Do I have To Pay Estate Agent Fees If I Decide Not To Sell?

The estate agent fees vary depending on your chosen estate agent and the type of contract you select. It's essential to ensure the contract you're signing is right for you, especially to avoid unnecessary fees if you decide to back out.

Most estate agents will charge you a fee when the sale is complete. However, some estate agents, such as Purplebricks, charge a fee regardless of whether you sell the property.

This article answers the question: "Do I have to pay estate agent fees if I decide not to sell?" As for when the buyer pulls out? Don't worry, we have you covered in that scenario, too.

Do estate agents charge if a seller decides not to sell?

Estate agent fees can still occur even if you decide not to sell your house. As mentioned above, the fees you'll pay depend on the terms in the contract you have:

Check the contract terms

One of the biggest issues that could deter sellers is if the estate agent wants to include a 'ready, willing, and able clause'. The clause is a significant red flag because it means that if the estate agents find a buyer, you will be liable for a fee. We advise you to look for a new estate agent who doesn't have a ready, willing, and able clause. Estate agents who have this type of clause are more inclined to keep it rather than negotiate, so it's best to sever your ties.

Marketing fees

The estate agent is responsible for marketing your property, showing it in its best light to attract buyers. Photography, sale boards, and floor plans are just some of the ways the estate agent will market your property. This means that if you decide not to sell the property, the estate agents may seek reimbursement for their marketing efforts.

Withdrawal fees

Your estate agents can request in the contract that you must pay a withdrawal fee. This would typically be if you decide to pull your property off the market. Pay attention to the type of contract you have. In a sole agency agreement, for example, the average contract length is 4 or 12 weeks, including a notice period during which the contract terms remain valid. Once this period expires, you can use another estate agent.

When would I not pay estate agent fees?

Depending on the estate agent you are dealing with, there are several instances where you won't pay estate agent fees. You'll typically find high street agents offering a No Sale, No Fee service. A No Sale, No Fee service means you'll only pay the estate agent's commission if the property sells.

However, be sure to check the contract terms, as the estate agent may still want a withdrawal fee added. Estate agents must be transparent about the terms of the contract before it is signed, according to The Property Ombudsman code of practice.

Do I have to pay estate agent fees if the buyer pulls out?

It can be frustrating for a seller when a buyer pulls out of a deal. It's important to iron out any potential fees before signing the contract to avoid any unnecessary ones. As stated above, there are many fees and clauses that can trip sellers up, regardless of whether they want to continue selling their property or not:

• Commission: Estate agents can charge a commission rather than a fixed fee. The commission percentage is typically between 1% and 3%. However, if you're under a No Sale, No Fee Service, you won't have to pay any commission if the buyer pulls out. Here's how the commission works: let's say you have sold your house for £200,000, and the agreed percentage with the estate agents is 1.5%, you'll pay £3,000 EXC VAT.
• Fixed Fees: Fixed fees are paid upfront at the beginning of the contract. These fees are often lower, with online estate agents typically offering fixed fees. Expect to pay between £300 and £1,500. It's important to note that if your house isn't sold within the contract period, you'll pay a fixed fee with no results.
• Ready, willing, and able fees: Ready, willing, and able fees will be the agreed commission fee with the estate agent. This is typically in the 1-3% bracket. While this clause is a massive red flag, it's important to know you won't have to pay the fee if the buyer pulls out.
• Marketing Fees: The marketing fees will vary depending on the amount of work they have done thus far. For example, photography, virtual tours, and floor plans are just some of the marketing costs the estate agents would do for you. You can save on photography fees by using your own, provided they are of high enough quality to fairly present the property's condition.

Can an estate agent's contract be cancelled?

It is possible to cancel an estate agent's contract. However, this must be achieved in a specific time period. This is the cooling-off period, which gives you 14 days to cancel the contract if it was signed away from the estate agent's primary business, i.e. your home.

It's important to note, any fees payable must be agreed upon between you and the estate agent. This agreement must be in writing before any work commences.

Are you putting your property on the market?

We recommend choosing an estate agent who doesn't charge Ready Willing and Able Fees if you can.

Whichever agent you choose, our conveyancing fee is protected by our No-Sale, No-Fee guarantee.

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