Explained: Selling a property for a fixed fee
When selling your home, finding the right estate agent - with years of experience, good local knowledge and a close attention to detail - will be crucial.
A good, reliable agent, after all, will increase your chances of getting your home sold for the best possible price.
But cost is an equally important consideration. And there are a number of fee models out there, including the fixed fee model we offer at The Chamber Practice.
Below, we outline the different models available and why we believe the fixed fee approach is best for many property sellers…
The most commonly used fee model, the majority of agents in the UK operate with a commission-based approach. This is where they charge a percentage fee, which can be anywhere between 0.5% and 3%+VAT of the agreed selling price of your home, to get your property sold. Typically, agents will charge between 1% and 2%.
The fact it is commission-based means the incentive is there for an agent to sell your home, as otherwise they won’t get paid. At the same time, the fees can be considerable depending on how much your home is being sold for. Even in the cheapest scenario, you could easily be shelling out more than £2,000 on agency fees.
This is the model used by nearly all online operators and many hybrid ones. A fee – typically ranging from around £550 at the cheaper end of the scale, up to approximately £1,200 in more expensive areas like London – is paid by the seller upfront.
While sellers benefit from lower fees than if they instructed an agent operating a commission-based pricing structure, there is the risk that the incentive to sell a home is drastically reduced if fees are paid upfront. After all, if the agent is going to be paid regardless, where is the incentive to do everything possible to get a home sold quickly and for the best possible price?
Some offer a no sale, no fee model as well, but this often means a higher fee and is only provided by a smaller number of operators.
A fixed fee approach, meanwhile, offers the best of both worlds – much lower fees than an agent charging commission, but with the money paid out on completion which means the incentive is still there for the agent to sell the property. Even if the home is sold for more than was originally estimated, the fee stays fixed – in other words, there is no sliding scale and no added extras included at the last minute.
Sellers benefit from not being hit with large commission bills while still being able to employ the services of an agent who will be doing all they can to push through a sale.
Why do we operate a fixed-free approach?
In 2010, we became the first local estate agent in Dundee to provide a no-commission service. We took this decision because we believe, no matter what a property’s value, the work put into selling it should always be the same.
We therefore set a fair price for our services, which ensures our clients get excellent value for money and a service that is comparable to those operating with a commission-based model.
We sell your property for a fixed fee of £595 plus VAT and other outlays, while the conveyancing fee is variable depending on the size of the property you’re selling and the nature of your transaction.
Transparency is key when it comes to estate agency, and our pricing structure provides exactly that, with a clear outline of all the costs involved in a transaction and absolutely no hidden charges.
We position ourselves as ‘modern traditional estate agents’ – taking the best of the old approach and combining it with new methods (and cutting-edge technology) that are fit for a 21st century, tech-savvy audience.
Why now is a good time to sell in Dundee and Aberdeen
The recovery of Aberdeen’s property market – which was badly hit by the drop in oil prices a few years ago – is in full swing, while Dundee’s booming rental market and rising house prices make it a popular location for property investors and buyers alike.
This means demand for homes in both these locations is high and consistent, which should help to put you in a strong negotiating position when it comes to setting asking prices as well as improving your chances of selling with relative ease.
At The Chamber Practice we offer a one-stop shop for property sellers, offering both estate agency and legal (conveyancing) services in-house at our Dundee and Aberdeen offices.
We also offer instant online valuations to give you an idea of how much your home could be worth in the current marketplace and a mortgage calculator to help you calculate how much you could borrow.
To find out more about how we can get your home sold for a fixed fee, please contact us at one of our branches.