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Estate Agent's Fees How Much?


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#1 SEW247

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Posted 14 March 2012 - 10:18 PM

I know we all hate them, but Im probably going to use an estate agent :ph34r: to sell my flat in N19 London as I really don't think I can deal with the hassle of doing it myself.

I've had three agents around (no graduate clones a la Foxtons :lol: ) and they are all creaming themselves over my flat as there seems to be a lack of flats within my area at the moment. They are all sticking at 1.5% commission and all valuations are similar although one guy seems to think its "worth" 50k more than the others do :blink:

With rightmove, vebra etc I know it will get enough coverage from whoever I go with anyway and I'm going to knock down their 1.5% fee as far as possible, but I am also not 100% sure how to ultimately decide who to go with.

One thought is to go with an agent which has other offices in the area I want to move to, so as to try and leverage this in order to get viewings from their other office in advance. (Does this really happen in practice?)

Can anyone offer me any advice or tips please, or point my in the right direction?

Thanks!

#2 hurricane

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Posted 14 March 2012 - 10:25 PM

You sure you have come to the right website?

#3 southeast

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Posted 14 March 2012 - 10:40 PM

In my limited experience fees seemed to be anywhere between 1% and 1.7% plus VAT (although I have heard of people paying 2%!)

On the couple of occaisons that I have sold property I have negotiated them down quite a bit. BUT this may be a false econemy, as with too little incentive they cant be bothered.

The first property I ever tried to sell I negotiated a 1% fee, and to say they were useless is a compliment. I changed agents to one charging 1.5%, they still didnt sell it quickly but got a lot of people throught the door, so we knew it must have been overpriced in the end. They got us a sale, but the most surprising thing, when the buyers pulled out they made a lot of effort to get it sold again, so much so that 4/5 out of the subsequnet 10 viewers actually said how good (yes you read that right, good) the agent was. So the question why they didnt make this effort to start with, they got a second offer in just 2 weeks flat!

I have heard of people offering more if the agent gets a higher price, rather than a straight percentage, dont forget it really needs to be worth their while for the lazy so and sos to make any real effort.

#4 Wurzel Of Highbridge

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Posted 14 March 2012 - 11:28 PM

We sold our house with Hatched.co.uk


I was very pleased with the service they gave.
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#5 Mrs Bear

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Posted 14 March 2012 - 11:32 PM

I know we all hate them, but Im probably going to use an estate agent :ph34r: to sell my flat in N19 London as I really don't think I can deal with the hassle of doing it myself.

I've had three agents around (no graduate clones a la Foxtons :lol: ) and they are all creaming themselves over my flat as there seems to be a lack of flats within my area at the moment. They are all sticking at 1.5% commission and all valuations are similar although one guy seems to think its "worth" 50k more than the others do :blink:

With rightmove, vebra etc I know it will get enough coverage from whoever I go with anyway and I'm going to knock down their 1.5% fee as far as possible, but I am also not 100% sure how to ultimately decide who to go with.

One thought is to go with an agent which has other offices in the area I want to move to, so as to try and leverage this in order to get viewings from their other office in advance. (Does this really happen in practice?)

Can anyone offer me any advice or tips please, or point my in the right direction?

Thanks!


If fees and other things are equal, I'd go with the one who presents best online - good photos, good floorplan (some still don't bother) - and reasonable blurbs that aren't littered with spelling mistakes may indicate some degree of professionalism/ attention to detail.

It might be worth making a few 'mystery shopper' calls to ask about something - length of lease of any flat is a good one. If they don't know and can't find out for you very quickly then I'd scratch that one. Length of lease is so important with a flat, yet I've come across agents who act all bemused, as if it's some minor detail like the colour of the front door.

#6 SEW247

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Posted 15 March 2012 - 08:00 AM

We sold our house with Hatched.co.uk


I was very pleased with the service they gave.


Thanks for the link - could you let me know how the whole viewings process works out and how you felt the best way was to manage it?

Also, are you confident that you got sufficient coverage to get the best price for your place? One of the things all the agents have said about my flat is that it is highly likely that it will go to sealed bids; do you think this would be a problem for me to manage myself?

#7 SEW247

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Posted 15 March 2012 - 08:02 AM

You sure you have come to the right website?


Yes - the advice / opinions of the people on this website have done me an awful lot of favours since I started coming here.

Granted, I may not have bought a place if I had hound HPC first, but it has prepared me well for my next.

#8 manchester50

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Posted 15 March 2012 - 09:09 AM

You sure you have come to the right website?


He's been a member for 2.5 years longer than you, is posting in the 'All about buying, selling and mortgages' section and has over 10 times as many posts. And you think he's lost?

I also have had good experiences with Hatched. They have a number of fee options but the fixed fee with half up front is the best. Most people use Rightmove nowadays so I'm sceptical regarding the value of the EA shop window. With Hatched (& other online agents) they do all that a high st one does (inc. handling offers/responses etc) bar the viewings. If it's not too inconvenient to show people round then it saves thousands over the high st. FWIW my viewings required an 80 mile round trip each time, but even with the hassle/diesel it was still very worthwhile for the savings.

#9 SEW247

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Posted 15 March 2012 - 10:28 AM

He's been a member for 2.5 years longer than you, is posting in the 'All about buying, selling and mortgages' section and has over 10 times as many posts. And you think he's lost?

I also have had good experiences with Hatched. They have a number of fee options but the fixed fee with half up front is the best. Most people use Rightmove nowadays so I'm sceptical regarding the value of the EA shop window. With Hatched (& other online agents) they do all that a high st one does (inc. handling offers/responses etc) bar the viewings. If it's not too inconvenient to show people round then it saves thousands over the high st. FWIW my viewings required an 80 mile round trip each time, but even with the hassle/diesel it was still very worthwhile for the savings.


Thanks for the feedback - really useful to know :)

I'm seriously contemplating it because I cant see how 1.5% commission on a 400k flat seems "reasonable" for the amount of work they will need to put in to sell it.

#10 Son of Taeper

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Posted 15 March 2012 - 01:12 PM

Thanks for the feedback - really useful to know :)

I'm seriously contemplating it because I cant see how 1.5% commission on a 400k flat seems "reasonable" for the amount of work they will need to put in to sell it.

Online EA is fine until it gets round to viewing.
I could set up an online EA based in Outer Mongolia but what sort of support could I give you as a seller?
The reason your local EA charges a higher rate is because they have guys on the spot to escort potential buyers around your property.
The reason you gave for not selling your property online yourself was that you don't want the hassle.


Did you take the time to view the FAQ's on the Hatched website?
At no stage I saw do they say they would escort potential buyers around your home.

Terms and conditions need a close inspection as well.

The upfront fee leaves it open for the agent to sit back while the cash rolls in as well.
The views expressed in my posts are my own based upon what I read on other information supplied by other HPC members.
These should not be used a a definitive answer to any posts I attempt to answer.

#11 Monkey

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Posted 15 March 2012 - 01:53 PM

on the fees side of things is that 1.5% of their valuation or actual sale price?

#12 Swansea Estate Agent

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Posted 15 March 2012 - 02:18 PM

on the fees side of things is that 1.5% of their valuation or actual sale price?


Actual sale price. Don't forget there is most likely to be VAT @ 20% to be added.

#13 manchester50

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Posted 15 March 2012 - 03:19 PM

Online EA is fine until it gets round to viewing.
I could set up an online EA based in Outer Mongolia but what sort of support could I give you as a seller?
The reason your local EA charges a higher rate is because they have guys on the spot to escort potential buyers around your property.
The reason you gave for not selling your property online yourself was that you don't want the hassle.

Did you take the time to view the FAQ's on the Hatched website?
At no stage I saw do they say they would escort potential buyers around your home.

Terms and conditions need a close inspection as well.

The upfront fee leaves it open for the agent to sit back while the cash rolls in as well.


Hatched don't escort viewers round - that's the one part (& lack of High St shop window) that they don't do. So if you don't want to do your own viewings then that model of EA is not for you. Having said that, 5 of the last 6 places I've looked at have been advertised by High St agents but viewings conducted by the vendors. You use companies like Hatched to get onto Rightmove and act as a middle man for scheduling viewings & negotiating offers. You can't list on RM as an individual sadly.

You don't have to pay up-front - there are three payment models. I'm sure the other online EAs have similar offers but I've only (a good) experience of selling with Hatched.

#14 Monkey

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Posted 15 March 2012 - 03:22 PM

Actual sale price. Don't forget there is most likely to be VAT @ 20% to be added.


i wouldnt gurantee that, as (probably anadotially mind) that some EA's have bassed their fees on their valuation. not saying they all do, but more like a minority.

and yes VAT at 20% on top.

#15 Swansea Estate Agent

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Posted 20 March 2012 - 10:33 AM

i wouldnt gurantee that, as (probably anadotially mind) that some EA's have bassed their fees on their valuation. not saying they all do, but more like a minority.

and yes VAT at 20% on top.


All agents commissions are % of sale completion price unless they agree a fixed fee. The EA's valuation will have nothing to do with the fee charged. After all we don't value properties. All we can do is give a market appraisal and give a price that we believe the property is worth in the market at that time using experience and comparables.

The EA will quote their expected price which can be way off the mark because they either want the instruction or give poor advice which is why you should get at least 3 independent appraisals from EA's. An added bonus to getting 3 appraisals is that you can use each agents fees against the others to negotiate a lower commision.




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