How much are estate agent fees and how do they work?

In summary: 

• Know what you’re paying for – Estate agent fees vary depending on the agreement and service level, so it’s important to understand exactly what’s included. 

• Payment is usually made after keys have changed hands – Fees are usually due on completion and are often handled directly by your solicitor, so you don’t have to pay separately. 

• Value over cost – The cheapest fee isn’t always the best deal; a good agent can often achieve a higher sale price that more than covers their commission, as well as making the process run more smoothly 

When you’re selling your home, estate agent fees are an important part of the process. Knowing how they work, when they’re due, and what you’ll get in return makes it easier to plan ahead and feel confident in your decisions. 

Whether it’s your first sale or you’ve been through it before, the way fees are structured can sometimes feel a little confusing. From percentage rates to fixed fees, sole agency agreements to multi-agency contracts, there’s a lot of terminology to get familiar with. This guide takes you through the essentials so you’ll know exactly what to expect. 

Understanding what estate agents charge 

Estate agent fees in the UK vary depending on the service you choose, the type of agreement, and the market you’re selling in. On average in 2025, sellers pay around 1.3% including VAT. For a home worth £275,000, that works out at about £3,600. 

That’s just an average, though – some fees are lower, others higher. It all comes down to the agent, the agreement you sign, and how the property is marketed. 

Percentage-based commission 

The most common approach is a percentage of the sale price. For a sole agency agreement (where you use just one agent), traditional high street agents usually charge between 1% and 1.8%, but this can be as much as 2.5%. If you go with multiple agents competing to find a buyer, the fee is usually higher – between 2.5% and 3.6% – though you’d only ever pay the fee to the agent who sold your home. 

The benefit of commission-based fees is that you only pay once your sale has completed. 

Fixed fees 

Some agents, especially online agents, offer fixed-fee packages – typically between £500 and £1,500, depending on the service. These often need to be paid upfront, and the agent will keep the fee even if the property doesn’t sell. Others offer “pay on completion” options, though these can cost a bit more. 

When and how agents are paid 

In most cases, your conveyancer will handle the invoice and deduct the fee from the proceeds of your sale once it completes – so there’s no need to pay your estate agent separately. 

Do check your contract carefully though. Some agreements state that fees become due at exchange of contracts rather than completion, which can make a difference in rare cases. 

Free or paid valuations? 

Estate agent valuations are free, as they’re part of the agent’s service they provide when you’re deciding who to instruct to sell your home. You’re under no obligation to proceed after receiving one, and it’s a good idea to get a few to compare approaches and marketing plans. 

For more formal valuations (such as for tax, insurance or legal purposes), you’ll need a RICS surveyor, and those typically cost £200–£600 depending on your property.  

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Who pays estate agent fees? 

In the UK, it’s the seller who pays the estate agent. The buyer covers other costs like surveys, mortgage fees, and conveyancing fees. 

Types of agreements 

• Sole agency: You appoint one agent, and they’re only paid if they find the buyer. 

• Sole selling rights: You appoint one agent, and they’re paid even if you find the buyer yourself. 

• Multi-agency: Several agents compete to find a buyer, but the fees are higher. 

Getting the best value 

It’s worth noting that the lowest fee isn’t necessarily the best value – an agent that charges a higher fee might achieve a selling price that more than covers their fee, when compared to a lower-priced agent. And often it can be worth paying extra for an agent that can help keep your sale on track while everyone moves through the conveyancing process, especially if you’re in a chain.  

Our property expert, Colleen Babcock, says: “A good estate agent brings much more to the table than just finding a buyer. They handle viewings, negotiate the best price, and chase the often many parties involved in the transaction to get your sale over the line – such as conveyancers, lenders and other estate agents. The right agent can save you time, reduce stress, and in many cases, secure a stronger final sale price if you’re selling your home.” 

Tips when choosing an estate agent: 

Picking the right agent is one of the biggest decisions you’ll make when selling your home. It’s worth asking questions like: 

• What’s included in your fee? 

• Where will my property be advertised? 

• What’s your track record selling homes in this area? 

• How long does it typically take you to sell homes like mine? 

• What support do you offer after my property is sold subject to contract? 

The more you know up front, the easier it is to choose an agent who’ll give you confidence in the process. Some practical tips while you’re researching estate agents in your local area:

• Get at least three quotes to compare. 

• Talk to a mix of local independents and bigger chains. 

• Ask about sliding-scale fees that reward a higher sale price. 

• Always check what’s included in the fee (such as VAT, photography, floorplans and marketing extras) so you don’t run into surprises later. 

Conclusion

Estate agent fees don’t have to feel complicated. By understanding how they work, when they’re due, and what you should expect in return, you’ll be in a strong position to get the best value and service. And remember: it’s not just about cost – the right agent can often make a seller more money overall by securing a higher sale price, as well as keeping your move on track. 

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