Estate agent fees are among the first selling costs to consider before putting a property on the market. They can affect your moving budget, your estimated sale proceeds and the level of service you receive from the agent handling the sale.
The phrase sounds simple, but it can cover several things. Some sellers pay a percentage of the final sale price. Others agree on a fixed fee. Some services are included in the estate agency agreement, while others may be charged separately.
The better question is not only “how much are estate agent fees?” It is “what is included, when is payment due, and what happens if the sale does not complete?”
What estate agent fees usually cover
Estate agent fees are the amount you pay an estate agent for marketing and managing the sale of your property. The exact service should be set out in the agreement before marketing begins.
In many cases, the fee may cover:
- Market appraisal and pricing guidance
- Property photography and listing preparation
- Floor plans and measurements
- Online marketing and enquiry handling
- Viewings, where agreed
- Buyer qualification and offer negotiation
- Sales progression after an offer is accepted
The GOV.UK guidance on preparing to sell a home lists estate agent fees as one of the costs sellers may need to budget for, alongside EPC fees, legal fees, removal costs and possible Capital Gains Tax considerations.
A written breakdown is much easier to rely on later than a verbal summary. Before signing, it is sensible to ask what is included, what is optional and whether any charges apply if the property does not sell.
The main types of estate agent fees in 2026
Estate agent fees commonly fall into a few models. None is automatically better than the others. The right arrangement may depend on the property, the service level and the terms being offered.
| Fee type | How it works | What to check |
| Percentage commission | The agent receives a percentage of the final sale price | Whether VAT is included and when the fee becomes payable |
| Fixed fee | You agree on a set price for the service | Whether it is paid upfront, deferred or only on completion |
| Multi-agency fee | More than one agent is instructed | Whether fees are higher, and whether dual fees could apply |
| Optional extras | Additional services are charged separately | Whether photography, floor plans, listings or viewings are included |
The Propertymark guide to estate agent fees explains that commission fees are usually based on the final agreed sale price, while fixed fees are set prices for a specific service. It also advises sellers to check what the fee includes and whether VAT is included.
How percentage estate agent fees are calculated
A percentage fee is calculated against the final sale price. As a simple example, if the agreed fee is 1.5% before VAT and the property sells for £400,000, the fee before VAT would be £6,000.
Where VAT applies at the standard rate, the GOV.UK VAT rates page states that this rate is 20%. Where VAT is added to a £6,000 fee at the standard rate, the VAT amount would be £1,200, bringing the total to £7,200.
Here is a simple illustration:
| Final sale price | 1% plus VAT | 1.5% plus VAT | 2% plus VAT |
| £300,000 | £3,600 | £5,400 | £7,200 |
| £500,000 | £6,000 | £9,000 | £12,000 |
| £750,000 | £9,000 | £13,500 | £18,000 |
These figures are examples only and are not a fee recommendation. Your actual costs will depend on the agreement you sign, the agent’s VAT position, the service included and any separate charges. For legal, financial or tax decisions, speak to the relevant qualified professional.
Why VAT wording matters
VAT can make a noticeable difference to the total amount paid, so sellers should check whether quoted fees are VAT-inclusive.
The ASA guidance on property fees and VAT says percentage selling fees that are subject to VAT should include the total percentage selling fee in quoted advertising where that percentage can be calculated in advance.
In practice, that means a fee described as “1.5% plus VAT” is not the same as a fee described as “1.5% including VAT”. It is a small wording difference with a real cost difference, so it is worth asking the agent to confirm the total in writing.
Other costs that may sit alongside estate agent fees
Estate agent fees are only one part of the selling budget. Some costs are paid to other professionals. Others may be arranged through the agent but charged separately.
Possible additional costs include:
- EPC assessment, if a valid certificate is not already available
- Solicitor or conveyancer fees
- Land registry costs
- Removal costs
- Home preparation or repair work
- Premium marketing upgrades
- Additional photography or video, which was not included
- Referral-linked services, if you choose to use them
GOV.UK guidance on working out your gain when selling your home says certain buying, selling or improvement costs can be deducted in some circumstances, including estate agents’ and solicitors’ fees. Tax treatment depends on the property and the seller’s circumstances, so it should be checked with HMRC or a qualified adviser where relevant.
Contract terms sellers should read carefully
The estate agency agreement is where the important detail sits. Before signing, read the fee section carefully and ask for unclear points to be explained in writing.
Useful questions include:
- Is the fee fixed, commission-based, or both?
- Does the quoted amount include VAT?
- Is anything payable upfront?
- Is the fee only due when the sale completes?
- Is there a tie-in period?
- Is there a withdrawal fee?
- Are marketing upgrades optional or included?
- What happens if you find your own buyer?
- Can another agent be instructed later?
- When does the agent’s entitlement to a fee end?
The wording around sole agency, sole selling rights and “ready, willing and able” purchaser clauses can affect when a fee becomes payable. The Property Ombudsman guidance on ready, willing and able clauses explains why commission-earning terms should be clearly explained at the point of signing to help avoid disputes later.
That does not mean every contract should be viewed with suspicion. The terms are worth reading carefully before you agree.
Are cheaper estate agent fees always better?
A lower fee can be a good value if the service matches your needs. It can also be less helpful if important work is missing or if the agreement does not clearly explain what happens after launch.
When comparing agents, it can help to look at:
- How the valuation is explained
- Whether the marketing suits the property
- What photography and floor plans are included
- How viewings are handled
- How buyer interest is reported
- How offers are assessed
- What happens after an offer is accepted
The lowest fee is not always the clearest value. A distinctive home can often be easier to understand when the marketing explains its character clearly, rather than relying on a basic listing and hoping buyers join the dots.
Our approach to property marketing explains how we think about presentation, communication and how a home is introduced to the market.
Why valuation matters before comparing fees
Estate agent fees are easier to understand when you have a realistic sense of value. A percentage fee on an unrealistic asking price can make comparisons less useful.
For example, a lower fee may look attractive, but it should still be considered alongside the agent’s pricing advice, marketing plan and contract terms. The fee is one part of the decision, not the whole decision.
This is where our property valuation advice can help you begin with a clearer view of value before comparing fee options. If you are preparing to sell, starting with a considered valuation can help you ask better questions about cost, service and next steps.
Estate agent fees in 2026: what sellers should remember
Estate agent fees in 2026 are not just about the percentage on the page. They are about the service included, the contract terms, the timing of payment and the other costs involved in selling.
Before choosing an agent, make sure you understand:
- What the fee includes
- Whether VAT is included
- When the fee becomes payable
- Whether there are upfront or withdrawal charges
- Whether any extras are optional
- How the agent will present and manage the sale
At Elliot & Hill, our focus is on careful property presentation and helping sellers understand the process before the property goes live. If you would like to take the first practical step, you can speak to Elliot & Hill about valuation advice and preparing for sale.
A fee should be clear enough that you know what you are paying for, when you are paying it and what support you can expect in return.
