Homeowners waste £millions in fees

by Housesimple on 7th July 2018

fees-survey

Sam Mitchell, Housesimple’s CEO comments “The survey highlights how much home sellers could potentially save by negotiating and not taking no for an answer. There is always room for manoeuvre on the fee and an estate agent that is not willing to reduce their rate will need to have a very strong case as to why, particularly if it is significantly higher than other agents are quoting in the area.

“Unfortunately, for many people, they don’t feel comfortable haggling, and estate agents are extremely good salespeople who can put forward a convincing argument as to why they are worth the commission they are charging. But at the end of the day they also want to secure your business, and if they are as good as they say they are, then your house shouldn’t be on the market for long, and they will have had to do very little work to make their commission.

“High street agents are living in the past, charging exorbitant fees and not doing enough to justify their meaty commissions. Consumers want value for money, and are, quite rightly, asking ‘why am I paying an agent thousands of pounds for listing a property on Rightmove and managing a few viewings?’ This is why we seeing more and more people choosing to sell through an online agent offering significantly lower fees for an identical service to the high street agent.”

 

 

 

Methodology

The survey for Housesimple.com was carried out by RWB between 15th June 2018 and 19th June 2018. The 1,023 respondents polled had all sold a property through an estate agent. All research conducted adheres to the MRS Codes of Conduct (2010) in the UK and ICC/ESOMAR World Research Guidelines.

Workings:

** Amount of money wasted/saved over the past 12 months by homeowners*

Average UK House Price, Land Registry in May 2018 - £226,351

Total house sales by high street agents over the past 12 months (April 17 to March 18, latest ONS figures) – 875,050

Haggle down 0.25% on initial fee – amount saved = £226,3510.0025 = £565.90_

Amount saved + VAT = (£565.900.2) + £565.90 = £679.10S_

Amount saved across all house sales, if no-one haggled = £679.10875,050 = £594,228,954_

82% of sellers say they took the initial quote and didn’t haggle, so total wasted/saved = *£487,267,742*