How much are estate agent fees?

High-street estate agents usually charge a percentage of the price your property sells for as their fee. For 2023 typically estate agents fees were around 1.42% of the property sale - so around £3,900 on a £275,000 property. 

That said, they can range from 1% to 3.5% so make sure you shop around, and negotiate where possible. Some estate agents offer fixed-rate flat fees, however, these usually tend to be online-only providers. 

Every estate agent on Zoopla offers a no-obligation, free valuation of your home.

Some estate agents may also be willing to work on a sliding scale of commission. This means that if they sell your property at a higher price, they earn more. This can be a good way to convince estate agents not to reduce the asking price on your home if it takes a little longer to sell. 

What may not be included? 

The Property Ombudsman advises that ‘Fees advertised by estate agents must be shown inclusive of VAT  – alongside a statement confirming that VAT is included.’

However, this is not always the case, so remember to ask for a breakdown of what’s included in your fees. You should also ensure there is no withdrawal fee, should you back out of the property sale.

How to compare estate agents and their fees

It may be tempting to simply go with the cheapest option when it comes to choosing your estate agent, however, be sure to compare services and prices with a variety of agents. 

Sometimes lower fees may mean that certain things are not included, which you’ll likely end up paying for anyway, such as photographs or marketing costs. 

Always look at their success rate in selling properties similar to yours and how good they are at achieving the asking price. It’s also a good idea to see if your style of property is generally what they have advertised, as they can tend to specialise in certain geographical areas and property types. 

It’s always a good idea to ask for personal recommendations, but you can also look to sites like trustpilot and Google reviews. It’s also a good idea to make a list of questions to ask them, based on what’s important to you. This will make it easier to compare them. For example:

• What technology and digital platforms do you use?

• Do you accompany potential buyers to viewings?

• Do you have a big demand for this type of property?

Top tips for negotiating with estate agents

Although it might seem a little alien, it’s a good idea to try to negotiate with your estate agency to reduce their fees, or at least include more services, if they won’t budge. 

• Make it clear that you’ve seen other estate agents and plan to see more

• Ask about sole agency agreement and fees and if there are any other costs involved - and to put this in writing

• Provide them with your ideal budget - you should aim for around 1.2%

• Use the fees and benefits of other agencies to make them more competitive, for example, showing them a lower offer

What about using an online estate agent?

Online estate agents are often cheaper, with prices starting from just under £100. You’ll pay a bit more if you want them to do things like negotiate with buyers or conduct viewings on your behalf though, and they mainly offer marketing services only.

The downside is that purely online estate agents won’t have the benefit of local knowledge that more traditional estate agents have. Valuations could be less accurate, but you could consider asking local estate agents to value your property first, to get a decent gauge of this.

Will I pay estate agent fees if my house doesn’t sell?

Usually you agree to let an estate agent market your property for a specific period of time, like 6, 8 or 12 weeks. If, after that time, your property hasn’t sold, you can look for a new estate agent to market the property for you and won’t usually have to pay any fees.

No sale, no fee estate agents

Most high street estate agents offer no sale, no fee contracts, which incentivises them to sell your home. However, commission is often considerably higher than the flat fees charged by an online estate agent. 

Online estate agents tend to charge a fixed upfront fee which is much lower, but you’ll often have to pay whether your home sells or not - and there aren’t usually refunds if it doesn’t.

Will I still have to pay if I sell my property privately?

It’s certainly something to be careful about, as in some cases you may have to, especially if you have a ‘sole selling rights’ agreement. 

Keep in mind that if an estate agent made an initial introduction to the buyer, they may still approach you for payment, even if you make a private arrangement with them at a later date. You could ask them for a list of people they’ve contacted for your property to avoid this.

Keep in mind that if you decide to sell privately you’ll need to value and advertise the property yourself. You’ll also need to organise an EPC rating evaluation, which is a legal requirement when you sell a home. It’s also unlikely you’ll be able to use the larger property platforms, like Zoopla, unless you use an agent.