How Much are Estate Agents Fees?

How much you pay in Estate Agent fees (or commissions) depends upon the type of Estate Agent you use.

Traditional Estate Agents

An Estate Agent’s commission (or fees) will vary but traditional Estate Agents usually charge between 1.5% to 2% of the selling price, plus V.A.T.

Most Agents will include marketing costs within this fee; some might not, so check this carefully, and always scrutinise the contract when you receive it.

Online Estate Agents

Online Estate Agents often charge a fee which is a fixed amount. Some attract customers mainly by offering low fees, which will be less than a traditional Estate Agent’s fees – possibly as little as a few hundred pounds.

They obviously need high volume and low overheads to make this cost effective – as a result, in most cases, what you’re getting is just listings on the main property portals, plus an answering service. You might even be required to do your own viewings.

In some cases this is all you need – if your house is in good condition and competitively priced, the chances are that whoever you use, the Buyer is going to see your property online.

You do need to be sure the Online Estate Agent has valued it accurately though, and without local knowledge there’s a higher risk that they don’t know your locality well enough to do this. Clearly there’s no point saving £2,000 on Estate Agents’ commission if you sell the property for £5,000 less than you could have done.

Franchisees

Some Online Agents work in a similar way to Realtors in the USA – basically they have local, often franchised, people working in an area, on commission only, and with each person typically handling only a small number – maybe 10 – properties at any time.

The benefit of this is that they can provide a better service than an Estate Agent with several hundred listings can, and they are highly motivated to ensure your house sells, as this is how they earn their living.

You will pay for this service though – usually about the same as you’d pay in traditional Estate Agent commission, or possibly more. Bearing in mind USA Realtors typically charge 6% for this personal service it can still be good value though.

Finally

Don’t be afraid to bargain. You can play various Agents off against each other and most will be flexible. Initially the majority of Estate Agent commission fees are stated as being non-negotiable, but when it comes to the crunch, most of them will want the business even if it means reducing their fee to match or beat their competitors.

Find out more about the ways to sell a house:

1 Using an Estate Agent
 • Types of Estate Agent
 • How Estate Agents Market Property
 • How Much is it Worth?
 • How Much are Estate Agent’s Fees?
 • Once the Property is Listed
 • Once a Sale has been Agreed
 • Estate Agent Tricks
 • Selling Without an Estate Agent

2 Selling to a Quick Cash Buyer
 • Watch out for the Unethical

3 Selling at Auction

4a Equity Release

4b Sell & Rent Back (SARB)

5 Creative Solutions
 • Exchanged with Delayed Completion

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By Richard Watters

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