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How Much Have You All Paid Eas To Sell House?

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I am just in the process of selling one house and considering selling another. One house is worth about £300k at the moment and I haggled the agent to 1.5% which is acceptable though still expensive at £4500. I'm also thinking about selling my house which is probably worth £750k but the first agent cheerily suggested he would sell it for 2.5% which is about £19k. I laughed, not in a good way.

I haven't sold a house in a while and wondered what sort of deals you guys have negotiated, I figure £5k is more than reasonable sum to sell a house given that the majority of marketing is digital these days or am I dreaming? Is it normal practise to negotiate a stepped fee based on price obtained, say I'll pay u £5k for asking and another £2.5 if you get over asking?

Any feedback woudl be appreciated.

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in t he current market, pay the man who means you end up with most in your pocket at the end - whether he charges 1% or 10%...

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As an ex EA (five years ago), perhaps my whitterings may have some value.

Any agent should be delighted with 2%. That was always the benchmark for me, and I'd only negotiate down from that if I thought the house was special or it was very keenly priced. However it is rare not to be able to get 1.5% from a run of the mill agent. Less than that, and you probably won't be getting any service at all. That means that viewings won't be followed up, you'll have to beg for feedback and the marketing will be basic at best.

2.5% is rare: sounds like Foxtons. *spits*

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As an ex EA (five years ago), perhaps my whitterings may have some value.

Any agent should be delighted with 2%. That was always the benchmark for me, and I'd only negotiate down from that if I thought the house was special or it was very keenly priced. However it is rare not to be able to get 1.5% from a run of the mill agent. Less than that, and you probably won't be getting any service at all. That means that viewings won't be followed up, you'll have to beg for feedback and the marketing will be basic at best.

2.5% is rare: sounds like Foxtons. *spits*

How much extra does it cost to market a £750,000 house above a £250,000 house? What does the agent do to justify the extra £7,500 (@ 1.5%)?

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Agreed obviosuly, but unless you market with a number of agents at the same time which seems to bump the price then you can't know who that is. They all seem to insist on a higher rate for multiple agents.

In the perfect world you woudln't sign with any but would express and interest to sell and they would all come to you with their best bids and you could then negotiate on that basis but unfortunately it doesn't seem to work like that.

in t he current market, pay the man who means you end up with most in your pocket at the end - whether he charges 1% or 10%...

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I find it strange that you think there is a difference in agent's abilities? <_<

Where we live 1.5% is the norm no matter how established the agents are.

So in that market, best go with the agent with the most exposure and experience @ flogging properties.

In the end though, price the property keenly and make it stand out if you really want to sell.

That was my view really, there are plenty of agents round here and they all seem to be much of a muchness. As a buyer I'd certainly register with all of them so not sure what makes one stand out as better than the others? From my point of view price seems like the only deciding factor.

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The going rate round here is 1%. Not with all the EAs, but most of them.

I'm surprised at the amount of posts saying 1.5% is standard. On a house selling for the amount mentioned by the OP, I'd have thought a flat fee would be better. £4.5k for sticking some pictures in a window and on a website, printing some brochures and then talking s***e is hard to swallow IMHO.

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I find it strange that you think there is a difference in agent's abilities? <_<

In my experience, there is a wide variation. I've worked only in Oxfordshire and Surrey though - perhaps they are special! Most agents are rubbish, I'll grant you, but those that are any good will tend to get instructions by word of mouth rather than discounting their fee.

Where we live 1.5% is the norm no matter how established the agents are.

(...)

How strange. That's like having a high street composed entirely of Tescos. It sounds as though there might be an opportunity for Asda there - or perhaps even a Waitrose.

It certainly sounds like negotiation and marketing are not the strong points of your local agents...

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don't forget to add VAT.

1.5% is actually 1.7250% including VAT.

Yes.

How much extra does it cost to market a £750,000 house above a £250,000 house? What does the agent do to justify the extra £7,500 (@ 1.5%)?

Very little. The profit comes from the more expensive properties. This is why you will tend to find agents operate in sub markets. The agent who gets the £150k house will not get instructed on the £950k house. In fact, (again in the areas I've worked), an agent who gets lots of £250k places will get very few £750k places. When they do, they are likely to struggle as well.

edit: I misunderstood you a little. It does cost more to market properties in higher brackets. Wheras your Mann and co. might have a little office at the wrong end of the high street, bung the houses in the local rag and hire some gimps in suits, the Knight Franks of this world will have a fancy office in just the right spot, take out a full page ad in glossy magazines and have to shell out for a couple of Henrys and a Cordelia from Cheltenham. But the difference in cost of marketing does not change that much for two differently priced properties on the books of the same agent.

The going rate round here is 1%. Not with all the EAs, but most of them.

I'm surprised at the amount of posts saying 1.5% is standard. On a house selling for the amount mentioned by the OP, I'd have thought a flat fee would be better. £4.5k for sticking some pictures in a window and on a website, printing some brochures and then talking s***e is hard to swallow IMHO.

I 100% agree. In fact, £1.5k would be more than plenty for that.

Perhaps I should mention, what I regard as good agency is not what the market wants. (Well, not when they are selling...). I think EAs should be properly licenced and regulated and should provide good local knowledge and a professional service. Vendors on the other hand want:

1. The best price

2. The best price

3. The best price.

4. The cheapest fee.

5. Someone to blame.

I guess you can tell why I got out? :rolleyes:

Edited by Timm

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I'd choose a few of the agents who are the most likely to sell your house, and then haggle. There is no point in going with someone who charges 1%, but then never sells it. There are normally only two or three good agents in an area, and I would have thought it better to pay more for one of them.

I never really understand where this % calculation came from. As someone else mentioned, there is no extra effort involved in selling a £750k house compared to a £250k one. The costs go up a bit when you get to the really high end as pointless glossy brochuiers will have to be printed, but these will hardly cost the earth.

I know two people (admittedly before this crash) that offered agents a fixed price of say £5k to sell a £750k house. When the agent accepted, the houses went onto the market and sold for asking price within the first few viewings. Both vendor and EA probably thought that they got a great deal. In real terms, £5k is still a lot of money for a couple of hours 'work'.

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I find it strange that you think there is a difference in agent's abilities? <_<

I disagree. I think there is a huge difference between the abilities of different agents. The EA we used to sell our house in 2007/2008 (after moving to him from the previous EA) was brilliant. He knew how to "sell". He wound them in like fish. Then when they wriggled like hell to get off the hook, he argued his socks off week after week to reel them back in again. He earned alot of money in commission from our house sale, but boy, he earned it, and I bought him a decent bottle of champagne afterwards (SE London, office in Petts Wood). Once we'd sold, he privately advised me not to buy for at least another six months - that was back in March 2008. Now, the lot I am dealing with down here in Devon, speaking as a cash buyer, are a completely different bunch - disinterested middle men with an attitude; nothing more - they do nothing at all to try and "persuade" me to buy their properties, or give me a coherent argument as to why I should buy now.

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I would think 1.25 or 1.5% is fair even for a good agent, thats over £9000 to sell your house. Thats plenty even with glossy brochures etc.

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I am just in the process of selling one house and considering selling another. One house is worth about £300k at the moment and I haggled the agent to 1.5% which is acceptable though still expensive at £4500. I'm also thinking about selling my house which is probably worth £750k but the first agent cheerily suggested he would sell it for 2.5% which is about £19k. I laughed, not in a good way.

I haven't sold a house in a while and wondered what sort of deals you guys have negotiated, I figure £5k is more than reasonable sum to sell a house given that the majority of marketing is digital these days or am I dreaming? Is it normal practise to negotiate a stepped fee based on price obtained, say I'll pay u £5k for asking and another £2.5 if you get over asking?

Any feedback woudl be appreciated.

Have a go at selling it yourself first. As a starter the agents fees (say half of it anyway) can reduce the price in the first instance,

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Shop around and HAGGLE!

When I sold in London I paid 1.5% & was perfectly happy with the service I got. On the other hand, when I sold my mother's house (she went into a care home) I found that the EAs in Nottingham appeared to be operating a cartel - I tried 8 or 10 and every single damn one of them not only wanted 2% but demanded SOLE SELLING RIGHTS!!! I couldn't believe my ears - I'd never come across that as a demand. Sole Agency, yes, but not sole selling rights. And No, they wouldn't budge an inch.

As it happened, I wasn't too worried about it - I was working full time in London with three school-age kids so i wasn't about to try marketing it myself; but I still thought it was outrageous.

This was about ten years ago -anyone know if this is still the case in the Midlands?

Edited by cartimandua51

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How much extra does it cost to market a £750,000 house above a £250,000 house? What does the agent do to justify the extra £7,500 (@ 1.5%)?

You sir, have asked a very good question. I have always wondered the same.

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Take an average price house, 150K, 2% = 3 grand.

Now take a high hourly rate, lets say 50 quid an hour.

Take out 500 for marketing blurb etc, leaves 2.5 grand.

Question A: Is any EA worth 50/hr?

Question B: Even at a rate of 50/hr, does an EA really spend 50 hours flogging a property?

Flat rate, under a grand seems more realistic. What ever happened to Tescos?

edit, Forgot to say: When negotiating, break down the numbers and get them to justify.

Edited by contractor

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Try this

www.oxfordhomesdirect.co.uk

Even if you are not local, he'll get the property on Rightmove, Globrix et al he'll charge you £1k BUT you do the viewings.

Get the local EAs to value, then go with your original val ;) and see what happens.

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I haven't sold a house in a while and wondered what sort of deals you guys have negotiated,

I have two for sale (probate).

One ~£175K for £3K fee

One ~£320K for £4K fee (although I may have found a private buyer)

VMR.

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I disagree. I think there is a huge difference between the abilities of different agents. The EA we used to sell our house in 2007/2008 (after moving to him from the previous EA) was brilliant. He knew how to "sell". He wound them in like fish. Then when they wriggled like hell to get off the hook, he argued his socks off week after week to reel them back in again. He earned alot of money in commission from our house sale, but boy, he earned it, and I bought him a decent bottle of champagne afterwards (SE London, office in Petts Wood). Once we'd sold, he privately advised me not to buy for at least another six months - that was back in March 2008. Now, the lot I am dealing with down here in Devon, speaking as a cash buyer, are a completely different bunch - disinterested middle men with an attitude; nothing more - they do nothing at all to try and "persuade" me to buy their properties, or give me a coherent argument as to why I should buy now.

I have agreed to pay my agents £ 3,450 (2.1%) including VAT, as sole agency. They are the best. Very good team, highly motivated and if they smell a possible buyer, he/she will have no chance of escaping. Maybe I could have negotiated a lower percentage. But, I want them to put their best efforts, find me a first time buyer that has a real chance of getting a mortgage, and keep on following the sale process. And yes, within a month of my flat being advertised they have done this.

As far as what some of the posters here say about getting an agent that sells your property at the highest price, my answer is to get an agent that knows what a realistic price is and insists that he is not interested in marketing your property if you want a higher price. Properties at realistic prices have a chance to be sold, otherwise everybody's time is wasted.

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Have a go at selling it yourself first. As a starter the agents fees (say half of it anyway) can reduce the price in the first instance,

+100! I have sold a house myself in the past - just stuck an advert in the local rag on property night, and sold it within 3 days (at only £500 less than the highest valuation out of 3 EAs who had valued it). I would definitely try it now - supply is short, demand is at its peak (for a couple more weeks until the kids break up for holidays) and any property sensibly priced and in a good condition will probably sell very quickly.

If a few more people sold houses themselves, rather than resorting to EAs, then the world would be a better place.

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