Naturally, the overall cost of moving is very important when you are considering putting your home on the market.
But it’s vital to fully understand how estate agents work out their fees because it is not automatically the case that the lowest fee will be the best value, as Andrew Ainge, Bridgnorth Branch Principal, explains...
Online agents who charge a fixed fee, and those high street agents charging very low fees (less than 1% for example), will typically work with a high volume of properties.
That means the agency will need to have a lot of properties on its books to cover its running costs, and the sales team will be handling a larger number of clients per head.
It stands to reason that they simply won’t have the time to take a proactive and imaginative approach to the sale and marketing of your home, potentially leading to a disappointing sale price.
At the other end of the spectrum are service-based agents, who will give a more detailed, personal service, driven by the aim of selling your home for its maximum value.
And here’s the key - if an agent sells your home for a higher value but takes a higher percentage, you may end up making more on the sale compared to an agent who only charged 0.5% but sold your property for £10,000 less.
For example, if estate agent A sells your home for £250,000 with a fee of 1.5% (£3,750 on a selling price of £250,000), your “profit” would be £246,250.
If estate agent B - the one that seemed much cheaper - sells your home for £240,000 with a lower fee of 0.5% (£1,200 on a selling price of £240,000), you would end up with £238,800.
That’s a difference of £7,450 - in favour of the supposedly more expensive agent!