Agents’ Skills

The Oxford market has become used to impressive rates of growth in property values. A perception has developed that whichever agent you chose to sell your property, a buyer would be found within a few days. So sellers became less discerning over their choice of agent and were understandably tempted to appoint the agent who charged the lowest commission percentage.

However, this approach often turns out to be a considerable false economy, as the difference between a good agent and a mediocre one can be highly significant.

First, if the difference between the cheapest and the most expensive agent is typically up to about 0.5% of the asking price, then this represents a difference of £2,500 in fees on an average £500,000 sale. However, the ability of a good agent to negotiate the best terms is worth far more than this amount, as nationally, offers of 5–10% below the asking prices are typically being received.

The cheap agents rely on turnover of stock, rather than the actual amount of fee charged. They are currently feeling the pinch more than the higher quality agents and are therefore more interested in arranging the sale at any price, rather than negotiating the best terms for their client.

The better agents, however, have a reputation to protect, and they are passionate in their quest to secure the guide price or more wherever possible. So in our above example, the additional £2,500 in fees actually protected a potential net loss of £20,000 to £50,000!

It’s your equity. So when choosing the right agent to sell your home, what is more important to you – low fees or the most money in your pocket, and the security of a well–managed sale?