1/3, 1/3, 1/3
I’m going to share a lot of information, insight and ideas in my presentation at the EA Masters on 22nd September and much of this is based on four surveys we’ve carried out especially for this incredible event.
One area we looked at specifically was estate agency fees and having asked 5,838 current and recent home sellers, I feel confident to suggest that our data is the most accurate and current that you can access today. In simple terms, you can break things down into three thirds.
1/3 pay more than 1%. 1/3 pay less than 1%. And 1/3 pay 1%. The average fee is now, as near as damn it, 1%.
And as if this isn’t concerning enough there’s a worrying trend – the fees are going even lower. Those currently selling are paying less in % terms than those who have sold within the last 12 months. This confirms data Stephen Hayter of My Home Move shared with me that estate agent fees fall between 0.1% and 0.15% every twelve months. On that basis, in the first quarter of 2019, the average fee could be as low as 0.75%.
This cannot continue unless the industry is prepared to experience even greater levels of change than those of the last few years. The principle costs of people and marketing are not decreasing, indeed the opposite, so whilst a small saving can be achieved by leaving the High Street and working from a conventional office, home or going “hybrid” this isn’t enough to compensate for the reduction in fees. So what can be done? At the EA Masters on 22nd September I, together with some world class speakers and industry leaders and legends, will share our ideas on how to compete effectively in today’s market. There are just 50 tickets remaining at the time of writing so book now here
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