7k estate agent fees?

[Timetosell123]

Hi has anyone sold a property in London recently? Our estate agent has quoted a fee of 7k incl vat. Quick Googling threw up fees of around 3-4k. Who have you used? Recommendations?

Agency fees are done on a percentage basis

Sorry should have said they are quoting a fixed fee. No sale no fee.

Wow that is insane. I work with an amazing property lawyer team in London and even for a complex purchase/sale they dont charge that much. Hoe can an EA justify that cost? Is it a very particular kind of property?

I'd just tell them its too high and negotiate downwards, hopefully you will have other lower quotes from other EAs that you can compare with.

Are they offering a conveyancing service within that package so that's all you pay?

We’ve agreed at 1.5%, if it achieves asking it’ll be around 9.5k. What is your property going on for and ask them for the percentage.

I think because we are abroad at the moment they might have just thought we are not aware of the usual prices and tried it on?

Property is about 390k

I know you said its a fixed price, but £7k is only 1.8% of £390k so not a bad % tbh. You definitely need to get at least 3 quotes from different agents tho.

Also add VAT. So if they quote a 1.5% fee there is often 20% VAT on top.
It sounds normal but would be a bit high if your property sells for much less than asking.

Estate agents are ten a penny and the service they offer isn’t exactly rocket science. They make a good cut for not a great deal of work/knowledge. Hunt around for around 1.25%, no more than that.

I’d want to know the property price (sold, not asking price) to know whether that’s at all reasonable.

However shopping around is your friend here, but I’d also be checking out the estate agent’s blurbs online - does it come across as professional and efficient? Good, clear, floor plans, good photos, and a lack of SPAG mistakes? Those always indicate (to me anyway) a sloppy and unprofessional attitude.

That's just under 2% which seems reasonable.

With estate agents you get what you pay for. We paid a higher percentage with Savills and the house far exceeded guide price, was sold within 24 hours to a buyer who was checked out and came with a report. Prior to the sale they advised re staging and dressing.

We could have signed a contract for half. I doubt we'd have got the same price or as swiftly.

I have always gone with a quality agent and have always made decisions based on that rather than quote. I've never had a house on the market for more than a few days even when I sold in a bear market but the hoise was priced sensibly and was what people looking in the area wanted: neutral, well furnished/staged and in top condition with its original features.

I'd add to that: check the number of houses they have marketed over the last year and which percentage have completed, compared to other agents obviously.

I don't think they're trying it on. Between 1.5 and 2% of the sold price is a typical estate agent fee.

All estate agents I met with (before deciding on the final one) came prepared with the stats above posters have advised you ask for e.g. how many properties are on their books; how many have sold, within which time frame; how their figures compare to competitors; how many properties have been on the market and sold in your area over the last 12-24 months (to give you an idea of a reasonable market value) etc. I went with an independent estate agent who had been operating in the area for over 20 years, knew the market well and had good reviews - worth their weight in gold in the end. They pushed everything along without getting anyone's back up, always kept me updated without me having to chase, made sure the buyer was in a good position and had all the right documentation, chased solicitors etc.

Just tell them 1% plus VAT. If they don’t agree use another agent.

1.8 is crazy!

If it's a flat I understand it's not unusual for them to charge a fixed fee. We are selling a house (worth close to £1m) and quotes ranged from 1-2%. We agreed at 1.3% but with a lower % if it sells under asking. I think it works out to about £11k.

Ours was 1.25% so cost is about £6k. The house we bought would’ve cost more to drop because it was done on house value - I’d imagine it was closer to £15k.

It's part of my job to check out estate agent prices regularly. They range between 1.5 and 2% AND ARE SUBJECT TO VAT. (The VAT really pisses me off as it adds almost half a percent, which is a hell of a lot of money).

I think 7k for a £390k property is excessive. We pad about £6k on a £525k flat

What area of the country?

Property is our business and we haven't paid over 1% in 22 years.

You should get three quotes anyway to see how they value the property.

Confidential, sorry. But expensive - think very expensive.

However, there is no reason for the percentage to be higher in expensive areas, as the price of the houses sorts it out. There is far more rationale for the percentage to be higher in very cheap areas, since presumably estate agents have some fixed costs which don't vary much whatever they are selling.

I thought you were going to say a cheap area hence the high percentage.

Wework with Foxton's, Savill's, Country and Home, all in London or the home counties - so quite literally the most expensive area of the country and never ever pay more than 1%. Often less.