2% estate agent fee....they won't budge!

LisaLou1982

Another way to look at it - 2% of Nothing is Nothing.
If they dont sell it theyre not going to get paid

wearside_2

My house is in the process of being marketed. The guide price is £240,000 for which the first Estate Agent has quoted a Fixed Fee of £4,600 plus VAT, which assuming a sale next year totals £5520:eek: The second Estate Agent has quoted 1.5% which is £4320:eek: The third Estate failed to keep the appointment and is returning late this week.

Should I try to negotiate both of the fees already quoted and if so what figure should I try to aim for?

anewman

If a property isn't selling or there's no interest you're probably asking too much for it, assuming it has been marketed in some manner.

property.advert

Why do you need an agent ? You can I presume find a solicitor ?

The internet, property websites, get a placard made up for outside your house etc. Loads you can do to market it, if you can be bothered.

Drum up interest and have an open day, after locking away everything which could go walkabout !

Jackinbox99

Having just sold my house I had 3 agents come around and all wanted a fixed price sale rather than a percentage. I think that is because they agree the fixed price up front, and thats what you pay. So, if the house sells for a lower price, they dont loose out and get a lower percentage of the sold price. All tricks they use really.

When I worked out the fixed price as to what percentage of the estimated selling value it came in at 2.5% (cheapest) up to 3%.

I haggled with the cheapest one and knocked them down to what worked out at 2%.

They did absolutely nothing appart from put my house on rightmove and phone me to arrange 2 viewings. They didnt attend viewings or give me any weekly update. 9 weeks later one of the viewings makes an offer for about 10% less than I wanted and cant budge on price.

At that point the estate agent is keen to talk to me and is on the phone every 5 minutes begging me to take the 10% lower offer. He is so keen, I take that opportunity to re-negociate the fees and get him to knock it down to 1.5% of actual sold price.

The same with the tie-in-period, This agent was 21 weeks as "normal" and I knocked him down to 6 weeks.

wearside_2

wearside wrote: »

My house is in the process of being marketed. The guide price is £240,000 for which the first Estate Agent has quoted a Fixed Fee of £4,600 plus VAT, which assuming a sale next year totals £5520:eek: The second Estate Agent has quoted 1.5% which is £4320:eek: The third Estate failed to keep the appointment and is returning late this week.

Should I try to negotiate both of the fees already quoted and if so what figure should I try to aim for?

Just had the ES on the phone to confirm the fixed fee of £5520 including VAT. I told him no way would I pay this and that other ES had quoted 1.5%. He then miraculously reduced his fee to £4100 which is less than the £4320 as I have been quoted but plus VAT. I haggled more and got him to include the VAT for a fee of £4200. Obviously I am well chuffed to get the reduction but wonder what exactly they will do to justify their fee!

Rov

I think online estate agents are the way forward, if it's a nice place and realistically priced it will sell on a rightmove listing only, without any extra help from the EA.

I've no idea how traditional EA's get away with their charges.

property.advert

If someone earning £50,000 per year and selling a £500,000 house at 3%, they would be paying £15,000 plus 20% VAT or £18,000 in fees. Working on the principle that they actually work 40 hours a week for 45 weeks per year, they earn an hourly wage of approximately £27.78 which is actually £17.22 after tax.

So £18,000 is about 1045 hours of work or more than 6 months net income.

Now just how much effort would you be prepared to put in to have 6 months off work !

Why pay some clown half a year's salary to sell your property in the internet age ?

googler

property.advert wrote: »

If someone earning £50,000 per year and selling a £500,000 house at 3%, they would be paying £15,000 plus 20% VAT or £18,000 in fees. Working on the principle that they actually work 40 hours a week for 45 weeks per year, they earn an hourly wage of approximately £27.78 which is actually £17.22 after tax.

So £18,000 is about 1045 hours of work or more than 6 months net income.

Now just how much effort would you be prepared to put in to have 6 months off work !

Why pay some clown half a year's salary to sell your property in the internet age ?

You're confusing 'salary/wages' with 'business income', I fear..... and you've also jacked up the EA percentage in the title of this thread by 50% for your scenario....

property.advert

googler wrote: »

You're confusing 'salary/wages' with 'business income', I fear..... and you've also jacked up the EA percentage in the title of this thread by 50% for your scenario....

No, not at all. The cost to the vendor comes out of their salary, net.

OK, at 2% they are looking at £12,000 which is 697 hours or 17 weeks or about 4 months salary.

The fact that the fee is business income to the agent is immaterial as it is only the cost to the vendor which it material and that comes out of net salary.