Estate agents are the professionals who help people with buying and selling their properties. Buying and selling a property is not an easy task. Instead, it requires great care and sufficient information about the property market. No all people have the time and resources to find the required information. Therefore, estate agents come forward to take the responsibility of dealing with all the matters related to the sale and purchase of a particular property.
Now, the question is, do the estate agents charge anything for their services? Well, estate agents are also human and being humans they, too, have many necessities of life. They also want money to cover certain expenses related to the property dealings and obviously to meet their household expenses.
An estate agent charges fees to provide a variety of services. However, some estate agents are specialized in a specific area like selling or letting. It means some estate agents deal with lettings only, while others offer their services in both these areas.
They charge buyers and sellers certain fees in form of commission in return to the facilities they provide throughout the selling or buying term. The whole amount they charge does not go directly into their pockets. Instead, it is spent on various other tasks that we are discussing shortly.
Estate agents’ commissions vary from one estate agent to another. Some estate agents charge more and other charge less depending on their experience and quality of services. Usually, their commission is between 2-3.5% of the price received by selling the property. This percentage is pre-determined. It means the percentage is negotiated and determined before the sale of house. This fee covers all the expenses including preparation of legal documents and other expenses on the verification of the information.
Some estate agents perform the functions of letting agents as well. For this performance, they charge a commission between 7 and 12.5 percent on the total amount of rent received over a year. However, they take the amount on up-front basis. They charge an extra commission of 2 to 3% for the collection of rent on behalf of the property owner.
Lettings agents use a special term “Full Management” to refer to the routine management of the rental property. For this service, they charge a commission of 7 to 12%. Usually, this kind of commission is charged on monthly basis.
Other fees are also charged by the letting agents to renew or extend the tenancy agreement between the landlord and the tenants.