- Estate Agent Fees in London
- What Are Estate Agent Management Fees in London?
- Are Cheaper Estate Agent Fees Worth It?
- Average Estate Agent Fees in London When Using an Online Agent
- Saving Money on Estate Agent Fees
- Letting Fees in London
- Estate Agent Fees in London for Rental Properties
- Fees in London for Selling Property
- Negotiating Agent Fees
- Should You Hire an Online Estate Agent?
- Find the Best Estate Agent in London
- How Much Can I Get If I sell My House?
Hiring an estate agent to sell your London property doesn’t just reduce your stress. An experienced agent can also help you get your asking price (or above) and close the deal fast. But estate agent services come at a cost.
Keep reading for everything you need to know about estate agent fees in London so you can sell your property fast and embark on your next real estate adventure!
How Much Do Estate Agents charge in London?
Let’s start with the biggest question you likely have — how much will estate agent fees in London cost me?
Unfortunately, there’s no one answer. Estate agent fees vary based on several factors. The days of strictly using high-street estate agents are long gone. Now, sellers can utilize online agents and even property apps to reduce estate agent fees and pocket more of the profit.
While more money sounds tempting, avoiding estate agent fees in London can cause more trouble than it’s worth. These nominal agent fees are often well worth the peace of mind they offer.
Not only that, but London estate agents bring a lot more to the table than just knowledge. They offer inside information, network connections, and access to private listings.
So, how much can you expect to pay for estate agent fees in London? According to one house-selling website, the average cost is 1.42% of the final selling price. This is known as commission and also includes VAT.
Estate agent fees range from 0.75% to 3.5%. Prior to 2016, estate agents would provide an estimate without taking VAT into account. This meant sellers had to calculate the 20% VAT rate themselves.
Recent laws have changed this practice and now all quotes must include VAT, giving sellers a better idea of the final cost of estate agent fees in London.
Estate agent fee
Base property specialists
Loft and Main Ltd
What Are Estate Agent Letting Fees in London?
If you’re looking to sell or buy an investment property, you may also need the assistance of a letting agent. Good news is, many London estate agents also double as letting agents.
Letting agents offer their own set of services including property management. When acting as a letting agent, estate agent fees in London are based on what services they’re providing and how extensive they are.
For example, the most basic service is let-only. That means that the estate agent will market your property and help reference tenants. This is the best option for landlords looking for a more hands-off approach to renting their property.
If you opt for let-only services, the estate agent won’t offer support beyond finding and vetting tenants. All property management, including maintenance and repairs, will fall on you.
For those landlords looking for a passive-income approach to letting property, you’ll want fully managed services.
Each level of service comes at a cost. Obviously, the more involved and hands-on the letting agent is, the more you’ll pay. For some property owners, their own time and reduced stress are well worth the agent fees.
Most let-only service fees start at less than 10% of the cost of the rent. Fully-managed services can run you upwards of 20%.
Keep in mind that there’s a lot of flexibility in these percentages and many factors at play. Letting and estate agent fees in London and other large cities are often higher due to demand.
Re/Max Best Properties
St Andrews Bureau Ltd
Mark Hart Real Estate
Are Cheaper Estate Agent Fees Worth It?
Choosing the cheapest estate agent fees in London is almost as tempting as forgoing an agent all together. While this might save you money upfront, it could create a host of problems in the long run.
Remember, you get what you pay for. If an estate agent has fees lower than any other listings, there’s probably a reason. Paying less means getting less in return.
An inexpensive letting agent may not feel obligated to answer your phone calls, follow up with tenants, or respond quickly to tenant needs. This could negatively affect your reputation as a reliable landlord.
To receive quality service, you’ll need to pay higher estate agent fees in London. Agents that charge more are confident they’re delivering a service that justifies the price tag.
To determine if the agent’s fees are worth it, you need to take a closer look at the rate they’re charging and why. Several factors to consider include the agent’s history (including recent sales and successes), reviews, and years of experience.
In most cases, it’s worth paying a little more in estate agent fees for a quality agent you can rely on.
Average Estate Agent Fees in London When Using an Online Agent
Estate agent fees in London vary when using an online agent vs. a high-street agent.
Traditional (or high-street) agents generally charge a percentage of the property’s final sale price. Most online agents charge a flat, fixed fee which is based on the property’s value.
Essentially, you’re still paying fees on a percentage of the sale, except the price doesn’t change regardless of how much you sell the property for. These fixed estate agent fees in London vary but can start as low as £99 and spike up to £1500 or more.
Similar to high-street agents, some online agents in London will charge higher fees.
Estate agent selling fee
Saving Money on Estate Agent Fees
The best way to save money on estate agent fees in London is to use an online agent. But that also means being prepared to do some of the leg work yourself.
Online agent’s flat fees are generally lower than what you’d pay in commission based on the final sale price of your property.
When it doubt and trying to save some money, don’t be afraid to bargain and haggle. Don’t settle on the first quote you receive. Instead, shop around and ask several estate agents to visit and value your house.
These quotes combined with online reviews will give you a good picture of which estate agent fees in London are worth paying and which are excessive.
While some agents are steadfast in their pricing, others are willing to negotiate so it can’t hurt to ask.
If you are interested in selling your property, run a comparison of estate on our platform.
Simply use your postcode and enter a few details about your property.
Our comparison will show a list of agents in London, their fees, services & performance.
Estate Agent Letting Fees in London
Since many London estate agents double as letting agents, fees can get confusing. With so many rental properties popping up in London, many estate agents welcome the added revenue of also letting properties.
If you hire an estate agent to also let your property, you’ll face several service fees and charges. Let-only services include marketing your property and vetting tenants. Some agents will also take care of administrative paperwork including rent collection and charge a percentage of the rental income to do so.
Estate Agent Fees in London for Rental Properties
For property owners more interested in renting than selling, you may want an estate agent to help manage your property. This hands-on approach to rental management will cost significantly more than let-only services.
Your financial circumstance and goals will determine whether paying these additional fees are worth it. The more help you get, the less of the collected rent you get to keep as your own.
For busy property owners with multiple obligations, fully managed services are a wise choice, despite the cost.
Estate Agent Fees in London for Selling Property
If you don’t want the hassle of being a landlord and just want to sell your property, estate agent fees in London will be a percentage of the final selling price.
The agent you hire will explain how these fees are calculated in their contract so be sure to read it carefully before signing.
Be sure to ask for clarification on any information you don’t understand or agree with.
Negotiating Estate Agent Fees in London
Estate agent fees in London will vary depending on the type of property you want to let or sell.
Estate agents are often more flexible and willing to negotiate when handling high-value properties. A small percentage on a high-valued property will still produce substantial income for the agent.
Don’t be afraid to negotiate before agreeing on final terms and signing their contract. The higher the value of your property, the more leverage you have and the more likely the agent will be to compromise.
Be sure to look out for any hidden or additional fees as well. Some agents will try and pass overhead fees and expenses onto sellers. Unexpected charges can quickly eat up whatever financial gain you expected.
Double-check that the agent’s quote includes VAT. Even though the 2016 policy change made this mandatory, some irresponsible estate agents may still try to get one over on you.
Some sellers don’t want to guess what percentage of the sale price they’ll need to pay. If this describes you, an online estate agent is the best option. This way, you’ll know the upfront cost ahead of time.
Don’t be too eager and jump on the first quote or offer you get. Price shop and do some research to avoid paying more than you need to.
Should You Hire an Online Estate Agent to Sell Your Property?
When preparing to sell your London property, you may be wondering if you need to hire a professional estate agent. Estate agents in London bring more to the table than just their expertise.
With access to premium listings, market information, and unique insights, estate agents can help you sell your property faster and at a higher price.
Reliable estate agents in London are also up-to-date on all recent laws and regulations, ensuring that all of your paperwork is completed correctly and legally.
Want to let your property instead? As the agent you choose if they offer these types of services.
With an online estate agent, you may be expected to conduct viewings and hold buyer discussions yourself.
If you’re confident enough to do so, then an online estate agent may be suitable. However if your schedule or confidence doesn’t suit these types of activities, then a traditional agent may be best
How to Find the Best Estate Agent in London
Now that you understand the benefits of using an estate agent in London, you’re probably wondering how to find the best one. There are a few ways to go about this.
First, you can ask for recommendations from trusted sources in your local area. You can also turn to the internet for more information on the agent’s reputation, reviews, and history.
Rentround is a valuable resource for property investors and owners looking to let or sell their homes. Their free comparison tool quickly generates a list of local agents in your area, including fees, reviews, and services.
Simply answer a few questions about your property and with a click of a button, you’ll receive a list of reputable estate agents in your area.
From there, you can choose the services and estate agent fees in London that work best for your budget and financial goals.
How Much Can I Get If I Sell My House?
There’s no one answer to this question. Obviously, the biggest factor is the value of your home. The higher your home’s valuation, the higher the asking and final sale price will be.
You also have to consider any loans or mortgages you have on the property. These need to be paid out of your revenue upon sale.
The market also plays a big part in how much you can sell your house for in London. If the market isn’t doing well when you’re ready to sell, it might be in your best interest to let your property instead.
The rent you collect (minus any letting or estate agent fees) can be applied to your mortgage, putting you in a better financial position when it comes time to sell.
Online letting agent fees are a flat rate agreed upon before signing a contract. Most estate agent fees in London charge based on commission. Be sure to keep this in mind when pricing your property and choosing an estate agent.