estate agent fees

googler

What does the percentage matter?

Of course the percentage increases as the value of the home decreases.... but I'm asking why £1400 is considered expensive, when you consider you're hiring one of the better agents in your area?

He's sticking to his guns on his fee, and hence his salary. Do you think he'll do the same when negotiating on the selling price of the house, and try to get the maximum for the owner?

LisaLou1982

Most agents will charge a minimum fee, so obviously the cheaper the property, the higher the percentage on that minimum fee.

When i was working as an EA we charged 2% as standard, never went lower than 1.75% and got plenty of business. Our minimum fee was £1500 so on a property worth £60k, the percentage worked out more than 2% at £1500.

As others have said, you are looking to sell your property - its worth a lot of money!!! Take an afternoon or a saturday to get it valued by some agents and choose the one who you think will do the best job for you.

Good luck

zebusi

googler wrote: »

What does the percentage matter?

Of course the percentage increases as the value of the home decreases.... but I'm asking why £1400 is considered expensive, when you consider you're hiring one of the better agents in your area?

He's sticking to his guns on his fee, and hence his salary. Do you think he'll do the same when negotiating on the selling price of the house, and try to get the maximum for the owner?

that's the thing though i don't think he will try for the maximum and rather a lower offer for a quick return, he made it clear that yes while they are making sales, maintaining their business at this time, there are still properties on their books that aren't shifting and basically said he'd value it at 60k but would expect to achieve about 50-55k in the current market and admitted that he had houses on his books for well over a year as people aren't lowering there asking price's - having said all that though properties are selling - all depends on location location location which we have but a 1 bed flat has a limited target audience

seems that if you're at either the lower or the top end price brakcet on fees you lose out - smaller value - flat fee (percentage wise well above 1%), higher value bigger percentage no flat fee - c'est la vie

adg1

zebusi wrote: »

there are still properties on their books that aren't shifting and basically said he'd value it at 60k but would expect to achieve about 50-55k in the current market and admitted that he had houses on his books for well over a year as people aren't lowering there asking price's - having said all that though properties are selling - all depends on location location location

He's actually being bluntly honest here. If the vendor won't reduce their asking price then the EA can't really do much except keep viewing and taking offers to the vendor.

Its also price, price, price that leads to a house selling. No matter where it is located someone will buy it. Maybe not you. Its only the price that holds a property on the market.

My thoughts are that the agent that drops his fee the furthest and the fastest is worth avoiding. You want someone who will defend the price of your asset and do their best to get you the highest price in the shortest possible timeframe. I think the agent that defends his fees and shows you why they charge as they do is probably a better bet than simply the one offering you the lowest price.

For the record, 1% is low and a good rate. Some agents that are folding around here are offering rates as low as 0.75% but thats because they are desperate for business to stay afloat. 2 - 3% + VAT of the final sale price is not uncommon where I live.

googler

adg1 wrote: »

My thoughts are that the agent that drops his fee the furthest and the fastest is worth avoiding. You want someone who will defend the price of your asset and do their best to get you the highest price in the shortest possible timeframe. I think the agent that defends his fees and shows you why they charge as they do is probably a better bet than simply the one offering you the lowest price.

Seconded.

MSE says I have to type more than 10 chars, so -

Seconded.

Hopejack

I am in your boyfriend's area and have managed (but it was a struggle and battle!) to get my agent down from 1.5 to 1.25%. I saw 4 agents and not one said 1% which I was surprised at as I'd read on here that it is the holy grail of EA fees! I did manage to get two down to 1% but felt they weren't that strong. The thing I liked about the EA I'm using is out of the 4, they were the only one that arrived with research to back up their valuation and the market and were willing to tell me their recent sales/selling prices without my having to ask - also they've recently sold one (last year which had been up for another agent for some time!). I was quite impressed - having said that, they still need to sell my place We have spent a lot of money on 'house doctoring' the place, and have put on a realistic price, so hope it will sell OK.

In the end, I chose that EA as I felt they were the most professional in their valuation/appointment and do seem to get the sales and achieve fairly good selling prices. I lined 4 EAs up (well, 3 one afternoon and 1 more another day) and boy, was it hard work listening to all the 'talk'....

There are two schools of thought on EA's fees - one has already been mentioned i.e. will they negotiate well for you if they drop their fee easily and two, that an EA will drop their fee slightly if they think they will be able to sell your place easily/it's easily marketable as they 'think' they might get a quicker turnaround.

Good luck!

katrina123

hablib.com = no estate agent fees

googler

hablib.com = very few listings in the OP's area, therefore;

Why would any prospective buyer look there, in preference to established sites? There's only 14 properties on hablib for the whole of Newcastle....

katrina123

yeah theres not much content i also felt, for london and birmingham.
looks like its not fully in swing yet...but good concept. keep youre eye on it.

googler

Why is it a 'good concept' ...?