How much does your estate agency charge? It is one of the first questions a prospective seller thinking of commissioning your company is likely to ask before instructing you to sell their property.
Vendors and landlords regularly negotiate fees with agents. Why? Because more time than not, they know they will secure a discount on the agent’s quoted price.
As a result, British estate agents, at an average of just over 1%, charge some of the lowest fees in the world.
“The average commission in France is around 6%, which compared with the UK market sounds astronomical,” said Alice Watson-Smith, MD of Fine & Country French Riviera.
Speaking to Iain McKenzie, CEO of The Guild of Property Professionals, in the latest episode of The Home Stretch podcast, she added: “In relation to all the other countries we work with as a brand, the UK has one of the lowest commission rates in the world.
“In South Africa it is around 7%, whereas in Portugal, Spain, Hong Kong and Australia, it is all around 5% to 7%.”
Many industry leaders agree that estate gents across the UK are being underpaid for the job they do.
Watch the roundtable discussion that took place earlier this year – many of the challenges discussed are still relevant in the current climate.
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