When selling a property, estate agency fees can vary considerably. So, too, can the quality of service you receive, which is reflected in viewing numbers and the speed and value of the sale. Traditionally, estate agency fees were always based on a percentage of the final sale price. In recent years, however, a number of agents have started offering fixed fees instead. This is particularly common with online and hybrid estate agencies.
Most reputable high street estate agencies charge a commission for selling a property, worked out as a percentage of the sale price achieved. It might look like an easy task, but there goes incredible effort and skill from our teams to market a property and sell it for the best possible price: from understanding sales in every square mile and all the micro pockets in various neighbourhoods to producing quality marketing materials, to building a data base of active buyers in the area to negotiating the final price on your behalf.
A commission can seem excessive so you might be drawn to agencies boasting low fixed fees.
Understandably, this can be very appealing at first glance – you know how much you’ll be paying and it’s relatively cheap. However, it’s important to remember that there is a distinct lack of motivation and incentive for an agent to work as hard as possible for the same fee that they would receive from investing minimum time and effort, even more so if they ask you to pay the fixed fee up front.
The old adage “you get what you pay for” springs to mind.
Advantages of commission-based estate agents
Clyde Property who work on a percentage-based commission will work harder to achieve the best sale price for a property and sell it in a timely and efficient manner. Naturally, the more time and effort dedicated to marketing, showing and selling your property, the better the end result for the agent (and you). The agent will receive a higher commission and you will receive more profit from the sale. Everyone wins.
Furthermore, when a commission is involved, rather than an up-front fixed fee, it’s in everyone’s best interest for the agent to actively and continuously source the most appropriate buyers, maximise viewing numbers, and sell the property for the best price as quickly as possible. By doing so, a closing date can be set to allow competitive buyers to place their bids, and the seller and agent receive their profit/commission sooner.
Conversely, estate agents who offer to sell property for a fixed fee will receive the same commission regardless of how much time and effort they put in, and irrespective of the sale price of your property. If these fees are paid upfront and the property does not sell quickly, or at all, the agent is likely to turn their focus to new clients and other properties. They already have their money.
Here at Clyde Property, we are approached constantly approached by sellers whose properties have been on the market for weeks or months, having been unsuccessfully listed by other agents. When we apply our unique industry knowledge and innovative marketing techniques, these properties are normally sold within a number of weeks, at or above Home Report values. (see a recent story here)
The property market is incredibly challenging and competitive, particularly at the present time when buyers significantly outweigh the number of properties for sale. It takes a great deal of skill, experience, and in-depth knowledge to effectively market a property, attract multiple viewers, and achieve the highest possible sale price. For a successful and profitable sale, it really is worth choosing a dedicated, pro-active estate agent who works hard for you.
Clyde Property is a leading independent, multiple award winning estate and letting agent with 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today, for friendly, impartial advice on finding your next dream home.