Estate agent sales levels result in fee free sales
As many news reports have shown the number of properties being sold in the UK has plunged over recent months, and homeowners that are looking to sell up are suffering real problems. Many people cannot get a mortgage to purchase a property at present because of the tighter credit conditions, and many others do not want to buy a property at a time when house prices are still falling for fear that they could be plunged into negative equity.
All of this has had a profound effect on estate agents’ sales figures, with some estate agents reporting average sales of less than one property a week. As a result of this one estate agency is now offering to waive commission fees on properties that are sold before the end of the year.
The estate agent, Lauristons, has reportedly written to clients in some affluent parts of London offering to sell homes for free if they sell before the end of the year.
It is thought that this move could cost the estate agent around £10,000 per transaction in some cases. Estate agents normally charge between 1.5% and 3% in commission, so this could save sellers a lot of money and could cost the estate agency a small fortune in lost revenue. However, many estate agents have lost their jobs and some estate agency firms have had to close down due to lack of business over recent months.
One industry official said that whilst the offer looked inviting consumers should check the small print before taking up the offer. He said: ‘Potential clients need to ensure, for example, that if their property is placed on the market before Christmas but not sold until after the New Year there will still be no fee. But in general, when people are looking for a successful agent, one has to suspect that charging 0% commission is not a good sign.
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