Estate agent fees?

muzer

We've just fallen in love with a house we went to look at, in all honesty, just to get a feel for the area (we had no intention of moving as we have a baby due in three weeks time). Our situation is that our house has been valued at £130000 ( we have a £52000 mortgage) and the new place is up for £185000 but we feel we may get it for 175. The agent who valued our house has today been in touch to confirm some details and said that the fee for selling our place would be £2950 plus VAT. Without having spoken to any other agents this seems excessive at about 2.5% of the value. The new house needs a fair bit of work, although most of it is cosmetic and the vendor needs to sell as he has financial problems (i've done a little homework). What are people's thoughts on my thinking that if we put our house up with the same agent as the house we are interested in they are more likely to push our place? Or is this fanciful thinking and we may as well just list ours with the cheapest, most suitable agent. Thanks

alanobrien

There is some merit in thinking that they would push yours if you are also buying from them, but not at that
(2 1/2%) price. Its to much.

All agents are open to negotiation, no matter what their official policy may state.

In your situation if i went with the same agent as i was buying from i would pay them no more than 1.5% and for 2% you should be able to get a multi agency deal.

Remember you are the customer, you are paying so they are not doing you any "favours". Make them the offer in writing for sole or joint agency depending on your preference at the levels at which you are prepared to pay.

remember also you can advertise you home on the internet at the same time without effecting their sale contract. Some of the internet sites allow you to list you home for free.

see

https://www.ahomeofmyown.co.uk

for a directory of free to list sites.

Good luck with your move........

bonvonnie

when we were looking at estate agents, there was one around us, who charged 2.5% (our house is only worth £130K)

I find that its ther larger companies, who charge a higher percentage, as they have a 'name' for themselves, or maybe advertise more, in papers and on the website.

muzer

When I initially said to the agent that the fees seemed high he said the only thing he could do is cut the length of the contract from a normal 12 week to an 8 week (the initial price for the 12 week tie-in was £3490). Is it worth me ringing them back and trying to bargain with them?

Ian_W

I find 2.5% quite astounding!! :mad:

The norm here [NW] is 1% for sole agency and even that is open to negotiation with several offering fixed deals slightly under that, eg for a £200k property, £1750 + vat. There is a poster, lush walrus, who owns an EA business in Berkshire, who has stated their stardard terms are 1%, so it's not just in my neck of the woods.

Would suggest in any case you get at least 2, possibly 3 more EA's to value your property rather than just one valuation. Then price it for sale in the mid-range of the valuations. They'll quote their charges and you can play one off against the others.

It may be the one with the prop you're interested in will push yours if they know there's 2 potential sales - but personally I'd only go with them if I thought they were good in other respects. Have they got High St offices, do they advertise frequently in local property press, are they on RightMove and so on. If not I'd go with EA who has - they're far more likely to sell yours putting you in a position to buy.

Doozergirl

2.5% is extortion! I think sometimes agents who deal with people in your position can feel your excitement and won't negotiate fees.

After we had our first baby, we needed to move to a two bed and found somewhere we really wanted. So we put our flat on with the same agent and made it clear that we were doing it to get his help to get the new flat.

He was non-negotiable 2%. Our flat went for full asking price six days later to the second viewer. We had another full asking price offer from someone who hadn't even been inside. We were totally stupid; despite having higher valuations, we'd gone with him and sold so quickly because he'd undervalued us. We didn't get the other flat either (ended up with a lovely garden flat instead!).

Go with the agent that offers you best value for money and good marketing coverage, not just because they're selling the house you want.

The_Biff

Just sold (hopefully!) with 0.75% EA commission. You must barter!

Thefunkygibbons

Go with the best agent in your area regardless of whether it is a big chain or not

You have to have someone you trust who will help you achieve what you want

Everyone has a range between the highest possible price and the quickest possible sale

Either way, at 2.5%, someone is having a laugh