How much should I pay an estate agent?

Daily Mail​

24-07-2025

By
We've assigned a local estate agent to list our property. It wasn't the cheapest of the three quotes we got, but we thought the agent really knew his stuff. We opted for a package at £5,000 plus VAT, so £6,000. There was a cheaper option at £3,500 plus VAT, but our 'enhanced' option included a video, social media promotion and drone footage. We also thought that, if we paid more, the agency would be more likely to prioritise our sale. But after speaking to two sets of friends who have recently sold, they think we've paid over the odds. Have we?
Ed Magnus of This is Money replies: You have done the right thing to have met with different agents before picking one. The fact the selling agent you met made a good impression is a positive, but he may not be that involved in actually selling your home. Typically, a branch manager will come to value your home and once instructed it will be left up to their team of sales negotiators, who get paid commission when they sell a property. If it was me, I'd be more interested to know who those negotiators are, rather than relying entirely on my first impressions of the manager. The fixed fee structure you have been offered certainly differs from the norm. Whether or not it is good value or not depends on what your home sells for.
Most estate agents charge a percentage fee of the selling price, rather than a flat fee. This, in theory, incentivises each agent to get the best possible price. However, depending on the value of the home, this could also mean shelling out a vast amount. The percentage typically ranges between 1 and 3 per cent of the selling price, often with VAT on top. Someone selling their £250,000 home with an agent charging a 3 per cent fee plus VAT would end up paying £9,000 in agency fees, for example. For those selling more expensive homes, even a fairly standard 1.5 per cent plus VAT fee (totalling 1.8 per cent) can eat up more than £10,000. Sell a £750,000 property with that fee and the agent will take a £13,500 cut.
On that basis, your £6,000 flat fee inclusive of VAT may be deemed low if you are selling a property worth £500,000 or more. But if you're selling a property worth £200,000 for example, that would equate to 3 per cent, which is at the pricey end of the scale. For expert advice, we spoke to Angela Kerr , a director at property advice website HomeOwners Alliance and Jeremy Leaf , north London estate agent and a former Rics residential chairman.
Is this estate agent fee good value?
Angela Kerr replies: Estate agents usually offer a commission model, which charges you a percentage of the final sale price. At the moment, fees average 1.42 per cent including VAT and in today's climate we advise home sellers to negotiate with the aim of paying 1 per cent. On that calculation, if you're paying £5,000 plus VAT as a flat fee, it only really stacks up if your property is worth £500,000 or more. Below that, it does start to look expensive and your friends have a point. Jeremy Leaf replies: I believe a fixed-price arrangement may not prove to be in the best interests of seller or agent.
The amount could be influenced by the value or saleability of the property and its context. For instance, does the £6,000 flat fee represent approximately 1 or 1.5 per cent of likely sale proceeds? Commission based on a percentage of the purchase price may give the agent added incentive to achieve the best possible deal. There's another issue with fixed fees – they don't suit all properties and market conditions.
A set amount may be suitable when marketing identical-sized flats in a large block of flats or similar houses in a substantial development, where differentiation can be tricky. However, in this scenario, the seller would want to stand out even more so motivating the agent to send buyers in a particular direction can be a sensible approach.
Will the 'enhanced' add ons help to sell?
Angela Kerr replies: Most flat-fee estate agents are online agents, with packages typically around £1,000 to £2,000. Some high street agents offer fixed fees too, but it's less common - and these deals are often paid upfront, whether they sell your home or not. So while you might think paying more will get you better service, if they've already banked the fee, I'm afraid there's not much of an incentive to prioritise your sale. As for all the marketing bells and whistles, without knowing the property, it's hard to say if it's value for money.
Drone footage is brilliant if you're by the coast or selling a country pad with acres and a pool, but I'm not sure it's worth it if you're selling a semi in Surbiton. I do love a virtual tour though, for giving you the real feel of a property - that's genuinely useful for most buyers. As for social media promotion, it depends. If they're popping your home on an Instagram page with 500 followers, that's unlikely to shift the dial.
What other advice would you offer them?
Jeremy Leaf replies: I do not believe sellers should over-concentrate on commission, provided the fee is competitive and relates to the estate agent's work. It generally represents only a small proportion of the total price of the property, and the sale of their home can be life-changing, in terms of job, family or other reasons. What we find is of most importance to sellers currently is listing their property in this buyers' market at the right price, as so much stock is available across most price ranges. It's essential that each property stands out, so the right pricing and marketing is even more vital than usual. Get it wrong and the property could languish on the market.
If possible, choose the agent with the best recent track record of selling similar properties, agree on a marketing programme and a relatively short period before amendments are considered if you have had no success. A fixed-term agency agreement including a notice period which allows the seller to change agents if necessary, before the property goes 'stale', is a good idea too. Angela Kerr adds: You mention the selling agent really knew his stuff which is good news. It's important you can work with your agent and that they have a good knowledge of the local market. Valuing your house right is an important first step to selling quickly at the best price.