New research suggests that British estate agents charge some of the lowest fees in the world.
Based on an apparent British average of 1.8 per cent commission, the agent from this country is below mid-table when compared with 27 other countries.
Only China, India, Singapore, Netherlands, Hong Kong and South Korea charge proportionately less – between 1.75 and 0.55 per cent.
The highest of the 28 countries reviewed by Rayner Personnel was South Africa, where agents charge no less than 7.5 per cent.
The United States, Australia and Mexico charge from six to five per cent.
“There’s an unfair perception in the UK that estate agents get paid a lot for very little, but when you compare the average commission fee to other nations around the world, it’s clear this simply isn’t the case” explains company owner Joshua Rayner.
“That’s not to say estate agency can’t provide a fulfilling and lucrative career path for those that opt to work in the sector and those that put in the effort will be rewarded with great earning potential” he continues.
His analysis also looks at absolute payments based on the different average prices of properties – in other words, the typically high price of UK property means the actual money earned by UK agents is much higher than those in many other countries.
Rayner applied each nation’s fee to the average cost of a 50 square metre city centre apartment to see how the monetary fee reset the running order.
Based on an apartment costing £219,542, the average UK commission would result in a fee of £3,952, bumping the UK from the 22nd most expensive percentage fee, to the 14th most expensive.
However, the UK was still eclipsed by the earnings per property sale in Argentina, China, Italy, Germany, United States, New Zealand, Canada, Hong Kong, Japan, Singapore, Israel, France and Australia, where agents earn between £4,000 and nearly £13,000 a sale.