Estate Agent Fees - What Is A Target Percentage Based On?

davilown

We had 2 EAs - first at 0.75 inc VAT. Picture were rubbish even after asking for retakes and floor plan was very basic with no measurements or Sq Ft on. However they were the local company and really good.

Didn’t find us a buyer though, so we moved onto another company from the town down the road. 0.9% inc VAT, much improved pics (and more inc drone shot), the 3D house tour and a vastly improved floor plan. These were important to me as that’s what I look at for sizing etc. They sold the house the day we were coming off the market.

TojoRalph

eddddy said:

You're in Scotland - and I don't know what is customary in Scotland. But if I got terms like that from an Estate Agent in England I wouldn't accept them, and look for another Estate Agent offering better terms.

In particular, I would look for 'no sale, no fee' - whereas your agent wants £650 in fees whether they sell it or not. (i.e they could be absolutely useless, but you still have to pay them £650) . People often talk about paying a fee of 1% on completion (with no other fees) - but you're unlikely to get those terms on a property selling for £65k.

The EAs I have dealt with might charge 1% for a more expensive property - but would set a minimum of around £1,200 plus vat on completion (but without any marketing fees etc on top). But like I say, Estate Agents in Scotland might work differently.

Just to follow on as your comments seem most relevant. Having got a couple more quotes, its clear that all EA's expect you to cover the up front advertising costs and images at the start and also cover a large part of the quoted costs if for any reason the property is taken off the market. Thus in summary the latest quotes are more aligned with your comments at approx. £1,500 (inc Vat) for selling, marketing, images, Etc. with approx. £500 up front and £650 if for any reason I were to take the property off the market. Given the state of the market in Aberdeenshire and Aberdeen, its not inconceivable I would take it off the market if an an offer in the right ball park were not received, so the fee for taking it off the market should I need or wish to is a concern. Early days yet.