Estate agent fees?

[Sinkingfeeling]

We've been quoted 1.5% of selling price by one agent and a fixed price (which equates to 2% of suggested asking price) by another agent, both presumably with VAT on top? Just wondered what you would consider a good deal for the buyer and whether it's better to go for % of selling price or fixed fee. Both agents offer similar advertising and service, but £40K difference in suggested asking price. We plan to contact a third agent as well.

I would see what the third agent says in terms of fixing the asking price. Obviously if an agent thinks they can get the higher asking price, that's attractive, but some deliberately over-quote to get your business and then assume you'll accept a lower offer.

Personally I would always go for the percentage price for that reason - because it gives them an incentive to achieve the asking price. And yes, the fees are usually quoted without VAT and this is added onto the final invoice.

Just because two estate agents value it differently doesn't mean you have to put it on with an agent at the price they valued it at. What I mean is that the valuation they come up with shouldn't play a huge part in your decision about which agent to choose. Ultimately it's your house and you decide what price you want it marketed at based on considering the various valuations. So your decision should be about who you feel will do the best job for you and also on their price to a certain extent. Ask around locally for recommendations on who people have dealt with and who seems to get the most positive feedback, not just on how quickly a house sold or how many viewings they got, but on who was great to deal with through the ups and downs of the sales process after the offer was accepted. I work in an estate agent and we charge 1.7% despite the fact that our local competitors tend to undercut us and offer 1.5%...but we still win lots of business because people are recommended to us and in the big scheme of things a 0.2% difference isn't actually a huge amount if it means you'll get a better service. Also consider which person you get on best with as you may be in contact a lot with them and need to feel a bit of rapport.

Think who you want representing your house. Who will front it best.

My mate was an EA and she said slight differences in commission not really a factor. Once they have it on their books, they just want to get the house sold and don't think about driving price up just to get the extra 500 gbp.

Good luck!

BTW: we live in South Africa and they charge 5-7% here....and don't even do floor plans!

We were offered 1% by all 3 of the agents we approached!