Negotiating Agent Fees

dodgy

Hi,

We have four agents coming around next week to value our property. I suspect as they are all local that the fees will all be very similar - does anyone have any tips as to how to start negotiating better fees? Wait until I've seen all four? Do it while they are here? What are the typical deals available - what sort of percentages should I be looking for?

House is probably about £225k

Thanks

googler

Depends on where you are; fees vary throughout the country, so any comment on what percentage you should be looking for will be pointless.

Before you go haggling to get them all to reduce their fees, consider this - what would make you work harder? A high rate of pay, or a low rate?

If you haggle the EA down to the level where he/she will make little or no profit on the sale of your home, what's the incentive to put a lot of effort into your sale? Does the term 'false economy' hold any meaning for you?

You get what you pay for. You don't get what you don't pay for.

dodgy

You're not an estate agent, are you?

But point understood I guess. I was just led to believe that there was (and they expect) some negotiation to be had on the fees. I don't mind paying a fair price, but I don't like to be taken for a ride (money*saving* forum, right?).

If I wanted the cheapest service I'd market it myself on rightmove, that wasn't what I was after. However with property prices way above what they once were, it feels like they are making significantly more money for doing no more work than a few years back, and I guess it's that which grates with me.

Pssst

I didnt think you could market yourself on rightmove?

dodgy

I meant to go with one of the online agents that do it for you, but that's all they do - place your property on rightmove.

pinkshoes

Sorry to gatecrash the thread, but on the same topic, a friend of mine is also selling, and asked me if I knew whether you can negotiate the EA fees based on the price they achieve?

i.e. if they sell above £200k, they get 2%, if they sell between £190k and under £200k they get 1.8%, over £180k and under £190k they get 1.5% etc...

This way it gets around googler's valid point of an EA wanting to work hard to achieve a target, rather than not making an effort as the fee was too low.

I didn't know if you were allowed to do this, but this thread just reminded me I was going to ask!

tbs624

pinkshoes wrote: »

Sorry to gatecrash the thread, but on the same topic, a friend of mine is also selling, and asked me if I knew whether you can negotiate the EA fees based on the price they achieve?

i.e. if they sell above £200k, they get 2%, if they sell between £190k and under £200k they get 1.8%, over £180k and under £190k they get 1.5% etc...

This way it gets around googler's valid point of an EA wanting to work hard to achieve a target, rather than not making an effort as the fee was too low.

I didn't know if you were allowed to do this, but this thread just reminded me I was going to ask!

"Freakonomics" - google it

tbs624

Dodgy - see here and here

googler

dodgy wrote: »

If I wanted the cheapest service I'd market it myself on rightmove, that wasn't what I was after. However with property prices way above what they once were, it feels like they are making significantly more money for doing no more work than a few years back, and I guess it's that which grates with me.

Are you still being paid the same as you were 'a few years back' or has your employer given a pay rise or two?

And haven't property prices gone down in the last year or two, leading to lower income for EAs?

Yes I accept it's a 'saving' forum, but I still think it's reasonable to discuss whther or not a saving in pure money terms is worthwhile, when weighed up against the material benefits or drawbacks....

googler

pinkshoes wrote: »

Sorry to gatecrash the thread, but on the same topic, a friend of mine is also selling, and asked me if I knew whether you can negotiate the EA fees based on the price they achieve?

i.e. if they sell above £200k, they get 2%, if they sell between £190k and under £200k they get 1.8%, over £180k and under £190k they get 1.5% etc...

This way it gets around googler's valid point of an EA wanting to work hard to achieve a target, rather than not making an effort as the fee was too low.

I didn't know if you were allowed to do this, but this thread just reminded me I was going to ask!

Yes, you can. See the first of the 'here' links a couple of posts ago...

dodgy

googler wrote: »

Are you still being paid the same as you were 'a few years back' or has your employer given a pay rise or two?

And haven't property prices gone down in the last year or two, leading to lower income for EAs?

Yes I accept it's a 'saving' forum, but I still think it's reasonable to discuss whether or not a saving in pure money terms is worthwhile, when weighed up against the material benefits or drawbacks....

I bought my house for 135k, so 2% is £2700
Now my house is worth 225k, so 2% is £4500

Have I had a pay rise? Certainly. Was it 40% in the period I'm talking about? Nowhere near.

I understand the principle you are putting forward, however it does seem that deals are there to be done. At the end of the day, 1.5% of something is a lot more than 2% of nothing and I think that's the basis people in a tough market should be working on. I just don't feel like being generous beyond the norm to estate agents through these hard times which are equally hard for me.

Many thanks to the other poster for their links.