Estate agent fees explained
Percentage, fixed and deferred fees, VAT, minimum and withdrawal fees, with a dated table of published figures.
Estate agents: how to choose one, and what you sign
An estate agent puts your home on the open market and is paid under a contract you agree before any work starts. That contract decides what you owe, when you owe it, and how long you are tied in.
On this page
The short answer
Estate agents sell homes on the open market for a fee set by a contract, so when you compare estate agents, start with that contract. Before you commit, the agent must tell you in writing when the fee is payable, how it is worked out and any other charges.12 The agency type decides whether you could owe two agents.
How to choose an estate agent sets out the questions that draw those terms out before you sign. If you would like to be introduced to one agent that covers your area, how our introductions work explains what you see first.
How a sale through an estate agent works
A sale through an estate agent runs in the same order whichever agent you use. The agent appraises and markets the home, arranges viewings and passes offers to you. Once a sale is agreed, the conveyancers do the legal work up to exchange of contracts, when the sale becomes binding. Completion, when the money moves, comes after. Your conveyancer bills you separately from the agent, and solicitor fees when selling covers that cost.
The agent's fee is earned at the point the contract names, most often exchange or completion, and is usually paid out of the sale proceeds.17 Agents differ in how much of each stage they handle themselves, and in what triggers the fee.
- 01 Appraisal The agent visits and suggests an asking price and a sale method. A suggested price is an opinion, not a valuation of what a buyer will pay.
- 02 Contract You receive written terms: fee, agency type, tie-in and notice. The legal information must come before you are committed.
- 03 Marketing Listing, photographs, floorplan and the material information buyers need.
- 04 Viewings and offers Viewings are arranged or hosted, and offers are passed to you.
- 05 Sale agreed A memorandum of sale goes to both sets of conveyancers.
- 06 Exchange and completion Contracts become binding at exchange. Money moves at completion.
At the appraisal, an agent that belongs to the Property Ombudsman should explain the benefits and disadvantages of the sale method it recommends. The Ombudsman's code, as revised in 2019, sets that expectation.11 If an agent suggests an auction, or a tie-in with a partner buyer, ask for the explanation in writing.
What you sign when you instruct an estate agent
You sign the agent's terms of business, and those terms are the contract. Before you enter it, the agent has to tell you when you must pay and what the fee is, or how it is calculated. It must also tell you what any other payments are and how much they come to. That duty is in section 18 of the Estate Agents Act 1979.1 The 1991 Regulations add that it must be in writing. It should come when you first deal with the agent, or as soon as reasonably practicable, and always before you are committed.2
That matters in pounds. If the agent did not give you the information properly, it can enforce the contract against you only with a court order, and the court can reduce or cancel what you owe.1 Keep the terms you were given, and note the date you received them.
The agent must also tell you about services that it, or a business connected to it, will offer your buyers, such as mortgage advice.2 Referrals work the other way. National Trading Standards' estate agency team has said agents should disclose in writing who they refer you to and the amount of any referral fee paid on your sale.10
Sole agency, sole selling rights and multi-agency
The agency type decides who you pay if someone other than this agent finds the buyer. Under sole agency, the agent is the only one you instruct for a set period. Sole selling rights go further. The agent is paid whoever finds the buyer. A ready, willing and able purchaser clause makes the fee due once the agent produces a buyer who can proceed. Any contract using one of these phrases must print the explanation fixed by the 1991 Regulations, as prominently as its other terms.2
| Term in the contract | When the fee is due | If you find a buyer yourself |
|---|---|---|
| Sole agency | On exchange of unconditional contracts, at any time, with a buyer this agent introduced or negotiated with during the period, or with a buyer introduced by another agent during the period | No fee to this agent under the prescribed meaning |
| Sole selling rights | On exchange of unconditional contracts during the period, whoever found the buyer. Also later, with a buyer introduced or negotiated with during the period | The fee is still due |
| Ready, willing and able purchaser | When the agent introduces a buyer prepared and able to exchange unconditional contracts | Due even if you then withdraw and never exchange |
Source: the Schedule to the 1991 Regulations.3 Multi-agency is not a prescribed term. Its meaning comes from the contract wording.
Multi-agency means instructing several agents at once and paying only the one that sells. It costs more. Which? puts it at 2% to 3.5%, against 1% to 2% for sole agency.16 Rightmove gives 2.5% to 3.6% for multi-agency and 1% to 1.8% for sole agency, including VAT.18 Neither says how its figures were reached, so read them only as ranges. VAT, minimum fees and the other published figures are on estate agent fees explained. Online agents that charge a fixed fee work differently again, and our profiles of Purplebricks and Yopa set out what each charges and when.
Who regulates estate agents, and where do you complain?
Estate agents answer to the Estate Agents Act 1979 and to consumer protection law. A complaint goes to the agent first, then to its redress scheme. A redress scheme is a body that hears complaints against its members, so a seller has somewhere to go short of court. Agents doing residential work have to join an approved one. That duty sits in section 23A of the 1979 Act, added in 2007.4 An agent who breaches it can be banned from estate agency work.5
The rules an estate agent works under
- Information before you commit
- Estate Agents Act 1979, section 181
- Prescribed meanings of agency terms
- Estate Agents (Provision of Information) Regulations 19913
- Redress scheme membership
- Required for residential estate agency work6
- Unfair commercial practices
- Digital Markets, Competition and Consumers Act 2024, Part 4, mostly in force from 6 April 20258
- Material information in listings
- National Trading Standards guidance, Parts A to C, November 20239
The 2024 Act prohibits misleading actions, misleading omissions and aggressive practices. Its list of banned practices includes drip pricing, where compulsory charges appear only after the headline price, and fake reviews.8 For a seller, that reaches the way an agent presents its fee and its sales record.
Listings have their own rules. National Trading Standards' material information guidance sets out what a listing should tell buyers, from price, council tax and tenure to utilities, parking, restrictions and flood risk.9 Expect the agent to ask you for this before marketing starts.
An agent's redress scheme will be The Property Ombudsman or Property Redress. Property Redress says it is approved by government and handles complaints by assessment, mediation and adjudication.7 The agent's terms and website should name its scheme.
What should you check in an estate agent contract before you sign?
Check seven terms in writing before you sign, starting with the fee, the agency type and how long you are tied in. Anything missing should be added in writing, because section 18 makes the written information the basis of what you can be charged.1
| Term | What to look for | Published benchmark |
|---|---|---|
| The fee | A percentage, a fixed fee or a mix, any minimum fee, and whether VAT is included | Propertymark says quotes should include VAT17 |
| The agency type | Sole agency, sole selling rights or multi-agency, with the prescribed wording set out above | Prescribed by the 1991 Regulations |
| The tie-in period | The minimum time you agree to stay with the agent | Which? says six weeks is the shortest typically available, and suggests no longer than eight.16 Propertymark calls four to 12 weeks typical17 |
| Notice | How to end the contract, and how long it runs after you give notice | Two weeks is common, Which? says16 |
| After the contract ends | How long the agent can still claim a fee if a buyer it introduced buys later. Double fees start here, and changing estate agents works through it | Set by each contract |
| Other charges | Withdrawal fees, marketing upgrades, hosted viewings and energy certificates | Some agents charge if you withdraw within a set time17 |
| Referral arrangements | Who the agent will refer you to for conveyancing or mortgages, and what it is paid | National Trading Standards expects written disclosure10 |
How to choose an estate agent
Choose on evidence you can check, and a high suggested price is not evidence. Invite two or three agents to appraise the home, ask each the same questions, and get the answers in writing, since they become the contract terms. None of the questions is unusual. Agents must give you their fee basis and other charges before you commit anyway.1
Before you sign, ask for the shortest tie-in the agent will accept and read the notice clause alongside it. Which? puts the shortest usual tie-in at six weeks and advises against more than eight. Add the two weeks’ notice it calls common, and that is how long a poor choice of agent can hold you.
Haroon Ali Author, The House Desk. Over 11 years in property and renovation To compare estate agents, lay those written answers side by side. The best estate agent for your sale is the one whose terms and record fit it, and a high review score does not settle that comparison.
Questions to ask estate agents when selling
Ask every agent the same seven questions at the appraisal visit, and ask for the evidence behind each answer.
| Ask | Evidence to request | Why it matters |
|---|---|---|
| What is the fee, including VAT, and is there a minimum? | The written terms of business | Section 18 information, given before you commit1 |
| Is this sole agency or sole selling rights, and for how long? | The clause and its prescribed explanation | Decides whether you can owe a fee when someone else finds the buyer3 |
| How did you arrive at the asking price? | The recent local sales it relied on, with addresses and dates | A high suggested price can win the instruction without reflecting the market |
| Who will host viewings and negotiate offers? | A named role, and whether hosted viewings cost extra | Service models differ. See online and high-street agents |
| Which redress scheme are you in? | The scheme name and membership shown in the terms or on the website | Membership is required for residential work6 |
| Who will you refer me to, and are you paid for it? | A written list of referral partners and fees | National Trading Standards expects disclosure10 |
| What material information will you need from me? | The agent's checklist for Parts A to C | Listings must not omit information buyers need9 |
Treat an agent's own statistics with care. Portal and review-site performance figures help only if you can see what they measure and over what period, so ask for the source and date. An average selling time or price achieved is a commercial claim, and the ban on misleading actions applies to it.8 Give less weight to an agent that cannot show its working.
Questions people ask about choosing an estate agent
How do I know if an estate agent is good?
By what it can show you, not by how high it pitches the price. Ask for similar homes it has sold recently, with addresses and dates, and for the local sales behind its suggested asking price. Check which redress scheme it belongs to, and treat any performance figure without a source and a date as a sales claim.
Should I use the estate agent’s recommended solicitor?
Only once you know whether the agent is paid for the referral, and how much. National Trading Standards’ estate agency team expects agents to disclose both in writing. With that figure in hand, you can set the recommended firm’s quote beside one from a conveyancer you found yourself.
Scotland and Northern Ireland
The Estate Agents Act 1979 and the redress scheme duty extend across the UK. The information duty and the agency definitions above therefore apply in Scotland and Northern Ireland too.4 For a seller's plan, the difference that counts is Scotland's Home Report.
Whoever markets a house in Scotland must have a Home Report before it goes on the market.19 It brings together an energy performance certificate, a property questionnaire and a surveyor's inspection report that includes a valuation, and a buyer can ask for a copy.20 Breaching the duty carries a £500 penalty charge.21 So you face an upfront cost before any agent fee, whichever agent you use.
A Scottish sale also moves through different stages from exchange and completion in England and Wales. Check which event triggers the fee in any Scottish agent's terms.
Northern Ireland has no Home Report. The Property Ombudsman's residential code covers England, Wales and Northern Ireland.11
Estate agent guides
Changing estate agents
A contract checklist for switching: tie-ins, notice, and the introduction clause that can mean two fees on one sale.
Online and high-street estate agents
When each model takes payment, what each includes, and total cost worked from published prices.
The cost of selling a house
Agent, legal, mortgage and moving costs added together, with your own figures.
Why is my house not selling?
What to check before you change the price or the agent.
Ways to sell your home
Agent, auction room and direct buyer, each put to the same questions.
Work out a quote on your price with the estate agent fees calculator, and check when you could switch with the tie-in and notice checker. If the sale has stalled, the house not selling check finds where.
Is an estate agent the right route for you?
The same three questions for each route: what it fixes, what it leaves open, and what to check first.
Not sure which fits? Answer three questions and we will suggest one.
Estate agent
Open-market exposure and usually the widest pool of buyers. The price is set by offers, and the date depends on the buyer and the chain.
- Fixes
- The fee basis, in writing, before you commit
- Leaves open
- Price, timing, whether the chain holds
- Check first
- Agency type, tie-in, notice, fee with VAT
Property auction
Bidders compete on a timetable the auctioneer sets and, in a traditional auction, the winner is bound when the hammer falls. Suits properties that attract bidders.
- Fixes
- The date
- Leaves open
- The price achieved above the reserve
- Check first
- Seller fees and the auction method
House-buying company
A direct buyer offering speed and fewer parties. You trade part of the price for certainty, and offers can change after survey.
- Fixes
- Fewer links in the chain
- Leaves open
- The final price after inspection
- Check first
- The company behind the brand and its HMRC registration
Find the route that fits you
Three questions, about 30 seconds. Your answers stay in your browser.
Question 1 of 3
Your best fit
What you give up:
Why this route
Close second: Property auction.
Selling in Scotland works differently, with a Home Report and offers over a closing date. The guides note where Scottish rules differ.
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Sources
(21)
Numbers in the text link to these. Each was read on the date shown. How we research
- Estate Agents Act 1979, section 18: information to clients of estate agents
- Estate Agents (Provision of Information) Regulations 1991, regulations 2 to 6
- Estate Agents (Provision of Information) Regulations 1991, Schedule: explanation of certain terms
- Estate Agents Act 1979, section 23A: redress schemes
- Consumers, Estate Agents and Redress Act 2007, section 53: membership of redress schemes
- Who needs to join
- Property Redress
- Digital Markets, Competition and Consumers Act 2024, Part 4 Chapter 1: unfair commercial practices
- Full material information guidance published
- NTSELAT referral fees guidance
- The Property Ombudsman issues revised Codes of Practice
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, regulation 5
- Consumer Contracts Regulations 2013, regulations 29 to 34: right to cancel
- Consumer Contracts Regulations 2013, regulation 36: services supplied during the cancellation period
- Home buying and selling reform roadmap
- Estate agent fees and contracts
- Estate agent fees for selling your house
- How much are estate agent fees and how do they work?
- Housing (Scotland) Act 2006, section 98: duty to have prescribed documents
- Home Report
- Housing (Scotland) Act 2006 (Penalty Charge) Regulations 2007, regulation 2