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Author Topic: Estate Agents Fees  (Read 705 times)
Jimmy Quinn

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« on: Sunday, October 11, 2020, 20:59:22 »

How do traditional estate agents justify charging up to 1.5% + vat for selling a property
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Panda Paws
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« Reply #1 on: Sunday, October 11, 2020, 21:03:21 »

How do traditional estate agents justify charging up to 1.5% + vat for selling a property

They say they're going to charge you 1.5% before you sign with them, and then they charge you it.

Is this a trick question?

Don't want to pay it? Don't. You'll soon learn the difference in service level. And if you don't learn this time and sell quickly at an amazing price, then good for you.
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Jimmy Quinn

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« Reply #2 on: Sunday, October 11, 2020, 21:05:01 »

They say they're going to charge you 1.5% before you sign with them, and then they charge you it.

Is this a trick question?

Don't want to pay it? Don't. You'll soon learn the difference in service level. And if you don't learn this time and sell quickly at an amazing price, then good for you.

I give up always someone looking for an argument
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« Reply #3 on: Sunday, October 11, 2020, 21:17:49 »

I give up always someone looking for an argument

I don't get your point. There's loads of options, from fixed price online only agents to bespoke services, all charged accordingly. Pick one.

If you think 1.5% is too much, find someone cheaper and expect a service that befits the price. It's not different to any other service? Not sure how that's picking an argument.
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Jimmy Quinn

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« Reply #4 on: Sunday, October 11, 2020, 21:19:42 »

I don't get your point. There's loads of options, from fixed price online only agents to bespoke services, all charged accordingly. Pick one.

If you think 1.5% is too much, find someone cheaper and expect a service that befits the price. It's not different to any other service? Not sure how that's picking an argument.

No worries
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Valid Pint

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« Reply #5 on: Sunday, October 11, 2020, 22:16:07 »

Property is theft.
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Jimmy Quinn

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« Reply #6 on: Sunday, October 11, 2020, 22:31:38 »

Property is theft.

Just wondering how much profit they make pet house sale for what they actually do
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Valid Pint

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« Reply #7 on: Sunday, October 11, 2020, 22:38:46 »

Just wondering how much profit they make pet house sale for what they actually do

Like a kennel, you mean?
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Jimmy Quinn

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« Reply #8 on: Sunday, October 11, 2020, 22:42:28 »

Like a kennel, you mean?

iPad again "per house sale" 🤗
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ron dodgers

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« Reply #9 on: Sunday, October 11, 2020, 23:36:20 »

depends what they have to do, which ...... depends on the market conditions.
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THE FLASH

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« Reply #10 on: Monday, October 12, 2020, 00:47:29 »

In my current position definitely not.

Furoughed staff....(bet they want 100% of the fee, rather than 20%!) different person from the agency on each viewing...

Poor communication.

No better service than Purple bricks IMO.

Just an access to Zoopla etc.


Also....I just don't like em!
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Jimmy Quinn

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« Reply #11 on: Monday, October 12, 2020, 04:40:35 »

In my current position definitely not.

Furoughed staff....(bet they want 100% of the fee, rather than 20%!) different person from the agency on each viewing...

Poor communication.

No better service than Purple bricks IMO.

Just an access to Zoopla etc.




Also....I just don't like em!

That's what baffles me if the likes of purple bricks can charge under £900 and that includes Rightmove and Zoopla that's some profit margin just for an agent to show them around which sometimes you have to do yourself if they are busy
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JBZ

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« Reply #12 on: Monday, October 12, 2020, 06:47:05 »

That's what baffles me if the likes of purple bricks can charge under £900 and that includes Rightmove and Zoopla that's some profit margin just for an agent to show them around which sometimes you have to do yourself if they are busy

If someone is prepared to pay your fee, that is the justification. 

If your question has been prompted by the fact that you are putting your property on the market and you are not prepared to pay anything like 1.5%, use a hybrid agent like Purple Bricks.
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Jimmy Quinn

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« Reply #13 on: Monday, October 12, 2020, 09:18:14 »

If someone is prepared to pay your fee, that is the justification.  

If your question has been prompted by the fact that you are putting your property on the market and you are not prepared to pay anything like 1.5%, use a hybrid agent like Purple Bricks.

Here's the differences
Sell property for 1% = £3150 + vat = £3780
Sell propert for 1.5% = £4725 + vat = £5670
Purple bricks is approx £900 + vat = £1080

If you go with purple bricks you pay the money up front which is non returnable so you need to be sure that you can afford to lose it it doesn't sell or you choose to take it off the market.

I have gone for the middle one but am intrigued why they charge so much and when the stamp duty comes back it's no wonder the housing market will suffer in the current climate
« Last Edit: Monday, October 12, 2020, 09:20:35 by Jimmy Quinn » Logged
RedRag

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« Reply #14 on: Monday, October 12, 2020, 09:22:13 »

In my experience, "good" estate agents are few and far between.  

The bad ones will usually "negotiate" the selling price so as to benefit the buyer.  They are supposedly employed to act for you.  If you hint to them you may take such and such an offer against asking price, they will disclose that to the buyer.  If lower still is offered, then their focus is to secure the deal and persuade you, their client, to accept the still lower offer.  T

Do the maths: 1.5% of £500k is £7.5K (+ vat) and of £450k, it's £6.75k.  £50k less for you is a few hundred less for them.  Losing a low offer, means they get nothing and have to start the whole process all over again or lose the agency rights to a competing agent.

The important caveat is that if you have the good fortune to find the good agent, and there are a few, they will not encourage the buyer to get money off.  After an offer is made, they will have the confidence to apply their negotiating skills for you, their client,(not just to secure the sale at the price the buyer is offering) and secure a better sale price.  

In the above example, lets say the "good" agent secures a sale price for £10k more than the nervous agent desperate for a sale and scared of losing control.  That alone would more than cover the 1.5% fee.  Imagine that they negotiate 20k more.  The "good" agent is invaluable.  They can almost certainly negotiate better than you or Purple Bricks.

On a practical note:

If you do employ an agent and approve their valuation

1.  always be firm that this is the price at which you'll sell (and that accepting anything more than, say, £5k off is out of the question)
2.  ask for a discount on the 1.5% fee, relating other agents are doing 1.25% or even 1% and that is what you want.  If it's a good agent, don't be too surprised if the 1% isn't available.  They negotiate for themselves too!  You may get 1.25% or similar so it's worth trying.
3.  ask that the contract does not extend for more than 8-10 weeks (12 would be a max.).  Then you can go elsewhere if it doesn't work out.  Agents tend to lose interest after a while and prefer the newer instructions.
4.  if an agent suggests a much higher valuation than his competitors (get 3 round), either be very lucky or expect him/her to come back after 2-3 weeks saying that he's tried but it's not worked and the market dictates a lower asking price - you'll still be tied in to that sole agent who's hooked you by an exaggerated selling price Angry
« Last Edit: Monday, October 12, 2020, 09:31:05 by RedRag » Logged
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