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What do estate agents actually do?
Mr_Singleton
Posts: 1,891 Forumite
Relative bought a London house in 1974.
The person that they bought the house from would have paid the estate agents a commission of around £5,200 adjusted for 2019 prices.
Skip forward to 2019 and the house has been sold again, through an estate agent.
Am trying to understand what the estate agent did to justify the increased commission of just under £130,000 to sell the property.
The person that they bought the house from would have paid the estate agents a commission of around £5,200 adjusted for 2019 prices.
Skip forward to 2019 and the house has been sold again, through an estate agent.
Am trying to understand what the estate agent did to justify the increased commission of just under £130,000 to sell the property.
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Comments
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Is your decimal point in the right place?0
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I'm struggling to understand why you think the agent charged a commission of £130,000."Real knowledge is to know the extent of one's ignorance" - Confucius0
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Thrugelmir wrote: »Is your decimal point in the right place?
Yes, what makes you think it isn't?0 -
Mr_Singleton wrote: »Yes, what makes you think it isn't?
I suspect it's because estate agents generally charge about 1% plus VAT.
The house would need to sell for about £11 million to achieve that fee. But you'd have to be pretty dim to agree to 1% plus VAT if you had a £11 million home to sell. You'd negotiate something much much lower."Real knowledge is to know the extent of one's ignorance" - Confucius0 -
How much were the conveyancing solicitor fees in 1974 and now in 2019?0
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Well, EA commission is normally around 1% of the sale price. So, at that rate, a £130k commission would be paid on a £13m property... And I'm pretty damn sure that you could do some serious negotiation on the rate at that end of the market.0
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The relatives are quite elderly and wanted as little fuss as possible along with a quick sale. I believe they paid just under 3% on a sale price of £4.5 million .
That's all by the by..... I'm trying to work out why Estate Agents are charging so much more than they used to and is it backed up by real work or just 'because they can'0 -
THREE PERCENT ON FOUR AND A HALF MILLION?
Blimey, o'Reilly. They were seen coming a mile off.
That's firmly in the "...because they can" department.0 -
THREE PERCENT ON FOUR AND A HALF MILLION?
Blimey, o'Reilly. They were seen coming a mile off.
That's firmly in the "...because they can" department.
Your completely missing the point the number of people that can afford to buy a £4.5 million home is miniscule. The reason that you'd pay 1% on a £250k house is because the market is huge and there's loads of EA's competing for the business forcing rates down. Not so in the specialist high value market.
Long story but Seville sued for its commission on a £6.8 million property
sale which they won for a rate of 2.4% commission..... did they see them coming?0 -
They'll charge as much as they can get away with,..... and they did.0
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