How small developers can save over £80,000 on estate agent fees when selling 5-20 homes
If you’re a developer building 5 to 20 homes, you already know margins can be tight. Every decision, from procurement to marketing, has an impact. Yet one cost is still regularly overlooked, and that is, estate agent commission.
In the UK, the average estate agent fee sits around 1.5 percent including VAT. On a £400,000 home, that means £6,000 in commission per sale. Multiply that across a development and the numbers quickly stack up.
| Development Size | Estate Agent Fees (1.5%) |
|---|---|
| 5 homes | £30,000 |
| 10 homes | £60,000 |
| 15 homes | £90,000 |
| 20 homes | £120,000 |
A significant portion of your profit is being handed straight to someone else, with nothing tangible left after the sale completes.
A smarter, more strategic alternative
More developers are now turning away from the traditional agent-led model and moving toward a hybrid approach. It offers more control, more visibility and, importantly, more profit kept within the development.
Here is how it works:
Hire a dedicated sales representative
- This would need to be a professional who focuses exclusively on your development, handling enquiries, viewings and negotiations. The typical cost is around £2,000 to £3,000 per month. Over six months, that results in £12,000 to £18,000.
Partner with a specialist property marketing agency
- This is where the strategic advantage comes in. A property marketing team (like us!) positions your development intentionally, generates high-quality leads and strengthens your brand presence. Depending on scope, costs range from £5,000 to £50,000.
Together, this usually results in a combined spend between £17,000 to £68,000 per development, significantly lower than commission-only, estate agency selling where costs can be £30,000 to £120,000 per development of the same size.
Savings across different development sizes
| Development Size | Estate Agent Fees (1.5%) | In-House + Marketing Costs | Potential Savings |
|---|---|---|---|
| 5 homes | £30,000 | £17,000–£23,000 | £7,000–£13,000 |
| 10 homes | £60,000 | £22,000–£35,000 | £25,000–£38,000 |
| 15 homes | £90,000 | £27,000–£45,000 | £45,000–£63,000 |
| 20 homes | £120,000 | £32,000–£68,000 | £52,000–£88,000 |
Even at the smaller end, the savings are meaningful. As your scheme grows, the financial advantage becomes transformative.
Why it this approach works
Meaningful savings
- Tens of thousands stay within your development instead of disappearing as commission.
Greater control
- You influence the process, the messaging and the buyer experience from start to finish.
Clearer brand presence
- Buyers connect with your development and your brand identity, not just an estate agent’s listing.
Direct insight into buyers
- You gather real feedback, build stronger relationships and create a foundation for future referrals.
It’s tried and tested
- We’ve worked with several developers to strengthen their brand and in-hosue marketing, allowing them to completely move away from estate agents or take a hybrid approach with their developments.
What this means for your next development
Estate agent commission can escalate into six figures across a mid-sized scheme. By pairing a dedicated sales representative with a specialist property marketing agency, developers can sell more efficiently, retain more profit and build a brand that compounds value across every future project.
Ready to take a more profitable approach?
If you want to sell your next development with more control, better brand impact and significantly improved margins, our Tall Zebra team can help.
We work closely with small and medium developers to:
- Position developments for the right audience
- Create marketing that actually drives enquiries
- Build brand equity that lasts beyond one project
- Support or replace traditional estate agency routes
- Produce the creative, digital and on-site materials you need to sell confidently
You can explore our services, meet our Tall Zebra team, or request a tailored sales and marketing plan for your next scheme.