Letting & Estate Agent Podcast Cheap fee Estate Agents - Ep: 2419
Dec 16, 2025
Simon King, estate agency commentator and advisor, dives into the pitfalls of low fees in the housing market. He reveals that 83% of vendors prefer value over the cheapest agent, challenging the myth that lower prices attract more clients. Simon explains how agents often misjudge vendor priorities and outlines the importance of effective communication and perceived worth. He provides practical advice for agents to enhance their fees while delivering superior service, emphasizing that strategic pricing can build trust and loyalty.
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Value, Not Price, Drives Decisions
- People buy on perceived value, not strictly on price.
- Agents must uncover what each vendor values and match or exceed it.
Most Vendors Don't Seek The Cheapest Fee
- Only about 16–17% of vendors want the cheapest fee according to the Property Academy survey.
- Therefore roughly 83–84% of vendors prioritise value over lowest cost.
Price Yourself Within Market Bandwidth
- Know the marketplace fee range and set your fee accordingly, aiming around 1.5–2%.
- If you undercut that range, ask why you are there and whether you can move up by demonstrating value.