Estate Agent Fees and What They Cover

Once you’ve taken the decision to sell your home, you need to start thinking about how you’re going to sell your property. When moving home, many sellers still opt to sell through a traditional estate agent – it’s a familiar method and the estate agent does a lot of the administration and hard work for you.

As part of the estate agent’s involvement in the sale of your home, you will be expected to pay estate agent fees. Below we’ve created a guide detailing what the fees are, what the estate agent does to earn them, and some tips on choosing the right estate agent to trust with selling your home.

What exactly does an estate agent do?

Estate agents are involved in most aspects of the marketing and sale of your property. Once you’ve decided to sell, an estate agent will:

  • Value your home (in comparison to other properties in the area);
  • Put your property on the market;
  • Promote it as ‘for sale’ through their channels;
  • Negotiate with potential buyers on your behalf;
  • Deal with the administration and paperwork that comes with the purchase.

How much are estate agent fees for selling?

Typical estate agent fees vary from one provider to the next. The number is calculated on a percentage of the price your home is sold at.

Estate agents may charge anywhere between 0.75 and 3.0%+VAT of the agreed selling price of your home. According to the HomeOwners Alliance*.

If you sold your home for £100,000, and your fees were 1.3% of this, your estate agent fees will be £1,300.

 

Some agencies include VAT in their fees, and some fees will have additional VAT added on – meaning an extra 20% on top of the fee. Make sure to check this before committing to any prices or signing a contract.

Usually, you pay estate agent fees after the sale of your home has been completed, and you have the money in your bank from the sale. To ensure this is the case, it could be worth opting for a ‘no sale, no fee’ arrangement, to give them even more of an incentive to sell.

How to choose an estate agent

Picking an estate agent to trust with selling your property is a big decision, and with so many to choose from, it can be hard to know where to start. However, there are some steps that we recommend taking that will help you to choose an estate agent that you’re confident in!

Invite at least three estate agents to visit your home, value it, and quote you a fee for them to sell it for you. Ask what comes with the service they provide, and make sure you know about any hidden extras that you could be charged for. It’s also important to know how they are planning to market your property, as this will be key to getting it sold.

This gives you a great starting point for making a decision, but there are a few other indicators of a good, trustworthy estate agent:

  • Industry credentials or memberships that they hold, such as from the Royal Institution of Chartered Surveyors (RICS), Guild of Professional Estate Agents (GPEA) or National Association of Estate Agents (NAEA).
  • The number of ‘Sold’ property boards from them around your local area. They are proof that the agent does the job effectively.
  • Positive word of mouth recommendations, or online reviews, which are particularly important if you are considering using an online-only estate agent such as Purplebricks.
  • Their experience with selling properties like yours – take a look at what is currently for sale on their website.
  • The manner in which they deal with you during your interactions – are they professional, honest and polite?

We hope you’ve found this guide helpful, and wish you the very best of luck with selling your home. To help you with buying your next home, why not take a read of our blog post ‘Is Buying a New Build Home Right for You?’ , or What to Look for When Viewing a House’  which includes a downloadable house viewing checklist to help you cover everything you need to see during house viewings.

Should you wish to know more about the range of mortgages for home movers that Newcastle Building Society has available, please contact us today! You can book an appointment at your local branch, or call us on 0345 606 4488 to speak to one of our qualified mortgage advisors. Alternatively, if you’re an existing Newcastle Building Society mortgage customer and are thinking of moving home, take a look at our information on existing customer mortgages to find out everything you need to know.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

*  http://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/how-much-should-i-pay-the-estate-agent/