Selling your house is an exciting time – but it can also be quite overwhelming. It seems like every step of the process is actually a hundred little, complex steps! A good estate agent can help you navigate the process… but you will pay for it. How much, and can you lower these costs?
Lowering Average Estate Agent Fees
Some tips:
Consider a Sole Agency Arrangement
A sole agency arrangement is one where a single agent is working on your behalf. They are responsible for the various aspects of the process – from listing and marketing the property to organising viewings and interacting with your solicitor. The average fee here is 1.18% + VAT (currently 20%).
With a multi-agency arrangement, you will have three or more agents trying to sell your property. Isn’t this better? Well… it can lead to a faster sale but it’s also more expensive, averaging 2.5% – 3% + VAT. There is also some risk here: each agent is competing with the others. This can lead to a frenetic, anxiety-producing experience – and some less than scrupulous agents may pressure you to accept a lower offer so they can secure the commission.
By contrast, a sole agent will generally work harder to get you the most reasonable price for your home.
Shop Around
Whether we are looking for new trainers or better rates on our buildings and contents insurance, we shop around. We do some online research, compare prices and terms. The same must be true when we look for the right estate agent to help us sell our homes. Look at their websites, at reviews, at fees and how they are assessed. Then, invite three potential agents to your property to provide a valuation. This is typically a free service. Not only does it give you a good sense of the value of your home, it gives you great insight into how the agent works.
It can also strengthen your position in terms of negotiation.
Negotiate With Your Estate Agent
We mentioned averages, but you can seek to lower estate agent fees. Start by informing them another agent (or two) has provided a valuation and have offered lower rates for their services. Tell them the rate you expect to pay. Smaller agents are typically able to offer more flexibility. As well, if they are seeking to break into or expand in your area, they may be willing to reduce their fees. Nothing ventured, nothing gained!
Now, some agents, particularly those who operate online, charge a flat rate. Look into this carefully. It can be a pricey proposition if you have to pay upfront and they do not sell your house. You’re still on the hook for this money (more on this in a moment).
Look Into the Exclusivity Period – and See If You Can Shorten It
Oftentimes, estate agents include language in their contracts around exclusivity. This means that they have the sole right to sell your house for a period of, say, 12 weeks. If you have an issue with your agent, would like to change or have a buyer you can sell to directly, then they get the commission even though they didn’t sell your property. Ask about this and see if they can shorten the exclusivity period. You also need to know what happens if you do need to make changes. How do the fees work?
Go No Sale No Fee
Nothing is worse than not selling your house and still having to pay estate agent fees! As part of your selection and negotiation process, make sure to enquire about a no sale no fee arrangement. This simply means that if they do not sell the house, they do not get the commission. This can save you a great deal of money – and aggravation.
Rethink Your Selling Strategy
There is more than one way to sell a house. You can, of course, opt not to work with an estate agent and thus avoid the fees. This is not typically recommended though, because great agents do work to earn their money. That said, you can try another method that can reduce expenses and streamline the entire process.
One of the most accelerated and advantageous in terms of your expenditures is working with a reputable cash house buyer. They have the cash necessary to complete transactions on a fast timeline, and they handle the costs associated with a sale, including estate agent fees, solicitors’ fees and fees for surveys and valuations.
Average estate agent fees can be lowered as they cost you thousands of pounds. Is this worth it to you?