If you’re preparing to sell your home, one question likely looms large—how much will I need to pay the estate agent? Agent fees can make up a chunky portion of selling costs, so understanding the prevailing rates is important to your property sale.
With that in mind, this guide explores the typical percentage fees estate agents charge across the UK, what services they cover, factors influencing costs and tips for negotiating a fair deal.
Average estate agent fees in 2024
According to our own data from selling large volumes of residential properties across the UK, the average percentage fee estate agents will charge homeowners for their services in 2024 is 1.5% ex. VAT.
So if your property sells for £350,000, you could expect to pay between £5,250 in estate agent fees at that average rate. Sounds pricey, right?
However, that average figure encompasses a rather wide range of potential fees depending on the specific agency agreement and services provided:
Typical fee ranges
- Sole agency agreement: 1.2% to 1.8% of sale price
- Multiple agency agreement: 2.4% to 3.6% of sale price
- Online and hybrid agents: £600 to £1,500 fixed fee
So in our £350k sale price example, fees could range from £4,200 on the low end all the way up to £12,600 at higher commission rates or with a traditional high street agent.
As you can see, there’s quite a spread in what agents may charge in 2024, even on the same valued property. So why the variability?
Factors impacting agent fees
Several factors influence where an estate agency fee may fall within those broad percentage ranges, including:
Property value
While the percentages may look small at first glance, even a 1% difference has a major impact on higher priced homes. As such, many agents will cap their percentage fees at certain price thresholds or adjust downward on premium properties to keep their cut in check.
Location
Intensely competitive markets like London and the premium suburbs around it tend to command higher percentage fees in the 2 to 3% range. More relaxed regional markets may see averages closer to 1 or 1.5%.
Type of agreement
As shown in the ranges, multi-agency agreements where the seller instructs several agents at once come at a premium over sole-agency exclusives. This compensates for the lower odds of any one agent winning the business.
Services provided
Are you receiving just basic listing and hosting duties? Or a comprehensive marketing package with professional photography, videography, premium advertising and more? More bespoke service offerings factor into higher percentage fees.
Essentially, the more attractive the property, competitive the market or premium the included services, the higher the percentage fee an agent can justify charging a client.
Online vs high street
One factor seeing downward pressure on fees is the rise of online and hybrid estate agency models. Players like PurpleBricks focus on stripping out costs by limiting in-person service and charging low fixed fees around £1,000 or less. This has disrupted traditional percentage-based pricing somewhat.
However, recent years have shown many home sellers still prefer high street agents providing greater personal attention and services for higher percentage fees versus being a self-service customer with online models.
Breaking down what’s covered in the fee
So what exactly do these estate agent fees cover, whether you’re paying 1% or 3%-plus of the final sale price?
At a minimum, most agencies providing fundamental services like:
- Providing a property valuation to recommend listing price
- Photographing the property and creating a listing with floor plan
- Marketing the property on major listing portals like Rightmove and Zoopla
- Handling inquiries and booking viewings for prospective buyers
- Negotiating offers and managing the sale process through to completion
- Installing “for sale” boards at the property, doing open house events etc.
On the more premium end, a higher percentage fee may include added services and marketing like:
- Professional home staging and interior decorating
- Drone videography or 3D tour creation for online listings
- Premium placements/advertising on wider array of listing portals
- Bespoke property brochures and email campaigns
- Access to the agent’s internal buyer database
Some may try to upsell additional paid marketing packages on top of the core percentage fee arrangement as well.
So in evaluating what an agent is really offering, it’s worth understanding exactly what’s included in their fee to avoid any surprise upcharges or hidden costs later on.
In many cases, budget-conscious sellers may decide just the fundamental services are sufficient to attract buyers. But for more premium properties, ensuring strong marketing can justify paying toward the higher end of average fee ranges.
Negotiating estate agent fees
Just because an estate agent initially quotes you a fee at or above that 1.5% average for 2024, don’t assume it’s set in stone. There’s plenty of room for negotiation in most cases.
- A few tips for haggling estate agent fees:
- Get multiple quotes and use them as leverage—agents are motivated by competition
- Ask for a conditional fee arrangement where a lower percentage applies if sold below a certain price, then a higher tier kicks in above that level
- With higher-end properties, aim for a fee of around 1%-1.2% as agents still earn higher absolute fees at those price points
- Don’t be afraid to walk away—the agent earns nothing if you take your listing elsewhere
- Enquire about fixed fees potentially saving on percentages—these are more common now among high street estate agents who are trying to compete against online estate agents.
- Consider unbundling excessive service fees by negotiating à la carte costs
- Request a fixed pricing ceiling so percentage fees don’t spiral out of control
The best leveraged negotiators can often shave 20 to 30% or more off those initially quoted fees just by doing their homework on prevailing rates, understanding service needs and not being afraid to push back firmly.
While estate agents provide valuable services, their fees are by no means etched in stone. A little diligence and gamesmanship can ensure you only pay a competitive, justifiable percentage in 2024.
Tips for avoiding hidden costs
In addition to scrutinising percentage rates, sellers should keep a watchful eye out for any hidden costs or unexpected fees estate agents may try to tack on throughout the process, including:
Marketing and advertising fees
Ensure any quoted percentage or fixed-fee rate is truly all-inclusive covering all basic listing, marketing and advertising costs. Avoid getting nickeled and dimed endlessly.
Withdrawal fees
If you decide to pull your listing after some period of time, be wary of agents charging punitive “withdrawal” or termination fees that can run into hundreds of pounds potentially.
Renewal commissions
Some agency agreements include clauses where the full commission is still owed even if the listing expires, but a new buyer familiar with the previous marketing ends up purchasing down the road.
Conveyancing fees
While the agency commission covers their work, don’t forget about conveyancing fees for the legal transferring of ownership which are separate costs.
By understanding every aspect of the total fee arrangement upfront, and querying anything listed as an “additional cost” – you can avoid unpleasant surprises on your closing statement.
VAT
Most estate agents will quote fees excluding VAT. While there isn’t much you can do to eliminate VAT, you should be aware of it. You’ll be paying an additional 20% of the final fee in VAT.
Calculate your estate agent fees quickly
We’ve built a nifty calculator that will tell you how much cash you’ll need to pay your estate agent in fees and VAT based on the value of your house and the percentage they are quoting for their service. Click here to try it out.
Picking the right estate agent
As sellers look to capitalise on continued demand, choosing the right estate agent at the right cost structure plays an all-important role to netting top pound for your property.
Percentage-based fees remain the industry norm, with a 1.5% average nationwide, but those figures can vary wildly depending on property value, location, services rendered and your negotiation savvy.
By shopping around multiple agents, interrogating fee-inclusive services and negotiating with the leverage of competition, you can make sure you only pay estate agents a fair, justifiable percentage in line with the value and effort provided. After all, those fees quickly compound into thousands of pounds that could otherwise remain in your pocket.
That said, don’t simply choose based on rock-bottom pricing alone. A competitively-priced but highly capable agent providing solid marketing and negotiation skills may well earn their slightly higher percentage fee through superior results on the sale.
As with most things real estate, when it comes to estate agent fees in 2024, it’s a fine balance between understanding the market rates and driving a sharp bargain, while not losing sight of investing in quality, effective service.
How to avoid estate agent fees entirely
If you’re prioritising a swift and hassle-free sale over maximal sale price, there is another option beyond hiring a traditional estate agent. Here at Property Rescue, we’re a leading cash home buyer that can purchase your property directly from you, eliminating the need for any agents, months of marketing and the uncertainty of buyer chains. Plus, we’ll cover all the legal costs involved, so you won’t pay a single penny to get your house sold.
We’ll cut through the red tape to provide firm cash offers and completions in as little as 48 hours (if needed). There are no estate agent fees to pay, no disruptive open houses or viewings to host and no back-and-forth negotiations—just a fair, upfront price.
Property Rescue is a smart choice for many sellers. Particularly if you’re looking to unlock equity quickly for relocations, divorce settlements, probate scenarios or downsizing needs.
So if speed of sale completion is paramount and you want to avoid uncertain open market outcomes, we offer an alternative path to selling your home without the headaches and costs of estate agencies and their fees.
Get a free, no-obligation cash-buyer offer today for your property.