Commercial Property

If you are selling remember to budget for your estate agents fee. The amount will vary a little from agent to agent but more from area to area. In the North of England it could be as low as 1%. In central London it may be 3.5%. In most of London and the South East 2% to 3% seems to be normal. Remember to add VAT at 17.5%.

Don't assume the cheapest agent will be the best value. It's better to pay a good agent 2.5% and get the best price than pay an inexperienced agent 1% and end up selling your home for less than it's worth.

A sole agent or multiple agents. If you use one agent only he or she will probably offer you a slightly lower commission rate. After all, they know they will have a good chance of earning their fee. If you instruct several agents, only the one who eventually finds the buyer will get paid. To cover the risk of doing a lot of work and then receiving nothing multiple agents will usually ask to be paid a slightly higher percentage commission if they are successful.

Using several agents may give you exposure to a wider range of potential buyers. But it's just as likely that most people looking for a property in a specific area will have signed on to the mailing lists of every agent in that area.

In the end the most important thing is to use a reputable company with local experience. They are more likely to have good quality applicants and to vet prospective buyers properly.

• Find out how the property will be marketed and whether the agent regularly uses the local press.
• Does the agent have a website, which could feature your property?
• Will the particulars be prepared with colour photographs?
• Will the agent agree to place your property in their window?
• Viewing arrangements. Ensure you give clear instructions to the agent regarding viewing times and accessibility. If you leave a key to the property ensure that the agent will accompany any viewers.
• Supply telephone numbers where they can contact you or at least leave a message you can be certain of getting.
• When signing an agency agreement make sure you understand any "tie in" clauses. Most agents offering a sole agency rate will ask for a minimum period, probably eight weeks, in which only they can offer the property on your behalf and will hold you to that. Most will want written notice from you should you decide to instruct other agents after that period.
• Speak to several agents to get an idea of the value of your property. Although it is tempting to place your property with the agent that suggests the highest price this is not always the best option especially if finding a buyer quickly is important. If your property is overvalued you may not receive any offers until you eventually lower the price to a more realistic level.