Should I pay my estate agent upfront?
One of the questions we get asked the most here at Redrose is ‘should I pay my estate agent upfront’?
If you’re a seller, it’s always best to wait until the money from a sale is safely in your bank account before paying any fees. Here at Redrose, we operate using the principle of ‘No sale, no fee.’ We think that’s exactly how it should be.
Upfront vs Pay on completion
You probably don’t need us to tell you that by paying fees upfront, your estate agent will have little incentive to actively market your property.
Instead, most estate agents charge either a fixed fee on completion or a percentage of the final selling price. What’s more, we are required by The Property Ombudsman to show our fees as an actual figure, based on the asking price we’ve discussed as part of our commitment to you. It’s all about making the process as simple and transparent as possible.
What every seller needs to know about fees
We understand that industry jargon can sometimes make the structure of estate agent’s fees difficult to comprehend. That’s why we’ve compiled a few top tips on what to watch out for if you’re a seller. (However, we will state that Redrose customers enjoy an open level of service that sets us apart. Got a question? We encourage you to pick up the phone and ask us. We don’t hide anything.).
- Always ask if the quoted fee includes VAT. A good estate agent should clearly explain whether or not VAT has been excluded from the price.
- Always ask your estate agent to provide their standard contract terms. If there is anything you don’t understand, you should feel confident enough to request an explanation. And, if your agent isn’t easily approachable, think carefully about whether this is the right person to support you in selling your home. If necessary, seek independent advice on any terms you are unclear about.
- By law, estate agents are required to tell you what exactly what is included in the fee. For example, here at Redrose we include For Sale boards, a property description, professional photography, accompanied viewings and brilliant marketing expertise as standard – but this isn’t true of every company out there. Be alert for hidden extras.
- The only instance where an upfront cost might be involved is for the arrangement of an Energy Performance Certificate if your certificate is invalid or you’ve never had one issued before. However, you do not have to use the estate agent you’re selling with for this. Similarly you are under no obligation to use additional in-house services such as conveyancing or mortgage advice.
We pride ourselves on our culture of openness and integrity. Do you want us to sell your home? Get in touch on 01772 456558.