Let’s discuss Estate Agent fees…

Why is it that estate agency fees vary?  Why is it that some estate agents charge more than others?  Why, when you call to ask what they charge, do you feel like they avoid your answer, making it feel like you are literally going around the houses to get your answer?  It really shouldn’t be like this, should it?

Last week, a lady called up asking what we charged.  I replied with a very straight answer, asking her if I could explain what that actually included.  She was happy to let me.  I spent a few minutes highlighting our service.  I let her know we only get paid on results, that there was no hidden costs and certainly no lengthy tie in period.  She would not find anything alarming in the small print.  We are in fact what I like to call a no risk estate agent!  Having had this conversation, I asked if she would like a free home consultation with me.  She replied yes, that would be very helpful indeed.  She thanked me for my clear response, letting me know, I was only agent who offered her a direct and clear answer. This lady is now a client of JDG.

Her issue with estate agents unwilling to disclose their fees got me thinking. The conversation we had about the value for money different estate agents offered played on my mind.  This lady wasn’t looking for the cheapest estate agent out there.  Nor was she looking for the one who valued her home the highest.  She was looking for one which she felt she could trust, one she felt she had confidence in and one who could demonstrate how they were going to do it.  We refer to this as the selling process.

Does your estate agent offer value?

There is no denying that estate agents fees differ greatly.  I’ve found locally they seem to vary from £795 up to 2% + vat.  The question is what are you actually getting (or not getting) for the fee they charge.  Estate Agents may like to tell you we are all the same, however I must stress we are not!  What is important to you?  Getting the best price for your home or simply paying the cheapest fee?  Do you want to work with a motivated estate agent or one which is paid minimum wage and therefore possibly won’t have the interest in your home or even you, that they should have?  Estate Agents which charge more, generally do so for reason.  They are often spending more on marketing your home.  They are creating more opportunities for you.  They often sell your home quicker.  Often for a higher price.  Everybody wants to feel valued. Everybody wants value.  We want it too.

A true story

This is a true story of two houses on the same street.  They were both for sale this year.  They were very similar in terms of size, presentation and what they offered.  The biggest difference I can see looking at the photos would be classed as personal taste.  Let’s call them house A and house B.

House A went up for sale for £160,000.  We believe this agent charged 1% +vat
House B went up for sale for £155,000.  This agent charged 1.5% + vat
House A sold for just £140,000.
House B sold for £152,000

*information regarding asking and sold prices is taken from data on Rightmove

Using basic maths, which agent do you think did the best?  Which client received the best service?  Who was financially better off?  We don’t know the personal circumstances of the owners regarding House A.  Maybe the house had survey issues.  Maybe they were happy accepting a low offer!  This difference does however seem huge.  We do know about house B though, as we were the agent which sold it!

A great deal

We all want the best deal.  However when it comes to choosing an estate who will be responsible for selling your biggest tax free asset, you need to pick the best you can afford.  When choosing, ignore the fee for a moment.  Who would you choose if they all charged the same?  Who is best estate agent for your home?

 

Alex Evans

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More