Agents urged to show their value by raising fees...

Agents are being urged to place more value on their work and to charge higher fees.

Richard Palfreeman, advisor at training provider the Property Academy, said agents across the UK have a responsibility to help raise the national norm by charging more for their services.

The average estate agent fee in the UK is currently 1.18% plus VAT according to The Advisory - much lower than those in other countries.

In Dubai, the average fee is 2% plus VAT, while estate agents in the USA are charging an average of 5.46%, according to the Property Academy.

Palfreeman said: “In the US, commission fees can be as high as 6%, so why are we still seeing agents here charging as low as one per cent and so much discrepancy in the fees charged across different parts of the UK?

“Agents are doing the industry - and themselves - a disservice with constant fee wars and discounting in order to win the job - instead we should be confident in charging more, showing our worth and making people see why our services are so valuable.

“There is also a difference in the prices charged by agents in the north of England compared to the much higher prices we see in the south, which shouldn’t be the case. All agents, no matter their location, should be charging what they are worth. If every agent in the UK was to raise their fees to at least two per cent, we could revolutionise the industry.”

Palfreeman, who owned and operated the Northfields agency in West London for more than 34 years, said agents should focus on achieving the best results possible and providing outstanding customer service, rather than offering the lowest price.

This is supported by data from Property Academy’s latest Home Moving Trends survey, which showed 94% of the 10,400 participants did not opt to move with an agent solely because they offered the lowest fees.

Instead, the majority of those surveyed chose their agents based on industry knowledge, ability to understand their needs, trusting them, and their professional attributes.

He added: “We are real people with genuine expertise and market knowledge that will help people find their perfect home, sell their current property and move with ease - that is not something to be sniffed at.

“We know people are not choosing their agents based on fees and what they really want to know about is what we can do for them, what results we can achieve and how pleasant, easy and personal we can make the process. We should be shouting about that from the rooftops and proving how much it is worth, with fees that reflect our skills, experience and dedication.

“Focusing on being the cheapest is one of the biggest mistakes agents can make - instead, focus on being the strongest, boldest and best you can be and the business will follow.”