Estate agency fees slump to 1% as costs skyrocket, warns industry expert
Christopher Watkin challenges agents to raise their game as the average fee reaches a lowly figure in the face of intense competition.
Estate agent fees have slumped to an average of just 1% despite costs ‘skyrocketing’, according to property industry stats guru Christopher Watkin (main picture).
Down from 1.6% around 20 years ago, it now appears that agents are having to get by on a much smaller slice of the house sale pie.
Amount drops
“Despite a significant increase in house prices, the amount paid to estate agents has dropped. Meanwhile, costs have skyrocketed. Staff wages have soared. Twice as many estate agents out there,” Watkin says in a LinkedIn post.
The 1% average fee now charged is based on figures from the Property Academy, Watkin told The Negotiator.
And the fees charged by Rightmove have risen from an average of £183 per month in 2006 to £1,520pm currently, he says.
It’s your responsibility to do something about it.”
“Something needs to change. The only person who can change it is the person looking in your mirror,” he tells agents.
“This isn’t Rightmove’s fault. It’s not even Purplebricks’ fault (fees had already dropped to 1.2% in 2014 when the Bruces started PB)
“This isn’t your fault. Yet, it’s your responsibility to do something about it,” Watkin says.
“My message to estate agents: Your estate agency fees reflect your self-worth. Deliver unmatched exceptional value.”
Price rises
Last year, research by the Open Property Group revealed that while the average estate agency commission had sunk to 1.4% house price rises had pushed the average commission income from £3,528 to £3,900 over the previous five years.
