Estate agents can help you achieve the best price for your property, and they support you throughout the process. They’ll market your home, host viewing appointments, and negotiate the best deal possible. But how much do you pay for these services? Read our guide below to find out about the selling fees estate agents charge.
How much do estate agents charge?
The majority of traditional estate agents will charge you a percentage of the sale price of your home. They’ll provide you with a quote when valuing your property, and the agreed percentage will be detailed in your contract, which you’ll sign before your property goes on the market.
Online estate agents will charge you a set fee, which tends to be cheaper, but you have to do a lot of the marketing, viewings and administration yourself. Also, in most circumstances, you’ll have to pay this fee whether your house sells or not, so you could be left out of pocket.
When looking at all the costs for moving house, make sure you include your estate agent fees, as they can be a significant cost.
What percentage do most real estate agents charge?
When selling your home, most estate agents charge between 0.75% and 3% of the value of your home, although the selling fees estate agents charge can go up to 3.5%.
Your estate agent fee percentage depends on the estate agent you choose and the services you want. It can also change depending on whether you decide to sell through one estate agent or several, resulting in a higher fee.
Whilst using an estate agent certainly has its costs, there are a lot of benefits to using one. Everything is taken care of for you, which ensures that everything is done properly, nothing is missed, and a lot of stress is taken away from you when selling your home.
What do estate agent fees include?
Estate agent fees cover all the work your agent will do for you, no matter how long your property stays on the market. These services can include:
Expert advice and a property valuation
Good estate agents will visit your home to conduct a thorough property valuation. This will give you an accurate price for how much you can sell your property for in today’s market.
Estate agents will also advise you on any home improvements you can make to increase the value of your home or to help you achieve a quick sale. They understand the local market and can advise you on how to navigate it successfully.
Marketing
Your estate agent will take professional photos of your property, write up a detailed description, and provide a floor plan for your listing. This listing should highlight all the key features of your home. They’ll then advertise your property on all the essential portals, including Rightmove, Zoopla and OnTheMarket. You’ll have a For Sale sign put up outside your home, and then they’ll get in touch with the contacts they have of people who are looking to buy a property like yours.
Property viewings
Estate agents book all your house viewings for you, and they can also host these if you’d rather not do it yourself. The benefit of this is that they know exactly how to convey all the benefits of your home to potential buyers, and they can answer any questions that viewers may have. They’ll also follow up with your viewers to get detailed feedback on their thoughts about your property.
Sale price negotiation
This is a critical part of the process and experienced estate agents are experts at handling sales price negotiations. They’ll act on your behalf, bringing you offers as they come in, and negotiating to get you the best price possible.
Organising completion
After the sale has been agreed, there’s a lot of back and forth between the seller and the buyer, and this is all handled by your estate agent. They can deal with any issues that come up and communicate effectively with everyone involved to get the sale completed in the quickest time possible.
When getting quotes from estate agents, make sure you know exactly what they’ll provide in terms of services, so that you’re not caught out.
Do estate agency fees include VAT?
Value Added Tax (VAT) is often included in the estate agent fees, but it’s always best to check this with each estate agent you get a quote from.
If your selling fees don’t include VAT, you’ll need to pay an additional 20% of the estate agent fee cost, and this can be quite expensive.
Are estate agent fees negotiable?
It is possible to negotiate your estate agent fees before you sign your contract with them. However, there’s usually a good reason why their fee is set at a certain rate, and they’ll be unlikely to change it without a good reason. If you’re offered a better rate elsewhere, you could also ask if they’d be willing to match it.
However, a higher fee is sometimes worth paying. It could be that the estate agent has a huge database of potential buyers to market your home to, or they might have had great success selling similar properties in your area recently. Make sure you weigh up all the pros and cons when choosing your estate agent.
When do you pay estate agent fees?
Nearly all high street estate agents are paid when your sale completes. Technically, the fees are due when contracts are exchanged, but they’re not paid until the sale is complete and all the monies have gone through.
How do you pay estate agent fees?
Your solicitor should handle this payment for you, but check this when you appoint them. Estate agents normally invoice the solicitor directly, and then the solicitor pays them from the monies that come through at completion.
What happens if the sale falls through?
Most traditional estate agents provide a “no sale, no fee” service. So if your sale doesn’t complete, you shouldn’t have to pay anything.
Online estate agents often work differently to this, so make sure you’re clear on what you’re agreeing to from the outset.
When you put your house on the market, it’s important to choose an estate agent that has the expertise and experience of selling properties like yours in your local area. Selling fees are an important part of the decision; you need to know what’s included in the fees so that you get the precise services you need to have a successful sale.
The best place to start is to book a free, no-obligation home valuation with your local, expert estate agent. We’ll talk you through all your options and explain exactly what’s covered in our estate agent fees. We look forward to hearing from you.