Think UK estate agents charge a lot? Aussie agents bag £10k+ per sale

The cost of selling a home in the UK is relatively cheap compared to some other countries..

The latest research by estate agent comparison site, GetAgent.co.uk, has revealed that despite what we might think about estate agent fees in the UK, the cost of selling a home is pretty palatable when compared to some other global housing markets. GetAgent analysed the average estate agent fee including VAT across a number of major cities around the world to see how the UK ranked against the rest.

In terms of the percentage charged in commission, the UK is actually home to one of the lowest at 1.57% on average. In fact, just Singapore (1.5%), the Netherlands (1.5%), Ireland (1.5%), Hong Kong (1%) and South Korea (0.55%) came in lower.

In contrast, Mexico and South Africa were home to the highest cost of selling at a giddy 7.5% commission on the value of a home. Australia also ranked high at 5.7%, with the US (5.5%), Canada and Brazil (5%) also coming in at 5% or more.

Of course, the percentage of commission charged is just one aspect and the value of a property can also play a big part in how high the fee actually is. So GetAgent also looked at the average cost of selling the same sized property (flat) in a city centre across each nation to see how the price of property impacted the estate agent fee rankings.

With the higher price of property in the UK, the average fee comes in at £2,935 pushing the UK up the table, but only to number 15. The most expensive place to sell a home? Australia, where the average 5.7% estate agent fee equates to an eye-watering £10,8666. Hong Kong also placed high, with the average fee coming to £9,908, with France (£8,562) and Singapore (£8,230) also home to a fee of over £8,000.

A further 10 nations also came in more expensive than the UK including Japan, Canada, New Zealand, the US, Germany, Israel, Spain, China, Italy and South Africa.

Founder and CEO of GetAgent.co.uk, Colby Short, commented:

“UK estate agents have previously come under fire for charging high commission fees that many homesellers felt were somewhat unjustified. But if you think fees are high in the UK, you should thank your lucky stars you’re not selling in Australia, Hong Kong or France. While the cost of selling a home can still be fairly considerable in the UK, there seems to have been a change in home seller sentiment towards estate agents and their fee structure in recent times. This has undoubtedly been driven by the online, fixed-fee model and the poor customer experience that many have had with these DIY agents. Home sellers have now realised you really do get what you pay for and when it comes to the most expensive asset you’re ever likely to own, it’s not worth cutting costs.”

NationAverage est agent commissionCost of property equivalent to average UK flatAverage fee based on property price and commission %
Australia5.70%£190,628£10,866
Hong Kong1.00%£990,797£9,908
France4.20%£203,851£8,562
Singapore1.50%£548,647£8,230
Japan3.08%£259,143£7,982
Canada5.00%£145,847£7,292
New Zealand4.30%£155,659£6,693
United States5.50%£109,455£6,020
Germany2.98%£189,949£5,660
Israel2.00%£224,042£4,481
Spain4.00%£108,595£4,344
China1.75%£239,702£4,195
Italy3.36%£117,199£3,938
South Africa7.50%£39,313£2,948
United Kingdom1.57%£186,966£2,935
Mexico7.50%£36,618£2,746
South Korea0.55%£498,366£2,741
United Arab Emirates3.00%£89,200£2,676
Argentina3.33%£75,216£2,505
Netherlands1.50%£153,815£2,307
Ireland1.50%£145,139£2,177
Brazil5.00%£41,465£2,073
Indonesia4.00%£51,801£2,072
Russia4.00%£37,480£1,499
Morocco3.00%£48,090£1,443
Egypt3.03%£23,100£699
Turkey3.00%£22,484£675
India1.69%£38,648£653
Nigeria2.00%£19,156£383
SourcesGlobal Property Guide and the AdvisoryBased on the average cost per sq m of a city centre property in each nation x the average size of a UK flat at 43 sq m (ONS)
    

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