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  • FIRST POST
    • frankie
    • By frankie 12th Jan 15, 5:20 PM
    • 760Posts
    • 295Thanks
    frankie
    Haggling estate agents' fees
    • #1
    • 12th Jan 15, 5:20 PM
    Haggling estate agents' fees 12th Jan 15 at 5:20 PM
    Hi

    Has anyone managed to haggle down the percentage fees of estate agents. Or, managed any deals on fees such as high percentage for say 8 weeks then lower. Bonus for agent if buyer found within certain time frames?
Page 1
    • LateStarter
    • By LateStarter 12th Jan 15, 5:26 PM
    • 227 Posts
    • 243 Thanks
    LateStarter
    • #2
    • 12th Jan 15, 5:26 PM
    • #2
    • 12th Jan 15, 5:26 PM
    I've managed to get the fees down from 1.5% to 1% - it helps if there are other agents around and you can say "Look I'd really like to go with you but X are offering a lower fee and I rate them as highly as I rate you. What can you do?".

    Be polite. Be friendly. Be firm. And be willing to give in if you really want to go with a certain agent and they won't budge.

    Best Wishes
    Last edited by LateStarter; 12-01-2015 at 5:27 PM. Reason: typo
    • eddddy
    • By eddddy 12th Jan 15, 5:50 PM
    • 8,315 Posts
    • 8,546 Thanks
    eddddy
    • #3
    • 12th Jan 15, 5:50 PM
    • #3
    • 12th Jan 15, 5:50 PM
    Hi

    Has anyone managed to haggle down the percentage fees of estate agents. Or, managed any deals on fees such as high percentage for say 8 weeks then lower. Bonus for agent if buyer found within certain time frames?
    Originally posted by frankie
    Yes, frequently.

    I have also offered bonus fees for achieving a good price (within a time limit).

    And go for a minimum contract period of no more than 6 to 8 weeks.



    But... just something to think about... if the EA has lots of similar properties... you're paying the EA 1% but the other vendors are paying 1.5%... the EA may push the other properties harder than yours. Who knows???
    • Guest101
    • By Guest101 12th Jan 15, 6:03 PM
    • 15,098 Posts
    • 14,796 Thanks
    Guest101
    • #4
    • 12th Jan 15, 6:03 PM
    • #4
    • 12th Jan 15, 6:03 PM
    A good clause would be fees 1%, bonus of additional 0.5% is offer received with in 6 weeks, who goes on to buy the property.
    • ringo_24601
    • By ringo_24601 12th Jan 15, 6:07 PM
    • 17,148 Posts
    • 27,896 Thanks
    ringo_24601
    • #5
    • 12th Jan 15, 6:07 PM
    • #5
    • 12th Jan 15, 6:07 PM
    We got our estate agent to use a tiered structure.. The more they sold the house for, the higher a percentage.

    Of course you can haggle with estate agents! Everything in their contract is subject to negotiation
    • tea-bag
    • By tea-bag 12th Jan 15, 6:28 PM
    • 518 Posts
    • 920 Thanks
    tea-bag
    • #6
    • 12th Jan 15, 6:28 PM
    • #6
    • 12th Jan 15, 6:28 PM
    Do it yourself save
    • Hoof Hearted
    • By Hoof Hearted 12th Jan 15, 6:33 PM
    • 2,224 Posts
    • 2,224 Thanks
    Hoof Hearted
    • #7
    • 12th Jan 15, 6:33 PM
    • #7
    • 12th Jan 15, 6:33 PM
    Online agent -- 500 all in.
    Je suis sabot...
    • mrsmazza
    • By mrsmazza 12th Jan 15, 6:48 PM
    • 136 Posts
    • 103 Thanks
    mrsmazza
    • #8
    • 12th Jan 15, 6:48 PM
    • #8
    • 12th Jan 15, 6:48 PM
    We haggled the fees down to 1%. Call the agents bluff, just say I really want to use you, but agent x down the road said they would do it for x, if you match it I will use you.
    • DRP
    • By DRP 12th Jan 15, 7:49 PM
    • 3,909 Posts
    • 3,376 Thanks
    DRP
    • #9
    • 12th Jan 15, 7:49 PM
    • #9
    • 12th Jan 15, 7:49 PM
    We got our estate agent to use a tiered structure.. The more they sold the house for, the higher a percentage.

    Of course you can haggle with estate agents! Everything in their contract is subject to negotiation
    Originally posted by ringo_24601
    we did this:

    1% for asking or over, down to about 0.8%.
    • penguingirl
    • By penguingirl 12th Jan 15, 7:55 PM
    • 1,371 Posts
    • 1,160 Thanks
    penguingirl
    We got a fixed fee which equated to 1% inc VAT. We get a 10% discount if sstc within 8 weeks
    • Prothet of Doom
    • By Prothet of Doom 12th Jan 15, 9:27 PM
    • 3,161 Posts
    • 3,815 Thanks
    Prothet of Doom
    My nephew is a senior negotiator in a big chain, and has always said "what's in it for the negotiator personally"


    Lets say I want to sell my house both quickly and at a premium price, of say 200K.


    I could easily sell it at 190K, and 1% on that is 1.9K, so I see 188.1K ?


    What does the employee see personally of that 1.9K ? on top of his basic ? 190 ?


    Right.


    I'd suggest this : a 2% fee, if they achieve 195K, 0.5% if they achieve less, and if they achieve over 200K 2% plus a bonus of 50% of everything over 200K to go to the sales negotiator who achieved it.


    So Sell it at 202K and the agency gets 4,040, but the sales person gets an extra 1000 personally.


    So I see a smidge under 197K


    I'd rather pay 5K and get 9 K more than if I only paid 2K


    The other thing I think is that if they can't get a sale within 8 weeks, I should be free to walk away without paying a bean.


    Anyway I suggested this to my nephew and he thinks I'm deluded.
    • googler
    • By googler 13th Jan 15, 7:55 AM
    • 15,339 Posts
    • 10,087 Thanks
    googler
    My nephew is a senior negotiator in a big chain, and has always said "what's in it for the negotiator personally"

    (Snip)

    Anyway I suggested this to my nephew and he thinks I'm deluded.
    Originally posted by Prothet of Doom
    Tell him to look at the USA and other territories. There, the buyer and seller agents typically split 6% (3% each), and that's the agent's commission, not the real estate company's. The agent typically gets the majority percentage of this, and a minority percentage is paid to their 'broker' (the real estate co. office).

    Mind you, for that, they don't just do negotiation.
    • frankie
    • By frankie 13th Jan 15, 11:37 AM
    • 760 Posts
    • 295 Thanks
    frankie
    Many thanks for all the useful replies.

    Follow on question - go for the cheapest or 'best'. What is 'best'? are estate agents reviewed Trip advisor style?
    • Hoploz
    • By Hoploz 13th Jan 15, 1:00 PM
    • 3,842 Posts
    • 3,388 Thanks
    Hoploz
    Go for the best ... at the same rate as the cheapest!

    I have got to 1% on a high value house and 1.25% on a low value flat in the past year.

    No hard negotiations. After they have already talked themselves down e.g. "I will sell this really quickly for you, I normally charge 2% but as it is such a great property and I want it on my books I will do it for 1.5%"

    That's the way I normally do it.

    If you have a more challenging property or slow moving area, then consider the tie-in period. This can be important. You sign up at the beginning for sole agency at x% but if you are only tied in for a short time eg 6 weeks then you can switch or go multi. Sometimes they try and sign you up for 12 or even 16 weeks and you are stuck with them after the initial rush with nothing going on
    • CathA
    • By CathA 13th Jan 15, 1:15 PM
    • 951 Posts
    • 4,765 Thanks
    CathA
    I got an estate agent to sell my property for 800 flat rate. I got all the agents round, played one off against the other, job done! Admittedly the agent had been more into rentals and was just moving into sales but even so it was a good result. Just tell them you'll put it online and do it yourself if they are not prepared to negotiate. My hubby said he's never seen an estate agent so close to tears before, lol.
    • kleapatra
    • By kleapatra 13th Jan 15, 1:18 PM
    • 209 Posts
    • 197 Thanks
    kleapatra
    I've had 2 valuations done today (one more to go later!) and neither would charge a % fee - they both said they only do fixed fee as their regulator says they have to do this (?) They are both big chains in a big town. This seems so unfair - one of the agents fees works out at 2.07% and the other 1.5% if they sold at asking price. Just one more valuation to go - and I already know thats a fixed fee as its an online estate agent!
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