Estate Agent Fees for selling a house
What are estate agent fees and how much how much do estate agents charge?
Selling a property can involve many costs, from legal fees to repairs and removals, but the highest cost for sellers are usually incurred from estate agent fees.
Typically, an estate agent will charge the seller a percentage of the agreed sale price – plus VAT – once they have helped negotiate the sale of the property on the seller’s behalf. Although the rate of commission may look low, estate agent fees in the UK can often amount to thousands of pounds.
What is the average estate agent fee?
The average estate agent fee for selling your home in 2017 was 1% of the final sale price, according to a survey by Property Academy. This means that in 2018, the average house seller in the UK can expect to pay their estate agent around £2,500 in commission once you factor in the VAT.
However, these fees will, of course, vary depending on the value of your property. In London, estate agent fees can be much higher than other parts of the country: it has been reported that sellers in London pay their estate agent an average of £9,000 to sell their home.
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What does an estate agent do?
An estate agent is legally required to tell you what is included in their fee. Estate agent fees cover a range of costs, including:
· Valuing your property
· Preparing the property details
· Advertising costs
· Online listings
· Creating floor plans
· Operational costs of the business
Can you negotiate estate agent fees?
If your estate agent wants to charge more than 2% of the sale price of your house as commission, it’s worth haggling for a lower fee. If you have signed a sole agency contract, you should aim to pay 1% plus VAT on the agreed sale price in estate agent fees. If your property sells for more £500,000, you should try to negotiate a fee that is lower still.
When choosing an estate agent to sell your house, ask questions such as:
· What is included in your agency fees?
· Does your quote include VAT?
· Are there any additional costs that I may incur?
· Where will you advertise my property?
· How many websites will my property listing feature on?
· Will you provide floor plans and professional photos of my house?
· Who do I contact if any have any questions?
You should pick an agent that is right for you rather than simply opting for the cheapest estate agent. For peace of mind, you may want to get quotes from three or four trusted agents.
Most high street estate agents earn a base salary of around £12,000 to £15,000 and rely on commission and bonuses to boost their take-home pay. For this reason, you may find they’re willing to negotiate on their fees, so they don’t lose the sale.
Online estate agent vs high street agent fees
Selling your house with online estate agents is generally cheaper than with a high street estate agent, as sellers pay a lower fixed fee, rather than a percentage of the agreed sale price.
As HouseSimple.com operates online, we can sell your home for £995, as we don’t have to pay for pricey high street premises. It also gives us the flexibility to dedicate the best specialists to each step in the selling journey, giving our customers access to award-winning photographers, expert valuers and negotiators, and the most efficient conveyancers in the industry.
By keeping our operations slick, lean and efficient, we can pass on the savings to our customers.
What do you get with HouseSimple.com?
When you sell your home with us, you get even better results than with a high street estate agent – and for a much lower rate. Here's a brief overview of what's included in the fees we charge:
· Professional photographs and floor plans, plus an attention-grabbing description of your property that is optimised for search engines and potential buyers.
· An in-depth valuation report backed up by Land Registry data on recent sales prices in your area.
· Extensive online listing coverage through 500 local and national property websites, including Rightmove, Zoopla and PrimeLocation.
· Access to our online MyHouseSimple portal, an easy, instant way to arrange viewings, view and respond to buyer feedback, and keep track of your sale 24 hours a day.
· A dedicated account manager just a phone call or email away to answer any queries you have throughout the process.
· Dedicated negotiators and sales progression experts who are committed to getting the best possible price for your property and guiding your sale smoothly from 'under offer' to completion.
We also provide an industry-leading conveyancing service for an additional fee. Once you've accepted an offer on your house from a buyer, they will guide you through the legal steps needed to finalise the sale, with the whole process managed efficiently online.
Why not try us out? Choose your plan today and book a free valuation of your home at a time that suits you.
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