Estate agent fees reasonable?

sensiblesaver_2

Hi

Our have has been valued at £100k by several local estate agents. We have narrowed it down to 2 both of them are saying 16 week lock ins. One wants a fee of £1950 & vat and the other wants £1850 & vat. I've read on here that it's possble to knock them down to 1% but we can't seem to get ours to budge.

It worries my that they want to charge a set fee and not a percentage as theres no incentive for them to sell it for as much as they can. Also, includung vat, these both work out to over 2%. Is this reasonable? Is the reason they won't budge because of our relatively low house price? And when the fees are set at say 2%, would this also be plus vat?

I have thought of putting it up for sale myself but really like the idea of the agents doing the veiwings. I'd really appreciate any advice as this is our first sale.

madmish00

You don't say what area you are in but we are North West and the quotes we had originally were for 1.5% and one offered fixed fee of £1200 (both are plus VAT) on our property which was originally valued at £105k

We managed to budge most down to 1.25% quite easily but struggled to get any to move lower than that.

The rates you are being quoted seem excessive but I don't know what the rates are like in more expensive areas.

sensiblesaver_2

thanks for that, I think I shall maybe try harder with the haggling then!

We're in Leicester, and it's a standard 2 bed terrace first time buyer house. There are a fair few in the local area for sale so maybe that's why they aren't budging?

kingstreet

IMHO, agents have to do little more to sell a big, expensive property than they do for a little cheap one, so I am pretty much opposed to % charges.

As to the comment about getting you the best selling price, 2% of that extra £5,000 they get you is all of £100 extra commission! Not really a big incentive is it?

Some of the larger chains, mentioning no names, want £2,800 plus VAT as a MINIMUM and that is absolutely obscene on a property they value at £100k.

If I was selling today, I'd go to each agent in turn and offer them £1,250 + VAT with a bonus based on how long it takes them to find a buyer, with £500 at the top (within a month) down to nothing if I'm unsold after three months. They only get 3 months exclusive too. None of this six month nonsense!

They say they have buyers waiting. Put your money where your mouth is and prove it!

nomoneytoday

If they won't budge on price, can they put other stuff into the deal?
A free HIP included could save you £40 - £100, Premier Rightmove listing could cost you £200 for example?

sensiblesaver_2

Yes I see what you're saying about the 2% on an extra 5k. I suppose it doesn't make a difference then really. And I like the idea of a bonus depending of lenght of time. Right, time to do some more haggling then!

sensiblesaver_2

Erm, apologies if I'm being thick but I thought you didn't need a HIP anymore?

kingstreet

sensiblesaver wrote: »

Erm, apologies if I'm being thick but I thought you didn't need a HIP anymore?

Energy Performance Certificate is the £50 to £100 I'd guess?

kingstreet

When you're on the market, offering £50 to the staff member in the agents who actually sells your property gets the minds concentrated, too!

nomoneytoday

sensiblesaver wrote: »

Erm, apologies if I'm being thick but I thought you didn't need a HIP anymore?

You're right - I meant the EPC

sensiblesaver_2

Phew! Thought I'd missed something there! Thanks for all the helpful advice:)