Estate Agent Fees — The Facts14 / 07 / 2020
Estate agent fees are a contentious issue for many. And that was before COVID-19 accelerated already-growing online trends.
RightMove, Zoopla, PrimeLocation and other online portals are now the first port of call for many looking to kick-start the moving process.
Estate agent fees are increasingly controversial because (quite rightly) most people feel that RightMove (and their online counterparts) now do most of the legwork in terms of finding a buyer.
Plus it’s not even a level playing field when it comes to fees — a recent study by Which? Money revealed that when selling a home through a traditional high street estate agent costs can vary by 261% dependent on postcode.
The national average is 1.8% + VAT. So on a property worth £250,000 that works out at £5,400 inclusive of VAT.
So are their (changeable) fees worth it?
It all depends on your priorities and whether you know what you’re doing.
- Estate Agents: There’s no doubt that estate agents charge sellers high fees. But the good ones can be worth it. Exceptional local knowledge, great customer service and fair fees are hard to find, but if you do, then they can secure a better price than you’d get on your own (especially if you’re new to the process). Speak to a few options in your area, look at their success rates in terms of selling, and then work out whether the price and timelines are worth it.
- Online Agents: The same can’t be said for online agents, and they should be ruled out for most people. They charge upfront fees — that means that as soon as you have signed up then their job is done, whether you sell your home or not. You’re completely on your own and left to manage the process from start to finish, which can be stressful, frustrating and often long. If you do need support, then you can call and speak to someone (usually) but you’ll constantly be speaking to different people and often to someone that doesn’t know anything about you or your local area.
- Auction: This is often a last resort for many who need to sell their home quickly (divorce, debts, probate are usually top factors). The problem is that it’s a gamble on the night, so you have absolutely no control over the price. So you might get considerably less than you need (or hoped for). Equally, auctions charge high fees. These are payable by the buyer but will be reflective in the price they offer, so it’s still money out of your pocket.
- Property Cash Buying Companies: Focused on speed, they are a great option if you need to move quickly. Cash buying companies will offer less than market value though as they need to make a profit themselves once they have re-developed the property. With no middleman and no selling fees, it’s often a price worth paying though for speed and security. Not all companies are made equal though, so do your research. Local companies tend to be better than national companies as they usually operate much more transparently and fairly: they have a reputation to protect so won’t change their offer at the 11th hour; they have local knowledge so will offer a fair price; and you’ll have one point of contact throughout the selling process.
How can we help?
Rezee is a new-age estate agent. We’ve removed the hassle, frustration and expense of the selling process, through combining the best elements of the various selling options (and removing the worst).
In effect, we have turned the selling process on its head. We’re not a traditional estate agent with high-fees, indefinite timelines, and no promises of security. We’re not an online agent that leaves you to manage the process entirely on your own yet still charge a fee. And we’re not an auction company where any prices goes.
Instead we’re on your side connecting motivated sellers to motivated buyers.
We don’t charge selling fees. Instead, we charge buyers a non-refundable reservation fee to secure your property. This means that it’s almost a guaranteed sale so you can focus on your next move. We also work to fixed, realistic timelines — this can be anything between 7 and 60 days depending on what works for both parties. We also hand-hold you every step of the way, providing every customer with a dedicated account manager to make sure that the process goes smoothly and remains hassle-free.