Estate Agent's Commission

Stargrrl

Hi folks,
Long time lurker, first time poster. I am selling a property (first time doing this) and recently engaged an EA to handle putting it on the market (property is 100 miles away and I work full time in Dublin so not really in a position to do this myself). They have sent me the draft of the ad/brochure and the accompanying letter says that their fee will be 2% plus VAT at 21%. Advertising expences to be born by me. (There will be ads on Daft and Myhome and signage beside the porperty). Is 2% commission the 'norm' does anyone know? As I say am not really in postion to do this without an EA as couldn't be available for viewings and handling of the sale if I'm fortunate enough to get a buyer. Just interested in any feedback people have on this and wondering is this a reasonable EA fee? It's probably too late to look elsewhere now as have been dealing with this guy a while (was recommended by solicitor and it's an 'executor's sale) but could challenge/negotiate if it is not the industry standard. Any thoughs? Thanks.

D3PO

you have pretty much no negotiation power if you have already signed up with them.

you will probably find they have a clause in the contract regarding moving to another seller and still having entitlements of commision should that agent shift the property.

Stargrrl

Thanks D3PO - I haven't 'signed' anything as yet just called and asked him about being the agent as the solicitor had recommended him and not really looking to get out of any arrangement - he's taken photographs, measured and done a bit of work at this stage but just wondering is the 2% commission the standard for this sort of work or is he asking over the odds? Cheers.

Kosseegan

It is certainly not an outrageous figure. At one time the standard in Dublin was 2.5%. It was 3.5% outside Dublin. As prices rose the percentage fell. If you want to check the figure you can ring around other agents in the area and ask for a quote. It is better to deal with a good reputable agent rather than a fly by night or cowboy. The fact that he is known to your solicitor is a help. Some buyers walk off when the agent can't tell them anything about the title to the house.

Diddler1977

When selling my place I invited 5 agents to come view the property, give a valuation, list their fees, discuss how they would market my place, etc.

I then chose the one that would work best for me.

If you have not signed with the agent in your original post I would advise doing the same thing.

I paid a smaller amount of commission and the agent paid most of the advertising costs associated with the sale.

Stargrrl

Thanks for all the replies above - as time is of the essence i can't really take very much longer before putting the place on the market (there were numerous delays even getting to probate and getting other agents in to value and give quotes might take a while. Property is in a very rural location). So, seeing as the commission doesn't appear to be over the odds I may well go with this guy. However, I'll call around other agents and ask what their commission is and see if I can 'negotiate' with this EA. They are a small 'local' firm and long established in the locality as auctioneers and are not (that I'm aware) affiliated to any of the big estate agents. Not sure if that's plus or not.

mikemac

Stargrrl wrote: »

They are a small 'local' firm and long established in the locality as auctioneers and are not (that I'm aware) affiliated to any of the big estate agents. Not sure if that's plus or not.

I think this is a plus.
The staff know the area and might even know some local buyers with interest, it's not just some branch office of a big agency.

As you say it's a rural area and they wouldn't have been around for so long if they weren't somewhat good

Stargrrl

Thanks Feelingstressed - that's what I'm thinking alright! Still, no harm in doing a quick 'telephone' survey to compare commission rates offfered by other EAs I suppose. They certainly know the area and the market well and have got what seems to me to be good prices in the current market for similar properties in the area.

the_syco

Ring the estate agents, and view different houses in the one day. Disregard any estate agent that looks like a dour unhelpful pile of crap, and pick one of the rest.

Japer

Diddler1977 wrote: »

When selling my place I invited 5 agents to come view the property, give a valuation, list their fees, discuss how they would market my place, etc.

I then chose the one that would work best for me.

If you have not signed with the agent in your original post I would advise doing the same thing.

I paid a smaller amount of commission and the agent paid most of the advertising costs associated with the sale.

Sound advice. A cousin was selling their house and they said the local auctioneers would come down on their asking commission quite quick if they though someone else would get the sale, and the property was in a location which would sell quickly. You should be able to get the fees down to 1% or less. That can still be a nice little earner ( often 3, 4 or 5 grand ) for doing a ( sometimes quick ) job which is not physically demanding, dangerous or rocket science.

3DataModem

Stargrrl wrote: »

Hi folks,
They have sent me the draft of the ad/brochure and the accompanying letter says that their fee will be 2% plus VAT at 21%. Advertising expences to be born by me. (There will be ads on Daft and Myhome and signage beside the porperty). Is 2% commission the 'norm' does anyone know?

2% + VAT + expenses is the most you will pay in Ireland (let me guess, SherryFitz?). As you haven't negotiated they hit you as hard as they can as prices are dropping.

I have paid as little as 1% + VAT + €200 expenses in the past.


EA's are extremely negotiable.

3DataModem

the_syco wrote: »

Ring the estate agents, and view different houses in the one day. Disregard any estate agent that looks like a dour unhelpful pile of crap, and pick one of the rest.

Very very very good advice.

Snakeblood

Stargrrl wrote: »

Thanks for all the replies above - as time is of the essence i can't really take very much longer before putting the place on the market (there were numerous delays even getting to probate and getting other agents in to value and give quotes might take a while. Property is in a very rural location). So, seeing as the commission doesn't appear to be over the odds I may well go with this guy. However, I'll call around other agents and ask what their commission is and see if I can 'negotiate' with this EA. They are a small 'local' firm and long established in the locality as auctioneers and are not (that I'm aware) affiliated to any of the big estate agents. Not sure if that's plus or not.

I put mine up for 1.5% with an agent, plus advertising of 400.