When you sell a home, real estate commission, the fee paid to an agent for selling a property, typically a percentage of the sale price. Also known as estate agent fees, it’s one of the biggest costs in selling a house—and most people overpay because they don’t ask questions. In the UK, it’s not set by law, so agents can charge anything from 0.5% to 3.5%. That’s a difference of thousands of pounds on an average home.
It’s not just about the percentage. Some agents push flat-fee brokers, a model where you pay a fixed price instead of a percentage, often used by sellers who want to save money. Also known as fixed-fee estate agents, they’re popular in London and Manchester for lower-value homes. Others bundle services like photography, floor plans, and marketing into their fee. But here’s the catch: a higher fee doesn’t mean a faster sale. A 2023 survey by Property Data showed homes sold by agents charging 1.5% closed just as fast as those with 3% fees. The real difference? How hard they work, not how much they charge.
Agents don’t get paid until the sale completes. That’s good for you—but it also means they’re motivated to get the highest price possible. Still, many don’t tell you they’re allowed to split the commission with another agent if they bring in the buyer. That’s called co-broke commission, when two agents share the fee, one representing the seller and the other the buyer. Also known as buyer’s agent split, it’s standard practice, but you should know it’s happening. If you’re buying, you rarely pay anything. The seller covers the buyer’s agent too. That’s why it’s smart to work with a buyer’s agent even if you’re searching online—they know what listings aren’t advertised yet.
Don’t assume your agent is working for you just because they’re the one showing houses. They’re legally allowed to represent both sides in a deal—called dual agency. It’s legal in the UK, but it creates a conflict. If you’re serious about getting the best deal, ask upfront: "Are you representing me, or are you also working with the buyer?" If they hesitate, find someone else. Your agent should be your advocate, not a middleman.
Some sellers try to cut commission by going solo, but that rarely saves money in the end. Without access to major property portals like Rightmove or Zoopla, your listing won’t get seen. And without experience in negotiation, you might leave £10,000 or more on the table. The best approach? Shop around. Get quotes from three agents. Ask what’s included. Ask how many homes they sold last year. Ask for references. One agent might charge 1.8% but promise a 30-day guaranteed sale. Another charges 2.5% but has a team that does virtual tours and targeted Facebook ads. Compare what you’re actually getting—not just the number.
And if you’re buying? You don’t pay commission. But you still need to know how it works. The agent showing you the house is paid by the seller. That doesn’t mean they’re working for you. If you want someone who puts your interests first, hire a buyer’s agent. Most won’t charge you directly—they get paid from the seller’s commission. But you’ll get better advice, better access, and fewer surprises.
Below, you’ll find real guides on what agents charge in New Zealand, how to negotiate fees, and how to avoid paying too much when selling your home. No theory. Just what works.
