Postby jonathan @ hamptons » Thu May 29, 2014 2:42 pm
Hi NPMum,
2.5% - 3% is about right for a multiple agency rate (remember multiple is three agents or more), as each agent then has a third or less chance of selling the property. I would however ask why you would want to go with anything but a sole agency instruction, certainly initially.
Joint agency or Multi agency fees were borne out of a time where magazines and websites would have exclusivity agreements in place with agents. For example we couldn't advertise on Rightmove if we were already on Primelocation and if we were in SW Magazine we couldn't advertise in say Absolutely. Equally before the internet (yes, that's when I started in agency!) you might list the house with two agents, one at each end of the hight street, to give you the greatest coverage.
These days there are no restrictions in place and a reputable agent should be able to advertise on all the major websites and most of the magazines, so in effect all you would be doing by going with more than one agent is doubling up exactly the same marketing and paying a higher fee. There is also the debate that if you are listed on the same website more than once you actually look desperate!!
Fees are a moot point at the moment. Rates have dropped and dropped in the last year or so, as sellers take the view that in such a rising market any agent can sell a property. In the face of recent press articles however the market is definitely cooling so this is when you need experienced agents to make sure you acheive the best possible price. Ultimately the expression "you get what you pay for" exists for a reason but you pays your money and takes your chances. I would look at agents that can prove a good track record in the area you live and above all pick the one you get on best with. Fees of around 1.5% feel about right for a sole agency instruction, but the size of the fee is much less important than how much the agent can get for you. A cut price 1% fee is not much of a saving if a better agent could have got you 3% more on your sale price!!
kiwimummy - I'm intrigued by your post suggesting that some agents are introducing a fee for buyers. This is completely illegal, and if anyone out there knows of any agent doing this then please pick up the phone to the office of fair trading and report them immediately.
Cheers all,
Jonathan
Hamptons International
98-100 Northcote Road
020 7924 2170