Charging a standard percentage fee of between 1% and 1.5%, agents will pocket between €4,000 and €6,000 for selling an average €400,000 Dublin home — a fee that doesn’t include advertising and other costs.
Nothing has increased in value in Ireland through the past 10 years as much as house prices. And because estate agents have maintained their fee structure as a standard percentage rate throughout that entire period, the same can be said for their charges, which have risen accordingly.
For example, a four-bedroom home in Stillorgan worth €150,000 in 1996 is now worth €1m, an increase of 600%. An agent taking 1% a decade ago, got the equivalent of €1,500; today the same agent gets €10,000, an increase way ahead of the Consumer Price Index.
In contrast, conveyancing solicitors, who used to take a standard 1% cut a decade ago, now take a flat fee of between €1,000 and €2,000. Surveyors also take a flat fee.
So why hand over more than €5,000 for the sale of a pretty average home? Why not just do it all yourself and save the money? Many are doing exactly that with the help of low-cost websites such as Daft.ie. The latest service cashing in on this trend comes from Privateseller.ie, joining established sites 4salebyowner. ie and Propertypromoters.ie.
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So what are the arguments for and against doing it yourself? “It was a painless procedure,” says Molly Kavanagh, who recently sold her home in Athy, Co Kildare, using an online service. “I knew that selling houses wasn’t rocket science and I knew the price I wanted so I decided to put it on Privateseller.ie.
“I took the basic package for €190 and it took five days to sell. I got more than I was looking for and it’s been hassle-free. I fitted the viewings in around my lifestyle instead of having to get out every time a viewing was scheduled by an estate agent.”
Fiona McLaughlin, the entrepreneur behind Privateseller.ie, claims to have been “stung” by estate agents’ fees in the past. Privateseller.ie advocates keeping surveyors and solicitors on board — with their set fees for professional services — but makes the estate agencies walk the plank.
“Houses sell themselves,” claims McLoughlin, who has 300 properties on her books, “all that’s needed is a For Sale board and a website listing — and that’s what we provide for €190 in total. We have add-on services if clients need more support or advice, but our top price would only come in around €390.”
However, Mark O’Leary, who sold his three-bed in Dublin 14 through one of Dublin’s biggest estate agencies, admits paying “over the odds” in fees, but says he would do it all again because they made him more money even after their fee was deducted.
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“To me it’s not so much a matter of whether or not to hire an agent, rather which one to hire. I needed a good one and wasn’t afraid to pay for a service — basically that of a skilled sales person,” he says.
At the time his house was for sale, a number of others were also on the market in the same estate, and one lady was selling her home without an agent. “Her house was still for sale when I moved out,” he points out.
Two more were for sale through cut-price estate agents and he did not feel their service was worthwhile: “The cut-price agents achieved their sales before mine, but I thought they were turning the houses over too quickly without really making an effort.”
“My agent ended up securing almost 10% more for my house within two weeks of those other sales taking place. On top of the extra viewers the agency brought in, they had the savvy to weed out time-wasters and concentrate on the serious parties.
“My house was bought by a seasoned landlord and publican. I have no doubt he would have run rings around me if I hadn’t got my agent on board to do the dealing.”