What Do Estate Agents Charge in the UK?
When it comes to selling a property, understanding agents’ fees is crucial for homeowners. These fees vary depending on the agent, location, and the level of service required. First up, let’s look at the types of fees.
Types of Fees
In the UK, estate agents typically charge for their services in one of the following three ways:
- Fixed Fees:
Some property agents offer a fixed fee for their services, which is paid upfront. This can be very useful to some people since it allows them to know exactly how much they are going to spend right from the start. Such fixed fees will range from £500 to £1,500, depending on the agent and the property’s value. - Percentage of the Sale Price:
Most often, property agents charge a percentage of the final sale price of the property. This standard fee can range from anything between 1% and 3% of the selling price plus VAT. For example, if your property is sold at £300,000 and your agent charges you 1.5%, you’ll end up paying £4,500 plus VAT – that’s £5400 in total. - Hybrid Fees:
Some agents combine both fixed and percentage fees. For example, some may charge a lower upfront fee with the addition of a percentage at the end of a sale. This can sometimes offer a balance between upfront affordability and motivation for the agent to achieve a higher sale price.
Additional Costs
Apart from the basic fees, there may be additional, hidden costs involved in selling your property:
- Marketing Fees: Many agents do not include premium marketing services in their quotes for fees that may include professional photographs, virtual or video tours, and premier listings on property portals. The fees can vary from £100 to £500.
- Energy Performance Certificate (EPC): By law, you must have an EPC when selling a property. The cost of an EPC may range from £60 to £120 or more, depending on the provider.
- Legal Fees: Conveyancing solicitors handle the legal aspects of selling a property. These typically cost between £500-£1,500 plus VAT.
Online vs High Street Agents
The rise in the popularity of online property agents has introduced a more cost-effective option for sellers. Online agents claim to charge lower fixed fees compared to traditional high street agents. Online agents like Purplebricks or Yopa charge around £800-£1,200, regardless of the property’s sale price. However, sellers need to bear in mind that such agents would typically offer a more limited service often missing the personal touch and local knowledge that high street agents provide. Purplebricks have recently introduced a ‘zero fee’ option but this is for the basic services only which may not generate the most interest or best price.
Most sellers obtain a number of quotes from agents before marketing and then can compare service levels versus the cost. Don’t forget that the cheapest agent may not always be the best.
Jonathan Rolande, founder of the NAPB:
“It’s important for homeowners to understand estate agents’ fees. Fixed fees give clear costs upfront, while percentage fees motivate agents to get a higher sale price. Online agents can be cheaper but might not offer the personal service and local knowledge of high street agents. Remember, the cheapest option might not always be the best.”
