How much should you spend on Estate Agent fees?

Posted: 24/04/2024
Estate agent

If you’re thinking of selling your home, one of the questions you’re probably asking is ‘how much will an estate agent cost?’ And you’d be right to ask the question. These fees can quickly add to the total cost of selling your property, so it’s important you find out how much an estate agent charges before you list your home with them. 

We would advise you to compare estate agent fees to ensure you pick the one best suited to your needs. After all, estate agent fees in the UK can vary massively.

For this reason, The HomeOwners Alliance, an independent body that champions the interests of Britain’s aspiring homeowners, researched estate agent fees in 2024. Let’s examine what this means for people looking to sell their homes.

Who is responsible for paying estate agent fees?

It is the seller of the property’s responsibility to pay the estate agent’s fees. The signed agreement between the estate agent and seller is a contract for the agent to work on behalf of the seller to sell their home.

Fees are generally due when contracts are exchanged. However, you will not have to pay them until the sale has been completed. You should not pay the fees upfront or before the sale has gone through.

 While the seller is responsible for paying the fees, your solicitor usually pays them from the completion monies following the property sale.

How much are estate agent fees?

Estate agent fees can vary from 0.9 per cent to 3.6 per cent. This depends on which agent you choose, whether you use a sole agent or multiple agents, and your negotiation skills.

If you instruct one estate agent to sell your home, the typical fee is between 1.2 per cent and 1.8 per cent. However, if you list your property with two or more agents, the fee will typically be between 3 per cent and 3.6 per cent.

The HomeOwners Alliance found that, on average, estate agent fees in 2024 are 1.42 per cent. This means that if you sold your property for £275,000, you would have to pay your estate agent around £3,900.

What do estate agent fees cover?

What your estate agent fees will cover will vary between agents, so do your homework and ensure you know what your chosen agent includes in their fees. Some of the key aspects your estate agent fee may cover include:

  • Valuation of your property
  • A written description of your property
  • Floorplans
  • Professional photographs to market your property
  • The installation of a ‘for sale’ board
  • Contacting buyers they think may be interested
  • Marketing of your property, including online such as Rightmove and Zoopla
  • Arranging and managing viewings
  • Negotiation of sale price with potential buyers

It’s worth considering that cheaper estate agents may not provide a comprehensive package, so make sure you understand what their fees cover before you agree to using them.

Are you thinking about moving in 2024?

If you are thinking about moving home in 2024 – whether you’re looking to upgrade your home, downsize, or ultimately relocate, get in touch to see how we can help. Don’t hunt for your next home alone – instead, contact Shortland Horne today.