The UK housing market is always changing as are our options on offer as to how we can sell our homes. Our bricks and mortar are our largest asset and moving home is not an inexpensive process. So it’s understandable that as homeowners, we may well look for the most cost-effective and time-efficient way to sell our home. Therefore, the concept of a no sale, no fee estate agent stands out as a potentially attractive choice for many. But what exactly does this entail, and is it the right option for you? Let’s take a look at the pros and cons of using a no sale, no fee estate agent, to help you navigate this option.
What is a No Sale, No Fee Estate Agent?
A no sale, no fee estate agent is precisely what the name suggests. An estate agent who only charges a fee upon the successful sale of your property. This is typically how a traditional high street estate agent charges.
Their fee is payable on completion of your transaction. Which is typically a percentage of the sale price that has been agreed.
This model contrasts with most online estate agents who typically charge upfront fees for listing and marketing your property. Irrespective of the sale outcome.
Pros of Using a No Sale, No Fee Estate Agent
No upfront costs
One of the most appealing aspects of this model is that there are no upfront costs.
This means the agent will take photographs, do floorplans, list the property on the property portals, conduct viewings and oversee your negotiations. All with no upfront fee.
For homeowners, this means there’s no immediate financial burden which gives flexibility and peace of mind.
Motivation to sell
Since estate agents operate on a no sale, no fee basis and only earn their commission once they’ve sold your property, they are motivated to secure your sale.
This can lead to a faster and more efficient transaction. But this also depends on you (and your buyer) being organised and prepared.
Transparent transactions
As payment is contingent upon the successful completion of a sale, the no sale no fee model fosters a transparent relationship between the homeowner and the agent as both parties’ interests are aligned.
Cons of Using a No Sale, No Fee Estate Agent
Potentially higher overall fee
While the absence of upfront costs is enticing, the final commission payable once you complete your sale will be higher the greater the value of your sale price.
However, the sales process and what your estate agent does throughout this process are equally not insignificant. They are not just listing your home for sale; they are there to guide and advise you throughout the process. The fee also reflects the risk agents assume.
Concerns over quality of service
There can be a misconception that no sale, no fee estate agents may prioritise quantity over quality. This is why it is crucial that you do your research and select a regulated and qualified agent with a robust track and excellent local contacts. A Propertymark accredited estate agent offers just that. And they also adhere to a code of conduct way above what the current law demands.
Comparing costs
When deciding between a no sale, no fee estate agent and online estate agent options, it’s important to do your research.
Consider all the fees, when they are required to be paid and compare them against the service you will receive.
Choosing the right estate agent
The estate agent you choose can significantly impact your selling process. From the time it takes to sell your property to the marketing strategies you adopt.
In addition to their Propertymark accreditation, consider factors such as local market knowledge, marketing strategies, and past success rates. Preparing a list of questions for potential agents can help identify the best fit for your needs.
Some final FAQs to help your next move
How do no sale, no fee estate agents make their money?
They earn their commission once they have successfully sold your property.
Are there any hidden costs?
While upfront costs are typically non-existent, it’s important you review the estate agent contract for any potential hidden fees.
Can I change estate agents if I’m not satisfied with a no sale, no fee agent?
Yes, you can change estate agents but be sure you are clear on any contractual obligations before making a switch.
Do they provide a good service?
Like any industry service levels can vary. That’s why we recommend looking for a Propertymark accredited estate agent as they are not only regulated but qualified too.
How do I find a reputable estate agent?
Complete our online ‘find an agent’ form and we will send you a link to all Propertymark-regulated agents in your area.
Last Updated: March 8th, 2024
