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How much should I pay my agent?

How much should I pay my agent?

You
have decided to sell your property and now you must find the right agent.

There are more estate agencies in the UK now than there have
ever been. The research shows that there are currently almost 30,000 estate agents
in the UK and the numbers increase by the day with the popularity of the
self-employed model.

With all this competition you will certainly find somebody
whose brand you like - perhaps they are already selling your neighbour’s home
or perhaps you have an estate agent in your circle of family & friends.

It is great to have so many options at each price point, but
the question soon becomes how much should you pay?

This is a difficult question to answer, but we can find our
solution within the answer of another question, namely what can the
prospective agent actually offer you? At the end of the day you are “employing”
someone, so their performance is all that matters.

It is most likely you will get the lowest fees from the biggest
brands. They can undercut everyone else due to their large volume of
transactions. They simply have so much manpower and marketing potential that
they prefer earning less on a single transaction and in turn increase their
market share at all costs.

The smaller, independent agents are likely to charge you
more, they cannot undercut the larger agencies because their volumes are not
the same. They, therefore, offer you the same result with a more personable, less
“aggressive” service – importantly, they can offer you one point of contact
throughout the whole transaction.

A recent study by Get Agent claims that estate agents who
charge more should proudly display their fees because sellers are more
interested in track record, branding and professionalism. While I personally
think this is true, it is also true from a pragmatic standpoint that agents
would do almost anything to win the instruction. That includes negotiating on
fees, and sellers will always have the upper hand when it comes to that.

Our
recommendation is to always negotiate fees based on your area’s average but
always choose an agent based on record and professionalism and not by how low
their fees are. Just remember, the less you pay the less urgency they will
have. Another thing to consider is the duration and termination policy on the
contract.

It is in your best interest to choose an agent who will offer you
a more flexible contract with a short termination policy. This saves you from
getting tied to an agent who is not performing well.

We have noticed that during and after the pandemic sellers
have been increasingly weary of signing contracts that last for a long time.
They prefer shorter 2-3 month Sole Agency agreements which can be terminated
easily in case their circumstances change.

At Interlet Estates we can offer you a flexible contract with
a 7 working days termination notice – meaning that we work solely based on
performance. Get in touch with our sales department to find out more about the
best way to sell your property.

sales@interlet.com

0207 361 7962


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