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The Varying Costs of Using an Estate Agent
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Selling a property can often be a difficult process, with a variety of estate agents to choose from and the issue of getting stuck in a chain. But then there’s the fees themselves to think about.
And estate agent costs are anything but consistent. Depending on location, fees range from 0.9% to 2% of the property’s purchase price, according to Urban.co.uk.
The Varying Costs of Using an Estate Agent
The firm contacted 450 estate agents across the country, requesting a quote for a standard package, including photography, floor plan creation, online marketing and shop window marketing.
However, estate agent fees do not always rise in line with purchase price.
Unsurprisingly, London dominates the top of the list, with the seven most expensive locations for estate agent fees situated within the capital.
Farrington and Euston come out on joint top, with an average estate agent fee of 2% of the sale price.
In Farrington, where the average property costs over £1m, estate agent fees equal a huge £21,000.
As is happening in most industries, the online estate agent sector has boomed in the last few years. There are now many online agents that offer their services at much lower costs than high street firms. They typically charge set fees rather than commission percentages.
These agencies claim to be able to offer lower fees due to not having the overhead costs of running a physical branch.
However, vendors should be aware that they will have to host viewings and take on more of the work themselves to make the most of the savings on offer.
Many sellers might prefer the face-to-face interaction of using a high street agent, but billions of pounds worth of property is now sold through online agents every year.
Online estate agents are still controversial, as many believe that physical agents are irreplaceable. But it is clear that the potential savings are definitely significant.
A comparable package from an online agent, including a floor plan, for sale board and photography, costs around £1,000 – who would blame a vendor in Farrington using this service?
What’s your opinion of online estate agents? And do you think traditional agents are too expensive?
