Estate agency charges seem to be something shrouded in secrecy. It is not often that you see this information clearly advertised. Perhaps you are looking to move and you just want to know the answer to this question so that you can build the cost into your budget. You will tend to find that full service estate agents are more guarded over their costs than DIY or online agents and this can be a little frustrating. Well, to blow the lid off the secrecy I can tell you that in Falkirk and the surrounding areas a full service agent will usually charge between 1% and 1.75% of the sale fee.
The estate agency industry has seen quite a shake up in the last few years with the rise in popularity of DIY agents. You can now sell your house for a relatively low cost compared to traditional charges. DIY agents have certainly helped the industry be more open around charges. DIY agents usually always state their basic charge. This has led to full service agents being more transparent with what they charge also. This is a good thing for the consumer. However, there are not many full service agents that advertise their charges clearly on their websites.
So why is it that full service estate agents are more secretive over what they charge and why does it vary so much?
Full service agents offer a variety of options to market your home. They offer different levels of service depending on your requirements. Because of these different levels of service, the commission rate can vary.
As an example, here at Alexander Taylor we specialise in selling unique homes. Unique homes require more effort to sell and tend to be higher value, so the pool of buyers looking for this type of property is smaller. It is not simply good enough to list these homes on Rightmove and hope for the best. We spend a lot of time, effort and expense creating beautiful marketing that shows these homes off to their best and attracts the elusive buyer that is suited to this type of property. Because of this exclusive, bespoke treatment, we are more expensive than a DIY agent. We find that creating unique, beautiful marketing can help sell a unique home for a higher value and a shorter amount of time. A DIY agent would not go to the lengths that we do to sell this type of home.
A DIY agent could list the same home for under £1000, however, because they are unlikely to understand unique homes and how to sell a unique home successfully the home will probably take longer to sell. We know that the longer a house lingers on the market the lower the final sale price will be. So, whilst a seller may have saved money up front on estate agency fees, they are paying for it further down the line by achieving a low offer.
Let’s look at the flip side of this. In contrast to a unique home like the example above, a semi-detached, 3-bedroom home on a popular street under £150,000 will be in high demand. The pool of buyers is higher as the value of the house is lower and it will not need as much effort to sell. Therefore, the time taken to sell this property and the expense involved is reduced and it allows the full service agent to have a bit of wiggle room in their commission rate as the level of service required to sell this property is lower.
It is for this reason that prices vary so much. Selling a home is not a one size fits all job. Each home is different and requires a different strategy and amount of effort to sell it. On top of this not all full service agents are the same and the amount of effort they are willing to put in and their appreciation of high quality marketing also differs.
Like most things in life, you get what you pay for. It’s the difference between Mercedes and Skoda. Marks and Spencer and Aldi. There is no denying that Aldi have brought a different dynamic to the retail industry and they are very good value, however, you cannot beat Marks and Spencer’s food. It is delicious and everything about it oozes quality. It is like this in the estate agency world. This is why estate agents commission and charges vary – the quality and level of service differs.
The important thing when looking to sell your home is that you find the right estate agent for you. We have written a couple of blogs to help you with this:
If you want to sell your unique home and are looking for a tailored, exclusive approach to doing this get in touch with us today. Our marketing can really make your home stand out and attract the elusive buyer that your home deserves.
Call me on 01324 811 233 or email firstname.lastname@example.org