Compared to 2019, people selling their home in the North West are paying 21% more for administration fees from their estate agent, and that looks set to continue, according to Open Property Group.
The rise in fees coincides with the surge in house prices, which continued to rise in June. Five years ago, the average house price stood at £230,612. That figure in 2024 is just over £280,000.
With estate agents taking a 1.53% cut of that sale, the estimated cost for home sellers was around £3,500.
However, this hit homes hardest in cities including Manchester and Liverpool, where house prices have shot up to an average of £214,592, when they were previously priced at £164,419. Therefore, the fees charged by estate agents rose to £3,047 from £2,516 in five years.
While the percentage estate agents take on average has slipped to 1.42%, the overall cost has shot up to reach nearly £4,000 (£3,980). This represents an average in the UK of 12.8%.
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But, in Yorkshire and the Humber, Wales and Northern Ireland, this stands at 16%, 19% and 20% respectively.
‘People don’t realise cost of selling a home’
Jason Harris-Cohen, CEO of Open Property Group, said: “A lot of people don’t realise how much it costs to sell a home. Agency fees, which amount to thousands of pounds, are just one of many outgoings that sellers endure, and the longer your property sits on the market waiting for a buyer, the more the costs go up.
“This is because you’re having to pay mortgage costs, insurance bills, utilities, and so on while you remain the owner of the property.
“But by taking the quick sale option, you are able to bypass all of these expenses. There is no agent involved, so there’s no fees. And the sale processes incredibly quickly, which means you’re not paying to run the property while waiting months and months for a seller.”
Harris-Cohen added: “After a couple of stagnant years, it looks like the UK market is going to pick back up in the second half of 2024, which means house prices will rise pulling agency fees up with them. Sellers should consider going down the quick sale route instead, avoiding all of the covert costs associated with the open market, and getting the transaction completed in a fraction of the time.”
