Estate Agent fees negotiable

paulj2021

Hello, sorry if this comes up a lot on here, I’ve found an Estate Agent for my sale, they have given me a good valuation and say their rate is 1.25% but they are open to negotiating the rate, what would be a fair rate that I could ask for? Could I, for example, suggest 1% or 1.25% if it sells at full asking price?

AdrianC

Of course you could.

Will they accept?

paulj2021

AdrianC said:

Of course you could.

Will they accept?

That’s the reason for this post! I’m asking opinions and previous experiences before I phone them, to see whether what I’m asking is reasonable 

AdrianC

Only they can tell you that.

eddddy

paulj2021 said:
 Could I, for example, suggest 1% or 1.25% if it sells at full asking price?

I've done similar deals in the past - but with less of a steep 'cliff edge', and increasing incentives as they get closer to the asking price.

i.e. With your suggestion, if somebody offers 95% of asking price and definitely won't go to 100% of asking price, the EA has no real incentive to negotiate them up to 97% or 98%. 

user1977

What are their competitors saying?

moneysavinghero

When you say they have given you a good valuation, what do you mean by this? What is it about this valuation that is so good, and if it is so good why are you reluctant to pay for the asking price?

You can ask for whatever rate you want. I paid 0.75% for mine. EA's are a lot busier now so unlikely you would get that low.

Mickey666

paulj2021 said:

Hello, sorry if this comes up a lot on here, I’ve found an Estate Agent for my sale, they have given me a good valuation and say their rate is 1.25% but they are open to negotiating the rate, what would be a fair rate that I could ask for? Could I, for example, suggest 1% or 1.25% if it sells at full asking price?

You can make any proposal you wish.  But consider the potential consequences of screwing them down to the smallest possible commission. 

For a start, their other clients might get preferential treatment if they are paying higher commission.  Also, 0.25% is only £250 per £100k of the selling price.  Yes, not to be sniffed at, but probably insignificant compared with other costs . . . especially costs associated with a delayed sale because the EA is too busy promoting other client properties because they are paying more. 

As for a higher commission if they get a higher price, that's already built into the percentage structure isn't it?  If you think they need addition incentive to get you the best possible price then perhaps they're not the right EA to choose in the first place.

davilown

Go in for 0.75 inc VAT and maybe go up to 0.9% inc VaT

paulj2021

user1977 said:

What are their competitors saying?

This was the cheapest of three agents I contacted 

paulj2021

moneysavinghero said:

When you say they have given you a good valuation, what do you mean by this? What is it about this valuation that is so good, and if it is so good why are you reluctant to pay for the asking price?

I mean the valuation was exactly in line with my expectations. The only reason I am asking is because they, without prompting by me, suggested that they would be open to negotiations on the rate