Estate agent fees

Consumer3

One of my family members is selling their house in the Plymouth area. She is a pensioner and can get easily stressed, so I have asked her to copy me in on any estate agents emails.

She has had two valuations so far, both members of The Property Ombudsman, and both not adhering to the code of conduct. They have quoted their percentage fees stating ‘plus VAT’, without showing what the total amount could come to. One of them quoting a fee higher than what is specified on their website.

Is this normal practice to say ‘plus VAT’ now?

Also if anyone can recommend a good agent in the Plymouth area that would be helpful.

Thank you

sammyjammy

Maybe I'm missing something but if they are showing a % they can't tell you what the VAT will be as they don't know what the house will sell for? Does it really matter?

If one of them is quoting a higher fee then call them on it, maybe the website hasn't been updated?

eddddy

sammyjammy  said:

Maybe I'm missing something but if they are showing a % they can't tell you what the VAT will be as they don't know what the house will sell for? 

Instead of saying, for example that their fee is "1% of sale price plus vat"…

They could say that their fee is "1.2% of sale price inclusive of vat"

Consumer3  said:

She has had two valuations so far, both members of The Property Ombudsman, and both not adhering to the code of conduct. They have quoted their percentage fees stating ‘plus VAT’, without showing what the total amount could come to.

Yes - saying "1% plus vat" instead of "1.2% inclusive of vat" looks like a technical breach of TPOS code of practice.

(And some estate agents will include an example calculation e.g. "If your property sells for the asking price of £x, that means our fees will be £y" - but I don't think that's a requirement of TPOS code of practice.)

But I don't think your family member would succeed in claiming that they were misled by that.

But if the estate agent said their fee was 1% with no mention of vat, but then they added vat on the final bill - I think your family member would have valid grounds for complaint.

user1977

Is this normal practice to say ‘plus VAT’ now?

In my experience it's always been normal practice to quote exclusive of VAT.

eddddy

user1977

In my experience it's always been normal practice to quote exclusive of VAT.

Yes - but the Property Ombudsman's Code of practice says otherwise:

Link: https://www.tpos.co.uk/images/codes-of-practice/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A4_FINAL.pdf

user1977

I did say in my experience, not that everyone was compliant…however I also note the code doesn't apply in Scotland where I have more experience, so I'll bow out.

ButterCheese

https://forums.moneysavingexpert.com/discussion/6654987/estate-agent-fees

Julian Marks are excellent, we used them when selling ours. Family run company

DE_612183

https://forums.moneysavingexpert.com/discussion/comment/81881024#Comment_81881024

But that is about the actual fees ( i.e. when the property sells )? - not a quote - which is what you have got.

saajan_12

https://forums.moneysavingexpert.com/discussion/6654987/estate-agent-fees

What are you actually aiming to do :

• If complain about the agent then yes you likely have a case with the relevant ombudsman.
• If protect her against dodgy practices then I'd focus on basically anything else. Eg currently, what is the minimum term, notice period, what portals will they advertise on, when is commission due (RWA or on exchange), multi agent / sole agent / sole selling, etc. Later it'll be which offer to choose if multiple, which buyer enquiries need addressing, v which are spurious, when to start planning movers, etc etc.

Basically there's much more to come where you need a cool, rational head. This one is easily solved (just add 20% yourself) so not worth spending another minute on IMO.

monkey-fingers

https://forums.moneysavingexpert.com/discussion/comment/81881024#Comment_81881024

Much as it may, the majority don't.

As above, it's not difficult - just add 20% on.

What boils my wotsit is when solicitors put together their bills.

It might say

Searches = £x
Land Registry Fees = £y
Our conveyancing fees= £z
AML checks = £a
Something else = £b

Total = £c + VAT
You pay £d

Except that not everything is VATable. So you've no idea how they come to the grand total.

Consumer3

Thanks all, no I hadn’t planned on complaining I just wondered if this was the norm. And yes it’s about softening the stress for her as she goes through the process.
Definitely with as cool head as possible and I have done the maths for her, it’s just frustrating for more vulnerable people when EAs can’t follow something they sign up to.