Selling guide
Estate Agent Fees Explained: Contracts, VAT and Hidden Costs
Estate agents charge either a percentage of the agreed sale price or a fixed amount, depending on their contract. Compare the total including VAT, marketing and viewings included, payment trigger, contract length, exclusivity or sole-selling-rights clauses and whether you could owe two agents. For example, 1.2% including VAT on a £300,000 sale is £3,600.
Applies to: Primarily England and Wales; read your specific agency agreement and obtain legal advice if unclear.
What an estate agent fee pays for
Agents may charge a percentage of the completed sale price or a fixed amount, with packages varying in photography, marketing, viewings, negotiation and sales progression. Find out whether VAT is already included in the figure you are comparing. A small difference in percentage may matter considerably on a higher-value home.
Compare the complete written fee and scope rather than the percentage alone. Ask when it becomes payable, whether the fee changes with the agreed sale price and if any extras are required or optional.
Practical checklist
- Get written examples including VAT.
- Ask what is included and what is an add-on.
- Confirm the payment trigger.
Understand exclusivity and multiple-fee risks
Contracts may refer to sole agency, sole selling rights, ready/willing/able buyers and periods of exclusivity. The wording matters: you could incur costs in situations that are not obvious from the headline marketing pitch. Instructing more than one agent can create risks of overlapping claims.
Read notice periods, withdrawal fees and what happens if a buyer introduced during the contract later completes. Never rely on a sales representative's verbal explanation when the signed terms say something different.
Practical checklist
- Read exclusivity and withdrawal clauses.
- Ask about overlapping agents and introductions.
- Keep a copy of the signed agreement.
Check referrals and extras
An agent may recommend a conveyancer, broker, surveyor or other supplier, but you are not obliged to accept that recommendation. Ask whether the agent receives a referral payment and whether the quoted service is competitively priced.
Consider property photos, floorplans, portals, EPC arrangements and any auction or online listing packages separately. Record charges for work you have not explicitly ordered.
Practical checklist
- Ask about referral arrangements.
- Compare independent conveyancing quotes.
- Request an itemised fee summary.
When a sale completes
Check the agency invoice against the agreed contract, any documented renegotiations and the price achieved. Confirm with your conveyancer how the bill will be settled from sale proceeds and which fees remain payable if the transaction falls through.
If there is disagreement, raise the specific clause and invoice item in writing. Keep a record of instruction dates, viewing introductions and any additional arrangements.
Practical checklist
- Reconcile the final invoice.
- Keep correspondence and payment records.
What to read next
Continue with the most relevant next step, or explore the selling journey.
References and further reading
These are the original legal, regulatory and professional sources used to inform this article. MMG explains the key steps above so you do not have to follow external links to find the answer. Circumstances and UK jurisdiction can affect the rules, especially for legal or financial decisions.
- GOV.UK: Selling a home — estate agents(opens in a new tab)
- GOV.UK: Selling a home(opens in a new tab)
My Move Guide publishes general information, not personalised legal, tax, mortgage or financial advice. Estimates and requirements differ by location and circumstances.