Estate Agency Fees - What are they for?

googler

confused31 wrote: »

you need to get a grip, if you are a estate agent i bet your company use them, and i bet one of your selling points is we use rightmove the biggest house selling portal.

Or are you the only estate agent that doesnt use that line??

Why do I need to get a grip? I and Chickmug are asking you for the source of the 80% figure, and you have yet to answer. Where did you see or hear it?

I can look at the pre-owned property in my area of Scotland, and barely 30% of the available property is on Rightmove. In order to see the majority 70% or so, you HAVE to look at the agents' own websites.

That's where the general public are looking in my corner of the UK.

confused31_2

Ive done a little poll, lets see what other people think you may be right, and i might be wrong, its no good you getting your knickers in a twist, calm down you will make yourself bad.

googler

confused31 wrote: »

okay then what over heads do they need to pay out of the 4000 pound???

at most 500 pound for advertising, or is the one sale supposed to keep the shop running for a whole month, as well as the other estate agents wages???

Its a known fact most people looking for a house look on right move before they start looking at shop windows, they may phone the estate agent up after but the first time most house buyers first see a house is on right move.

See my earlier post for examples of what the overheads might be.

Again, you seem to be only looking at overheads for the one sale; there's overheads in promoting the business generally - you can't just sit back and say "If I open the business, they will come", and there's overheads for the other valuations and sales that don't come to fruition and don't yield any income at all for the business.

If EAs WERE paid an hourly rate, you'd find the public protesting at being charged for a valuation visit (which is typically free at the moment), and irked at being charged for the EAs time when their house didn't sell, or when the buyer pulled out, or the chain fell apart, etc.

As it is, the general public seems to get a lot of EAs time for free, and this free time is supported by the income from those whose houses actually sell.

googler

confused31 wrote: »

Ive done a little poll, lets see what other people think you may be right, and i might be wrong, its no good you getting your knickers in a twist, calm down you will make yourself bad.

I'm perfectly calm, but you still haven't answered where the source of the 80% figure is. I'm not saying it's wrong or right, just asking where it came from.

If you made it up, just say so.

If it's your prediction for the result of the poll, just say so.

confused31_2

Look you dont have to come on here and justify what you earn for what you do, its only lateley estate agents have had to put a bit more work in due to the credit crunch.

I think local estate agents fees are a rip off and thats my opinion and thats why i wont use one that charges high fees.

Im not telling you what to do, i know what leases are on shops, bills and wages and if estate agents are selling more than 2 or 3 houses with 4000 pound commission a week this would cover the advertising wages and everything else quite easily.

As for the valuation visits, its just like a double glazing window salesperson coming round, they come round tell you what you want to hear about them being the best,so you pick them to sell your house.

confused31_2

http://www.propertyworldonline.co.uk/more_info.asp?current_id=87

90 percent

anyway ill leave you to stew for a bit, your starting to bore me now. yyaaawwwnnnn!!

googler

confused31 wrote: »

http://www.propertyworldonline.co.uk/more_info.asp?current_id=87

90 percent

anyway ill leave you to stew for a bit, your starting to bore me now. yyaaawwwnnnn!!

"Look you dont have to come on here....... "

You said it.

googler

Do you mean this;

"During a recent survey 90% of house buyers confirmed that the first place they would go to search for their new home would be the internet"

.... if so, that's not the same as saying 90% of buyers look on Rightmove first.....

Yawn if you want to.

Jowo_2

To those that argue that estate agents aren't 'worth' their fee and should charge fees closer to their actual expenses, are you prepared to sell your property close to the price you paid for it, or are you happy to keep the equity?

What we are talking about is 'market' rate. The EA gets whatever the market is prepared to pay for their services while the vendor does the same with the property, getting the rate that the sellers are prepared to pay for it.

confused31_2

Jowo wrote: »

To those that argue that estate agents aren't 'worth' their fee and should charge fees closer to their actual expenses, are you prepared to sell your property close to the price you paid for it, or are you happy to keep the equity?

What we are talking about is 'market' rate. The EA gets whatever the market is prepared to pay for their services while the vendor does the same with the property, getting the rate that the sellers are prepared to pay for it.

estate agents should not go inline with what price the houses are selling for, i work for a massive car company when they put the prices of their cars up my wages dont go up, so why should estate agents??

10 years ago a house worth 70,000 a estate agent charging 1.5% would get 1050 pound for selling the house which is not that bad, the same house now is worth 150,000 and they would get 2250 pound now tell me who? and in what history as someones wage more than doubled in 10 years??

In 10 years as the job of estate agent got harder?? if it as how?

How can a estate agent justify being paid double to what they did 10 years ago, house prices may have gone up, but im sure estate agents jobs have not become harder, so how can they justify charging large fees.

And dont give me overheads and advertising they havent doubled in 10 years.