No Sale No Fee Estate Agents

In this blog post we will be looking at what a no sale no fee agent is, why people sell their properties with them and how they compare to online estate agencies.

Alexandra Ventress ★ Digital Content Writer

When it comes to selling your home, the question of how you are going to sell your property is one of the biggest decisions you will need to make. With so many options out there when it comes to estate agencies, from high street agents to hybrid agents, online and even no sale no fee.

But what exactly is a ‘no sale no fee’ agent? And how do they compare to online agents?

In this blog post we will be looking at what a no sale no fee agent is, why people sell their properties with them and how they compare to online estate agencies.

What is a no sale no fee estate agent?

A sale no fee estate agent is exactly what it says on the tin. It is an estate agent who will not charge you any estate agent fees unless they manage to sell your property. With a no sale no fee agent, you pay your agent a percentage of the sale price once you have completed the sale. This is referred to as a commission fee.

No sale no fee is an offer that is often advertised by both local estate agents and online estate agents, however not every agent will offer this. Online estate agencies like Purplebricks offer a fixed upfront fee instead. Whilst this can be cheaper than paying a percentage of the sale price, if your home doesn’t sell in the allocated time, you will still be forced to pay the fees regardless.

Why do people use no sale no fee agents?

One of the big advantages that no sale no fee estate agents offer is that they won’t receive their commission fee until after the property is sold. This will make the agents much more incentivised to sell your property as it gives them all the more motivation to sell.

According to data by ‘Movewise’, estate agents typically only sell 50% of the properties on their books. By only paying after the sale is completed, you will help to reduce your chances of being in that percentage.

What are estate agent fees?

An estate agent fee is the sum of money that you would pay to your estate agent in return for undertaking the sale of your property. It can also be called a ‘commission fee’ and is a percentage of the final sale price which you usually pay upon completion of the sale.

According to information from The Property Buying Company, estate agents charge an average of 1.23%. However, they found that some agents were charging upwards of 3%!

When you enter a contract with an estate agent they should first provide you with ‘pre-contract’ information which includes:

Details of the changes, when you will be required to pay the fees and how much the total will be
Information about what services they offer
A breakdown of charges and expenses
Information about any services they offer which may benefit the estate agent or anyone they know connected to them

Should this information not be sent to you before you enter a contract with the agency then you are able to refuse to pay the fees and the estate agent will be unable to claim payment from you until they take out a court order. If they obtain a court order against you then the court has the power to grant the order for a full or reduced amount. Or they may refuse altogether meaning you don’t pay a penny.

If you pull out from the house sale then you can expect to be charged to cover the costs the agent has incurred. This won’t be commission but they will require payment for the marketing, photographs, and floorplans that may have been created.

Online estate agents vs no sale no fee agents

Online agents offer a different setup to agencies that offer no sale no fee option. Rather than needing to pay a percentage of the final sale price, online estate agents can offer a cheaper upfront payment to sell your property. This can be beneficial as rather than having to conduct viewings on your own, or going without certain services, you are able to have everything a local estate agent would offer but at a reduced price.

Which estate agents offer no sale no fee?

Both online and local estate agencies will offer a no sale no fee service. With so many choices on the high street and online, it can be hard to know where to look when it comes to finding a no sale no fee deal.

Some of the notable online agents who offer a no sale no fee service are Yopa, Strike, eSale UK and 99 homes.

Want to know a little bit about how these agencies and how they work? Read on for our overview below:

Yopa

Yopa is one of the most recognisable estate agents in the no-sale no fee game. Much like a local estate agent would they will cover the selling process for you, drawing up floorplans, marketing your property, and gives you an option between paying upfront or choosing the no sale no fee option.

They have a good reputation however this brings with it a high ‘no sale no fee price’ meaning should you sell your house with them, your final profit may take a hit at the end of the process. They also require you to be tied in with them for 10 months minimum meaning if your property does not sell you will be 10 months further back in your selling process than you wish to be. They also charge extra if you want a yopa agent to visit the property and conduct viewings for you.

Strike

Strike is another well-known agency that prides itself on offering a free service. They will arrange photographs, list your property on property portals, and provide floorplans and for-sale signs.

However you will be left either hosting viewings yourself or pay extra for hosted viewings. They also do not cover all areas of the UK limiting the areas they cover on their website to Newcastle, Leeds, Liverpool, Manchester and Sheffield.

eSaleUK

eSale is an online agency that offers a customisable process, making them an interesting option. However, they require an upfront payment meaning it is not technically no sale no fee. You can go through the website and add the features you wish to use and ‘add’ them to your basket. However, as a result of this, it means that you will be paying should you want your property to be listed on Rightmove, an EPC, or an agent to help with viewings.

The upfront payment that they require is relatively low at £95, however, they have an on-completion charge that comes in at £1,100.

99 Homes

99 homes is another agency that is not technically no sale no fee as they also require a low upfront fee. They offer a range of differently priced packages that offer you different levels of service.

If you go with their most basic package they will advertise your property on Rightmove, PrimeLocation, and Zoopla but it will be up to you to organise the rest. This means that photographs and a ‘for sale’ will end up costing you extra as well will any sales progression you require and negotiation help.

The downside to no sale no fee estate agents

Whilst a no sale no fee agency does have its positives, such as not paying a penny until the house is sold, there is a catch to be had. Many online no sale no fee agencies will often charge a premium fee for the luxury of paying on completion of the house sale. In some cases, no sale no fee online estate agencies have been known to charge double when you use “no sale no fee” in place of the upfront fee.

Below is a graph with data from HomeOwners Alliance that shows the basic up front fee you pay compared with the no sale no fee pricing.

Online estate agent	Basic upfront fee	No sale no fee pricing
Yopa	£999	On request
Strike	0	0
eSale	£595	£1,190
99 Homes	£99	From £799

It is also worth bearing in mind that whilst you won’t have to pay if your property does not sell, there may be a minimum number of months that you are tied into a contract of selling with that particular agency.

This can result in your property sitting stagnant on the open market with no promise that your property will even sell, which is less than ideal if you are looking for a quick sale.

The Property Selling Company

If no sale no fee agents are not your speed, there’s no need to worry as that’s where we come in. Here at The Property Selling company, we believe that a house sale should be three things; fast, effortless, and free.

We offer you a full online estate agent service, without the fees – because it’s our mission to change the way you sell houses.

We will be working alongside you every step of the house selling process, covering everything, so you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there, even after the process is complete.

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, negotiate better deals all for free!

If you are ready to sell your home home in as little as 28 days, then get in touch today and fill out one of our fast, free, no obligation forms for your house valuation today!