Average estate agency fees

Herbalus

Hi All,

Just out to gather a consensus of estate agency fees. First quote has come through the door of 1.5% + VAT, which is a mind boggling £4k with a discount. We can negotiate of course, but I didn't really want to spend more than £2k. Recommended sales price £310k.

We're in Norfolk.

Fixed fee is tempting as we're in a really fast moving area so have no doubts of selling, and with the home improvement sums we've invested we know there is no house like ours on the street...but there's always a niggle that I could just be house proud and actually nobody will want it.

badger09

We were quoted 1% + VAT in Shropshire, house value £520k - £550k.

Estate Agent in Devon charged me 0.85% + VAT to sell my late sister's house instead of 1%, because she had bought it through them 5 years ago:o. Est £300k - £315k. Sold for £310k

1.5% sounds expensive to me

scottishblondie

We have just paid 0.75% + VAT in central Scotland. The initial fee given was 1.5% + VAT, but I basically said I wasn’t interested at that level and they dropped very quickly.

Oxon

We approached 3 different agents and were quoted 0.75, 0.85 and 1% (all plus VAT).

davidmcn

Herbalus wrote: »

1.5% + VAT, which is a mind boggling £4k with a discount. We can negotiate of course, but I didn't really want to spend more than £2k. Recommended sales price £310k.

So (assuming the £4k includes VAT) they're actually quoting 1.08% + VAT?

I think this will vary depending on where you are and the speed of the market, but for a relatively chunky price and fast sale I would expect more like 0.75%. £2k would be what - 0.54%? Think you'd only get that from the cheap'n'cheerful agents.

Herbalus

davidmcn wrote: »

So (assuming the £4k includes VAT) they're actually quoting 1.08% + VAT?

I think this will vary depending on where you are and the speed of the market, but for a relatively chunky price and fast sale I would expect more like 0.75%. £2k would be what - 0.54%? Think you'd only get that from the cheap'n'cheerful agents.

I generalised a bit, so to be precise it's 1.5% on £310k, minus a £500 Nov offer, plus VAT. Works out £4,050.

I guess it's harder to consider a £4k fee when no frills estate agents who are just online will do £900. There is a value to their local service, but not sure it's £3k worth.

0.75% is £2325 which seems reasonable exc VAT.

bobbymotors

Online you pay up front....once you've paid where is their motivation to sell your house? Have a neighbour. Well, 8 doors down, had purple bricks board up for 8 weeks or so.

Now gone with a lively local agency. Not yet sold, but some activity: they've got to pay both PB and the local EA though.

I wouldn't use online, but maybe that's just me

mh09abi

Paid 1.1%+VAT surrey/hants border. Had quotes from 1% to 1.5%, but went for local agent with largest market share for an extra 0.1%.

And yes.. dont use an online agent. Unless maybe if you are chain free and in no rush. EAs earn their money well after the offer comes in, much better to have an office you can visit if need be than trying to get through to a call centre with the 1000s of other people. We actually discounted some houses on the basis they were selling with an online agent and we knew we would be in a chain, wasn't worth the hassle.

justjohn

Just completed a sale with Purple bricks....Fixed fee job done...in a stagnant slow area

Mutton_Geoff

You should also look very closely at the terms of the contract, “sole selling rights”, duration of sole agency etc. These clauses coukd potentially cost you a lot more than the £2k saving you seek.

1% plus VAT is entirely reasonable, total £3,720. The agent is only receiving £3,100 of that, the goverment the rest. To pay £2,000 net would need a fixed price agent or someone willing to charge 0.5% plus VAT which is highly unlikely for a bricks and mortar agent.

Do you trust your negotiating skills (which won’t be impartial as it’s your house) to remain firm during the sale process? Even if you accept an offer of 99.5% of the asking price, you’ve wiped out any saving a good agent who could maintain the asking price due to multiple interest might do for you.

I’d pick the busiest local agent in your section of the market and negotiate 1% plus VAT.

justjohn

bobbymotors wrote: »

Online you pay up front....once you've paid where is their motivation to sell your house?

We have just sold with PB. Our impression was they were wanting a turn over of properties. so were actually more hands on the longer the property was on the market.


However it could vary depending on the regional reps.