Chiswick homeowners can expect to pay more to sell their property as Foxtons join the growing list of estate agents that admit to raising fees amid falling property prices.
Foxtons has increased its sole agency fee to two and a half percent + VAT. On a £1million sale that means £29,375 (inc VAT) to Foxtons compared to £7,050 (inc VAT) to OliverFinn. This will no doubt boost Foxtons earnings, but will do nothing to help local people during this difficult time in the housing market.
Although W4 property prices have held a relatively steady course, the average UK home has dropped in value since last summer according to figures published by national institutions including the Council of Mortgage Lenders, Nationwide, Rightmove and Hometrack, the property research company.
Christian Harper of OliverFinn promises that the flat fee system that characterises OliverFinn will hold firm: “Many homeowers are keen to secure buyers in order to be in a strong position to purchase. It is a shame that many agents are appearing to take advantage by taking larger commissions during a time when every pound makes a difference to peoples' budgets.
Not rocket science
"We have seen a dramatic increase in our market share as clients realise that estate agency isn’t rocket science and one agent is usually the same as another apart from the fees. This increase makes OliverFinn even more competitive in comparison”.
The National Association of Estate Agents (NAEA), said it would be uncompetitive for estate agents to increase their rates. Chris Brown, president: "As we are all aware, the market at present is competitive, so it would not make sense for agents to raise their fees significantly as at the end of the day they need to compete with each other to secure business.
Harper concludes: “I am really surprised at the decision but Foxtons is no fool when it comes to making money. I think it may well have stepped off the gangplank with this decision though.”
