What Percentage Do Estate Agents Charge

Find out what percentage estate agents charge in the UK, how fees are calculated, and the factors that influence commission rates.

At Lillian Purge, we specialise in SEO for Estate Agents. Here’s what percentage estate agents typically charge to sell your home.

When selling a property, one of the first questions homeowners ask is how much estate agents charge. Understanding these fees is essential for budgeting and comparing services. Estate agent fees can vary depending on location, property value, and the type of service provided. Generally, agents in the UK charge a percentage of the final sale price, but there are also fixed-fee and hybrid options available. Knowing how each works helps sellers make informed choices that balance cost with results.

Typical Estate Agent Commission Rates in the UK

Traditional high street estate agents typically charge between 1% and 3% of the final sale price, plus VAT. The exact percentage often depends on the property’s location, demand in the area, and the level of service offered.

For example, if your home sells for £300,000, a 1.5% commission would mean paying £4,500 plus VAT. A 2% commission would total £6,000 plus VAT.

Most agents operate on a “no sale, no fee” basis, meaning you only pay if your property sells. This model motivates agents to achieve a successful sale at the best possible price.

In more competitive areas such as London or the South East, fees may be slightly higher due to market complexity and demand. In smaller towns or rural areas, you might find rates closer to 1%.

Sole Agency vs Multiple Agency Fees

The percentage you pay often depends on whether you use one agent exclusively or several agents at the same time.

Sole Agency Agreement:
With a sole agency, you instruct one estate agent to market your property. The fee typically ranges from 1% to 1.5%. If that agent sells your home, they receive the full commission. This arrangement is common because it simplifies communication and usually results in lower costs.

Multi-Agency Agreement:
If you appoint multiple agents to market your property simultaneously, the fee is usually higher—between 2% and 3%. This is because each agent invests time and resources to find a buyer, but only the successful one earns the commission. Sellers choose this route when they want maximum exposure or a faster sale, though it can lead to higher overall costs.

Online and Hybrid Estate Agent Fees

In recent years, online and hybrid estate agents have grown in popularity, offering lower-cost alternatives to traditional high street firms.

Online Estate Agents:
Online agents usually charge a fixed fee rather than a percentage. This can range from £500 to £1,500 depending on the level of service. Some include professional photography, listing on major property portals, and sales progression support. However, sellers often handle viewings and negotiations themselves.

Hybrid Agents:
Hybrid agents combine elements of both online and traditional services. They may offer local property experts and in-person support but charge lower fees than traditional agencies. These fees typically fall between 0.5% and 1.5%, depending on what’s included.

While online options can save money, traditional and hybrid agents often achieve higher selling prices through personal negotiation and local expertise, which can offset the fee difference.

Additional Costs to Consider

In most cases, the main estate agent fee covers marketing and selling your property, but there may be extra costs depending on your agreement.

VAT: Estate agent fees are subject to 20% VAT, which must be added to the quoted percentage.
Marketing Extras: Some agents charge additional fees for premium listings, drone photography, or video tours.
Withdrawal Fees: If you withdraw your property before the agreement ends, some agents may charge a withdrawal fee—always check your contract.
Energy Performance Certificate (EPC): Sellers are legally required to provide an EPC, and some agents can arrange this for an additional fee if you don’t already have one.

Always confirm what’s included in your agent’s fee before signing any contract.

Negotiating Estate Agent Fees

Estate agent fees are rarely fixed, which means there is often room for negotiation. Before agreeing to a contract, compare quotes from at least three agents. Discuss what services they include, such as professional photos, floorplans, or accompanied viewings.

If an agent’s percentage seems high, you can ask for a lower rate, especially if your property is expected to sell quickly or if you’re offering them an exclusive sole agency arrangement.

However, it’s important not to choose an agent based on price alone. A lower fee may save you money upfront but could result in a slower sale or a lower final offer. Always weigh cost against service quality, marketing reach, and local expertise.

How Fees Are Paid

Most estate agent fees are paid after completion, meaning once the sale legally finalises and funds are transferred. The solicitor handling the sale usually deducts the fee directly from the proceeds and sends payment to the estate agent.

For fixed-fee online agents, payment terms can vary—some require upfront payment, while others allow deferred or pay-on-completion options. Sellers should read the small print carefully to avoid unexpected costs.

Why Estate Agents Charge Different Rates

No two properties are the same, and neither are estate agents. Fees often reflect factors such as:

Local property demand and market conditions
Marketing methods used (basic listing vs premium multi-platform promotion)
The agent’s experience and reputation
The value of the property being sold
Negotiation skill and personal service

An experienced agent with strong marketing skills may charge slightly more but deliver faster results and a higher sale price, making their service better value overall.

Transparency and Regulations

In the UK, estate agents must comply with the Consumer Protection from Unfair Trading Regulations and clearly display their fees, including VAT, before you sign an agreement. They must also belong to an approved redress scheme, such as The Property Ombudsman, giving sellers peace of mind if disputes arise.

This transparency requirement protects consumers and ensures fees remain fair and competitive. Always ask for a full written breakdown of costs before agreeing to proceed.

Final Thoughts

Estate agent fees vary across the UK, but understanding how they work helps sellers make better financial decisions. Whether you choose a traditional high street agent, a hybrid firm, or an online platform, the key is to balance cost with value.

A good agent’s fee reflects their expertise, local knowledge, and ability to negotiate the best deal on your behalf. The cheapest option isn’t always the best one—an experienced agent who achieves a higher sale price often pays for themselves many times over.