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If you sell your house using a traditional high-street estate agent, its fee will usually be calculated as a percentage of the price paid by the buyer. This kind of estate agent's fee is called commission.
Estate agent fees can vary from less than 1% to as much as 3.5%, depending on a number of factors - including how many estate agents are selling your property.
Estate agent fees used to be quoted 'plus VAT' most of the time (meaning you had to add 20% on top of your quote), but rules from The Property Ombudsman that came into effect in October 2016 state that quotes should now always include VAT. If your quote doesn't make it clear either way, always check.
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While an estate agent's fee can seem like an eye-watering sum, it's not always advisable to choose the company offering to sell your home for the lowest fee just so you can save money.
In this short video, we ask experienced estate agents how to choose the best agent for your needs.
The best estate agents often do charge slightly higher fees than their rivals. Compare the stats, looking at who is selling property like yours most quickly and for the highest amounts - choosing one with a higher fee could pay off if they achieve a better sale.
You're likely to have a lot of contact with your estate agent over the weeks and months after engaging them, so it's worth thinking about who you'd be happy to do business with on a personal level, and make your decision based on these factors as well as the fee. But do bear in mind that the person who actually conducts viewings and sells your property will often be different from the one conducting the initial valuation.
If keeping costs to a minimum is a priority, you might also want to consider using an online estate agent. Online estate agent fees are typically charged at a flat rate, rather than as a percentage. When we checked in November 2022, fees ranged from around £595 up to £1199 in London.
Find out more: online estate agents
You should always invite several estate agents (ideally three) to value your home and quote you a fee. Make sure you grill them on their recent performance and what's included as part of their service - download our checklist for the key questions to ask:
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Estate agents will not want to lose your business, so you can often negotiate on the fee or other aspects of the service (for example the notice or tie-in period). If one agent has quoted you a lower fee but you'd prefer to use another firm, mention that you've found a cheaper deal and see if they're able to offer a reduction.
If your favourite estate agent refuses to lower their fee, see if they'll compromise by offering a sliding scale, where you pay different rates of commission based on how much the agent gets for your property. This can act as a strong incentive for them to achieve the best possible price.
Some estate agents also offer a reduced service for a fixed fee that's payable upfront, whether your property sells or not.
One important way to ensure that the relationship between you and your estate agent remains positive is to read the contract before signing and question anything you're unsure or unhappy with. The bottom line is that if you don't understand the contract, you shouldn't sign it.
A few things to check when reading the contract include:
Here are some of the typical contract terms you'll come across, what they mean and how you can make sure you get the most for your money. You can find more terms in The Property Ombudsman's glossary online.
Some estate agents will offer their services for a fixed fee, rather than as a percentage of what your home sells for. This generally works out cheaper but you often have to pay upfront, meaning you'll pay the same amount regardless of whether your home sells quickly or slowly, for above or below the asking price, and even whether it sells at all. Fixed fees are particularly common among online estate agents.
This means that several estate agents act for you, but only the agent that sells your property is entitled to receive a commission. You'll pay a higher fee to go multi-agency - usually between 2% and 3.5%. Given that any estate agent worth their salt will list your property on portals like Rightmove, and being advertised several times in the same place can seem a little desperate, it's probably not worth paying extra for this kind of contract.
This is the period of time you have to wait between telling your estate agent that you want to terminate the contract and it happening. The notice period is often two weeks, but you'll also have to factor in the tie-in period (see below) if it still applies.
With open-ended agreements the agent can claim commission if you sell to someone who they originally introduced to your property, even if months or years have passed since.
If this clause is in your contract, don't sign it. It means you'll still have to pay the agent for finding a buyer even if your situation changes and you have to withdraw from the sale.
Sole agency is the most common type of estate agent contract. This means that the estate agent is the only agent with the right to sell your home during the term of the contract but if you find a buyer yourself, you don't have to pay the estate agent fees. The typical estate agent fee for sole agency is 1-2%.
This means that the estate agent is the only agent with the right to sell your home during the term of the contract. The estate agent is entitled to claim a fee (typically 1-2%) even if you find a buyer yourself. We don't recommend signing a contract with sole selling rights.
Choose an agency that allows a few days for the money to transfer before they start charging interest.
This is the period of time that you are tied into the contract for from the date you first sign. If you change agents during this time you will still be liable to pay fees to your original agent. The shortest contract you will typically be able to get is six weeks; try to avoid anything over eight weeks. Remember to factor in the notice period, too (often around two weeks - see 'Notice period', above, for more information).
Legally, your estate agent's contract must use clear terms. They must pass on all offers promptly in writing, reveal any personal or financial interest they have in offers made on your property, keep records for six years and be a member of The Property Ombudsman, The Property Redress Scheme or Centre for Effective Dispute Resolution.
If you suspect that an estate agent has acted in breach of these regulations, you should complain to your estate agent first. If you're not satisfied with their resolution, or eight weeks have passed since you first made the complaint, you can refer it to either The Property Ombudsman, The Property Redress Scheme or Centre for Effective Dispute Resolution, depending on which scheme your estate agent is registered with.
Ombudsman Services: Property withdrew from handling complaints on 6 August 2018. If your estate agent was registered with OS:P, ask for the details of its new provider, which will be one of the above schemes.
It's a good idea to keep detailed records of your dealings with your estate agent in case problems arise.
Our Consumer Rights website explains how to make a complaint about your estate agent and the correct way to end your contract with them.
We've teamed up with estate agent comparison service GetAgent to provide sellers with a way to find the best high-street estate agents, based on past performance. Use their tool for free by providing a few details about your property or read more about how it works. Use of the service is governed by the terms and conditions of GetAgent, which will process your details in accordance with its privacy policy.
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