Estate agent fees in London

sturgeon

I’m interested to know what fees you’ve been quoted and charged to sell a home in London. I’m being quoted 2% plus VAT for the leading agent in my area who sells the majority of properties to Hong Kong investors (the area I live in has a large community from china and Hong Kong). Some other agents were 1% plus VAT, Foxtons were 3% plus vat and refuse to negotiate. 

The agent I’m speaking to has said they’ll look at an negotiation as I mentioned a sliding scale if they hit a minimum price but I’m planning to go back to ask to reduce the 2% to 1.7/1.75% if they don’t achieve the listing price. Anyone else done something like this, any suggestions?

anselld

1% plus vat is normal outside London.  Don't see why London should be more when house prices are already higher.  Everything ends up advertised in the same place anyway so not sure you will get much benefit from the expensive brands in practice.

GDB2222

I’m in the suburbs near Hampstead and Highgate. I negotiated 1.25% plus vat,  and I think I might have got down to 1%. This was for the leading agent in the area.

 The thing is, though, they overvalued the house, and it hasn’t sold. I told them at the outset that they were asking too much, but they were so keen to get the house on their books… And other agents had valued even higher.

One thing I have learned is that a firm may be the leading agent in the area because they control the stock. That is they do whatever is necessary to get the property on their books. Then, they can rightly claim that they sell 90% of the property in their area, because no other agency has any stock to sell.

I am rather mean, and it bothers me to pay the agents say 2%, but if this means that they make an effort to sell the property that may be a good idea. 

anselld

GDB2222 said:

I’m in the suburbs near Hampstead and Highgate. I negotiated 1.25% plus vat,  and I think I might have got down to 1%. This was for the leading agent in the area.

 The thing is, though, they overvalued the house, and it hasn’t sold. I told them at the outset that they were asking too much, but they were so keen to get the house on their books… And other agents had valued even higher.

One thing I have learned is that a firm may be the leading agent in the area because they control the stock. That is they do whatever is necessary to get the property on their books. Then, they can rightly claim that they sell 90% of the property in their area, because no other agency has any stock to sell.

I am rather mean, and it bothers me to pay the agents say 2%, but if this means that they make an effort to sell the property that may be a good idea. 

Surely even when you are on the books you are able to control the asking price.  Agent's are unlikely to refuse a drop in asking price if it improves the chances of a sale.  Indeed I am not sure they could refuse if you *instructed* it.

Chemistry777

I agreed 1.5% if they got asking price and 1% if they didn’t. 

GDB2222

anselld said:

GDB2222 said:

I’m in the suburbs near Hampstead and Highgate. I negotiated 1.25% plus vat,  and I think I might have got down to 1%. This was for the leading agent in the area.

 The thing is, though, they overvalued the house, and it hasn’t sold. I told them at the outset that they were asking too much, but they were so keen to get the house on their books… And other agents had valued even higher.

One thing I have learned is that a firm may be the leading agent in the area because they control the stock. That is they do whatever is necessary to get the property on their books. Then, they can rightly claim that they sell 90% of the property in their area, because no other agency has any stock to sell.

I am rather mean, and it bothers me to pay the agents say 2%, but if this means that they make an effort to sell the property that may be a good idea. 

Surely even when you are on the books you are able to control the asking price.  Agent's are unlikely to refuse a drop in asking price if it improves the chances of a sale.  Indeed I am not sure they could refuse if you *instructed* it.

I am taking it off the market for now. We can relaunch later at a lower price. Maybe a different agency.