Estate agent fees explained: what you pay and why
Estate agent fees are usually charged as a percentage of the final selling price, but what you pay depends on the agreement you sign and any
4 min read · Updated 9 August 2026 · By Dwellmark Editorial
Estate agent fees are usually charged as a percentage of the final selling price, but what you pay depends on the agreement you sign and any extra costs in the contract. The points below set out the main fee structures and complaint routes based only on the facts provided here.
How estate agent fees work
Most estate agents calculate their fee as a percentage of the final selling price, with commission said to range from less than 1% to 3.5%. The agent must confirm the charges and commission rate in writing when they agree to act for you. It is also worth checking whether advertising, property details, photographs, the for-sale board and VAT are included, because these can be extra. If you pull out of a sale or change agents, the contract may still require you to cover costs the agent has already incurred, such as advertising.
Sole agency vs sole selling rights
These terms matter because they affect when commission is due. With sole selling rights, the agent has the exclusive right to sell your home, so you still pay commission even if you find the buyer yourself. With a sole agency, you use one agent but do not pay commission if you find the buyer yourself, and the terms must be explained in writing. A sole agency lasts for the fixed period in the contract, and using another agent before that ends can break the contract and may mean paying commission to both agents.
Joint and multiple agency
With joint agency, the agents share the commission and the rate is usually higher. With multiple agency, only the agent who sells the property is entitled to commission, again at a rate that is usually higher. The key difference is whether the commission is shared or paid only to the successful agent.
Redress if things go wrong
All residential estate agents must belong to a government-approved redress scheme: The Property Ombudsman or the Property Redress Scheme. The supplied guidance says an agent can be fined up to £5,000 for not joining. If the agent cannot sort out a problem, you can complain to the scheme they belong to, but you should raise the complaint in writing with the agent first.
Tender-process sales
In a tender-process sale, the buyer pays the agent’s commission fee, while the seller pays only a small marketing fee or nothing at all. That makes it a different fee model from the more common commission charged to the seller.
Key facts
| Fact | Status |
|---|---|
| Most estate agents calculate their fees as a percentage of the final selling price; this can vary from less than 1% to 3.5% (the rate of com | unverified |
| The estate agent must confirm the charges and rate of commission in writing when they agree to act for you. | unverified |
| Check whether the fee includes advertising costs, preparing details and photographs, the for-sale board and VAT - these can be extra. | unverified |
| Sole selling rights means the estate agent has the exclusive right to sell your home and you still pay commission even if you find the buyer | unverified |
| With a sole agency you use one agent, but you do not pay commission if you find the buyer yourself; the terms must be explained in writing. | unverified |
| With joint agency the agents share the commission and the rate is usually higher; with multiple agency only the agent who sells the property | unverified |
| A sole agency runs for the fixed period stated in the contract; using another agent before that period ends breaks the contract and may mean | unverified |
| If you pull out of a sale or change agents, you may still have to pay charges for costs the agent has already incurred, such as advertising, | unverified |
| All residential estate agents must join a government-approved redress scheme (The Property Ombudsman or the Property Redress Scheme); you ca | unverified |
| If an estate agent cannot sort out a problem, you can complain to the scheme the agent belongs to; raise the complaint in writing first. | unverified |
| In a tender-process sale the buyer pays the agents commission fee, and the seller pays only a small marketing fee or none at all. | unverified |
Source: Citizens Advice - Selling a home — Guidance checked August 2026
Source: Citizens Advice - Selling a home — Guidance checked August 2026
Source: Citizens Advice - Selling a home — Guidance checked August 2026
Source: Citizens Advice - Selling a home — Guidance checked August 2026
Information and review status
This article provides general information only and is not professional advice. It was last reviewed and updated on 2026-08-09 using the sources cited in this article. Unless expressly stated otherwise, it has not been independently reviewed by a suitably qualified external professional. Laws, regulations, guidance, prices and market conditions can change, so you should verify information relevant to your circumstances before relying on it.Generated from dossier estate-agent-fees-explained. Review before publishing.
Related guideContinue reading the cost of selling guide.Related guideContinue reading the property chains guide.Browse all guidesReturn to the full guide index.
Sources
- Citizens Advice - Selling a home - Guidance checked August 2026
- Citizens Advice - Selling a home - Guidance checked August 2026
- Citizens Advice - Selling a home - Guidance checked August 2026
- Citizens Advice - Selling a home - Guidance checked August 2026
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