The estate agent fees offered by typical estate agents and online ones - like SellMyHome - are one of the major differences between the two, and one of the reasons we decided something needed to change.
Traditional estate agents
Estate agents work on a commission basis, and amount of commission that they demand can vary greatly. According to the Home Owners Alliance, they can charge anything between 0.75% and 3.5% commission on the ultimate sale price of your home. This means if an estate agent is charging you 1.8% commission and your property sells for £400,000, you’ll have to pay them over £6,500 in agency fees.
According to a report by eMoov, the typical estate agent earns more money per hour than lawyers, private doctors and psychologists.
However, there is room for negotiation with some estate agents so it can be worth trying to haggle the price down if you’re not happy with the price they’re offering.
On top of the estate agents fees, it’s important to make sure you’re aware of any additional costs. Fees are frequently quoted before VAT has been added on – which would incur an additional 20% on top the base fee.
The fees charged by estate agents come from valuing the property and writing up the description, floorplans, photos, and conducting tours. High street estate agent fees also have to cover huge overheads because of the nature of estate agencies, including the price of their offices and the costs of running their vehicles. This is one of the reasons that online estate agent fees are so much lower – we don’t have to worry about the high cost of rent for offices on the high street and as our vendors conduct their own viewings, we don’t have to cover the costs of a fleet of cars to drive to your home to show people around.
We can save our customers thousands of pounds because of this. Instead of charging commission, we offer a range of different pricing packages, so you can choose the one that suits you the best. For more information and advice on finding the best package for you, give one of our team members a call on 0203 44 12345.