Auction and estate agent fees went through the roof?

by Readers Question

9:35 AM, 22nd September 2016
About 2 years ago

Auction and estate agent fees went through the roof?

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Auction and estate agent fees went through the roof?

I was just wondering if anyone has any suggestions for a bit of a sticky situation. roof

Having sold a property at auction, the auction house billed £12000 to the seller (prop. sold at 299000). On top of this, our estate agent has also just asked for nearly £8000.

As the property was sold at auction we took a loss on the value to sell it quick, but I cant help feeling this is an absolute rip off?

Anyone else with experience able to comment? 20k to sell a house at a massive loss of value just really seems grim.

Many thanks

Liz



Comments

Luke P

10:55 AM, 22nd September 2016
About 2 years ago

That does seem expensive.

No experience, just opinion based on figures alone.

What did the estate agent do if it was the auction house that sold it?

Graham Bowcock

12:37 PM, 22nd September 2016
About 2 years ago

Dear Liz

If it's not a silly question, just what were you expecting to pay? Agent are legally obliged to clearly set out their fee basis (including VAT) so that situations should not arise where a client does not expect the fees charged.

I have noticed some agents now charging a buyers' premium on property sales, something I had not seen very much before, like on sales of artwork and antiques. However, there is a legal obligation for the agent to tell the vendor.

Unless there is more to your story the agent should have agreed a reserve price with you and told you the fee basis. Therefore you should have known the net figure you would realise.

I do wonder if you have used an estate agent as well as an auctioneer; it is not clear from what you say. If so then it is possible you would have to pay both fees. Most agents are entitled to charge a fee for a sale even if the sale was concluded by another agent (or even privately).

It comes back to the question is your problem with agents' fees generally or do you think you agent (s) has mislead you over their charges?

Regards

Graham

J lied03

8:32 AM, 23rd September 2016
About 2 years ago

Dear Liz
Would have thought the Estate Agent could only charge their fee if they were instrumental in finding you a buyer. I don't know if the Agent has a connection with the auction house, but if not then I wouldn't think they could charge a fee if it was a no sale no fee contract as they didn't facilitate finding you a buyer. If it wasn't a no sale no fee contract then I guess they can charge reasonable costs for the advertising and work invested trying to sell your property prior to it going to auction. £8k fee on a £299k house is rather expensive, the percentage charge agreed in your contract should be on the final sales price which you achieved at auction.

Colin McNulty

8:21 AM, 30th September 2016
About 2 years ago

This sounds a bit like the "modern method of auction" that I see touted by some estate agents / auction houses. They're a complete rip off IMHO.


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