Estate agent fees

[Mekon]

Having looked on Moneysavingexpert (mock away), the advice is that I should be able to get fees down to 1%. We've got 4 agents coming around, and the first has said they won't go below 2.35%, and they are the ones currently selling around our area. We got an agent down to 1.2% in 2005, but they didn't have to do much back then. Have fees gone up, reflecting the additional work/lower volumes or should I expect better offers?

Any tips on questions to ask the agents would be very welcome.

[Astacus]

We sold two and a half years ago and got 1%. I would have thought that in the current climate they would have to accept a bit of a knock down. 1% seems more than fair. Buyers market. 2.3% is franky taking the piss.

Edited by Astacus on Sunday 11th January 20:50

[Steamer]

I did the tour of the estate agents yesterday and most were 1.25 to 1.5.

HOWEVER! one did point out that some agents are now charging a 'release fee' if you want to goto another agent - I wouldnt be happy with that.

Thats south midlands estate agents by the way.

[Puggit]

It's a buyers market, if they can afford to out price themselves, then let them and take your business elsewhere.

Most people see houses on Rightmove anyway!

Edited by Puggit on Sunday 11th January 20:51

[Olf]

On a 500k house relations recently negotiated 1.6 to 1.4 to 1.25 on a sliding time scale.

[Hobo]

You need to be putting them on some sort of incentive scheme to make then get the best price for you.

For example, if you were selling a house for 100k, then if they are on 1% it makes no real difference to them if they managed to get you 110k.

If you however put them on a tier system, ie 1% for 100k, 2% for 105+ & 3% for 110k+.

[VX Foxy]

We we're on 1.25% (now sold for 280k) but that was multi agency. Sole agency was 1%. Another agent was fixed fee @ 995. This is South Staffs.

[andy43]

Steamer said:

I did the tour of the estate agents yesterday and most were 1.25 to 1.5.

HOWEVER! one did point out that some agents are now charging a 'release fee' if you want to goto another agent - I wouldnt be happy with that.

Thats south midlands estate agents by the way.

Release fee could be to release the HIP they may have 'commissioned' for the seller - if you get your own HIP from a third party the first agents can't touch you when you switch to another.

[rah1888]

In general fees have not altered greatly, although it is true that some firms are charging a little more. I'd say aim to pay between 1.25% - 1.5%.

I would also suggest that chhosing an agent purely on cost, like the choosing of a new car, is not always the best stratergy. A premium of 0.25% may get a far better agent and repay that extra cost over the course of time.

It would be wise not to be tied to one agent for too long, allowing you to try elsewhere if you feel things aren't working out.

Ask them how to show you what properties they have sold recently similar to yours, to get an idea of genuine sale prices. If you want to sell at the moment you need to be realistic.

How much they are still advertising. Many have cut back.

Also ask if they have 5-10 people that are currently looking to a buy a house like your right now.
HTH

Best of Luck

[Mekon]

Much appreciated. We did a incentivisation deal (on a mix of time and price) last time. Good to hear that 2.35% is nuts. Fair play to the guy though, he is shifing houses round our way (prices paid, not just boards).

[Chrisgr31]

Mekon said:

Much appreciated. We did a incentivisation deal (on a mix of time and price) last time. Good to hear that 2.35% is nuts. Fair play to the guy though, he is shifing houses round our way (prices paid, not just boards).

Well if he is shifting houses surely he is the right guy for the job? Unless of course you really don't want to sell?

Estate Agent prices may well have gone up, after all their costs are relatively fixed, but all are selling a hell of a lot less numnber of houses! So if they are going to be around in 6 months they need more fees! Or of course they need to sell houses cheap to actually get the sales through.

I'd go for the expensive guy, he seems to be doing the best job, and how much extra is it going to cost? £1,000? And if he makes you an additional £5,000 you're quids in!

[steve.c]

Think yourself lucky, I looked into selling my place in Florida and estate agents (realtors) over there charge between 5-8%!

[Tuska]

Sold my Mum's place just before Xmas. I buttoned the agent down to 1% + vat.
This is the market level IMHO.

[Simpo Two]

The fewer houses they sell, the HIGHER their fee has to be to keep going...

[Silver993tt]

Simpo Two said:

The fewer houses they sell, the HIGHER their fee has to be to keep going...

yes but the higher the fee the less customers (as sellers) they will get. It makes me laugh when I see the quote from some businesses that due to the hight cost of whatever they have no choice but to 'pass it on' to their customers. It's as if the customers are forced to buy from such businesses which I find quite funny. People will just go elsewhere. As a business, if you can't absorb any kind of increase in operating/raw material costs, you will either a) have to reduce your margins, b) run at a loss for a period of time or c) go out of business.

So in this situation, the fewer houses an agent is selling, the LOWER their fee needs to be in order to attract new business to keep going. If that meanns borrowing money or remortgaing a property or selling any personal assetts they have then so be it. It's all part and parcel of running a business in tougher times

Edited by Silver993tt on Monday 12th January 08:35

[siscar]

Silver993tt said:

Simpo Two said:

The fewer houses they sell, the HIGHER their fee has to be to keep going...

yes but the higher the fee the less customers (as sellers) they will get. It makes me laugh when I see the quote from some businesses that due to the hight cost of whatever they have no choice but to 'pass it on' to their customers. It's as if the customers are forced to buy from such businesses which I find quite funny. People will just go elsewhere. As a business, if you can't absorb any kind of increase in operating/raw material costs, you will either a) have to reduce your margins, b) run at a loss for a period of time or c) go out of business.

No, putting your price up is a perfectly valid choice. Whether people go elsewhere depends on whether they see your new price/service combination as being unreasonable. We buy somethings in from the USA, the price had gone up, our price to the customer has gone up, sales haven't suffered.

Silver993tt said:

So in this situation, the fewer houses an agent is selling, the LOWER their fee needs to be in order to attract new business to keep going. If that meanns borrowing money or remortgaing a property or selling any personal assetts they have then so be it. It's all part and parcel of running a business in tougher times

It depends if they can differentiate themselves. In a situation like this an agent may be able to say - look, I know my rates are higher but look at my record, I'm getting sales. It may actually work in their favour being more expensive because they can focus on better service to fewer customers and the ones they get may be the ones more serious and realistic about selling.

[Silver993tt]

siscar said:

Silver993tt said:

Simpo Two said:

The fewer houses they sell, the HIGHER their fee has to be to keep going...

yes but the higher the fee the less customers (as sellers) they will get. It makes me laugh when I see the quote from some businesses that due to the hight cost of whatever they have no choice but to 'pass it on' to their customers. It's as if the customers are forced to buy from such businesses which I find quite funny. People will just go elsewhere. As a business, if you can't absorb any kind of increase in operating/raw material costs, you will either a) have to reduce your margins, b) run at a loss for a period of time or c) go out of business.

No, putting your price up is a perfectly valid choice. Whether people go elsewhere depends on whether they see your new price/service combination as being unreasonable. We buy somethings in from the USA, the price had gone up, our price to the customer has gone up, sales haven't suffered.

Silver993tt said:

So in this situation, the fewer houses an agent is selling, the LOWER their fee needs to be in order to attract new business to keep going. If that meanns borrowing money or remortgaing a property or selling any personal assetts they have then so be it. It's all part and parcel of running a business in tougher times

It depends if they can differentiate themselves. In a situation like this an agent may be able to say - look, I know my rates are higher but look at my record, I'm getting sales. It may actually work in their favour being more expensive because they can focus on better service to fewer customers and the ones they get may be the ones more serious and realistic about selling.

In a falling market you never increase your fees.