Estate Agent's fees
Discussion
Having not sold anything for some long time I'm out of touch with what would be reasonable for an Agent to charge.
I'm looking at selling a 1 bed flat that will go for under £120k in a market town in Devon.
Any suggestions of suitable rates, minimum fees, negotiating points etc. My thought is I'll go sole agency initially given that it's a small town.
I'm looking at selling a 1 bed flat that will go for under £120k in a market town in Devon.
Any suggestions of suitable rates, minimum fees, negotiating points etc. My thought is I'll go sole agency initially given that it's a small town.
A lot will wade straight in with 2% in the hope that some mug will go for it.
What you'll have to pay will obviously depend on the local property market but 1.5% as an absolute maximum is probably about right.
On another tack, I have no idea why EAs get away with charging a %-age based fee; its not like there's significantly different amounts of work for them to do depending on the value of the property.
What you'll have to pay will obviously depend on the local property market but 1.5% as an absolute maximum is probably about right.
On another tack, I have no idea why EAs get away with charging a %-age based fee; its not like there's significantly different amounts of work for them to do depending on the value of the property.
pdV6 said:
On another tack, I have no idea why EAs get away with charging a %-age based fee; its not like there's significantly different amounts of work for them to do depending on the value of the property.
If I was cynical I'd say it's because at least that way you can be fairly sure they'll try for a good price
(apologies to any Estate Agents - hey I'm a lawyer we get as much stick as you do 
)Piglet said:
pdV6 said:
On another tack, I have no idea why EAs get away with charging a %-age based fee; its not like there's significantly different amounts of work for them to do depending on the value of the property.
If I was cynical I'd say it's because at least that way you can be fairly sure they'll try for a good price
(apologies to any Estate Agents - hey I'm a lawyer we get as much stick as you do )Freakanomics showed that isn't necessarily the case, getting an extra 10 grand on a property is worth only around £100 to them. It's better for them to undervalue, get quick sales and take more turnover than to spend more effort and time marketing an overpriced property.
The Londoner said:
Might be worth trying to negotiate a stepped fee, so that the harder or quicker they work, the better the price they achieve and the greater their fee is.
That's a good idea, I'd quite like to offload it quickly as the tenant is out and it is costing me money - so on that basis perhaps X percent or X amount if they achieve an offer of at least X by X and reducing from there?
Piglet said:
The Londoner said:
Might be worth trying to negotiate a stepped fee, so that the harder or quicker they work, the better the price they achieve and the greater their fee is.
That's a good idea, I'd quite like to offload it quickly as the tenant is out and it is costing me money - so on that basis perhaps X percent or X amount if they achieve an offer of at least X by X and reducing from there?
I would agree for a larger property but this is at the low end of their business, quick in quick out, they wont want to fluf around with variable rates for different ammounts on a small commission/sale.
In my experience, the largest EAs (Halifax, WH Brown etc) were near 2% whereas most of the smaller local ones were near 1%. Main things to check would be:
- fees for pulling out early (just in case!)
- where/how do they advertise (these days rightmove.com is vital)
- check the advertising boards etc are included in the price
And finally bear in mind VAT is on top usually...
- fees for pulling out early (just in case!)
- where/how do they advertise (these days rightmove.com is vital)
- check the advertising boards etc are included in the price
And finally bear in mind VAT is on top usually...
I have just happily paid 2.5% to a central london agent. The property had been on the market with a smaller agent who was charging 1.25% and I was messed around for weeks, yet this other agency has been superb and earned every penny they have got. I even accepted an offer and then three days later had a higher one from a different negotiator!
Value for money is the most important thing.
Value for money is the most important thing.
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