How does a traditional High Street Estate Agent justify their fee?
We are often asked by members of the public how do we, as a traditional Estate Agents, justify our fees for selling a house as opposed to the modern trend of internet based Estate Agents who charge considerably less, well on paper anyway.
Now I am going to try and keep this short as I could ramble on all day, however the best way I can answer this question is to relate it to a recent property sale we have just handled.
Two bedroom end of terraced property in Cottesmore Green, Crawley, West Sussex;
We were approached by the sellers of this house as the second of two Estate Agents that they decided to speak to about the sale of their property. Agent one worked for a modern, internet based Estate Agency and he was their ‘local’ property expert (who actually covers an area equivalent of a 20 mile radius around Crawley). Agent one valued the property at £175,000 and would only charge a fee of around £800 including VAT, the property would be featured online on some well known portals. The sellers would have to do their own viewings (or pay extra for the Agent one to do them) and would have to be very hands-on throughout the whole process.
Agent two (Greenaway Residential Estate Agents) valued the property at guide price £190,000. Our Estate Agency only covers Crawley and the immediate surrounding areas so we know our market place and conditions like the back of our hands. After having to convince the sellers that their property was actually worth this amount (the £175,000 quoted by Agent one was still ringing in their ears) they gave us formal instructions to market their property for sale. The sale recently completed at £192,500. Our agency acted as key holders to the property, did all of the viewings, all of the negotiations and fully progressed the sale of the property to completion, enabling the sellers to secure the new home as quickly as possible. We also provided quality photographs and floor plans to name but a few elements that make up our extensive marketing.
Now assuming Agent one was instructed and was able to achieve their recommended asking price of £175,000, less their selling fee this equates to £174,200. We charged a fee of £2887.50 including the dreaded VAT. Deducted from our achieved price of £192,500 this left the sellers with £189,612.50, some £15,412.50 more than if they have chose Agent one. If they had chosen Agent one it would have been the most expensive £800.00 they had ever spent! If you need further convincing on why you should speak to your local property experts why not click here and read what our customers say about us.
One to ponder, normally one’s property is their largest asset, why not treat it like it. Would you let your friend work on your teeth because they could use a drill? Or would you pay the money to your dentist to get a professional job? Or if you were lucky enough to have a Ferrari on your driveway would you take it to Kwik Fit for a service, or would you take it to a dealership that specialises in Ferraris…
For further information please do not hesitate to contact Greenaway Residential Estate Agents on 01293 561188. We are currently offering FREE, NO OBLIGATION market appraisals so if you do have a property to sell we’d love to hear from you.