What's a reasonable estate agent fee?

[MrsMerryHenry]

We're about to sign a contract to sell our east London property (value: about £180k) and they've suggested a sole agency fee of around £4500. This seems a huge amount to me, I know it's negotiable but as a starting point I think that's absurd. I had thought fees used to be around 1.5% - thoughts, anyone?

[doglover]

1% here in the central south.

[Deaglan]

as an agent myself I'd say its not unheard of and most agents expect to be bought down by a large amount before agreeing a commission - at the moment thats about 2.5% commission - I would negotiate that your house is smaller but should be easier to sell in this climate as people won't need a large deposit.

I'd stick to inclusive % comissions though and make sure that its of the completed price NOT the asking price

best of luck

[Littlefish]

Our estate agent told us that it would be 1%. We have negotiated him down to 0.9%, but think we might be able to get it down further to 0.8%. We are in the Midlands.

[brettgirl2]

lol - If I just read the OP. On a house that we were putting up for £175000 last year the max I was quoted was £3K, but not in London. But we went with a cheaper one and they weren't terribly good (although as things have turned out it was better that we stayed here!)

[brettgirl2]

I think that sometimes it is worth paying a little bit more if they are more likely to sell it.

4.5% is very high though.

[JamSandwichCream]

GAWD am at you lot selling so quickly. Our house has been on for 5 months. Things seem to have been picking up recently so fingers crossed.

[rodgershawk]

MrsMH

I live in North London and had ours on for 170K. Just accepted an offer this week after it had been on for 4 weeks.. (works out £2460)

I had 4 estate agents around and none were under 1.5%. Maybe its a London thing?

I pushed and eventually negogtiated a scaled fee:
Asking price: 2%
165k- asking price: 1.75%
up to 165k: 1.5%

That way they have to earn the higher percentage. Worth a go?

[MrsMerryHenry]

Thanks! I find it so irritating to have to play the game over these things - such a waste of time and energy.

[Lulumama]

thanks, and to yuou !!

glad they are coming down

i guess they did not get a single client to bite at that sort of fee !

[wombleprincess]

well, i tried to go as low as 0.75... but settled at 0.85, i am sure he really regretted it as i was a complete pain in the netherregions right until we exchanged.

[MrsMerryHenry]

Fingers crossed for you, Lulu!

Wombleprincess - that would be a brilliant rate! Reckon I could haggle them down to anywhere under .5%?

Actually they came back this avvo and said they'd be happy to go down to a more reasonable percentage, surprise, surprise. Thanks for your advice, everyone.

[wombleprincess]

0.85%

[Lulumama]

we are selling, (god willing!! ) staying in the area though..schools , work etc... we are in merseyside, mrsmerryhenry

[MrsMerryHenry]

Lulu, where are you? Parts of the country aren't as bad as the papers say. We've not even got our place officially on the market but have had 4 viewings in 2 weeks, and just had an offer today (which we've turned down) from someone who popped in this lunchtime.

[BennyAndJoon]

oh Lulu - are you selling?

Where you going?

[poopscoop]

push for 1%, accept 1.5% no more

[Lulumama]

good luck ! i think we are going to find selling this time v v v stressful. last time we went on the market and 16 weeks later we had sold and moved out and had started renovations..

[georgimama]

A high street solicitor firm will do your HIP for about 300 quid max so even if it includes the HIP, they may be over charging for it.

[MrsMerryHenry]

Hmm..thought of est agency providing tidying, cleaning and removal service - maybe it's not such an extortionate fee after all!

We have yet to contact other agents but will do so right away. Most likely Lulu, you're right - they're expecting to negotiate down to a reasonable number.

Ta for advice!

[LivingLaVidaLurker2]

Much too high, especially at the moment. I would ask for 1 - 1.5%.

[Lizzylou]

I work in an estate agents part time and that fee is extortionate, thought we were pricey!
1-1.5% is standard, no listing fees either

[Lulumama]

you should check what other agents are offering ,but it sounds really far from the norm

unless they are going to live in your house, do the tidying, conduct the viewings, do your packing and then unpack in your new home !! and let you put your feet up

and what about your hipps? that is another thing to pay for

[rempy]

is that foxtons?

they are v expensive, v aggressive, and do get the job done. how much do you need to sell?

i paid 1% up north, and my grans home in wiltshire is also on with an agent for 1%.

[Lulumama]

have you had other agents round? is there a particular reason you want to use this agent?

unless they start off at a really high fee, and then go down to 1 - 1.5 and then you feel like you got a bargain...

[MrsMerryHenry]

You mean there's a listing fee as well? They have been great so far but haven't mentioned this. (Better get organised and dig out paperwork before I embarass myself in angry phone call).

The agency used to charge by percentage but have now changed their fee structure - a response to the economic meltdown, I'm sure. Nonetheless their fees should still be based on the old percentages, shouldn't they?