Estate agents fees question

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twomonkeys
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Estate agents fees question

Postby twomonkeys » Mon Oct 15, 2018 7:08 pm

Hi there

I'm sure this has been covered before but I'm selling a flat in Balham and have been quoted 1.75% for single agency which seems quite steep. Any recent experience of negotiating this down and recommendations for selling a small flat in this very flat market?

Many thanks!
daddydaycarerocks
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Re: Estate agents fees question

Postby daddydaycarerocks » Mon Oct 15, 2018 8:22 pm

We paid 1% plus Vat a few years ago to sell our Balham house
Sloaney Pony
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Re: Estate agents fees question

Postby Sloaney Pony » Mon Oct 15, 2018 9:25 pm

If it is a rubbish property in a rubbish market then they will give you a high rate to get rid of you, because they do not want it on their books.

Speak to a few agents. Rampton Baseley. Douglas and Gordon. John Thorogood. Marsh and Parsons. I have used them all to sell my portfolio (I dumped it all before Brexit as this whole environment was toxic). The others did not Impress me. Find one you are happy with, and go with them.

Offer them 1.5% plus vat for what they think they can get, then 10% for anything over that. If Eric the estate agent knows he can get another £500 for himself then you can be damn sure he screws the buyer for another £5k. Pay for performance. If an agent ain't prepared to work on a taper then he ain't worth the cheap suit he or she wears.

You want to incentivise them as much as possible. But if the property is "nothing special" then they may not give a flying f**k as they are stuffed with inventory in this market.

And never, ever, ever tell the agent what you are prepared to accept. Because you just end up inviting lowball offers.

UK Agency law requires them to work in your best interests. Reality is they work for themselves, the buyer and the vendor in that order. As buyer has the dollars.
Giles Empire
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Re: Estate agents fees question

Postby Giles Empire » Tue Oct 16, 2018 11:43 am

I agree with Sloaney Poney. You get what you pay for and if an agent is selling a number of similar properties then they will invariably push the one that’s going to pay a reasonable fee. I’ve also used the incentivised payment structure numerous times before having picked it up from reading Freakonomcs. I’d also definitely recommend Rampton Baseley who we come across quite frequently.
pclappison
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Re: Estate agents fees question

Postby pclappison » Tue Oct 16, 2018 12:50 pm

I've been an estate agent in the Southwest London for over 16 years...  

HIGH STREET estate agents fees vary between 1% (at the lowest) to 2.5% (and above in more expensive areas or on multi-instructions). You should never pay more than 1.5% for a sole agency HIGH STREET agency (in my opinion). 

What you probably don't know though is that most estate agents (the agents themselves actually selling your home) only get paid about 10% of the total fee you pay. The remaining approx 90% goes to the agency. Not a great motivation to deliver you the highest price ;)

However what you should do is use MOVELI (we are a local hybrid agency without offices). 

MOVELI charge 0.75% on sale + a £192 listing fee.
HOWEVER 40% of the sales fee goes to the estate agent themselves. Making them about TWICE as motivated as even the best high street agents to sell your property for the highest price.

Yes, our agents are extremely experienced and local living in your area as well. So, the agent earns more to deliver you the highest price, whilst you pay about half the price. It's a genuine win win. 

If you want to know more drop me a line - I'm one of the founders - and I specialise in selling property SW11/SW12 area. 

I'd love to have the opportunity to talk you through the local market.

020 3150 0733
www.moveli.com

Thanks

Paul

(All percentage rates ex VAT)