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Agents fees... £5k too much?

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berkhomeless
berkhomeless Posts: 2 Newbie
in House buying, renting & selling
I am selling a house. Estate agent and I singed the contract for 1.2 % of house sold price. It is about £ 5k included VAT. Is it too much? We've got a offer (only 3 weeks on market) and agreed to sell. I started to looking for solicitor. And it add up about £ 1k. We are very tight in money. Could I go to EA and ask to make agents fee less £1k ...or I take my house from market and go for another agency. I'v got roomy ex-council house in popular location. Thank you very much for answers in advance!
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  • gingercordial
    gingercordial Posts: 1,681 Forumite
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    berkhomeless wrote: »
    I am selling a house. Estate agent and I singed the contract for 1.2 % of house sold price. It is about £ 5k included VAT. Is it too much? We've got a offer (only 3 weeks on market) and agreed to sell. I started to looking for solicitor. And it add up about £ 1k. We are very tight in money. Could I go to EA and ask to make agents fee less £1k ...or I take my house from market and go for another agency. I'v got roomy ex-council house in popular location. Thank you very much for answers in advance!

    If you've already signed a contract and they've found you a buyer I can't see any reason at all why they'd agree to drop their fee now!

    If you read your contract you will probably find that you can't sell with another agency for a period of time, or can't sell without also paying them, or even if you don't sell at all you may still need to pay their fee because they have found you a willing buyer.

    The time to negotiate this was before signing the contract!
  • berkhomeless
    berkhomeless Posts: 2 Newbie
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    I am not in harry to sell. And I am still not sure about selling now. I've started to look for buying ... I am disappointed that so bad condition and more money. As I understand I pay fee after transaction.
  • Annie35
    Annie35 Posts: 385 Forumite
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    I'd guess if you pull out of the sale now the agents will still want paying, as they've found you a buyer. That tends to be the way it is.

    Best idea might be to keep looking & negotiate 5k off the price to account for your fees, or stall long enough your buyer pulls out & you can hopefully leave your contract freely
  • walwyn1978
    walwyn1978 Posts: 837 Forumite
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    berkhomeless wrote: »
    I am selling a house. Estate agent and I singed the contract for 1.2 % of house sold price. It is about £ 5k included VAT. Is it too much? We've got a offer (only 3 weeks on market) and agreed to sell. I started to looking for solicitor. And it add up about £ 1k. We are very tight in money. Could I go to EA and ask to make agents fee less £1k ...or I take my house from market and go for another agency. I'v got roomy ex-council house in popular location. Thank you very much for answers in advance!
    1.2% is what you agreed, so no, if you want to sell to this offer you're paying the 5k.

    If you are thinking of changing agencies, read the contract you signed to see how long you're tied in with your agency, if at all.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
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    1 - 1.5% is "usual" and normal, so your 1.2% isn't outrageously higher than other agents might typically charge.

    You did have the chance to read up/try to negotiate, but the reality of that is that most of them have had people try to do that every day for the last 20+ years of their working lives, so they're much slicker at turning it back at you and not reducing their fees anyway.

    So, don't feel you "lost out".

    Unfortunately, now, you've signed the contract and you've got a buyer - so now is not the time to try to renegotiate as you "already owe them the full amount" so they've got you over the proverbial barrel.

    But ... don't feel sad you're paying a lot ... it happens to most people. That's "pretty much the rate" for most and 1.2% isn't the most expensive agents' charge.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    So the EA did what you asked and found you a buyer at an acceptable price, but too quickly for your liking - easy money for them maybe.

    If they had taken a year to find you a buyer would you be happier with the fee?
  • PokerPlayer111
    PokerPlayer111 Posts: 343 Forumite
    edited 15 February 2018 at 6:46AM
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    Its the normal fees for traditional estate agent, for future reference if you want the cheapest fees use doorsteps for £99 you get listed on rightmove and zoopla and there is no other fees once you have sold. Check this thread:

    http://forums.moneysavingexpert.com/showpost.php?p=73850191&postcount=50
  • Davesnave
    Davesnave Posts: 34,741 Forumite
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    berkhomeless wrote: »
    As I understand I pay fee after transaction.
    No. You pay whatever fee your contract with the agent says you pay when the conditions in it are met.

    We can't see your contract, so none of us know what you've signed, but the rate of 1.2% is pretty normal.
  • ashe
    ashe Posts: 1,551 Forumite
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    Even if you pull out now, depending on your contract if they are a ready, willing and able buyer you may have to pay anyway

    You!!!8217;ll struggle to get much lower than 1.2% without a DIY option
  • rubble2
    rubble2 Posts: 549 Forumite
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    This is interesting. We have just put our house on the market, we asked for valuations from three local high street agents and the fees quoted were one at 0.7%, and the other two (one of which we have gone with at 0.5%.
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