What is the Cost of Using an Estate Agent

So you are looking to sell your home? You may choose to hire an Estate Agent to sell your property? The amount of money you pay can vary depending on who you use and the final price achieved. We will highlight the pros and cons of using one of the various options now available to you. 

  1. Traditional Estate Agent
  2. Online Estate Agent
  3. Sell privately yourself

Are Traditional Estate Agent Fees Still Relevant?

To start with, we still think that the traditional model of paying once a property is sold is relevant. Therefore, we offer a low 0.75% commission rate to sell your property. This model works best if you think your property isn’t going to fly off the shelf and may take a little longer to sell. 

The Fees will usually include some of the following. 

What a Traditional Estate Agent generally gives you. 

  • Marketing your property on multiple portals 
    • Property description 
    • Getting the word out that your property is For Sale
  • Photography (Sometimes Professionally Shot)
  • Basic Floor Plans
  • Managed viewings
  • Negotiating the sale price
  • Offering a For Sale board to put up outside
  • Helping with the conveyancing process

What IHomeTrade provides as standard:

  • Marketing your property on multiple portals (Zoopla, Rightmove, Prime Location, Boomin + plus social media)
    • Property description 
    • Getting the word out that your property is For Sale
  • Professional photography and 360 Virtual Tour
  • Professional Floor Plans – highly accurate, laser measured in CAD
  • Managed viewings
  • Negotiating the sale price
  • Offering a For Sale board to put up outside
  • Helping with the conveyancing process

 

How much should I be paying an Estate Agent? 

How much does an estate agent charge? Typically agents charge between 0.75% and 3.5%+VAT of the sale price. This is called a ‘no sale, no fee’, and there is no cost to you unless you sell your property.  IHomeTrade charges just 0.75%.   This rate is low in comparison to many other countries. For example, in Spain, it’s a standard 5% shared between buyer and seller agents. However, this rate sometimes goes up to 7% for luxury properties that take longer to sell. 

The average fee is between 1% and 2%, so you have room to negotiate to get the fee lower if initially presented with a higher rate from your chosen estate agent.  Having the estate agent’s fee linked to the sale price is good to encourage them to achieve the absolute best selling price for your home – they may make more money and get you more money at the same time. 

How to save money?

Use an online estate agent.

Many people are now choosing an online estate agent, like us, to keep costs down. We give you a completely FREE way to sell your home, a fixed-fee package and a no sale no fee model. We feel we have every base covered as long as you are prepared to do viewings on your own. Managed viewings is the only benefit we don’t offer as standard but you can purchase an Unlimited Viewings Pack for just an extra £399, where we send someone to conduct the viewing on your behalf.  Personally, we think that you, the owner, are the best person to do the viewings, so here are our 25 Best Tips for Preparing your home for Viewings

You could be selling privately 

You can, of course, sell your home yourself. There is no law in the UK stating that you must use an Estate Agent, like in some other countries.  This is perfect if someone has already shown an interest in your home. Maybe you have had a letter through the door saying that someone wants to buy your property? Having an interested party may seem like the perfect solution, but not getting your house on the open market might mean you don’t achieve the best price possible. But again, this is entirely up to you. 

How to negotiate traditional estate agent fees

Don’t be shy!  If you don’t ask, you don’t get!  Most Estate Agents will negotiate to get your instruction and property on their books.  There’s fierce competition out there. Agents, need to sell a certain amount of properties per annum to keep going. We would always suggest that you get three local agents to pitch for your business if you are not planning to use an Online Estate Agent

Ask the agent what they include in their offering? We offer as standard for No Sale no Fee AND the Fixed Fee packages the following – 

Know the Value of your own home first

We suggest that you get an excellent idea of what your property is worth. This is good practice before the local agent comes over. They will want to inflate the price to get your business, and the last thing you want to do is massively overvalue your property. 

Use our Online Valuation tool to get a good idea, these are not 100% accurate but will give you a ballpark figure, and in a super hot market like in 2021, the price can be significantly lower than the actual market value.  We can also do a Virtual Video Valuation so you can show us anything this tool might not pick up, like a new bathroom or kitchen. 

Good luck with the sale of your home, whether you use us or not. It can be minefield, as they say, so stay focused, communicate well and be proactive. 

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