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Charges v Costs and Your Walk Away Price.

You should not worry about what an Estate Agent charges but you should definitely worry about what they cost. Now you’re probably thinking that what an agent charges is what they cost but what you need to focus on is your Walk Away Price.

Let us explain.

If you list your property at an asking price of £750,000 with agent A who charges 1% plus vat and due to the lack of experience, commitment and ability that their team has the best offer they can negotiate on your behalf is 3% below your asking price then your Walk Away Price would be:

Price Achieved: £727,500
Agents Fee: £7,275.00
VAT at 20%: £1,455.00
Total Fee: £8,730.00
Agent A Walk Away Price: £718,770

If on the other hand you instruct Agent B who charges 2.0% plus vat but has a highly experienced, very committed and skilful team and they are able to negotiate a price which is 1.5% lower than your asking price then your Walk Away Price would be:

Price Achieved: £738,750
Agents Fee: £14,775.00
VAT at 20%: £2,955.00
Total Fee: £17,730.00
Agent B Walk Away Price: £721,020

So as you can see Costs are much more relevant than Charges. Also bear in mind the following:

  • We charge you NOTHING if we don’t deliver a buyer who exchanges contracts at a price which achieves you the Walk Away Price you require.

  • Negotiation occurs throughout the process from when your buyer makes their first enquiry, on the viewings, when they make their offer, when they receive the results of their survey report. It is so important that you have a highly experienced, skilful professional on YOUR side at every stage of this process.

  • If an agent agrees a sale which subsequently falls through this could cost you money in solicitors fees and other charges.

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