Does a Cheaper Fee Agent Save You Money?
Selling a property can be a stressful experience, especially when it comes to choosing the right estate agent. The cost of using an estate agent is a big consideration for most sellers, and it's natural to want to find an agent who can achieve the highest sale price while keeping costs to a minimum.
In this blog post, we'll compare the monetary difference between two different estate agents, one who charges 1.5% commission and achieves 103% of the asking price, and another who charges 1% commission but only achieves 98% of the asking price, both for a £200,000 house.
Let's start with the first estate agent, who charges 1.5% commission.
For a £200,000 house, this would amount to £3,000. However, this estate agent is able to achieve a final sale price of £206,000, which is 103% of the asking price.
After deducting the estate agent's commission, the seller is left with £203,000.
Now, let's compare this to the second estate agent who charges 1% commission.
For a £200,000 house, this would amount to £2,000. However, this estate agent only manages to achieve a final sale price of £196,000, which is 98% of the asking price.
After deducting the estate agent's commission, the seller is left with £194,000.
In this scenario, it's clear that the first estate agent, who charges a higher commission but achieves a higher sale price, is the better choice. The extra £1,000 in commission paid is more than offset by the extra £7,000 achieved in the sale price, leaving the seller with £6,000 more in total.
It's worth noting that not all estate agents are the same, and some may offer additional services that can help to achieve a higher sale price.
For example, Beercocks is an estate agent that has a database of 8,500 prequalified buyers that they can test the price with first, to make sure it's correct before releasing it to the rest of the internet. This strategy can be a valuable tool in achieving the best possible sale price for your property.
In conclusion, when choosing an estate agent, it's important to consider the potential monetary difference in terms of the final sale price, as well as the level of service provided.
Estate agents like Beercocks, who have access to a database of prequalified buyers and use this to test the price before releasing it to the wider market, can be a valuable asset in achieving the best possible sale price for your property.
While commission rates can vary, it's important to focus on the overall outcome rather than just the cost of the service.
By doing so, you can ensure that you get the best value for your money and achieve the highest possible sale price for your property.