The following is a guest post.
The price that you sell your home for is never the price that you receive. Estate agents will always take a fee for their services and, unfortunately, this is unavoidable. Estate agent fees, however, have no set rate and, as a result of this, there’s always room for negotiation. Here’s our guide to estate agent fees and how to negotiate the best deal:
The Basics of Fees
Estate agent fees vary massively. Generally speaking, estate agents charge a percentage fee for your home and this can be anywhere from 0.75% to 3.5% of the sale value. If possible, try and get this close to 1%. Despite seeming as though this is costing you money, it is also helpful. The fact that the agent is paid on the final sale value of your home means that they:
a) Have an interest in selling it as soon as possible
b) Have a direct interest in getting the best price
By law, the agent is required to tell you exactly what the fee includes and (in an ideal world) you shouldn’t face any additional costs.
How to Make Sure You Get the Best Deal
Most agents will be willing to haggle over the fees they quote; especially if you have an expensive property. There are several ways that you can make sure you get the best deal, this includes:
- Getting Multiple Quotes: Asking for quotes from more than one agent allows you to directly compare prices. Make sure that each agent knows you’re shopping around. They may drop their price if they know they’re in direct competition.
- Looking At Small Agencies: many large companies will be less willing to negotiate because they will be tied into nationwide policies. Smaller and independent agents, however, will have more scope for negotiation. Just because an agent is bigger doesn’t mean it is better.
- Opting for a Sliding Scale: Why not offer a fee based on the sale price? This gives your agent a much larger incentive to sell your home at a higher price. Opt for 1% if below asking price, 1.25% if at asking price or 1.5% if above asking price, for example.
What Are The Alternatives?
Despite this, you may still feel that using an estate agent isn’t for you. Thousands of people each and every year refuse to sell their property through an estate agent because of the fuss and the hassle as well as the fact that it is not a guaranteed sell. If you don’t want to barter and negotiate with an agent then try selling your home through a company such as House Buyer Bureau. This way, although you’ll receive something slightly below market value, you can sell your home within a week without all the hassle and the fees of an estate agent.