MAKING TRADITIONAL SALE COSTS MONEY

ABOVE: Only one firm is allowed to market your home with a traditional sale

23rd October 2009

SELLERS who still want to stick with the traditional method of hiring an estate agent to sell their home can expect to pay an average charge of between 1.5 and 2 per cent for sole agency.

However this means that only one firm is allowed to market your home.

If you want more than one firm to help you sell, you will probably pay the successful agent around 3 per cent of the sale price as a fee.

When you employ an estate agent you are signing up to a set of standard terms and these state that the agent will try to sell your property with a certain period of time.

This agreement is legally binding so it is important to ensure you understand the terms and conditions. You also need to check with your estate agent as to what would happen if you have your home on the market with that agent but end up selling your home some other way, for example to a friend of a friend via word of mouth.

“This can be a bit of a grey area,” warns Melanie Bien from broker Savills Private Finance.

“It depends on the wording in the terms and conditions and your rapport with the agent so make sure you read the small print.”