My wife and I are about to put our home on the market. We have had three estate agents over to value it, all of whom said it was in the £350,000 to £400,000 bracket.

The firm we liked the most had the highest fees at 1.25 per cent. Then there was one who offered 1.2 per cent, and one who was prepared to go to 1 per cent.

They all proved their negotiators could sell homes like ours and their strategies seemed similar, so at the moment we are minded to opt for the cheapest one.

We are keen to give the agent an incentive to sell our house for the best price, however.

Would it be worth offering a tiered fee structure? For example, 1 per cent up to £350,000 and 5 per cent on anything they get above that? So if they sold for £375,000 that would mean their fee is £3,500+VAT for the £350,000 plus £1,250+VAT on the £25,000 over that?

My wife also came up with another excellent idea - how about 1.25 per cent for the first month of marketing when the property is most likely to achieve asking price, and 1 per cent thereafter.

Or alternatively, are we allowed to just offer an extra cash reward to the negotiator who sells it?

Ed Magnus of This is Money replies: Estate agent fees can vary widely. You'll find people who have haggled an agent down to as low as 0.5 per cent of the selling price, and some who have been charged over 3 per cent.

All three agents you've met seem to have offered you a competitive rate - almost certainly because they are aware you are in discussions with others. 

While it may be tempting to haggle each agent down to the lowest fee possible or opt for the agent prepared to do the job for the cheapest price, it is by no means the best course of action.

You want agents to be motivated to sell your home. 

It is true that many properties do sell because a buyer simply saw the advert on Rightmove or Zoopla and called in.

But there are also plenty of homes that require estate agents calling out and finding a buyer. They may be able to bring someone in who has been looking in a slightly different area, or who isn't sure of the type of home they want yet.

Estate agents can create a buzz around a property and make buyers feel that all-important emotion of 'Fomo'- the fear of missing out on their ideal home. 

It's worth remembering that each estate agent will have other homes on their books they are trying to sell. You don't want them making less effort on yours because they know it will pocket them less than another they are selling round the corner.

Rather than picking an agent based on fee, you should consider who you trust the most, their track record, their marketing strategy and the level of experience of the salespeople in the office.

An agent's job doesn't stop at finding a buyer, either. It's also about negotiating the best price, chasing solicitors and mortgage brokers and dealing with any survey issues.

For example, if a surveyor uncovers issues that has the buyer either offering lower or threatening to pull out altogether you want an experienced agent who knows what they're doing.

For expert advice we spoke to Jonathan Handford, managing director of national estate agent Fine & Country, Henry Pryor, a professional buying agent, Paula Higgins, chief executive of HomeOwners Alliance and Jeremy Leaf, north London estate agent and a former Rics residential chairman.

Should you pick an estate agent based on fees? 

Henry Pryor replies: I can find you people who will sell your house for free, but I never make a decision based on what an agent will charge. 

As you know, agents work on a no-sale, no-fee basis, so you only pay them if they do the job you want. 

I always look to pay more rather than less. I want my property to be at the top of their list, as it's the one they get the most reward for.

Paula Higgins replies: Estate agent fees cost thousands of pounds, so it's vital to get the best service for the best price. Getting three agents to value your property is the right approach.

The fees you have been quoted are fair and below the 2025 average of 1.42 per cent including VAT.

The difference between 1 per cent and 1.25 per cent commission on a £375,000 sale is less than £1,000. 

Estate agents' job is more than just setting a price. Besides writing the listing and taking photos, a good agent will also arrange and conduct viewings, and answer potential buyers' questions.

They will also manage offers and negotiations to secure the highest price and ensure the sale moves quickly, resolving issues and working towards exchange and completion.

Jonathan Handford replies: Choosing the right agent is about much more than cost - it's about securing the best outcome for your property.

When deciding which estate agent to work with, it's tempting to focus on valuation and fee. 

However, these are arguably the two worst metrics to base your decision on. A misplaced focus on fees is one reason why the UK saw nearly a million property price reductions in 2024.

Does a higher fee motivate agents more? In any profession, people are naturally inclined to focus on opportunities where their efforts are most rewarded. 

While negotiators don't take home the entire fee, their share is proportionate to the overall amount. 

A fee that reflects the agent's value ensures they are properly incentivised and less likely to de-prioritise your property. 

A fair and competitive fee also attracts and retains higher-calibre agents within the agency, which can directly impact the success of your sale.

For the couple in this example, the difference between a 1 per cent fee and a 1.25 per cent fee on a £375,000 sale is £937.50. 

However, the right agent - who commands a higher fee due to better tools, marketing strategies, and negotiation skills - might secure an additional £5,000 on the sale price compared to a less effective agent. 

This could leave you £4,062 better off after fees, making a substantial net gain.

Should they use a tiered fee incentive?

Paula Higgins replies: A sliding scale, as you suggested, can be a good approach as it aligns your interests with the agents' and motivates them to sell the property at a higher price. 

But I wouldn't introduce a huge jump of 1 per cent to 5 per cent. The estate agent may be tempted to hold out for a much higher price, but from a buyer that may not be as committed.

If you think your home is worth between £350,000 and £375,000, you could suggest a 1 per cent fee if they sell your home for under £350,000. Then 1.25 per cent if they sell it between £350,00 and £375,000. Then 1.5 per cent if they sell it between £375,000 and £400,000 - and 1.75 per cent if they sell it for over £400,000.

Another option is a multiple agency agreement, where you enlist more than one firm - but this is expensive, with average fees of 3 per cent to 3.6 per cent including VAT.

Another strategy is to hire one estate agent for six to eight weeks with a sliding scale, and then open it up to other agents on a multiple agency agreement basis. 

This incentivises the initial agent to prioritise your property sale.

Jonathan Handford replies: A tiered fee structure can be effective, as it directly rewards agents for achieving a higher price.

For example, 1 per cent up to £350,000 and 5 per cent above that creates a clear incentive to push for a premium result.

Ultimately, the journey and outcome of selling your property are more important than saving a fraction on the fee. 

Pick an agent you trust to deliver the best exposure, marketing, and service for your home. A great agent will more than justify their fee.

Jeremy Leaf adds: Sellers often try to negotiate with an agent over commission, offering tiered rates. 

However, if the agent does their job properly, they shouldn't need extra incentives but should be sufficiently self-motivated when paid what they have asked for. 

Most agents don't particularly want a bonus but want to make the sale – after all, 2 per cent of nothing is nothing. 

If you want to offer an incentive, establish how the office is run. Is it a one-man band or if there is more than one negotiator, are they paid individual or pooled commission? 

You may try to incentivise one individual but would be better off incentivising all of them if they are working towards the same goal, or risk creating animosity. 

In an office it is also sometimes difficult to know who made the introduction. 

If agent A came to the property initially, but then agent B took the call from a prospective buyer, you would hope that is dealt with appropriately. But if you are only paying agent A, then B may not help. 

Should they set a fee based on the time it takes to sell? 

Paula Higgins replies: I wouldn't recommend putting a time limit on the sale. 

If the agent doesn't meet the deadline, they may lose interest, and you will still be stuck with them. 

What about a cash reward to the agent who sells it?  

Jonathan Handford replies: An estate agent that accepts a cash reward or incentive is breaking the law under the Bribery Act of 2010. 

You would want to steer well clear of anyone that is prepared to operate in that fashion.

Final words of advice

Paula Higgins replies: Whatever you do, don't agree to pay commission on a sale agreed, but only on completion. With one in three sales falling through, you wouldn't want to pay for a sale that collapses.

Henry Pryor replies: Some firms pool commissions, some give the negotiator the lion's share. 

Don't worry how the fee is divided, just listen to the advice you are being given and ask them to back up what they are saying with examples of similar sales they have made in your area.

Your wife's idea is imaginative but over-complicates it. Don't sign a sole agency agreement for more than six weeks, and if the first agent hasn't delivered then sack them and go with someone else.

Remember, some agents will try and flatter you with talk of high prices, and there are some sellers who will be persuaded by this tactic, so ask all of them to justify their recommended asking price. 

This year looks like it could be a tricky market and pricing is key. Some 50 per cent of homes that go on the market don't sell. Make sure you quote a realistic guide price and let your agent negotiate the price up from there.

Jeremy Leaf replies: Start by getting your own house in order. Make sure it is appropriately priced and well-presented, then consider how to improve your chances of selling. 

What's your competition like? If yours is a two-bed flat in a large block with hundreds of similar flats and there are always 20 for sale, it is going to be more of a struggle.

You can offer many incentives but if a property is overpriced, badly marketed and poorly presented with the wrong agent, you won't pay out anything because you won't achieve a sale.