Mortgages: Drive the cost of estate agent fees down

Richard Catlin
21 January 2009

Latest house price figures show that UK house prices fell to their lowest levels since November 2006 - with the average cost of a home tumbling to under £200,000.

The actual number of completed sales also dropped further at the back end of 2008 - through a combination of the depressed market and the relative lack of mortgage lending. This week saw yet another intervention by the Government, aimed at support ailing banks and getting the flow of lending going again.

Despite house prices falling consistently - and with no signs that the trend will stop any time soon - homeowners are also faced with having to pay more fees when selling. Because estate agents make money by taking a percentage of the value of the house - typically 1-1.5%, the drop in both the selling price of houses and the number changing hands has hit their profits hard. As a result, some agents have increased fees to as much as 2.5% to cover costs.

The introduction of Home Information Packs (HIPs) has also added an unwanted complexity and cost to selling your home.

A new online service can help you ensure that you pay as little as possible when you are looking to sell your home EstateAgencyFeesDirect.com allows people to compare the overall cost of estate agents in their local area to find out which agency is cheapest when taking into account both estate agency commission and HIP fees.

With over 14,000 UK estate agents to choose from, there's a good chance that house sellers will be able to make savings by comparing the offers available to them rather than choosing an estate agent at random. The website is completely free and easy to use, and saves time as well as money.

Remember, you can check the average house prices in any area, based on the actual price they have sold for using our free Check your Postcode Service. You'll also be able to check how each area is rated in terms of social class and credit ratings, and even what the weather is like today.

Click here to check any postcode for free instantly.

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