Estate Agents now wanting to charge fixed fee

freddieD

I have spoken to 3 EAs about the sale fo my home and they all quoted a fixed fee instead of a percentage of the sale price. At the potential higher end of the sale price this puts their fee at 1% + VAT at the lowest end of the fee and 1.75% at the highest end of the fees. This is not even in London. It is in the midlands.

Is this a new trick by EAs to give themselves more money than a 1% of selling price even though they may try to convince you to accept a low offer in the end?

Can they be brought to a 1% fee or a lower fixed fee?

Also, is the "Initial period" (exclusive EA) the same as the "lock in"? Some are giving me an "Initial period" of up to 16 weeks! They even write on the contract 20 weeks! and cross it giving you 12 weeks to make you feel that you have gained a lot when you get 12 weeks.
Can they be brought down to an intial period of 1 week if it is the same as the "lock in"?

Thanks

greatgimpo

Yes, you tell them what you want them to do and for how long. Agree the conditions, overwriting on the contract if you all agree new terms. Anything >ANYTHING< is negotiable as far as estate agents are concerned. Stay in control.

Conversely, you cannot expect them to accept a very short term lock-in. They will be preparing sales sheets, photography, mailing etc, booking appointments and generally spending money. It wouldn't be right for you not to give them a fair chance to recoup expenses and make a profit (ie obtain a sale).

cattie

1%+vat is pretty good, so would be interested to hear if anybody was lucky enough to get a lower percentage, especially now the market has started to pick up. It is perfectly normal for VAT to be added to the fee, so this always has to be taken into consideration.

Twelve weeks contract is pretty standard & I can't see that any ea is going to agree to a 1 week period. You have to at least give them a chance to sell your property & at least get some viewers through your door.

If you want to try to skim them back to the bare minimum in terms of fees & contract, then there will be practically no incentive for them to make an effort to sell your house instead of others on their books, so there seems little point in wanting to list with them.

A decent ea is worth the commission they charge, especially when they can achieve a speedy sale close to asking price.

newbie1980

db roberts telford are advertising .75% fees but then u get what u paid for and the lower end sale price

TrickyDicky101

newbie1980 wrote: »

db roberts telford are advertising .75% fees but then u get what u paid for and the lower end sale price

I'd love to hear how the EA influences the sales price at all - care to share this wisdom?

DRP

cattie wrote: »

1%+vat is pretty good, so would be interested to hear if anybody was lucky enough to get a lower percentage, especially now the market has started to pick up. It is perfectly normal for VAT to be added to the fee, so this always has to be taken into consideration. //snip

We were offered a sliding scale dependant on the sale price ie. 1%+VAT at asking price down to 0.8 or something if it was sold for under asking price. They got their 1% in the end!

verulamium

Commission rates and 'lock in' periods are negotiable. If I remember correctly we negotiated a sole agency contract for four weeks with a one week notice to break with our agent and a very low commission rate (about 1.1 or 1.2%).

The standard contract they sent had a six months lock in and sole seller clause (something you do not want), which we insisted were taken out. They obligated. Your milage may vary but as greatgimpo mentioned, it is all negotiable.

1981trouble

ive had 3 ea round today and all quoted fixed fee from £1500/2000 plus vat for £70-75k house.

one was going on and on about how they would sell it within 4weeks but then wanted a 16 week contract. If we go with them we expect a money where you mouth is gesture.

2 also then charged to put it on the market ranging from £125 for epc to £400 to include professional photos (erm shouldn't theyall be?), videos, premium listings and fast track legal stuff.

freddieD

Thanks all. I may try to put them on a sliding scale.

is the notice period after the lock-in is over? or can you give notice for the end to coincide with the end of the lock-in period?

from what 1981 said, a commission of £1600 + VAT does not sound bad for a possible sale of £150-£160 K

greatgimpo

Why don't you call in and get a sample contract to take away and read? Then decide in the fullness of time whether they are right for you or not.

drdpj

Make sure the fee is based on the final sale price, not the original asking price (a local agent here in Manchester is trying that trick...)