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Estate Agent FeesEstate Agents work on behalf of the property owners, who pay a fee for their services, so don’t expect to pay a fee yourself if you are looking to rent or buy in the UK. You can find an Estate Agent before you arrive in the UK by visiting one of their many websites, where you can look at all the available properties and contact them to let them know when you are coming, and what you are looking for. You may find a directory of Estate Agents useful to link you to agents in your chosen part of the country.
Local AgentsAlthough it will save you time to approach a few agents before you arrive, there is no substitute for going to the area where you want to live, and visiting the local Estate Agents on the high street (main shopping/business area). When you walk in they will ask you to register with them, which involves them taking down your contact details, so don’t worry about having to produce any documents at this stage, it’s just an introduction.
Local agents have local knowledge and can usually show you properties that are not being advertised yet, because they are new to the market. It is also a good idea to register with as many as you can, as this will give you much more choice and speed up the process.
Estate Agent AssociationsIn the UK anyone can become an Estate Agent, there are no qualifications necessary. So look for companies that are registered with national associations, such as the National Association of Estate Agents (NAEA) or the Royal Institute of Chartered Surveyors (RICS). Both of these ‘governing bodies’ have a code of conduct that their members agree to follow, so it will help you to trust that the agent you are using will act professionally.
Estate Agents fees are usually quite flexible, but a general rule is that they will charge the property owner between 1.5 – 4% of the selling price for sales, and take around 10% of the rental fee for managing rentals. If you are going to rent you might find some agents will try and charge you a fee (called an ‘application’ or ‘administration’ fee), of up to £300. However, there are lots of rental properties available in the UK, so don’t allow an agent to pressure you into paying, when there is a good chance that just down the road, you will find another one who charges you nothing. Our advice is to “shop around” (approach different agents until you get the best deal for you).
Optional ServicesSome UK Estate Agents may also try and arrange a mortgage for you, if you need one. This can be very helpful but remember, just because you are buying a house through them, it does not mean that you have to take a mortgage with them as-well. Again, shop around and look for the best deal, or get some advice from an independent mortgage broker, it could save you money.
By John Hillman
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| Last Updated ( Wednesday, 27 August 2008 ) |