Realtor Fees Explained: What You Really Pay When You Hire an Agent

If you're thinking about selling or buying a home, the first question that pops up is usually, "How much will the realtor cost?" In the UK, fees can look different from one city to another, but the basics stay the same. Knowing the numbers helps you avoid surprises and gives you leverage when you negotiate.

Standard commission rates and what they include

Most UK estate agents charge a commission based on the final sale price. The typical range is 1% to 3% plus VAT, though premium agencies in London may push closer to 4%. That percentage covers the whole package: marketing your property, arranging viewings, handling negotiations, and managing the paperwork. Some agents also add a fixed admin fee for things like creating the Energy Performance Certificate or advertising on major portals.

For example, if you sell a house for £300,000 and the agent's rate is 2%, the base commission is £6,000. Add 20% VAT and you’re looking at £7,200 total. If the agent offers a "no sale, no fee" guarantee, you only pay if the deal closes, which can be a safer option for sellers worried about upfront costs.

Hidden costs you shouldn’t ignore

Commission isn’t the whole story. Some agents charge extra for professional photography, floor‑plan drawings, or premium listings on sites like Rightmove and Zoopla. Those fees can range from £100 to £500 each, but they often boost exposure and lead to a quicker sale, which can offset the cost.

Buyers might also feel the pinch through the asking price. Since sellers factor commission into their price, a higher commission can indirectly raise the amount you pay. That’s why it can be worth bargaining for a lower rate or asking the agent to remove non‑essential services.

Another hidden expense is the "early termination" clause. If you decide to pull the property off the market before the contract ends, some agents levy a penalty—often a percentage of the remaining contract period. Read that clause carefully before you sign.

Lastly, keep an eye out for exclusive contracts. Some agents require a 12‑month exclusivity period, meaning you can’t list the property elsewhere even if you’re unhappy with the service. If you’re not ready to commit, look for agents offering a short‑term or flexible agreement.

Bottom line: realtor fees are more than just a percentage. They include a bundle of services, and the total cost can vary based on location, agency reputation, and extra add‑ons. By understanding each component, you can compare agents fairly, negotiate a better deal, and keep more money in your pocket when the sale goes through.

Getting Around Realtor Fees: Tips for Savvy Homebuyers
Getting Around Realtor Fees: Tips for Savvy Homebuyers

Navigating realtor fees can feel like a challenging aspect of buying or selling a home, but it's totally manageable with a few savvy strategies. Learn what realtor fees really cover, why they vary, and how you can negotiate or find alternatives to keep more money in your pocket. You'll get insights on exploring DIY real estate sales and ways to make sure you get the best value if you're hiring a professional. This article is all about giving you practical tips to make well-informed decisions in the real estate market.

Apr, 7 2025