Should you negotiate on agent selling fees?

If you’ve calculated your potential estate agent fees and decided that using an agent is right for you, you could probably use a little advice on how to deal with agents. While you both share the same goal – to sell your house – you don’t want to overpay estate agent fees and the agent wants to get paid. Here are a few tips for dealing with agents so you don’t get take advantage of.

How to Get a Better Estate Agent Fee Rate

There are a few ways to negotiate the best rate including:

• Don’t negotiate until after your meeting with the agent. At this point, they’re more invested in the project (and are seeing pound signs), which means they’ll be more willing to negotiate.
• Be prepared to haggle and play hardball.
• Don’t insult the agent or they might walk away altogether!
• A 1% fee is reasonable. Act shocked if they propose something much higher. Lowball them if need be with your end-game focused on hitting that 1% mark.
• Mention that you’re considering other agents with lower rates (even if you’re not).
• Be honest with yourself about the value of your home and the selling price. Negotiating when your home is already priced too high won’t end well.
• Make it clear that you’ve used an estate agent fee calculator so are confident in what the numbers should look like.

At the end of the day, you want an estate agent you’re comfortable with and who is invested in selling your home. This could mean paying more than you want for their services. Decide how much you’re willing to pay before heading into negotiations and determine how valuable your time is.

Using Multiple Agents

One thing most people don’t realize is that you can use multiple ages at once and shop around. You aren’t limited to just one agent unless that stipulation is listed in the agent’s specific contract.

There are pros and cons to this approach. The benefit of using multiple agents is that you’ll have access to a larger pool of potential buyers.

The more agents involved, the more knowledge, expertise, and resources available to you. On the other hand, if an agent knows you’re working with others, they won’t feel as committed or loyal to you.

They may also offer contradicting advice which could ultimately confuse you. Regardless of how many agents you use, only the one who sells the property will get the commission.

This could lead to some healthy competition among agents, making them more aggressive about landing the sale. Often however, agents actually increase their fee if you use multiple agents to sell your property. This is because the likelihood of them selling your property decreases, as there is another agent trying to sell it at the same time.

Buying through the same estate agent give you an advantage

This is more down to chance and good luck, but if you’re buying your next property through the same agent you’re considering selling your currently property with, that gives you more bargaining power.

As the agent is then relying on you to get commissions from both ends (i.e. you’re selling and buying), they are more likely to look after you – they will not want your sale and purchase to fall through.

This of course is very dependent on the estate agent having a property that suits your needs – but if it does, use your position to negotiate.

Shop Around for Estate Agent Fees That Make the Most Sense for You

Comparing fees in this day and age is very easy (we do this for you free on Rentround!).

Spend a few mins on comparison sites or visiting your local branches to get a feel for the agents and to understand their fees.

See how they sell their current property portfolio by acting as a mystery shopper. Are they answering questions properly and giving you as a “seller” the right attention?

If they are unresponsive and not providing the right answers, going with them even if they have a lower fee may not be worthwhile.

Should You Choose the Cheapest Estate Agent?

Are you trying to sell your home and save money at the same time? If so, you may be considering hiring the cheapest estate agent you can find. People say you get what you pay for. The same holds true when hiring an estate agent, which is why you shouldn’t settle for the agent with the lowest price tag.

The truth is, the most qualified estate agents will charge slightly more for their expertise and services. Do some research before making a decision.  Which agents are selling properties and fastest and for the highest price?

Sometimes, paying a higher fee upfront means getting a higher offer. Look at it as more of an investment than an expense. Aside from price, you also need to consider the agent’s personality, marketing tactics, and approach to your house sale.

After all, you’ll be dealing with them on a regular basis and need to see eye to eye on most issues. It’s also important to note that you may end up dealing with different agents at different times in the sale process. The expert who performs your home valuation may not be the same one who conducts viewings. 

If estate agent fees are your biggest concern and you’re worried about paying a high commission on your property, you may be better off hiring an online estate agent. These agents charge a flat fee for individual services rather than a percentage of the sale.