Estate agent AML and other fees for selling

Downthedrain

We had a valuation for selling our house and the commission comes to £7800. In addition we are required to pay an additional AML fee of £60 each for my wife and I. We're rather surprised that this isn't included. Is this not the same type of check banks perform when you open an account and part of the daily business of selling properties? In addition, our solicitor also carries out the same checks - can the two be linked? Our solicitor just charges £10.

We're also taken aback that photography and social media marketing is extra (?) requiring an upfront fee of £360 (minimum, for a basic marketing pack comprising a floor plan and photography with some video). Should we cancel, there's also an additional cancellation fee on top of £360 to cover their marketing costs.

We've sold 5 houses, but none recently and the commission was to photograph, market and sell the house. Am I unrealistically completely out of touch with how things are nowadays?

user1977

Photography etc was a typical "extra" back in the 90s, nothing new about those sorts of surcharges. Best just to make sure you're comparing apples with apples when you're shopping around.

SpurRoadTraveler

Hi Downthedrain, you are definitely not out of touch. Charging a separate £60 per person for an AML check on top of a massive £7,800 commission is a total joke, but sadly it has become a standard hidden markup for many high street agents. The actual cost of the digital check to the agency is usually only a couple of pounds, so they are making a massive profit on it. Legally they have to do the check, but charging you that much extra for it is just greedy.

The upfront marketing fee and cancellation costs are also becoming more common to tie you into a contract. If they are charging £360 upfront, it completely removes their incentive to actually work hard and sell the house. If you haven't signed the contract yet, tell them you want the AML checks and marketing included in the standard commission fee, or walk away and shop around. Plenty of independent agents still work on a true traditional no sale, no fee basis where everything is included in one clear percentage. I have seen their advertisement on a lot of places in my area which clearly says no sale no commission.

Snot

You haven't given any context on the £7,800, is this 0.5%, 1% etc

The AML charge is just another another revenue stream for the agent. We shopped around but all the local agencies were doing the same, with prices between ~£30 and £100.

Our agent asked us to pay extra for premium marketing package and we just said no.

As already advised, shop around.

UnsureAboutthis

7600 on a ten million property is peanuts.

Lesson from this: always read the T&C's and ASK about "fees..." and ask if it includes VAT, the commissions, or any other fees—then you are not left with a bad taste in your mouth.

Slightly different, but still applies to your scenario:

I recall my recnt chat with a letting agent and increased charges to LL's due to "new rules, extra teanant rights.." The ownner said, "It's only 5% plus vat." I said, as it's "only 5% plus vat, it won't hurt as you have over 1500 LL's on your books." Ten I told her I was going to take my business elsewhere, and that resulted in no increases becuse I've been with the agent for some years and we are great LL's and rent out our place well below market value to good/honest, hardworking tenants.

RelievedSheff

We have sold a property recently. The ID checks were included in the price that was payable on completion. No extra charges. The same with the marketing and photographs. The agent we chose wasn't the cheapest locally but they do have a lot of success selling in the area which is why we chose them.

Downthedrain

https://forums.moneysavingexpert.com/discussion/comment/82018391#Comment_82018391

The commission is 1% + VAT.

Flugelhorn

why is there an AML charge for selling (or is this the same as ID?)

mills112

https://forums.moneysavingexpert.com/discussion/comment/82018705#Comment_82018705

normally it is just ID checks as well as ownership checks for selling and to make sure you don't appear in the AML risk register.

mills112

AML check costs are applied by some EA for selling as well as buying. Upfront fees for photos and floor plans will depend on the EA t&c. Best shop around. It could be that is the practice in your area as EA tend to have different charges in different areas.

mta999

my photos, floor plan etc was £180 Surrey)