When it comes to selling a property, the first question that comes to mind is, ” How much do estate agents charge in the UK?” So we curated some essential pieces of advice from Aylesbury estate agents and prepared this guide on estate agent fees in the current times.
Estate agent fees – The bare minimum
If you are here for a quick look at the summary of the most important things you must be aware of when it comes to estate agent fees.
- According to TheAdvisory, any average estate agent in the UK charges 1.18%+VAT for any sole agency agreement. But keep in mind that estate agents in London are usually more costly.
- You must keep an eye out for hidden costs when speaking to estate agents. Have a clear discussion about essential services like photos, floorplans, the marketing strategy and viewing management which should be ideally included in their fees.
- Any estate agent charging you less than 1% should also raise a red flag because there is a reason they are charging less.
- As a seller, you should always choose the policy of no sale, no fee since estate agents only manage to sell approximately 50% of their properties. So when it comes to huge and expensive expenditures, you don’t need to flip a coin.
- But you always negotiate on the fees charged by estate agents.
Basics of estate agent fees and the contract terms:
Most home sellers face trouble when they try to choose an estate agent for themselves because their fees as well as their contract terms vary widely. So what do you do? Should you choose the cheapest estate agent or their fees is also an indicator of the quality of service provided. How can you know what services are included? Should you go for online agents or opt for high street agents?
The best way to begin the process of hiring an estate agent needs to begin with gathering information on the fees charged by agents and the services provided by them. After gathering this information, you can conduct a fair comparison and then book for a valuation.
The fees charged by estate agents largely depend on the price your home is selling for. This range can be anywhere between 0.75% and 3% along with VAT. it depends on the type of contract you are choosing with your estate agent.
According to the data from TheAdvisory, the most current figures show that the average fees on an estate agent for a sole agency contract are 1.18% plus VAT. So when the VAT is included, it is standing at 1.42% which approximately means if your house is selling for £275,000, and you are agreeing to pay your estate agent 1.42% of the price as their fees (including VAT), then you are to pay £3905.
It is a reasonable deal and has good value for money. But when it comes to properties that are of higher value such as those homes that exceed £500,000, agents are usually more flexible and might be prepared to accept a lower rate.
It is also important to review the contract terms where you need to be specifically careful with the sole agency’s lock-in period. It varies widely from one agent to another, and it can be quite long in some instances. Under such terms and conditions, you will be prevented from reaching out to another estate agent in case things do not go the way you planned.
Look out for ‘sole selling rights’ which gives your agent the sole rights to selling the property. It must be considered carefully before you sign the contract since no one else will have the right of selling your home during the lock-in period. You will be obligated to pay the estate agent even if you manage to find a buyer on your own.
What are the things included in the fees of an estate agent?
The following services are usually included within the fees of an estate agent:
- Valuating your property based on market research, trend and past sales.
- Taking professional photographs
- Marketing the property
- Finding buyers from their list
- Organising viewings
- Negotiation of the sale price
We hope this quick guide provided you with an overview of how estate agents in the UK function and how much they charge for selling a house on your behalf. The contract terms and fees also must be looked into as they can land you in trouble if you do not clear things from the beginning.