Current Estate Agent fee when selling a house Post Reply

[NPMum]

Hello,

We are selling a flat in Tooting and have been quoted a 2.5% +VAT or 3% +VAT multiple listings from a local agent, it seems a bit high. We've read that 1-1.5% is more the norm.

Has anyone listed recently? Could you let me know what fee you were able to get?

Any advice is welcome!

[townieatheart]

That's a ridiculously high fee. 1.5 - 2% is normal with some even going lower.
Remember it's a sellers market and if properties around you are selling fast then agents should be incentivising to get you to sell through them.

[Moop]

That seems high to me!

We were quoted a variety of rates but negotiated down. We ended up paying 1.5%.

We actually were very disappointed with our first choice of agent who oversold their capabilities and network and ended up switching very quickly to another who were AMAZING. If we'd just gone with them in the first place, they would have charged just 1%. But as we were listed with 2, we ended up paying higher. Drat.

[hjm]

That's far too high. We paid 1.5% for joint agency with Rampton Baseley / Douglas & Gordon just over a year ago. Given that the market is much stronger now that it was a year ago you definitley shouldn't be paying more than that. If anything, you might be able to negotiate a lower fee.

[elizad]

Out of curiosity has anybody ever negotiated Foxtons down as they seem to never budge….

Jacksons are always offering 1%…but I don't know if they are any good of not...

[kiwimummy]

KfH will go to 1%, although was not 100% happy with their service, if they get sole agency.

It is definitely a seller's market as the agents need stock. Check if the agent is charging buyers a fee as well - it will put buyers off using them so best to know in advance. It's a new thing some agents have introduced to make up for the low rates they are getting from sellers.

[NYE31]

1.5%, Foxton's don't go down, don't forget that the internet does most of the work as all agents use rightmove, their websites etc.

[Moop]

I thought that too - I thought that all agents were equal given the likes of right move etc but found that actually this is not the case.

The team at D&G on northcote road were absolutely incredible with our sale and had our place sold within a week of it being on. Another agent had it for over a month with 1 or 2 viewings at the weekends. The first weekend D&G had it on, we had something like 8 viewings and an offer! They really are a well oiled ship!

[jonathan @ hamptons]

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

[kiwimummy]

http://www.theguardian.com/money/2014/f ... ble-charge

http://www.standard.co.uk/news/london/e ... 76108.html

Hi Jonathan

Thanks for your post. I've copied above the articles as there was some press about it earlier this year. Technically the agents charging buyers is not illegal - but it should be.

[jonathan @ hamptons]

WOW - I stand corrected and am utterley astonished!!

As the article says, all that then happens is that the buyers takes into the consideration the extra fee and reduces their offer by the same amount. The original client (the vendor) is then effectively getting less for their property.

I have to say that I have never heard of this before today but would still suggest that sellers should stay away from an agent using such questionable tactics.

Cheers,

Jonathan

Hamptons International
98-100 Northcote Road
020 7924 2170