Estate Agent Fees

DollyDee_2

Sadly my Mum has passed away and we are going to sell her house.

My sister and I have arranged for 3 estate agents to visit - first one came yesterday. House was valued at approx £105,000 which seems about right after research on t'internet.

She said the fees were £2000 plus VAT or £3000 plus VAT which would include solicitor's costs and EPC.

Got another visit today and third one on Monday.

First EA was an independent with 6 branches and she says the other two are much larger organisations, sort of implying they wouldn't be as good (well, she would wouldn't she?). I've found that one has 35 branches and the other seems nationwide.

Do the fees quoted sound OK?

All advice very much appreciated - I haven't sold a property since 1979 so I am absolutely clueless.

Dolly

MrsFingersCrossed

Estate agents normally charge fees as a % of the sold price, and in our area at the moment they are usually around 1%, no more than 1.25%, so £1200 including VAT if yours sold for £100,000 at 1%.


I would ask them for their fees as a per centage of the sold price. Then get a few independent quotes for conveyancing so you have a better idea of whether the agent is offering a good deal or not. The EPC is usually included in the estate agents fees as part of the service they provide, in our area anyway.

DaftyDuck

Always negotiate on fees. It's good pracitce for negotiating on price.

Those fees do sound absurdly high to me. Twice what I'd expect to pay. Also, whether buying or selling, I'd never use a solicitor recommended by the agent, and certainly not a "fees inclusive" deal.

kep79

I have sold two houses in the last couple of years; the first had a fixed fee of £3k+VAT (on a £160k house), and the second was 0.5%+VAT (on a £300k house).

In my experience the fixed fee EA did as little work as possible, kept pushing us to reduce price, as it obvs didn't matter to them how much it sold for. Whereas the second % based agent pushed as hard as he could to get us as much as possible, and was so much better.

So personally I will never agree to a fixed price agent again, and negotiate the % fee (we negotiated from 1% downwards).

jacko74

All the EA's in my area of Derbyshire charge at least 2% or the equivalent with a fixed fee... I'd love to know where all these are that charge 1% or less!

Pete9501

We will have to pay 1% in Gosport shortly for selling our house though a 5 branch EA. 1.25% in Fareham 4 years ago with same 5 branch EA and 1.25% in 2004 with a single branch EA.

Did get a shock when I saw someone paying 3%+VAT for selling in London.

InsideInsurance

kep79 wrote: »

Whereas the second % based agent pushed as hard as he could to get us as much as possible, and was so much better.

Really? That would imply they are exceptionally quiet.

At 0.5% a change of £1,000 to them represents £5, how many hours do you think they will put in trying to get that extra £1,000 for you and just £5 for them?

Assuming they are actually fairly busy then even they have the choice, do they spent their time trying to get an extra £10,000 for you and £50 for them or do they use their time trying to sell the new £300,000 house they've just taken instructions on and get an extra £1,500 for them?


At the 11th hour an agents allegiances switch as its better for them for you to take a lower offer, close the deal, get the money and move onto the next property than to spend hours/ days negotiating, possibly get nothing and at best an extra few quid for them whilst neglecting other sales

DollyDee_2

Well, the second one has been and gone - this is the largest of the three companies.

He has valued the house higher £110,000-£115,000 with a starting price of £120,000 (so it shows more on internet searches). The fixed fee including solicitors was just short of £4000 including VAT so about £300 more than the first EA..

Personally, I think £105,000 is a realistic price for that type of house in that area. It's a large 3 bedroomed semi detached house, well maintained, lovely garden, conservatory, side extension, off-road parking - you could move in tomorrow and not have to do anything. It's not like an old ladies house, Mom was quite modern, however, it is an ex-council house and it's "no finings" i.e. not brick construction.

Will have to see what the third says on Monday, this is the middle sized Estate Agent. Maybe arrange for a few more to visit.

The first EA has been in touch and said there may be a bit of flexibility on the fees but her manager is on holiday.

Hoof_Hearted

If you can do the viewings yourself, use an online agent and save a fortune and the shenanigans that high street agents are so fond of.

Mallotum_X

Do not under any circumstances go with the solicitor deal the agents want to push. You want an independent solicitor to work in your best interests.

MadelinesMum

I've just had an EA bill for £3568+ vat on a £230k sale. I had 3 EAs out and this one was the cheapest. We are in the south east.