Estate agents’ fees will vary depending on your area and the level of work involved in selling your home. The market for agent fees and commissions is largely unregulated, which means agents can charge whatever they feel is fair.
In general, agents will charge for their services using one of the following structures:
1. Commission
An agent’s commission is calculated as a percentage of the home’s final sale price and are subject to VAT. Currently estate agent fees are often between 1% and 3% of the sale price depending on the size of the property and the location it’s in. On average,
estate agent fees are about 1.18%+VAT.
2. Fixed fee
Some agents will agree to a fixed fee rather than a commission based on a percentage of the sale price. The benefit of this model is it provides certainty around the price you’ll pay to sell your house. You’ll know ahead of time exactly the amount you’ll be paying your agent, regardless of the sale price.
Of course the drawback is that a flat fee might not motivate your agent to get the best price possible for your property. An agent negotiating a flat fee could prioritise a quick sale over receiving the highest price.
3. Multi-agency agreement
In a multi-agency agreement you have several agents working to sell your property. However, it’s the agent that is successful in making a sale that receives the commission. In most cases this kind of agreement means you’ll pay a higher fee – between 2% and 3% of the final sale price.