Estate Agency Fees Exposed - Navigating Different Service Levels
All estate agents do the same thing; the most important thing is that they get your home onto the property websites. But why are some agents' fees very cheap and some eye-wateringly expensive? Is it true that you get what you pay for? Read on to find out.
A common misconception when choosing an agent to sell your home is that all agents are the same. And if they are all the same, it makes sense to go for the cheapest option to sell your property.
However, all agents are absolutely NOT made equal, and the varying fees on offer show the varying levels of service that you will receive.
This article will delve deeper into the options agents can offer you when selling your home so that you can be fully informed before signing any contracts.
Some companies offer no-fee sales. That is, seemingly, an entirely free service. The business model of these agents is to convince you to pay for upgrades to your marketing. But if all agents are the same, why are not all homes marketed by these companies? How are any other estate agencies still in business? Because not all agents are the same, and, as with many things in life, you get what you pay for.
- Free listings - A free listing will only list your property online. This is an entirely DIY option, and if you want the agents to do anything like marketing or photography, you will have to pay for that separately. With this option, you're at the mercy of the buyers, hoping they find your property online and decide to view it. You will be responsible for arranging and accompanying the viewing appointments, negotiating any offers, and progressing the sale through the legal process if you're lucky enough to get that far.
- Online agency - This is a slight step up from the free option, and there is a fee, although it is usually relatively cheap. These agents will host your property listing on the portals, and they may deal with viewing requests and booking appointments. But, being online, they will likely not know the area your property is located in and will, therefore, not attempt to cross-sell property viewings. This is where, if a buyer calls to arrange a viewing, the agent will try to establish what the buyer is looking for and suggest additional properties for them to view. If a buyer calls an online agency, they only arrange the requested viewing. Imagine if they arrange a viewing for a property similar to yours, only a few doors away, and the buyer never even knows that your property is available. This is a huge wasted opportunity. By choosing an online agency, you are paying for access to the online portal and call handling.
- Traditional Estate Agency - Who is better placed to understand your home and area than a traditional estate agent who lives and works in the town? And because they look after properties in the town, they will likely be able to discuss your property with a potential buyer who may have called about a different property altogether. They can upsell and cross-sell to every lead. Not only that, they will know your home, have visited it in person, and be able to discuss it in detail with every potential buyer - this means there is much less chance of viewers arriving and thinking that the property isn't for them. You may have slightly fewer appointments, but they will be more effective rather than a waste of your time.
- Bespoke Agency—Some agents have a limited roster, with an exclusive portfolio and an exclusive database of buyers and will only deal with a small handful of clients selling the most expensive homes. This level of hands-on, 1:1 contact comes with a hefty price tag, and the fees or bespoke marketing for high-end properties can be 4% of the sale price or higher and is certainly not necessary for everyone.
The fees for each option here will increase based on the level of service you will receive from the agent. As the saying goes, good is not cheap and cheap is often not good. It is understandable to be tempted by very low or even non-existent fees, but our homes are likely to be the highest value single asset that any of us will ever own - do you really want to scrimp and save on a fee and put that asset in jeopardy?
And for the most part, the fees that an agent charges will only come into effect if they do a good job and get your property sold. It is a success fee, if you will, and surely, when you are locking the door to the property for the final time and driving to your new home, the fee you are paying the agent will be the last thing on your mind.
For a full-service estate agent who knows your home and your area and will be able to do the very best for you as you embark on a move, the traditional agent is the best option. To find out more about our full-service estate agency, get in touch today.