News Estate agent fees - 5 reasons why you should never pay an estate agent fee again
Published by Jonathan on 8th August, 2016
Estate agent fees - 5 reasons why you should never pay an estate agent fee again
The estate agent fee commission based system has to be the biggest rip off of them all. Paying a fee that is based upon the sold price of your house rather than the work involved is simply taking us all for aride. Below are 5 reason why you should never pay an estate agent fee ever again.
1. Estate agent fees don't include VAT
For a property sold at £250,000 with a commission rate of 1.5% you will pay theestate agent fee of £3750. But what about the VAT? Has your estate agent made it clear that you need to add £750 to their fees taking the true cost of theirservices to £4500.
2. The more your house is sold for the higherthe estate agent fee
Estate agents use a commission based system based on the price your house is sold at. So for no extra work yourestate agent will change you more for doing no extra work than a neighbour whohas a house sold of less. The estate agent fee system is cheating home owners whose property is of greater value. The flat fee system is the fairest way of charging for services.
3. Paying a higher estate agent fee for better competition
If you want to be represented by more than one estate agent you will need to pay more commission – typically 3%? The theory is that with two estate agents working on your behalf this gives you agreater chance of a sale. The reality is that both estate agents will put your add on Rightmove and Zoopla and do exactly the same work as each other. There is nothing one estate agent can do that the other can't but you will pay a higher estate agent fee for the privilege. Competition between the estate agents is a good thing but you shouldn't have to pay more to make themwork harder.
4. Paying for things we don't want
Did you know that when the Office ofFair Trading (OFT) examined the estate agent industry they concluded that consumers were being sold a “gold plate service"? We have all been paying for estate agent services that we don’t want and don’t always need. What if we want to do our own viewings and you don't want a for sale board does the estateagent charge you less, no they don't. It's a one size that fits all when we all have different requirements.
5. No incentive to get the best deal
How would you feel if the estate agentcould sell your house for £2,000 more than the asking price? That's £2,000 more than towards you next property, how amazing. What would it mean to the estate agent how would they feel? Well the estate agent would only make an extra £30 commission on the sale. The estate agent commission based fee system does not incentive for the