Has anyone negotiated a discount on estate agent fee?

thriftytracey

I've had three valuations of our property, one from Purple Bricks the other two from local estate agents.  We were impressed by one estate agent who was professional and has a solid reputation locally.   The Purple Bricks man wasn't particularly impressive, he didn't wear a mask and didn't see the need to "as he social distances" and seemed grumpy.   The estate agents charge 1% Purple Bricks something in the region of £800.  1% equates to £3,750.  Quite a difference!  Ready to instruct now.  The estate agent would do all the viewings, Purple Bricks all in our hands although I understand Purple Bricks do the negotiating.  They all valued the house at the same figure.  I was thinking of asking the estate agent if they could discount their fee, even if it was by 0.25% it would be a saving.  I suppose it's worth asking!  I could hint thinking of Purple Bricks...

davidmcn

I would expect the "proper" estate agents may at least try undercutting each other if invited - pretty normal to haggle about the commission.

fishfingerbutties

As I understand it, you'd have to pay the PB fee upfront so it depends on how confident you were about selling off your own back. Also see the PB threads on here, lots of people won't even look at houses listed with online agents.

However, no harm in asking, it's a business transaction as much as anything else and they'll be used to negotiation. 

HobgoblinBT

You might increase your chances of a discount if you buy through the same agent or use another of their services.

teachfast

One thing to watch out for is VAT. Negotiating 1% including VAT is worth doing of they won't budge on 1% (which is pretty low, to be fair)

Salemicus

We've negotiated discounts, yes. Like any sales business, there is always room to do so. But pay attention to what you are getting for your fee. For example:
* What extras do they charge? E.g. js a floorplan and EPC included in the price? Premium listings, etc.
* What is the length of the contract and what do you have to do to cancel?
* When is the fee payable.
Etc.

Cheapest headline price isn't always the cheapest in reality, to say nothing of the best value. 

Thrugelmir

thriftytracey said:

 I suppose it's worth asking!  I could hint thinking of Purple Bricks...

That's your best option. PB are a different proposition. EA will wish to cover their overheads and hopefully return a profit by finding a buyer for your property.  The agent only earns commission on the final agreed selling price. May well be lower than £375k. 

JGB1955

I'd try and negotiate a 1% + vat deal, but with only 14 days notice.  You'll soon find out whether you want to stick with the agent or not.

AdrianC

The difference between £800 and £1% of a £375,000 property is about 0.8%, £1 in every £125 of the sale price.

Plenty of buyers dislike PB, while a good EA can easily help you get £3k+ more on the sale price...

It's very easy to focus on the price and forget the value.

steampowered

You generally get what you pay for.

A good estate agent is  worth £3,750. Securing the best price, handling viewings, chasing up the sale - absolutely worth it.

I once tried to view a PB property and it was so difficult to get a viewing I gave up. The house was still on the market 6 months later. Now I won't even bother looking at PB properties. I know many others feel the same way.

Kaysee24

As others have said we have not even considered viewing properties that are listed through Purple Bricks as it can be difficult to get a viewing slot depending on how the vendor sets it up.
That said we have ended up currently buying a property through them (current market with limited properties available meant needs must plus it's a really  nice house). Our vendor has said she was seduced by the low price but would never list with them again, no screening of buyers so all sorts turn up just to have a look (during lockdown), people just knocking on her door as they haven't been able to book a viewing (she had many appts available), we negotiated the price electronically but it goes directly to the vendor. They also seem to over price, frequently around here you will see £400k properties dropping to £350k before they get sold. One plus I can see is you can communicate directly with the vendor through messages, this is useful now.
On acceptance of our offer our estate agent did ask if we could pass on vendor details as PB are so hard to get hold of from their side.
With regard to the non-mask wearer, just no!