Estate Agents Fees

Catbells

Sorry - I may have missed a topic on this subject somewhere but couldn't locate using a search using this thread's title.

I'm seeing a well respected agent this week hoping to put my house on the market. My house is valued at just over a million (lived here for 20 years) and I want to be prepared to negotiate fees. I have heard that its not unusual to charge 1 -2%. Is this percentage related to house value? Have fees been reduced to reflect the current economic crisis? Is VAT always included in the fee? How do I know what is reasonable or not? I would be very grateful for answers as a woman on her own is open to being taken advantage of and I can't afford to let this happen as my pension is coming out of this as well as mortgage repayment (interest only m/g) and smaller place to live.

keith969

1-2% of the sale price is not unusual, I am paying 1.25% (manage to beat them down from 1.5%).

I do think however that charging a % of the sale price is unreasonable, considering the work to market a £1m house is not that different to a £250K one. Given that my solicitor offers a no sale no fee fixed price quote for selling my house I don't see why estate agents can't do the same - my estate agent's bill will be 10x that of my solicitors, and I know who's doing more work...

pie81

Hi

Estate agents generally start off quoting a fee of 2% or even 2.5%. This is not generally related to the house value. VAT will be extra.

You should definitely try to negotiate the fee downwards. Your negotiating ability will depend on how keen the agent is to get your business. For a £1m house I would imagine they will be pretty keen as that adds up to a large fee whatever percentage they agree to.

There are several ways to negotiate - either asking for a reduced percentage (getting down to 1% is not uncommon), or you could suggest a fixed fee, or you could even suggest a tiered fee (where they get a higher percentage for a higher price).

Hope this helps.

googler

"I'm seeing a well respected agent this week hoping to put my house on the market. My house is valued at just over a million (lived here for 20 years) and I want to be prepared to negotiate fees. I have heard that its not unusual to charge 1 -2%. Is this percentage related to house value?"

No, this is usually based on the eventual selling price of the house, not an estimate of value.

"Have fees been reduced to reflect the current economic crisis?"

There's a debate I saw elsewhere; there's less business for EAs in the current climate, which reduces their income to start with, so reducing fees in this circumstance may be close to financial suicide.....

"Is VAT always included in the fee?"

The agent should tell you what includes VAT and what doesn't. I would expect if they quote you 1.50%, that's 1.50% plus VAT. Ask them.

"How do I know what is reasonable or not? I would be very grateful for answers as a woman on her own is open to being taken advantage of and I can't afford to let this happen as my pension is coming out of this as well as mortgage repayment (interest only m/g) and smaller place to live."

Can't tell what's reasonable without knowing where you are. Fees vary throughout the country; what's seen as 'reasonable' in London, could be regarded as 'horrendously expensive' in Dumfries ....

You need to speak to others who have dealt with agents in your area, possibly. If you're nervous about dealing (as a single female) with the agency, why not see if the agency has any female agents, or are there any friends or family members who would come along to the valuation and 'chaperone' you....?

googler

keith969 wrote: »

my estate agent's bill will be 10x that of my solicitors, and I know who's doing more work...

How do you determine 'more' or 'less' work in this context?

chickmug

keith969 wrote: »

and I know who's doing more work...

But do you?

My solicitor pals tell me how many hours more hours we used to spend on a sale than they did and by a large multiple. We also spent money promoting the house which the solicitor does not.

So sorry to be so blunt but you are so wrong in your assumption.

googler

Some other threads here where people are doing a self-sale include the advice for the homeowner to value their home by getting "3 or 4 estate agents out" to give them valuations and taking the average of those figures.


How many people get 3 or 4 solicitors to visit them at their home, spend an hour or so with them, all for no charge, only for the homeowner to do their own legal work?

cashndash

We were quoted between 1.75% and 2.1%, however all agents came down as soon as I told them I wanted to pay 1%! they all them came between 1.25 and 1.5 - but that still £1,000s !!

we are trying Housenetwork - yes i have had to pay £199 up front and that isn't refundable, but we both felt that we had to gamble this money, before committing to massive EA charges (and our house is only worth £400k!!)

Catbells

pie81 wrote: »

Hi

For a £1m house I would imagine they will be pretty keen as that adds up to a large fee whatever percentage they agree to.

Hope this helps.

Thank you Pie. In this area this agent deals with houses worth upto £15m an in a normal environment £1m seems a lot but relative to this neighbourhood its not. I can't help feeling that this shouldn't make a difference but maybe it does???

Catbells

googler wrote: »

Can't tell what's reasonable without knowing where you are. Fees vary throughout the country; what's seen as 'reasonable' in London, could be regarded as 'horrendously expensive' in Dumfries ....

You need to speak to others who have dealt with agents in your area, possibly. If you're nervous about dealing (as a single female) with the agency, why not see if the agency has any female agents, or are there any friends or family members who would come along to the valuation and 'chaperone' you....?

Thank you googler. I live in north west London in an area where houses go for £15m+.
That's a great suggestion about taking someone along with me. I have the ideal person in mind!

Catbells

keith969 wrote: »

1-2% of the sale price is not unusual, I am paying 1.25% (manage to beat them down from 1.5%).

I do think however that charging a % of the sale price is unreasonable, considering the work to market a £1m house is not that different to a £250K one. Given that my solicitor offers a no sale no fee fixed price quote for selling my house I don't see why estate agents can't do the same - my estate agent's bill will be 10x that of my solicitors, and I know who's doing more work...

Thank you Keith. Can you remember the verbal leverage you employed to beat the EA down. I need vocabulary here. Thanks.