The average estate agency fee for selling a property in England and Wales can reach as high as 3.07% in the most affluent areas, but on average sits at 1.53% (inc VAT) of the sale price of the property.
GetAgent, an estate agent comparison service, carried out analysis on over 40,000 estate agencies which listed properties in more than 2,400 locations. They discovered that the fees for using a high street estate agent can vary as much as 261% dependent on postcode.
Which are the most expensive and cheapest areas?
Over 6 months, data was collected from property agencies which only take a fee if the property sells.
It was found that the cheapest location to sell was Benthall in Northumberland, postcode of NE67. In Benthall, the average estate agent fee, including tax, is 0.85% of the property sale price. The average listing price of property in NE67 is £326,000, which would make the fee £2,771.
The dearest area to sell through an estate agency is CT11 - Ramsgate in Kent. £241,849 is the average listing price of properties in this area, and at a percentage agency fee of a huge 3.07%, the cost would be £7,425.
Are you wondering what the average estate agent fee is for your postcode? Take a look at the Which? data table to find out.
How to go about choosing an estate agent
Selecting the right estate agent for you requires research. If you put in the leg-work, it should pay off in the long run once you come to sell.
Look into which estate agents sell similar properties to yours both quickly and at higher prices. Invite three of these agencies to your house to provide a valuation and a quote. Quotes must include VAT, but if you aren't sure it's worth asking to check.
Are estate agent fees negotiable?
One of the largest costs to selling your home are estate agency fees. This is just one cost amongst a few, so bear in mind that each of these is essentially subtracted from the price your house sells for.
Therefore, you'll want to lower these costs as much as possible. Remember that the estate agency wants your business, so don't feel afraid to ask them to lower their quoted commission. If they won't lower it, there are other options. Try negotiating part of the service, such as decreasing the tie-in period with that agency incase you don't get the results you want. Or, you could suggest a sliding scale where their commission rates will alter dependent on how much they sell the property for.
What other routes are there to selling?
Estate agencies may be the traditional route to sell your home, and the first option that many people will think of, but there are other methods which could even work out cheaper.
Costs involved in selling a typical home are fees for the estate agency, mortage, conveyancer, EPC, and removals when moving. These costs can really add up, so some people may choose to go down a different path to selling their property.
You could consider selling your home privately, via a property auction, through an online estate agent or through a cash property buying company, where you can achieve a quick sale. There are different benefits to each of these methods; but often the only way without fees are some cash buying property companies. Check out the table below of how we at The Property Buying Company compare in costs to other selling routes.
Interested? Get a cash offer today.