Estate Agent Fees

Loopy28

My EA charged 0.75% of the sale plus VAT.

She was self employed as part of an agency but they didn't have offices, they worked from home with regional offices in place. I got a really personal service compared to previous experiences with larger agents.

As a buyer I have found dealing with the larger estate agent firms a nightmare e.g. telling me I had to see their mortgage advisor or they wouldn't pass on my offer. I even ended up bumping in to one vendor and the EA hadn't even passed on my offer, he was livid. In my experience-avoid any estate agents who are part of the Sequence group as their high pressure and unfair sales tactics will lose you buyers.

Go with a well priced independent or local firm.

DollyDee_2

3rd Estate Agent came on Monday, this is the largest of the 3.

Valuation was about the same - anything from £105,000 to £120,000. After practically screeching the hard sell to the four of us for one and a half hours with much flashing of glossy brochures which included pie charts and graphs we finally got down to their fees. I have left the paperwork at Mom's so cannot be specific but it was in excess of £4200 including VAT and Solicitors fees which were £749 + VAT. We finally got rid of her and got the paracetamol out.

In the morning I had phoned another independent EA and he visited later in day. He valued the house in the same region as the others. His fees are £1500 + VAT and they haven't got in-house solicitors.

He did show us a quote from a local solicitor who I have heard of (I think they acted for the vendors when we bought our property back in 1984) and the cost was £580 including VAT.

He was quietly spoken, knowledgeable and not pushy at all.

I think you will guess who we are going to use.

eddddy

Hi DollyDee

Don't forget to check other important aspects of the contract.

For example,

- What is the minimum contract period + notice period? (Aim to get it down to about 8 weeks)

- Is it definitely 'no sale, no fee'? (Aim to have any clauses about introducing 'ready willing and able buyers' removed.)

- Are there any withdrawal fees - or any other types of fees?

- Is it 'sole agency' or 'sole selling rights'?


Or put another way, consider all possible outcomes (good and bad) and check the contract to see what would happen. For example:

1) The house sells to somebody introduced by the EA
2) The house sells to a friend/relative (nothing to do with EA)
3) The EA is useless, and you want to move to another EA
4) You change your mind and take the house off the market
5) You accept an offer, then change your mind about selling the house

You should aim for a contract where you pay a fee if 1 happens, but no fee if 2 to 5 happen. (That's the only type of EA contract I ever agree to.) But some EA's contracts stipulate fees for 2 to 5.

DollyDee_2

We haven't "hired" him yet so we haven't seen a contract. The only thing he did say was we would be contracted to him for 16 weeks. I probably haven't phrased that very well.

Also, he did say that if we can't put it on the market in November, it may be better to leave it until January to get Xmas out of the way.

Thank you for your advice, I will pass it on to the other three family members involved.

Nothing's simple is it?

Dolly

eddddy

DollyDee wrote: »

We haven't "hired" him yet so we haven't seen a contract. The only thing he did say was we would be contracted to him for 16 weeks. I probably haven't phrased that very well.

Also, he did say that if we can't put it on the market in November, it may be better to leave it until January to get Xmas out of the way.

Thank you for your advice, I will pass it on to the other three family members involved.

Nothing's simple is it?

Dolly

Just a couple of further comments...

You should ask for a copy of the EA's standard contract before you even think of "hiring" the agent. It may contain clauses that make the agent a 'non-starter'.


And I have never, ever come across any EA whose contract is not negotiable to some extent - even the big national chains.

When EAs say their minimum contract period is 12/16/20 weeks, my standard reply is:

"I'm sure it we'll both know after 4 weeks whether things are working well or not. If they are, the contract can be left to run. It not, what's the point in committing to continue it for 12/16/20 weeks?"

(... that assumes that the contract starts in January.)

Some EAs 'take a punt' by asking for the world in their contracts, and hope that sellers don't read and/or question it.

I recently crossed out about 25% of the clauses in an EA's contract before signing it (with the EA's agreement).


Good Luck!

DRP

eddddy wrote: »

And I have never, ever come across any EA whose contract is not negotiable to some extent - even the big national chains.

Exactly this^

It is really important not to accept their initial terms. Tell them what you need. Most will initially say it can't be done but will relent eventually...