Does anyone know where in the country estate agents are charging 4%?
The puzzle began after we spotted a tweet by Emoov.
It said: “When it comes to #estateagent fees, it isn’t as simple as using the same fee for all agents. Across the high-street, the commission charged can vary from anything between 1%-4% depending on where you are in the country” >>> http://bit.ly/costofmoving”
We found the same claim in a blog on the Emoov site which, as you would expect, said online and hybrid agents “charge much lower, fair fixed fees to sell your home”. https://www.emoov.co.uk/news/2018/09/14/cost-moving-soars-driven-high-street-estate-agent-fees/
We know of agents charging 1% but we also often hear of agents charging less than this – and we’re also regularly told that Foxtons is the most expensive at 2.5%.
This is easy to check out. Foxtons says on its website that for sole agency in London it charges 3% – this is 2.5% plus VAT.
In Guildford and Woking, it charges sole agency at 2.7% (2.25% plus VAT).
Multiple agency works out at 3.6% (3% plus VAT), whether the property is in London or Surrey.
Stephen Hayter, sales director of myhomemove, quoted an average of 1.3% plus VAT the last time he wrote for us (in 2015) on the subject.
However, he also pointed out that easily the most common range for agents’ fees was between 0.75% to 1%.
We asked Alex Thorpe of estate agency price comparison website NetAnAgent.com about fees – and yesterday he told us the average is just under 1.1%.
He told us that high street agents have been lowering their fees in most places, although there are pockets across the country where agents selling more exclusive properties and under less pressure from hybrid firms have actually been raising their fees.
However, he quoted us 1.09% as the average in the second quarter of this year, down from 1.28% for the same period two years ago.
He told EYE: “This means, based on average UK house prices, it costs sellers £2,467, down from £2,774 for the same period two years ago.
“Conversely, internet and hybrid agent fees have increased to an average of £804, up from £587 in 2016.
“The areas with the highest local agent fees in the UK include Sunderland at 1.33%, Manchester at 1.13% and Birmingham at 1.25%. In London we are also seeing pockets where average fees are higher, for example N1 at 2.18% and SW6 at 2.16%.”
We asked Russell Quirk of Emoov where the 1% to 4% range came from, and whereabouts agents are charging 4%.
He told us that he had taken the range from “this authority source”:
Here, the mystery deepens as reallymoving actually quotes a range of 1.5% to 4%. We also suspect from its reference to the Land Registry in 2015 that it is not quite bang up to date, and in any case, Stephen Hayter was quoting a lot less that same year.
So, we are none the wiser.
Do any of our readers know whereabouts in the country estate agents charge 4%?