How much do estate agents charge for selling a house?

How much do estate agents charge for selling a house?

Over the years, people seem to have become somewhat accustomed to the charges an estate agent quotes for selling a property. So what do estate agents charge for selling a house?

Before choosing an estate agent its important to ask yourself “What do estate agents charge for selling a house?”  It could save you a large amount of money in the long run!  Prices range from between 1.5% typically up to 2% as a rule of thumb, rising to 3.5% and more, depending on the terms of appointment and the value or type of property. These figures may not sound very much but as a percentage of such a high ticket item as a house, the charges typically run into thousands. On top of this, the Government charges Stamp Duty at variable rates, depending on the sale price achieved for the property (this cost is borne by the buyer) so any buyer will have to take into consideration paying a further 1%, 3% or more, to the Government in the form of Stamp Duty and will take this into consideration.

Multiple Agency Agreement

Estate agents’ fees vary depending on the type of contract that the seller enters into. For example, an agent will charge more if they are appointed on a multiple agency basis as the stakes are higher. ie only the agent who (obviously) successfully sells the property gets the fee, so all the agents face a bigger chance of fruitless endeavour ie the stakes are higher. In effect, you have the property on with multiple agencies and all are competing with each other to sell it. You are likely to enter this type of agreement if the property has been stuck on the market for some time or you are desperate for a quick sale. Typically, fees will be 2.5% to 3% for agreements with multiple agents. Such an agreement can smack of desperation and in a ‘hot’ property market should not be necessary. Seeing that a property is on the market with multiple agents can lead prospective buyers to believe there is something wrong with the property, so it’s not to be undertaken lightly and in any event, only enter into such an arrangement for set period of time so you are not legally bound by such a potentially unsatisfactory arrangement for any longer than you have to be.

Joint Sole Agents

0In this instance, both estate agents are acting as one agent agreeing to join forces on the marketing efforts and agreeing to split the commission. This type of agreement typically incurs fees of around 2%. Remember to review all terms and conditions of trading very carefully as with any type of agreement you sign with an estate agent, they may well hold you liable to pay fees even if you withdraw the property from the market or from them and decide to move agents, so be careful about the terms and the duration of any agreement.

This type of agreement makes sense if you feel you will achieve the sale you want by using the skills of two different types of agents, for example, a local one who knows the region you or the property is located in very well, and a national agent, who may have access to a wider network or database of contacts who may be suitable for the particular property in question.

If you sell via a third agent you will be in breach of contract and still liable for the joint sole agency fees, so be careful. There is also a danger that one agent might try and hitch a free ride on the back of the other one’s marketing efforts, so keep a close eye on monitoring the situation and check who is doing what throughout the sales process.

Sole Agency Agreement

This is the most common form of agreement yet, even here, be careful to enter into a specific time frame for the Agreement, say 6 to 8 weeks, otherwise, a sole agent can get lazy as they know they are going to get the fees anyway and if, for any reason, you decide to move, you will be in breach of contract and liable for the fees unless they agree, for example, that they are happy to move to say a Joint Sole Agency agreement if the property is not shifting. In a hot market, a Sole Agency Agreement will be fine and, of course, it attracts lower fees because of the exclusivity of the arrangement (typically 1% to 1.5%).

Fixed fee, local knowledge, national exposure and a transparent process enables you to benefit from instructing an online estate agent.

All sound too complicated? It is! That’s why more and more sellers are deciding to keep it simple, particularly as the property market is hotting up. Working with a good online estate agent such as Zevizo Properties, you know exactly where you are at any stage of the process. We offer a low, fixed fee which is negotiated at the start and does not vary; we understand the local market and yet we also have extensive access to a nationwide network because of our years of experience of working online. You know exactly what you are getting and everything is transparent at every stage of the process so contact us today for a quote and see how our fees compare – we guarantee you will be more than pleasantly surprised and that the service will be even better than you ever imagined.

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