Homeowners will usually accept that selling their property entails expenditures, particularly an estate agency fee. We'll go through what the fee could be and whether it's worth paying it.
What exactly is an estate agent's fee?
It is the amount you pay in return for expert assistance, labor, or support in selling a property. Estate agency costs are generally assessed as a percentage of the property's selling price (expressed as a proportion). There's a real incentive for the agent to get you the best deal possible, and it won't be charged until your home is sold; on a no sale, no fee basis.
There can be exceptions to this, with some brokers opting not to charge a fee or requesting one ‘up-front,' even if they are unable to sell your home.
What does an estate agency fee cover?
It's more than many people realize. An estate agent will use the money to pay for expert personnel that can value your property, do viewings, discover the ideal buyer, negotiate a sale (so you get the best price), and communicate with lawyers, surveyors, and lenders on mortgages, and provide ongoing support and advice. In a recent poll, it becomes apparent that many movers believe that saving money on a fee isn't worth it, with more importance being given to the agent's professional abilities such as their market expertise and communication skills.
Do you have to pay the estate agent's fee?
Yes, as long as you have signed the estate agency contract and the agent provides services that are covered by it. However, if you do not know what the fee is likely to be, what it covers, and any limitations, you should. i.e., if you sign a solo selling agreement, you cannot seek assistance from another estate agent during the term of the contract; even though the original agent is having no luck in attracting purchasers. If you discover a buyer on your own, the estate agent may charge you a fee.
Even if you have a long-term deal with an agent, it's possible that you'll be charged commission months or years after the transaction took place if they can show that your buyer was originally introduced to them by them.
Are there any additional costs? What else should you think about, along with the cost amount?
It may appear that the more you pay, the better your service is, or it's best to pay nothing at all, but it's critical to grasp exactly what you're receiving - or not receiving.
To justify the expense, question your agent and inquire what sets them apart from the competition. Local knowledge and understanding are crucial, and you should have documentation to back it up, but get details on what their selling record is like, what prices they achieve, and how they advertise. Check to see if they appear to be too concentrated on pushing a sale through – regardless of the price being offered. It takes time to discover buyers, creates rivalry among them, and obtain the highest possible offer. It can't be rushed, and you must have faith that the agent won't force it. There is no need to be in a hurry.
Check what services are included in the price. While some agencies do not charge a fee, their offerings are limited and you may end up paying for ‘add-on' services that you would typically get as a standard from other agents. All of which can add up.
Understandably, if there is no charge or the fee is paid upfront, there may be no incentive for the agent to work hard and get the finest price for you. You may believe you're saving money when, in reality, you could be losing it in different ways.
When you're looking at the cost of selling your property, it's also vital to understand what you're getting for your money. It's also critical to note that beyond the estate agency fee, there may be a lot more things to consider when selecting an agent to assist you with selling your home.