Estate Agents Fees Explained

Estate agent costs can vary enormously, so when it comes to fees, it’s important to understand exactly what you’re paying for when you're selling your house or property.

To help you find what works best for you, we’ve set out everything you need to know about estate agent fees, and factors to consider that may affect how much you will end up having to pay.

How much are estate agent fees?

In today’s market, price is a big factor for many property sellers, especially because of the other costs you have to pay out for moving home. So first, let us explain the difference between a commission based and fixed fee agent.

Commission fees

Some agents will charge a commission for their services, which is a percentage value of the final agreed sale price, and as it is wholly dependent on the price of property for sale, costs can really vary. This fee typically covers:

• a realistic property valuation based on local market research, trends and past sales data;
• accurate floorplans and measurements;
• quality e-brochure to maximise presentation;
• professional photographs;
• social media marketing
• the installation and removal of a ‘for sale’/’sold’ sign;
• assisted accompanied viewings;
• website marketing of your property; and
• negotiation costs.

Fixed Fees

A fixed fee, however, does what it says on the tin - it is a set price for an estate agent's specific service. But it’s important to remember that with this model, there could be a choice of packages available with varying levels of service, aimed at different price points. Prices usually start from around £1,200 but costs can escalate if you opt for added extras – like a floor plan or assisted viewings – so be sure to check what's included in the bundle before you sign on the dotted line.

Some estate agents offering a fixed fee option will also give you the choice to pay upfront or defer the payment and pay at a later date. Now, whilst the latter may seem attractive, it’s not without conditions. If you choose to defer, a loan agreement will be created with a third-party financial advisor and you may incur additional costs (such as interest) so make sure you understand exactly what you are signing up to.

Whatever type of estate agent you choose to use, always make sure they are NAEA Propertymark Protected.

When do you pay estate agent fees?

Estate agent fees are normally due upon completion (when the property has been sold and contracts exchanged), however, some estate agents may require you to pay upfront. Be sure to check the estate agency agreement, as this will stipulate when fees will need to be paid.

Usually, your agent will send their invoice to your solicitor and upon completion of the sale, your solicitor will settle the agent’s bill directly out of your sale proceeds before transferring the balance to you.

Be aware of the terms of payment, and make sure your agency allows a few days for the money to be transferred before they start charging interest. Many estate agents will give you a five to 10-day grace period in which to make payment before charging you a daily interest rate, however, the number of days in which to pay will be stated in your contract.

So, what should you be asking your estate agent?

There are a lot of questions you should be asking your agent, particularly if you’re a first-time seller, but when it comes to costs, the below should cover the basics:

• What is included in your estate agency fee?
• Does your quote include VAT?
• Will you provide floor plans and professional photos of my house, and is this at an extra cost?
• Will you provide and install a ‘for sale’ board, and will I be charged extra for this?
• Do I have to pay an additional fee for marketing?
• Where will you advertise my property?
• How many websites will my property listing feature on?
• Will you market my property on any of the social media platforms?
• Do you charge extra for ‘enhanced’ listings or being a ‘featured property’ on the main property websites etc?
• Are there any other costs I might incur?

Whilst it’s tempting to go with the cheapest option, you should pick an estate agent that is right for you. For peace of mind, you may want to get quotes from a couple of local trusted agents. Visit the NAEA Propertymark website to find a local expert.