new 'administration fee' lark?

If you do go with them read the terms and conditions of the contract thoroughly. If you don't like the terms make them alter the contract.

frible

minimike, I have not talked about the fee yet, told them I wanted to sit down without our 2 toddlers screaming all around us, but really I wanted to have a good idea of how far I could push them, I guess you would say a low fixed fee is as good as a low %age deal, but I worry about how incentivised they are to get me the best deal.

Neillgb, so farI have had no sight on admin fees, and I shall def. be insisting on a 1 week notice clause.

Neillgb

minimike2 wrote: »

It depends how much the fixed fee is for.....

Sorry earlier post a little sharp, I have strong feelings on this subject!.

Yes spot on minimike, what about 15% off current value and 1% on that?:rolleyes:

frible

Hey its an emotional subject, home, family, money all in the mix.

I guess that works out to about .85% +vat

brightonman123

with falling prices, would make sense for ea's to protect their incomes (stop share of sale price from falling further?).

would make sure only payable on completion, in case buyer pulls out for any reason- may end up paying a fee for nothing, and having to start all over again..

my fee for this non expert advice is £50, no vat- will accept choccy biscuits instead!:beer:

frible

sorry brightonman, I will only pay on a %age basis, so thats about .00001% per biscuit.

Certainly talking to the agent there are alot of cutbacks, I know at least 3/4 offices have closed in this part of Dorset, the EA said they were cutting back on hours, maybe I should offer them a pro-rata fee cutback. I guess the bottom line is that if the think my house is priced to sell it is worth negotiating with me, if its on at a speculative price its more of a take it or leave it.

lic

The simple answer to this is, how much do you think your house is worth, and how much are you prepared to sell it for?
Once you have decided upon the price you will accept, you will be in a better position to decide if the deal the EA is offering is a good one. To assist you in this decision you need to get quotes from other agents.
The fixed fee, is it no sale no fee, or fee paid upon signing contract?
If it is the later, then don't do it, as there is no gaurantee that this EA will sell the house, or priovide the services to the same standard as any other loacl EA.
IMHO it is not the agent that sells the house, he merely advertises it. If there are other For Sale boards in your street, do you really think prospective buyers would not look at your property as well and vice versa?
What would you be prepared to pay for your house?

JanCee

frible wrote: »

Our house is about to go on the market for about £200k. Have had the first EA round to have a look and they want to charge a fixed fee rather than a percentage. Now I have paid this way before, but that was in a buoyant market where we could be pretty sure that we could achieve a good price, that's not the situation today.

Does anyone have experience of insisting on a percentage and if so what is a good deal (for what I hope is a good agent), I know 1% is talked about on the board as the number to aim for, is that still the case in this market?

This is slightly off your original topic, but I would advise you to get your HIP done independantly of the EA. I have just put a house on the market, paid £350 for the HIP through the EA. Yesterday I received a letter stating that the EA had ceased trading, I have no contact details and their letterbox is sealed up, so I am left not knowing who they used for the HIP or even if they paid the money over to the HIP provider. There have been 4 other agents in my area who have also closed down.

frible

sorry to hear you have lost out Jancee, and I see where you are coming from. I have been told that a hip is free with this agent PROVIDED you use their conveyancing service and complete your sale otherwise £400 + vat. Having scouted round the interweb I know hips can be had for as little as £200 all in.

another thing I have just realised is that everything with EA's is +vat now I wonder why that is?????

lic, there is another house on my street just gone on, at what appears to be a lowish price. I may have a word and see what is happening on thier viewings. If it goes quick I see it as a positive sign, otherwise I guess we slug it out for any prospective buyer.