negotiating agents fees

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
19 replies 1.5K views
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  • mandimandi Forumite
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    Part of the Furniture Combo Breaker Stoptober Survivor
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    mandi wrote:
    Hi just me again,

    Can I be really cheeky and ask how much your house is worth?..You
    say that both agents have said its a quick sell.. so why pay them1.25%,? my suggestion is to agree a fixed fee( this will obviously neeed to be less than you would pay % wise)If its gonna be a quick sell then theyre not going to incurr many costs. and dont forget, the markets slowed down... they need your house.. so go back to the first 2 tell them your interested but only on a fixed fee rate with SOLE AGENCY NOT SOLE SELLING rights// if they want your buisiness believe me they will bend over backwards to help...

    In the meantime I would be more than happy to advise you at any time
  • absolute0absolute0 Forumite
    149 Posts
    Part of the Furniture Combo Breaker
    Thanks Mandi.

    Both agents have stated that it is worth £120,000, the recent changes in stamp duty has capped any potential extra. The reason why it should sell quicker is because it has a very big garden (corner plot) in comparison to others and it has a garage. Others down the road are selling for £116,000 & £118,000 offering much less. I'm hoping that we should stand a good chance.

    Fixed fee sound like a good idea, just need to do some calculations me thinks.

    Cheers

    D
  • mandimandi Forumite
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    Hi D,
    Hope you read this before your final agent arrives.The fact you have a corner plot(good for an extension) and a garage, makes your property so much more attractive to a potential buyer , and an estate agent (of course) You do stand a good chance of selling quickly, so stick to the fixed fee, and sole agency ok??
    As an ex Estate agent, I can guarantee, this is your best move,
    Once again, will be happy to help
  • Use the estate agents selling talk to your advantage.
    They have said 1.25%
    They have said it will sell quickly.
    You say they sell lots locally.

    Go and see them face to face, ask them how confident are they of a quick sale (they are almost bound to say they are confident they can sell it fast.)
    ask them how many similar properties they have sold recently and how quickly similar properties sell (they will say they sell lots of properties and most go very quickly.)
    ask if yours is more saleable because of the garden and garage (they'll probably say yes)
    Ask them what the 1.25% charge goes towards. (they will likely say it pays for the advertising and administration costs of dealing with viewings/buyers)

    you can then ask them that due to them saying it will sell quickly, and as they have sold lots of similar properties locally they already have lists of buyers waiting in the area, whom they can contact probably by e-mail (costing nothing). It will not take much advertising and so will massively reduce their costs. ask for this to be passed on to you, either as a 1% fee, or a fixed as discussed previously.
    They are then in a position whereby they have already countered any reasonable reason to justify their 1.25% fee.

    however, in this case, as they are by far the cheapest anyway, and best locally, they will know they are the cheapest. You maybe should not bite off your nose......... dont get on bad terms with your agent from the start!

    Good luck.
    Anything I write is based on my opinion only. Before acting upon any advice from anyone on a forum further professional advice should be sought.
  • mandimandi Forumite
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    chucky wrote:
    I have a property in Central London and the best I can get from any Estate Agent is 2.5%! The property value is £270k.
    None of them will budge off this amount - I've tried negotiating but no luck.
    The only reason I can see is that there is property selling at the moment and they have enough business.


    If property in your area is selling well, why dont you try selling privately then, be a good kick in the teeth for the greedy agents. :
  • London agents are always more expensive...Simple reason they have to pay huge rates, huge rent and higher wages!!
  • however to counter this, properties cost more therfore they make more. It's not a valid reason to put a 2.5% fee on a property.
    wages may be around 30% higher, rates/rents 50% higher, but they could charge the 1% fee because properties 9therefore the commission) are worth 100% more!!!!!

    (all percentages have been plucked out of the air as an example.)
    Anything I write is based on my opinion only. Before acting upon any advice from anyone on a forum further professional advice should be sought.
  • gallygirlgallygirl Forumite
    17.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Mortgage-free Glee!
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    I tried to get a discount selling two at the same time, but they wouldn't offer one. I decided then not to use them at all !

    If they won't offer you a discount for 5 properties you could try putting one of the houses on with them, and then do the viewings yourself. When people come to view you could let them have the details of all the properties you have to sell. It's quite easy to make a property information sheet like the agents do.

    Alternately use a free web site for some or all of them.


    Duh! Is that obvious or what!!!! I am v dense sometimes.....
    Although would only work for 3 in the same price bracket, and would be worried viewers might 'tell' on me - of course if I didn't give out details but just happened to mention in passing....
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • absolute0absolute0 Forumite
    149 Posts
    Part of the Furniture Combo Breaker
    mandi wrote:
    Hi D,
    Hope you read this before your final agent arrives.The fact you have a corner plot(good for an extension) and a garage, makes your property so much more attractive to a potential buyer , and an estate agent (of course) You do stand a good chance of selling quickly, so stick to the fixed fee, and sole agency ok??
    As an ex Estate agent, I can guarantee, this is your best move,
    Once again, will be happy to help

    Thanks to all for your advice. I tried my best to haggle with these agents, some of which were move flexible than others. I eventually got the fee down from 1.25% to fixed £1,000 + VAT, but with a 6 week tie-in - sole agency (thanks Mandi), which I'm quite happy with. Just need to sell it now!

    Many thanks

    Dave
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