A global comparison of estate agency fees has placed London at the bottom of the table for commission earned per property sale.
Analysis by AgentWise found that London agents earn an estimated £9,963 per sale. This is based on an average fee of around 1.7% – with fees in the capital typically ranging from 1% to 3.5% plus VAT – and an average 80 square metre property price of £586,050.
The earnings figure placed the capital behind cities including Dubai (£9,993) and Toronto (£10,018), and significantly below European and US counterparts.
Paris topped the rankings, where agents typically charge around 5.5%, generating an average commission of £36,847 on a property worth £669,950.
New York ranked second, with an effective commission of 2.8% – after fees are split between buying and selling agents – equating to £25,824 per transaction based on average prices of £922,282.
Singapore followed in third place, with agents earning an estimated £22,515 per sale, while Berlin (£18,618), Madrid (£15,692), Hong Kong (£12,430) and Milan (£11,524) also recorded higher average commissions than London.
AgentWise said the data suggests London agents provide comparatively strong value when measured against international peers, given the level of service and regulatory requirements in the market.
Eric Corsaletti, founder of AgentWise, said: “Agent fees in London can vary widely, particularly when it comes to the prime thresholds of the capital, but this research shows clearly that London agents earn comparatively modest commissions per transaction when set against other major global cities.
“When you consider the quality of service, regulatory requirements and competitive pressures that London agents operate under, it’s fair to say that they arguably add the most value when you consider the fees charged versus other global markets.
“Yet the prevailing perception amongst London’s home sellers is that estate agency fees are high, despite the fact that they pay considerably less compared to their international counterparts in many other global cities.”
Read the orginal article: https://propertyindustryeye.com/london-estate-agent-commissions-rank-lowest-in-global-study/?utm_source=rss&utm_medium=rss&utm_campaign=london-estate-agent-commissions-rank-lowest-in-global-study
