When its comes to selling your home, everyone knows that the traditional method is through an estate agent. However, it is never clear how much of a cut your estate agent may take from your property’s sale.
Fees can largely vary depending on the agency and can be difficult to escape. But it can also cost a seller thousands of additional pounds.
This blog will discuss everything, inside and out, about estate agents fees.
How much can estate agents charge?
As previously mentioned, it depends on the estate agent. This fee is taken by a calculated percentage taken from the house sale.
An estate agent can charge anywhere between 0.75% and 3.5% including VAT. So, if the property you are purchasing is £100,000 this could be within the region of £750 to £3500.
The Advisory, an online house selling advice page, generated research around estate agents fees in July 2018. According to their results, the average estate agent fee is 1.42% of the final price (including VAT).
Although, this percentage can change from time to time. Factors influence the change of the percentage. Issues such as how consistent the market is and the property type you are selling.
Before October 2016, estate agents fees used to quote ‘plus VAT’. However, The Property Ombudsman put rules in place meaning all percentages should include VAT. So, before you get a quote, make sure you check this.
Should I find a cheaper estate agent?
Estate agents that are more experienced and all around better, usually offer a higher fee compared to their rivals. The best way to decide is by doing a bit of research. Look at statistics, which agents are selling properties quicker and for higher amounts of money.
It may be better to pay a higher price sometimes as they may be able to achieve a quicker and all around better sale.
However, make sure you do shop around. Whoever you end up choosing, you will end up contacting a lot of the time. So, you need to make sure you base your choices on more than just the ending fee you will have to pay.
Should I use an online estate agent?
If you are on a tight budget and every penny counts, then this may be the better option for you.
Online agents keep their rates flat, unlike agents that charge a selected percentage.
Which? researched into online estate agents in July 2018. They found that fees generally ranged from £600 to around £2,000.
Don’t get short changed…
By law, estate agents are required to tell you everything included within their fee before you decide. So, when you do shop around, make sure to ask questions so you don’t receive any hidden costs at the end.
In an ideal situation, you shouldn’t receive any hidden costs as most services will be covered within an agents commission. But, make sure to ask about the costs around:
- Advertising fees
- EPC arrangements
- Photography fees
- Property portal fees
- Withdrawal fees
- Registration fees
Remember, no matter whoever you use, you are not obligated to continue with any in-house estate agent services. For example recommended conveyors or mortgage lenders.
Additionally, make sure to service ratings and compare rates between estate agents.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.