Estate agents fees?

LandM1

We’re preparing to sell my father in laws house. It’s ex council, semi detached 3 beds, conservatory, lovely S facing garden, nice, popular small estate, catchment area for very good schools, easy commute by tram to big city. It’s structurally soundbut needs complete update internally. We think around £120 000.
So what percentage should we be trying for with the agents? We think it will sell easily to a developer or first time buyer as not many houses come up for sale round there. Should we stick out for 1 percent plus vat or is that unrealistic?

Thrugelmir

What rates are you being quoted?

LandM1

We haven’t yet, they’re coming next week. We just want to be prepared for negotiation if necessary. When we sold our last house we got 1 percent but it was a lot more expensive.

foxy-stoat

You should ask them before they turn up what their fees are. 1-1.5% or there abouts + vat is the norm, some agents are higher and try and sell you a load of BS - not worth the extra in my opinion.

DE_612183

Normally Estate Agents are in direct contact with developers so you may be able to negotiate a flat fee as the property won't go to market.

I did that with my parents property and it worked out about less that 0.5% but meant the agent got £1500 for little or no work.

You could of course advertise yourself.

Mutton_Geoff

LandM1 wrote: »

We’re preparing to sell my father in laws house. It’s ex council, semi detached 3 beds, conservatory, lovely S facing garden, nice, popular small estate, catchment area for very good schools, easy commute by tram to big city. It’s structurally soundbut needs complete update internally. We think around £120 000.
So what percentage should we be trying for with the agents? We think it will sell easily to a developer or first time buyer as not many houses come up for sale round there. Should we stick out for 1 percent plus vat or is that unrealistic?

Get 3 or 4 agents round for valuations. Decide on a price yourself based on the information and comparables they give you. Do not get tempted by asking the highest price quoted unless you are 100% sure. And then choose the agent you liked best and pay no more than 1% plus VAT. Given that you can't claim the VAT back on agents fees, you could try for 1% inc VAT.


Never sign a sole selling rights agreement and only agree to a 4-6 week term on a sole agency agreement. Multiple agencies are a waste of time now everything is online. And personally I wouldn't touch Purple Bricks or any other DIY sites.

AlexMac

a fraction of a % on the fee is only a couple of hundred quid; what's more important is how much the Agent gets, and wheter you are happy with the service offered?

We aim for 1% but don't always pull it off- especially on properties which, like yours, are well under the national average cost of £235k (Land Registry Aug 2019 data). Put another way, as much effort goes into selling a property worth over half a million as one worth £100k, but the % based fees are very different.

We have always been lucky enough to choose agents we trusted. We recently sold a second home at a little under your target price and although we had to push the EA to agree a fee of £2k including VAT (equivalent to about 1.4% plus VAT) we received stonkingly good, thorough and competent service; and they negotiated top price so great value for money.

Whereas last time we sold our London home we didn't even have to argue for 1%; the agent's opening offer- albeit on a much more expensive property.

So choose the agent you think will suit you rather than the cheapest

G_M

Don't just negotiate the fee.
Make sure you don't sign up to a long minimum term contract. 8 weeks max but ideally 6.
2 weeks notice max.
Make sure it's not 'sole selling rights' just in case you best friend decides to buy it. Or someone you meet down the pub.