26. Estate agent for buyers
A buyer's agent is a professional individual or company that assists buyers in the purchase or rental of real estate properties. Acting as intermediaries between buyers and sellers, they play a pivotal role in helping buyers find suitable properties, negotiate offers, and navigate the transaction process.
What if you do not have an estate agent?
If you are not utilising the services of a buyer's agent in your property search, you can inform your conveyancer accordingly. While buyer's agents offer valuable expertise in finding properties and negotiating deals, their involvement is optional. Your conveyancer can still effectively manage the transaction, collaborating directly with you and other relevant parties involved.
Importance of providing estate agent details to your conveyancer
When embarking on a property transaction, it is crucial to furnish your conveyancer with the details of your buyer's agent. Here is why:
- Communication: Your conveyancer may need to communicate with the buyer's agent to gather essential information regarding property listings, viewing appointments, and updates on transaction progress.
- Coordination: Sharing buyer's agent details enables seamless coordination among all involved parties, including the seller's conveyancer and other stakeholders. This fosters efficiency and ensures a smooth transaction process.
- Problem resolution: In case of any challenges or disputes during the transaction, your conveyancer may need to collaborate with the buyer's agent to resolve issues promptly and find suitable resolutions.
While not mandatory, providing buyer's agent details to your conveyancer can streamline communication, enhance coordination, and facilitate a more efficient property transaction process.
Agreed estate agent fee/commission
The agreed estate agent fee or commission refers to the payment that a homeowner agrees to pay an estate agent for their services in selling a property. This fee is usually a percentage of the final sale price of the property or a fixed fee agreed upon in advance. The fee is typically exclusive of VAT (Value Added Tax), meaning VAT is added to the commission amount.
Fee/Commission |
The fee or commission is the remuneration that the estate agent receives for marketing the property, conducting viewings, negotiating with potential buyers, and facilitating the sale process. |
Percentage of sale price |
In many cases, the estate agent's commission is calculated as a percentage of the final sale price of the property. For example, if the agreed commission is 1.5% and the property sells for £300,000, the estate agent's fee would be £4,500 (excluding VAT). |
Fixed fee |
Alternatively, some estate agents might charge a fixed fee regardless of the sale price. This fee is agreed upon before the agent begins marketing the property. You can find this information with the following:
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Understanding the agreed estate agent fee or commission is crucial as it impacts the net proceeds you will receive from the sale of your property. It is advisable to thoroughly review and understand the terms of the agreement with your estate agent to avoid any surprises during the sale process. If needed, seek clarification or advice from a legal professional or a real estate advisor.