Complete 2023 Guide.

How Much Do
Estate Agents charge?

How Much Do Estate Agents Charge To Sell A House? (2023)

This is a complete guide to estate agent fees in 2023.

In this beginner-friendly guide, you’ll learn:

  • How much do estate agents charge to sell a house?
  • What is included in estate agent fees?
  • Hidden costs to watch out for.
  • Lots more.

So, if you’re ready to learn the typical estate agent fees to sell a house, this guide is for you.

Let’s get into it:

Key Takeaways

  • Average estate agent fees UK 2023 for a sole agency agreement is 1.42% inc.VAT (TheAdvisory)
  • Based on the average UK house price of £281,161, average estate agent fees are £3,992.48 (Land Registry, April 2023)
  • Multi-agency agreements are more expensive, with an average fee of 3% inc.VAT (TheAdvisory)

Online estate agent fees are usually fixed between £300 to £1,500. Some high street estate agents also charge fixed fees. (Which?)

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estate-agent-guide

Estate Agent Fees For Selling A House

So, how much do estate agents charge UK?

Most estate agents charge a percentage fee on the sale price of a home.

Percentage fees range from 0.75% to 3.0%+VAT, with an average of 1.18%+VAT (1.42% inc.VAT) for a sole agency contract.

However, research from TheAdvisory found that over 40% of home sellers paid more than this average.

But not all estate agency fees follow a percentage model.

In fact, some charge a fixed fee like online estate agents, ranging from £300 to £1,500 (more on this later).

You can expect to pay higher estate agent fees in London or multi-agency agreements.

But you can save cash if your house exceeds £500k, as some agents will accept lower fees.

Estate Agent Fee Calculator UK

Want to know the estate agent cost for selling a house?

Or how much do estate agents take for selling your house?

Use our estate agent fee calculator below to see how much you could pay for your home.

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What are Estate Agent’s Fees for selling a house?

It can vary what services are included in an estate agent’s fee.

However, most traditional estate agents should include:

  • A property valuation
  • Floorplans
  • Professional photographs
  • A written description with a property listing
  • Marketing on property websites like Rightmove and Zoopla
  • Advertising your home in their shop window
  • Organising viewings
  • Negotiating a sales price
  • Liaising with solicitors and buyer
  • Generating interest among their own list of potential buyers

Hidden Estate Agent Costs to Look Out For

When comparing estate agents, you should check for hidden costs, including:

  • The quoted fee doesn’t include VAT. Agents must state if their fee includes VAT, currently 20%. If they don’t, be sure to clarify.
  • Their commission could differ from the contract. Agents are required by the Property Ombudsman to show an actual fee based on your property’s asking price. But they’ll calculate the actual commission based on the selling price.
  • Different agents offer different services. Some agents may charge you extra to advertise on portals. You shouldn’t pay for any optional extras with high street estate agents.
  • Withdrawal fees. Some agents will still charge if you decide not to sell your home.
  • Energy Performance Certificate. You need an EPC before selling a home, costing £35 – £120. EPCs are valid for 10 years, and you may already have one. Your agent may arrange one for you, or you can search for better prices.
  • Recommended services. Your agent may offer you an in-house service or recommended mortgage or conveyancing provider. You aren’t obliged to use them as a good estate agent will work with any provider.

When Do You Pay Estate Agent Fees?

You’ll typically pay estate agent fees after contracts are exchanged, and your property is sold.

Some agents may require you to pay upfront.

You should ensure the agent contract has a ‘no sale, no fee’ policy.

On average, agents only sell 50% of properties – you don’t want to spend money on a failed deal.

Online Estate Agents

An online estate agent differs from a traditional estate agent in many ways.

Online agents charge fixed fees, usually between £300 to £1,500.

But they offer fewer services than traditional agents.

Sellers do most of the work using an online agent, like creating adverts.

Some agencies offer a hybrid approach and can handle buyer enquiries and negotiate offers.

Paying a fixed fee can be dangerous as an agent doesn’t need to sell property for the highest price possible.

Can You Negotiate on Estate Agent Fees?

You should negotiate agent fees.

Some agents quote higher fees under the assumption they’ll need to negotiate.

But keep an eye out for agents that drop their fees considerably.

They may be desperate for work or poor negotiators.

How should you haggle over agent fees?

You should get quotes from three agents and compare them.

You should check their fees, hidden costs, services, and track record of selling similar homes to yours in the local area.

After getting quotes, you should inform the other agents and see who’s willing to lower costs.

You could also consider giving agents a sliding commission scale.

(Charging different commission fees at various price points).

E.g. if your asking price was £300,000, you could charge a commission of:

  • 1% for selling the home for £270,000
  • 1.25% for selling between £270k and £300k
  • 1.5% for over £300k

This incentivises agents to sell for a higher price.

Estate Agent Contracts Explained

There are five estate agent contracts:

  1. Sole agency agreement – The most common type of estate agent contract. You’ll agree that one agent can sell your home for a set period. If you find a buyer yourself, you won’t pay fees.
  2. Joint sole agency agreement – Two agents are appointed to sell your home, with commission shared.
  3. Multi-agency agreement – You choose multiple agents to compete to sell your home, with the commission going to the successful agent.
  4. Sole selling rights agreement – Only one agent can sell your home. You’ll have to pay even if you find your own buyer.
  5. Ready, willing and able purchaser – You’ll have to pay an agent to find buyers.

Most agents are also no sale, no fee – but not all. So keep that in mind when comparing agents.

Multi-Agent vs Sole-Agent

An increasingly popular (and lesser-known) way to sell property is with a multi-agent agreement.

Here, you can get multiple agents to compete to sell your home, with the winner taking a commission.

Competition among agents will encourage them to work and negotiate harder for the best deals.

In fact, MoveWise claim that multi-agent sales reduced time-to-sell by a month and achieved 3% higher asking prices.

The catch?

Agents in a multi-agent situation charge higher commission fees – 3% including VAT on average.

Should You Choose the Cheapest Estate Agent?

Whether you’re choosing local estate agents, online estate agents, or a high street estate agent, you may be wondering:

Should I choose the cheapest estate agent?

The answer to this is almost always no.

If an agent charges less than 1%, you should be suspicious as they may be desperate for work.

Download 2023 Estate Agent Guide

How Much Do Estate Agents Charge?

  • Agency fees
  • Conveyancing fees
  • Remortgaging
  • Energy Performance Certificate
  • Removal Company

Which? estimate the average cost to sell a house is £5,097 – £8,032.

You pay a fee to your estate agent once they sell your house. Costs range between 0.75% to 3.0%+VAT of the sale price.

Most agents don’t charge to value homes. It’s essential to ask before signing a contract.

No, you don’t pay estate agent fees when buying. Only the seller pays agent fees.

You’ll likely need to pay estate agent fees if you pull out to cover advertising costs. If you agree to a ‘ready, willing and able purchaser’, you’ll have to pay an agent to find buyers.

Estate agents submit invoices to solicitors. Solicitors then pay agents from the completion money after the sale is complete.

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