Estate agents charge their clients on a variety of different services but these are not always made clear. We will attempt to list all the different types of services that estate agents may charge you for as part of their fee’s.
Before we begin, it’s important to note that every estate agent is different and some may or may not include certain services within their fee’s or sales packages.
First off, the average estate agent fee across the UK can be anywhere between 1-4% and this does not include VAT. This means that if you were to sell your home for let’s say £200,000 you could lose out on £8000 if your estate agent were to charge 4%. This does not include any other associated fee’s that come with selling your home such as solicitor and conveyancing fee’s. It is not cheap to say the least.
Moving on, an estate agent fee’s may include the following:
- Estate agents need to put together valuation guidance. To do this they will look at things such as past sales data, archived data and local market fluctuations if any. They will also do research into the local market of the property they are selling so they have a better idea on how much similar homes are going for. After this they will either write their findings into a report or pass over the information verbally over the phone or in person.
- Taking photo’s of your home which includes floor measurements.
- Someone to type up the details of your property.
- Someone to come out and to install a for sale sign outside your house
- Their fee’s also include having someone taking phone calls to organise potential viewings or answer questions people may have.
- Someone to show potential buyers or tenants around the house.
- The cost of the estate agency’s fleet of cars including travel expenses.
- The cost of marketing your house on the internet which may be a website like Rightmove or their own personal website.
- Some estate agents still use local newspaper ads so they may include this in their fee’s.
- Designing and producing brochures or articles of your home and showcasing them in store or online.
- Negotiating with potential buyers on your behalf.
Haggling to reduce estate agent fee’s
Estate agents in general make good mark ups when selling properties so it is in their interest to keep your business and have you sign up with them. This works in your favor as you now have the opportunity to haggle with them.
Before haggling make sure you are prepared by visiting multiple estate agents and getting different quotes. Grill the estate agents and find out exactly what you will be getting with each one. You can then use this information against the different estate agents for example, if one estate agent firm is offering you a better deal but you want to use another one, mention to the estate agent that ‘so and so firm’ has offered you this deal. This may result in your preferred estate agent reducing their fee’s.
Should I opt for the cheapest estate agent?
It makes sense – paying less estate agent fee’s will result in you making more money but caution is advised. As with every business, there will always be some that are just better than others. When looking for the right estate agent, do not just look at their fee’s. Do your research and find out everything you can about them and then make a logical decision based on your personal circumstances.