A recent Office of Fair Trading enquiry found that 78 per cent of us feel estate agents offer poor value for money. It hardly made the news.
In comparison with the legal and removals costs, estate agents' fees can seem excessive, particularly at a time when many people are financially stretched to breaking point anyway.
How much you pay for an agent's service will depend largely on whether you choose to entrust your sale to one agent (sole agency) or spread it among several (multiple agency).
Appointing one agent is the usual, and cheaper, option. The vast majority of estate agents charge a percentage of the sale price, currently somewhere between one per cent and two per cent.
Multiple estate agency agreements will typically charge from 2-3.5 per cent (paid to the agent who achieves the sale). It's more expensive,but a good option if you need a quick sale.
Percentage or Fixed Fee ?
The beauty of the percentage fee, as far as estate agents are concerned, is that selling an expensive house means a lot more money for the same work as selling a cheap property.
Sellers of 'standard properties', however, may suspect that they're not receiving quite the same attentive service as the owners of the mansion down the road.
Choose Well !
Choose an estate agency that is a member of the Ombudsman for Estate Agents (OEA) Scheme - if things go wrong they can help you pursue your agent for compensation.
Ensure your agent is qualified - It's all well and good having experience, but you need a qualified agent to advise you. I have experience with aeroplanes, when I did my national service - But I'm not qualified to service one of the Tornado's at Losiemouth am I ?
Some agents charge additional fees for accompanied viewings (Hopefully not many do this anymore !) advertising and 'For Sale' boards. If yours does this, make sure that you have in writing exactly how much your 'extras' will cost you.
If your house doesn't sell quickly, use it to your advantage. The end of your contractual period (usually 12 weeks, plus two weeks' notice) is a good opportunity to renegotiate a poor rate. If your agent refuses, look around for someone that will give you a better deal.
But never change to another agent while you are still contracted to the first. Both agents could charge you commission if your property is sold.
Above all, shop around and find estate agents who can offer you the best marketing, the best price and that you like (There's not many that will tick all the boxes, but it's certainly worth visiting them all in your area).
Happy Hunting,
Mr Jackson.
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