If you are looking to sell your house in the UK you will more than likely need to find an estate agent to guide you through the process. They will value the property before putting it on the market and offer other services and advice related to the sale. The high street estate agent takes a percentage fee or commission from the sale price, usually between 1% and 3%. Popular high street estate agents in the UK include, Haart, Connells, Countrywide and Foxtons.
The average price of a property in the UK is £288,000 (June, 2024) and a typical fee charged by an estate agent is approximately 1.5% including VAT. That will mean you will be expected to pay the estate agent £4,320 for their services. For a 1% commission it is £2,880 and a 3% commission it is a whopping £8,640. Reason enough to get the best deal possible.
Then there are the regional variations, the average house in London costs £523,134 (June, 2024) so estate agent commission of 1.5% pushes the fee up to £7,847 even before you add on additional costs of conveyancing, mortgage fees and stamp duty.
The cheapest estate agent fees are possibly found in Burnley which has the cheapest housing on the UK Land Registry. The average cost of a home in Burnley is £111,962 (June, 2024) making the estate agent fee for 1.5% commission, £1,232.
You can negotiate the estate agent's fee or choose another estate agent but finding an estate agent who is going to sell the property for the price you want is also important. Agents will value the property for free and this valuation can vary depending on your selling time frame and housing market conditions in your area.
Online estate agents like Purple Bricks, Yopa and Strike work differently when charging commission for their services. Some, like Purple Bricks and Strike (these companies are merging) don’t charge a fee but get commissions from referring conveyancing solicitors, mortgage advisors and removal firms. Online estate agents also charge a fee for hosted viewings if you cannot do it yourself.
Other agents like Yopa charge a flat fee of around £1000 to sell your house. For this you get a dedicated agent to do the negotiations. There are add ons to this included hosted viewings and a fee for an EPC (Energy Performance Calculation), around £100.
If you are thinking of selling your house with an online agent, you should first decide whether or not you are happy doing some of the work an estate agent is supposed to do. Hosting viewings might appeal to some and be the last thing others would want to do.
Some sellers know the drill and are experienced at selling property. They prefer to take a more hands on view, including negotiating the sale price with the buyer but sometimes it's good to have a “middle man” especially if your property is very desirable and there is going to be a bidding war.
Estate Agents working with a percentage commission are more interested in getting the best possible price for the property and are more experienced at negotiating a sale. Getting the best price for your property is equally or more important than avoiding estate agent fees.
Online estate agents might suit those who are after a quick sale, or those who know they will be able to sell their house quickly. There are even online agents specifically set up for cash sales who guarantee to sell your home in 21 days.
Traditional and online estate agents both use property search engines like Zoopla and Rightmove for their marketing, so they are equally visible. Hidden costs here include “marketing boosting” that gives your house more visibility on these platforms when potential buyers are scrolling through properties.
Paying a flat fee upfront might not be so appealing to someone selling their house especially if the market conditions are not so buoyant. But equally, if you want to keep costs down, online platforms have their benefits, and in some cases prove to be a more effective way of selling a property.
Read the small print. If you take your property off the market or choose to go with another estate agent make sure there are no hidden calculation fees. This is especially true for online estate agents. Check to see if they have an option for no sale no fee and do you have the option to select the minimum contract period to avoid fees?
Estate agents will refer a conveyancing solicitor to legally sell your house and a mortgage broker to arrange a mortgage on your next property. They might provide these services in-house or recommend a third party for which they may receive a referral fee.
Many sellers find that the most drawn out part of selling a property is the time it takes to exchange legal documents after an offer has been accepted.
A conveyancing solicitors fee will be based on the value, size and type of property. Leasehold contracts are more complicated than freehold.
Solicitor fees for selling a house range from £900 to over £2,000 for larger properties including the referral fee that they might pass on to you.
Getting a mortgage on your next house is going to be important, especially if you are going up the ladder and borrowing more money. The estate agent can help you find a broker that will be able to get the loan you require.
A Mortgage Broker can make money in two ways, from their clients or from the lender or both. Before they begin they should be clear with their commission which can range from 0.3% to 1% of the amount being lent. Alternatively, they may quote a fixed fee between £250 - £600.
Comparing lenders rates and products is something you can do yourself but a broker might be able to find you a better deal or a more complicated mortgage that suits your needs and pocket.
If you are selling your house to move to a new property, for peace of mind, you will need a chartered surveyor to survey your new home. Costs depend on the type of inspection you require and range from £350 to £700 for a level 2 home survey for properties under £1million.
A level 3 survey can cost more than £2,000 and is recommended for older properties, homes that are in bad condition or have significantly altered from its initial plans.
The final step in selling your house is moving out. Professional removal companies serving your area can help make it as stress free as possible and also save you from doing an injury. The home removal costs depend on how much stuff you have and where you are moving to.
You may just need a man with a van but the majority of homeowners tend to have enough stuff to require a bigger van and more help.
Traditional estate agent commission rates vary but expect to pay around 1.2% to 1.8% for a high street estate agent.
Online estate agents can be cheaper or even free with upfront costs and price bundles depending on the services you require. You are expected to do the viewings yourself unless you pay extra.
Find commission rates of estate agents near you and request a viewing by clicking get quotes.