How small developers can save over £80,000 on estate agent fees when selling 5-20 homes
If you’re developing between five and ten homes, you already know how tight profit margins can be. Every decision, from materials to marketing, affects your bottom line.
One of the biggest (and most overlooked) costs when it comes to selling? Estate agent commission. According to recent UK data, the average estate agent fee can be around 1.5% (including VAT). For a home priced at £400,000, that’s: £6,000 per sale in agent commission.
Multiply that across different development sizes:
| Development Size | Estate Agent Fees (1.5%) |
|---|---|
| 5 homes | £30,000 |
| 10 homes | £60,000 |
| 15 homes | £90,000 |
| 20 homes | £120,000 |
That’s a substantial chunk of your profits, and for many developers, there’s a better way to sell.
A smarter alternative: In-house sales and specialist marketing
Rather than paying commission to an estate agent, more developers are taking control with a hybrid approach:
- Hire a dedicated Sales Representative to manage enquiries, viewings, and negotiations.
- Partner with a specialist property marketing agency to generate leads and build your brand.
Together, these two steps can replicate, and often outperform, traditional estate agent results, for a fraction of the cost.
Typical costs for the hybrid approach
- Sales Representative: £2,000 – £3,000 per month. For a 6-month sales campaign: £12,000 – £18,000
- Property Marketing Agency: £5,000 – £50,000, depending on project size and marketing scope
Total costs: £17,000 – £68,000 per development, compared to £30,000 – £120,000 for estate agents.
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 for a small 5-home project, this approach can save thousands, and the bigger your development, the more dramatic the savings.
Why it works
- Massive savings: Keep tens of thousands in your pocket rather than paying commission.
- Better control: You manage viewings, messaging, and negotiations.
- Brand growth: Buyers connect with your development, not just an agent listing.
- Direct buyer Relationships: Learn what buyers want, build trust, and create repeat clients and referrals.
The bottom line
Estate agent commissions can quickly exceed £100,000 on larger developments. By combining a dedicated sales rep with a specialist property marketing agency, liks us, developers can sell more efficiently, keep more profit and build a strong brand for future projects.