No Sale, No Fee Estate Agent

One of the first steps in selling your home is appointing an estate agent. When deciding which one to choose, you'll want to understand their approach to charging. Agents will either charge a flat fee to be paid up front (usually charged by online estate agents) or a “no sale, no fee” commission to be paid only if you sell (usually charged by high street agents). Here we explain the pros and cons and which is best for you.

What is ‘no sale, no fee’?

‘No sale, no fee’ is the traditional way of paying an estate agent, used by high street estate agents. Typically, you pay the estate agent a percentage of the sale price of your property once the sale has completed.

Agents that offer ‘no sale, no fee’ are good for the seller as they are incentivised to sell your property to be paid their commission. And if your home doesn’t sell, you pay them nothing. But if your property is worth a lot, then the amount you pay, even if the commission charge is a mere 1%, could be several thousands of pounds.

Many online estate agents (e.g. PurpleBricks) charge a fixed upfront fee, rather than ‘no sale, no fee’. This can be cheaper than paying a percentage of the sale price, but you will have to pay it whether your home sells or not.

Which estate agents offer no upfront fees?

Most local estate agents offer a no sale no fee service. They will take care of everything including floor plans, photography, get your property listed on online portals such as Rightmove and Zoopla, conduct viewings and handle sale negotiations all without asking for any money from you. You simply pay them a percentage of the sale price when the transaction is completed. See what does an estate agent do.

Use our tool to find your best local estate agents and compare how quickly they sell houses like yours, how often they achieve asking price and fees.

Do online estate agents offer ‘no sale, no fee’?

In contrast, most packages from online estate agents, charge a lower upfront fee. Upfront fees range from £0 to £999 and can be higher in London.

A few online estate agents like Yopa and 99 Home are offering a no sale no fee option, so you can choose which you prefer.  Strike charges no fee unless you take out some of their extra services whether they sell your home or not.

It’s important you don’t confuse an option to delay paying your fee with no sale no fee. Some online agents allow you to delay paying your upfront fee. But, you still have to pay it regardless of whether you sell your home or not. The small print will give you a date for when the fee has to be paid.

What are estate agent fees in 2022?

If you are paying an online agent an upfront fee you can expect to pay between £0 and £999 and up to £1499 in London.

High street estate agents tend to offer ‘no sale no fee’ where you pay a percentage of the final sale price, on average 1.5% incl VAT. Don’t be afraid to negotiate. We find you can often haggle this fee down to 1%.

Online estate agents who offer a no sale no fee package usually charge a fixed fee of £999 or a percentage fee of 1%.

So, if your home is worth £300,000 you might pay £3,000 (1%) to a high street estate agent when your sale completes. In contrast, an online agent like Strike won’t charge you anything, while others might charge you a fixed upfront fee of £500-£999.

Purplebricks ‘no sale, no fee’

One of the most popular online estate agents is Purplebricks. It regularly advertises that you can sell your home for as little as £999 (£1,499 if your property is in the London area). Just be aware that Purplebricks does not offer a no sale no fee payment option. So, you’ll have to pay £999 whether your home sells or not. You can opt to delay payment, but you must pay either when your property sells or after 10 months.

Read our guide  Should I use online estate agents and selling your property online to find out more.

Sell your house for free

Want to sell your home without paying any fees at all? It is possible. One online estate agent, Strike, offers a no fee service. You get a valuation, photos, floorplan, ads on Rightmove and Zoopla and help negotiating any offers for free.

Strike makes its money by charging for additional services. If you want them to host your viewings or upgrade your Rightmove ads it will cost you. They also earn money if you use their related services such as mortgage advice or removal help. For more details about Strike’s package, see our summary of online estate agent packages.

Should I use a ‘no sale, no fee’ estate agency?

Most people use a local high-street estate agent, and so the decision of how they pay is made for them, as most high streets work on a no sale, no fee basis. Commission is due once your sale completes, with nothing to pay if you don’t sell.

Others opt for an online agent to pay a lower, flat fee. If your home is worth more, you could save more. For example, if your home is worth £500,000, a high street estate agent may charge you £7,500 (1.5%) to sell your home. However, you could use an online estate agent and pay £500-£999.

But also consider with up-front online estate agent fees:

• Can you afford to pay an upfront fee, or would you rather pay out of the proceeds of the sale? If it’s the latter, a high street agent may be best.
• At first glance, an online agent can seem a great bargain. But are you getting everything you would expect for that price and what would you have to pay extra for? Are you happy conducting your own viewings or will you need to pay extra for the agent to do that?

For more advice on choosing an estate agent, see how to find the best estate agent and questions to ask your estate agent.