How much will an Estate Agent charge?
When it comes to selling your property one of the more costlier factors to consider will be the fee your estate agency will charge in order to sell it.
There are quite a few different figures shared online to what you can expect to pay along with an array of figures from agencies letting you know their costs. What commission should you be paying an estate agent to sell your property in 2022?
It is realistic, looking at high street estate agencies, to be paying in the region of 0.75% to 3% of the selling price of your property in commission.
Factors which decide how much commission you will pay an estate agent:
Type of property: Is it easy to sell, is there a long waiting list for one, is it a complicated sell, is it not over valued / priced etc?
Type of estate agency: Is it a new comer, an established, family owned, nationwide brand, luxury or maybe even one you have used before / know of well?
The market: Is it buoyant, quiet, buyers or sellers market etc?
Your position: Are you looking for a quick sale, are you buying another property, are you forming a chain, are you prepared to take offers etc?
Sole agency: Are you signing a contract with the estate agent and running with them only for a set period of time?
Multi agency: Are you putting the house up for sale with multiple estate agents?
If you opt to go sole agency then you are likely to get a cheaper commission rate whereas the risk is higher for the estate agent in not achieving the sale themselves if you go for a multi agency agreement thus they will likely charge more.
If you go with a newbie estate agency then you can get a better deal as they will be hungry to prove themselves and establish their name though you take a risk that they do not have what it takes yet in order to sell your property.
Depending on the market you should not be afraid to negotiate on the price especially if you have a desirable property that will likely easily sell, propose a commission you are happier to pay and try and get the estate agency to agree.
Remember that commission will have VAT (20%) added. Remember that if you sign a contract with an estate agent you are obliged to remain with them for that period of time and if you sell outside of their help that you may still be obliged to pay them a fee.
It is best to spend time before to establish the best estate agent to sell your property. Property that are seen to float about from one estate agent to another will likely be a turn off to potential buyers and for it to be seen as a sticky property.
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