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    Choosing an Estate Agent or Realtor: Fees, Contracts and Valuations
    Guides
    16 September 20269 min read

    Choosing an Estate Agent or Realtor: Fees, Contracts and Valuations

    The highest valuation is rarely the best agent. Here is how fees work and which contract terms cost sellers the most.

    M

    The Marketit editorial team

    Specialists in the service industry

    Published: 16/09/2026Last updated: 16 September 2026

    Summary

    • UK fees run 0.75–2.5% plus VAT; US commission is commonly 4–6%.
    • Judge valuations against three comparable sold prices.
    • Negotiate an eight-week tie-in and short notice period.
    • Remove ready, willing and able purchaser clauses.
    • Ask who conducts viewings and how buyers are financially qualified.

    Quick answer

    In the UK, high-street estate agents charge 0.75–2.5% of the sale price plus VAT, with online agents charging a fixed £900–2,500. In the US, total realtor commission is commonly 4–6%, though commission arrangements have become more negotiable and are now agreed separately with buyer and seller representation.

    Fee structures

    | Model | Typical cost | Notes |

    |---|---|---|

    | UK sole agency | 0.75–1.75% + VAT | Most common |

    | UK multi-agency | 2–3% + VAT | Higher fee, wider exposure |

    | UK online / fixed fee | £900–2,500 | Often payable whether or not you sell |

    | US listing side | 2–3% | Negotiable |

    | US buyer side | 2–3% | Now negotiated separately |

    | Photography / floor plan | Usually included | Confirm in writing |

    | Premium portal listing | $150–600 / £100–500 | Optional add-on |

    On a mid-priced home, the difference between 1% and 1.5% is real money — but a weak agent costing 1% who sells for less than the market will cost more than the saving.

    Reading a valuation

    Ask each agent for three comparable sold prices in the last six months, not asking prices. Sold data is public in both markets. An agent whose valuation sits well above the comparables is buying your instruction and will ask for a price reduction in six weeks, by which time your listing is stale.

    Ask directly: what would you price it at for a sale within eight weeks, and what would you price it at to test the market?

    Contract terms that matter

  1. Tie-in period. Twelve to sixteen weeks is common in the UK; aim for eight. In the US, negotiate the listing agreement length.
  2. Notice period after the tie-in ends — two weeks is reasonable, four is not.
  3. "Ready, willing and able purchaser" clauses, which can make a fee payable even if you withdraw. Ask for them to be removed.
  4. Post-contract liability, where a fee is due if a buyer introduced by the agent buys later. Limit the window.
  5. Withdrawal fees and marketing costs if you take the property off the market.
  6. Whether the fee is inclusive of VAT — quotes are often given excluding it.
  7. Questions to ask at the valuation

  8. How many properties like mine have you sold in the last year, and at what percentage of asking price?
  9. Who conducts the viewings — you or an assistant?
  10. How quickly do you provide feedback after viewings?
  11. How do you qualify buyers' finances before accepting an offer?
  12. What is your fall-through rate and what do you do to prevent it?
  13. Summary

    Compare fee, contract length and sold evidence together, not the valuation alone. Aim for a shorter tie-in, remove ready-willing-and-able clauses, confirm VAT, and choose the agent who can show comparable sales close to the price they are quoting you.

    Frequently asked questions

    estate agent
    realtor
    property
    selling