Estate Agent Rates for Developers

[robsartain]

I will be finishing off my house renovation on Saturday and have the estate agents round to put the property straight on the market.

The house will be about the 140,000 to 150,000 mark and I will obviousily beat them down on commision as if my life depended on it.

What sort of rate should I be aimming for commision wise as a developer.

When I have previousily sold houses as a retail client I negoatiated to about 1.2%.

I know it does depend on how much the agent feels they can quickily turn it around, i.e. does the developer want a realistic price, has the development been done well, etc...

Just interested to hear, as I know there are a couple of developers on here.

[SJobson]

If you're only selling one house, why do you think you'd get a better rate than an owner/occupier seller? At least you should be able to reclaim the VAT.

[B17NNS]

I've never received a preferential rate. Typically 1.25% plus VAT.

The more you beat the guy down on price the less effort he will be inclined to put into selling the place.

We're all trying to earn a quid (even estate agents).

[rah1888]

robsartain said:

I will be finishing off my house renovation on Saturday and have the estate agents round to put the property straight on the market.

The house will be about the 140,000 to 150,000 mark and I will obviousily beat them down on commision as if my life depended on it.

What sort of rate should I be aimming for commision wise as a developer.

When I have previousily sold houses as a retail client I negoatiated to about 1.2%.

I know it does depend on how much the agent feels they can quickily turn it around, i.e. does the developer want a realistic price, has the development been done well, etc...

Just interested to hear, as I know there are a couple of developers on here.

Surely you'll be wanting to find yourself a good EA who will try their best to get you the best price, so that you can maximise your profit?

As Sjobson said, if you're only selling one house why should you be entitled to a different rate from any other seller?

[Sam_68]

SJobson said:

If you're only selling one house, why do you think you'd get a better rate than an owner/occupier seller?

^^^ What he says, to put it bluntly.

[robsartain]

Ok, I can see where the comments are coming from.

The reasons in my head for getting preferential rates is that yes I am selling one property at the moment, so in that respect no different to anyone else, but as I plan to turn around three in a year, that is obviousily a tidy sum for the EA. Preferential rate for repeat business where a Joe Public will swap houses every 6 years ?? Pure Guess as an average.

Also on the other side of the deal I will be looking to buy, so they potentially can make money from the people Im buying from.

I do agree, that the best price is worth more than a quarter percent in commision. I will be choosing the agent(s) that impresses and then commision rate is second.

[Sarah_W]

I pay 1.8% + VAT and always talk them upto this rate :-)

Work out what it will sell for and get 3 agents views on this. Say it's 150k. Offer the following
4 week contract after which you'll move to antoher agent if a sale isn't agreed and a solicitor instructed.
1% for upto 145k
1.25% for upto 152k
1.5% for upto 155k
1.8% for 157k

I've done this every time and have always been delighted to pay 1.8%. Mine is always the first property to be shown ahead of similar ones and is talked up a lot more by teh agent. I think it's called win win :-)

[robsartain]

Good idea Sarah,

I was thinking of telling them whatever they sell it for divided by 100,000 is the commision percentage upto 2 decimal places.

So
150,000 is 1.5%
155,000 is 1.55%

etc... but I think your rates seem to be a bit more of an incentive for them.