Do not agree to an estate-agent fee from a verbal percentage alone.
The important questions are what service is being provided, when the commission becomes payable and whether taxes or extra marketing costs are included.
Put the fee in writing
The agency agreement should state:
- commission or fee basis
- whether VAT is included or added
- when the fee is earned
- when it is payable
- duration of the instruction
- whether the instruction is exclusive
- what marketing is included
That avoids arguments after a buyer is introduced.
Sole versus open instruction
With an exclusive instruction, the seller gives one agent defined rights for a period.
With an open instruction, more than one agent may be marketing the property.
The fee wording should make clear what happens if the seller finds the buyer directly or if two agents claim to have introduced the same person.
What should the commission cover?
Clarify whether the agent is expected to handle:
- listing preparation
- photographs
- advertising
- enquiries
- viewings
- negotiation
- buyer follow-up
Legal conveyancing is a separate professional service.
When is commission earned?
Do not assume every agreement uses the same trigger.
It could depend on introduction, signing, deposit, completion or another contractual event.
Read the actual clause.
Buyers should ask too
If a buyer is being charged a separate sourcing or agency fee, that should be disclosed before the viewing or offer process reaches an advanced stage.
Ask who the agent represents.
Verify the professional relationship
For a high-value transaction, understand the person or firm’s role and credentials rather than assuming anyone advertising property is acting under the same professional framework.
Compare service, not just percentage
A low fee with poor presentation and weak follow-up can cost a seller more than it saves.
A higher fee is not automatically better either.
Define the work, reporting and payment trigger first, then compare proposals.