How Much Are Estate Agents Fees?

Selling a house can be expensive. Before you even consider cashing in and moving out, it’s important to weigh up all the costs associated with selling. From conveyancing to removal expenses, plus estate agent fees and mortgage porting, a cost is attached to everything, and it can all mount up.

In this blog, we look at estate agent fees and what they will cost when selling your house. At the time of writing, you can expect anything from just under 1% to almost 4% of your sales value to be swallowed up by estate agent fees. Depending on your house’s value, this could easily equate to tens of thousands of pounds.

How much will an estate agent charge me to sell my house?

Estate agent fees vary quite considerably, and are largely down to how you try to sell your home. If you sell using just one estate agent, you could be looking at around 1-2% of your sale deducted for the estate agent.

If you choose to use multiple estate agents, you could see much closer to 4% deducted from the sale amount.

When viewed as a percentage, these numbers appear almost irrelevant, but when you convert the amount into pounds, you’ll soon be wishing the fees were a little less. Luckily, they can be – you are free to negotiate your estate agent fees. You could do this by:

• Suggesting a higher commission rate if they achieve a sale above a certain price, and a lower one if they don’t
• Play estate agents off against one another. If one charges 2% and the other charges 1.5%, tell the more expensive one you would sell with them if they could match or better the rate charged elsewhere
• Look to smaller independent agents as well as the larger national chains. You might have more luck negotiating

What do estate agent fees include?

Most estate agents will offer a package. These can include:

• Marketing your house both online and in-store. This will include listings on platforms such as Rightmove, a for sale sign going up outside your home, professional photography, and more
• Organisation of viewings. Hopefully, your home garners a lot of interest. The estate agent will transform this into viewings, carefully lining them up so nobody clashes and appointments aren’t double-booked. Using their industry expertise, they will guide the potential buyers around the home, answering any questions that may be asked
• Price negotiations. You want to sell for the highest price, whilst the buyer wants to buy for the lowest price. The estate agent will manage this process and try to keep both parties happy
• Sales completion. The estate agent will manage the process to completion, ensuring everything runs smoothly

Some agents may offer more than others, and as a result, have significantly different fees from one another. It’s worth checking what each agent offers before committing to any, as you might find yourself giving away more of your sales cash than you had hoped.

Do estate agent fees include VAT?

The fees you pay should include VAT, but this isn’t always the case. Check with any agency you plan to sell through before committing to them. With VAT charged at 20%, this can be quite a substantial additional sum to factor in.

For example:

• You sell your house for £300,000
• Estate agent's fee is 3%
• Fees due £9,000
• Add VAT at 20%
• Total fees due: £10,800

Will you be charged more for using more than one estate agent?

Yes, but you’ll only pay the fee to the estate agent that sells your home. Much depends on which estate agency agreement you proceed with.

Sole agency agreement

This is the most common option. Your house is listed with just one estate agent, who takes the fee when the house is sold. However, if you find the buyer yourself, you won’t have to pay the fee at all. Fees for these agreements typically range from 1% to 2% of the sale value.

Sole selling rights

You’ll have just one estate agent in the contract who is allowed to sell the home. Fees will be the same as above, but will also apply if you find the buyer yourself.

Multi-agency agreements

With a multi-agency agreement, you instruct more than one agent to sell your house. The fees here are at the higher end of the scale and can top 6%, but are more commonly around the 3%-4% mark. This can be quite a lot of cash to lose, but you may find that a sale happens more quickly. This is because multiple agencies promote your home and will compete to take the larger percentage of the sales revenue.

Joint agency agreements

This is where you appoint two agencies to get your house sold. Together, they will agree who takes the fees, often splitting them so both parties take a share of the cash when you sell the home.

Ready, willing and able buyer

This is best avoided – it involves an estate agent providing you with someone ready, willing and able to buy your home. The risk here is that they can still pull out before an exchange of contracts, and you’ll still be liable to pay the estate agent fees.

Do you still pay estate agent fees if you don’t sell your house?

In most cases, no. Almost all estate agents offer a “no sale, no fee” package, meaning you’ll only pay the fee if you sell your home. However, some estate agents may have fees hidden within your contract that are still due even if the house doesn’t sell. Always conduct research before settling on an estate agent and check the terms of any agreement they may present you with.

When do you pay the estate agent fees?

If selling via a high street estate agent and paying a commission rather than a flat fee, you’ll pay once your sale completes. This allows the agent to work out the exact amount they are due based on how much the house sold for.

If selling with an online agent, you’ll likely pay fees upfront at a fixed rate. This means that even if your house doesn’t sell, you’ll still have to pay a fee.

Do you pay estate agent fees when buying?

No – the seller pays estate agent fees. This is because the agent is working for them, trying to sell the house. Fees will only apply to the buyer when they appoint a buying agent to help them find a property.

Are estate agent fees cheaper if you use an online estate agent?

Yes – online estate agents usually charge a fixed, upfront fee that is lower than traditional commission-based fees. However, this comes with trade-offs:

• Less motivation to sell: Because they are not earning a percentage of the sale price, there’s less incentive for them to push for a quick or high-value sale
• You pay upfront: You could lose money if your home doesn’t sell
• ‘Free’ packages may lack essential services: These may exclude professional photos, floor plans or compelling listings
• Lower final sale price: Online agents may sell for less, which could reduce your overall return – even after saving on fees.

As seen above, estate agent fees can eat into the amount you get for selling your home quite considerably. Why not bypass the fees and the lengthy route to sale by speaking to Bettermove? We offer two rapid routes to sale where your home is guaranteed to sell. We either buy your home ourselves or offer it to a network of cash house buyers. Either way, your house sells. What’s more, we sell your house for free. With no fees or hidden charges, you get exactly what you are offered for your home. Reach out to us today to find out more.