Everyone loves a bargain, and whether you are buying a new car or doing your weekly grocery shop, price is understandably a big factor in decision-making.
But when it comes to choosing estate agents, it’s important to delve a bit deeper than the headline percentage figure.
Let’s look at an example of a house in Bridgnorth on the market for £200,000. Estate agent A, which has a track record of achieving the maximum asking price, is offering to sell it for a 1.5% fee, whereas estate agent B only wants 1.25% but often ends up achieving a lower asking price, say 98%.
If you do the sums, you will pay £3,000 for estate agent A’s services and they will sell your house for £200,000.
Estate agent B may only cost you £2,450 but they may only sell your house for £196,000 – £4,000 less than agent A.
So the end result is that estate agent A actually earns you £3,450 MORE (£197,000) than agent B (£193,550), even though it seems like a higher fee at the outset.
If you think about it, estate agent A also has a greater incentive to sell at a higher price because they will earn more out of the deal too!
For more advice about the Bridgnorth property market, pop into our office in Whitburn Street or give me a call on 01746 767 767.