When choosing an estate agent, it is completely understandable to compare fees.
One agent may quote 1% plus VAT, while another might charge 1.3%, 1.4% or 1.5% plus VAT. Looking at those figures alone, choosing the cheapest agent can appear to be the most sensible financial decision.
However, an estate agent’s true value isn’t determined by how little they charge.
It is determined by how much money they help you walk away with.
The cheapest fee doesn’t always produce the best result
Let’s use a simplified example.
Imagine your property is marketed at £300,000.
An agent charging 1% plus VAT receives an offer of £285,000. They recommend accepting it, the sale is agreed and everyone moves on to the next transaction.
The agency fee, including VAT, would be £3,420.
After paying the agent, you would retain £281,580 before your other moving costs.
Now imagine another agent charges 1.5% plus VAT but invests more time into the marketing, creates greater competition, follows up every viewing properly and negotiates the buyer up to £300,000.
Their fee, including VAT, would be £5,400.
After paying the agent, you would retain £294,600.
The second agent charges a higher fee but leaves you with an additional £13,020 in your pocket.
Which agent was actually more expensive?
A second example
Imagine your home is worth £250,000.
Agent A charges 1% plus VAT and agrees a sale at £240,000.
After their fee of £2,880, you retain £237,120.
Agent B charges 1.4% plus VAT and achieves £250,000.
After their fee of £4,200, you retain £245,800.
Agent B costs £1,320 more but leaves you £8,680 better off.
This is why homeowners should compare the likely overall outcome—not simply the percentage printed on an agreement.
Why the traditional agency structure can matter
Most homeowners naturally assume that the person negotiating their offer is strongly rewarded for achieving the best possible price.
However, that isn’t always how traditional agency commission structures work.
Imagine an agency charges 1.2% plus VAT to sell a £300,000 home. The fee before VAT would be £3,600.
If the employed negotiator receives 10% of that fee, their personal commission would be £360.
If they agree a sale at £285,000 instead, their commission would be £342.
Negotiating an additional £15,000 for the homeowner may therefore earn that individual only another £18.
That means:
£15,000 more for the homeowner.
£18 more for the negotiator.
These figures are only illustrative, and commission structures vary between businesses. It also doesn’t mean employed agents don’t care. There are some excellent, hardworking agents operating within traditional branches.
The potential problem is the structure surrounding them.
A busy branch may be focused on agreeing the next sale, booking more valuations, reaching monthly targets and moving on to the next buyer.
The commercial pressure can become about getting a deal agreed rather than spending several more days protecting the final £5,000, £10,000 or £15,000 of a homeowner’s equity.
Your agent should protect your equity
An estate agent’s job isn’t simply to place your home online and find someone willing to buy it.
The right agent should:
Position your property correctly within the market Create an effective launch and marketing strategy Present your home to the highest possible standard Generate interest and competition between buyers Qualify buyers before recommending an offer Follow up every viewing properly Negotiate for the strongest possible price and terms Protect your position throughout the transaction Help you achieve the best overall outcome from your move
An additional £5,000, £10,000 or £15,000 could pay your estate agency and legal fees, cover your removal costs, increase the deposit for your next home or reduce the mortgage you need to take with you.
That money makes a genuine difference.
The negotiation shouldn’t stop with your sale
Your selling price is only one side of the equation.
Where possible, I will also help negotiate your onward purchase.
Imagine I achieve an additional £10,000 on the sale of your current property and then help negotiate £7,500 from the price of your next home.
That could improve your overall moving position by £17,500 before allowing for any difference in agency fees.
This is why I regularly tell clients that it isn’t only about the headline price of their sale. It is about the complete financial outcome of their move.
A slightly lower selling price could still work if we negotiate the right amount from an onward purchase. Equally, achieving a premium price could give you more options and greater negotiating strength.
My job is to help you look at the complete picture.
Why I created my own estate agency
I didn’t set up my business after working within a corporate estate agency.
I made the decision after going through the property-selling process myself and realising there had to be a more personal and effective way of doing things.
I wanted greater flexibility for my family and unlimited earning potential, but I also wanted the freedom to give every client and property the time and attention they deserve.
With my personal-agent model, the person who values your home is the person responsible for marketing it.
I conduct the viewings, speak directly with the buyers, negotiate the offers and remain personally involved throughout the journey.
My reputation and business depend upon the quality of the result I deliver—not simply the number of properties placed on an office board.
Your home isn’t just another listing, and an accepted offer isn’t simply another deal completed.
It is probably your biggest financial asset.
Look beyond the percentage
When comparing estate agents, don’t only ask:
“Who charges the lowest fee?”
Ask:
Who has the strongest marketing strategy? Who will personally conduct my viewings? Who will follow up and negotiate with every buyer? Who has the time and motivation to fight for my equity? Who will protect my position after the sale is agreed? Who can also help me negotiate my onward purchase? Who is most likely to leave me with the greatest amount of money?
The cheapest estate agent may save you a few hundred pounds in fees.
But the right agent could leave you thousands of pounds better off.
If you’re considering selling your home in Rotherham or the surrounding areas and would like to understand how the right marketing and negotiation strategy could improve your outcome, please get in touch for a no-obligation conversation.
Daryl Horsfall – Your Personal Estate Agent
All figures are illustrative. Agency fees, salaries, commission structures and individual sale results will vary.