Sales fees 23% lower than purchase fees – Analysis

In the wake of the increased volume of work associated with sales, Today’s Conveyancer has conducted analysis into the comparison between sale and purchase conveyancing quotes. 

In the Diary of a High Street Conveyancer published earlier this month, the author, an anonymous high street conveyancer who contributes regularly to Today’s Conveyancer, suggested that given the increase in work on sale transactions, firms should consider raising their sale fees.

“Is it still the case that we should charge less for a sale? I suppose the reasoning behind this is that it is easier to act in a sale than a purchase. Think back to a few years ago and it was merely the case that we would prepare the contract documents, send the documents to the buyer’s solicitor and wait for a few enquiries and then arrange for the signing of documents and the repayment of a mortgage (I know that is it simply but you know my gist). I think that the costs should at least be the same for a sale as a purchase.

One of the key issues for sale transactions is the increase in the number, and relevance, of pre-sale enquiries. The author went on to suggest that charging separately for enquiries;

 “Or how about we start charging for answering enquiries? How about £1 per enquiry – and that charge should be added to the contract and paid by the buyers. And that way, we would know if the buyer has told his solicitor to raise those enquiries rather than standard enquiries being raised when we know that the buyer does not really care about those matters being asked.”

A Today’s Conveyancer social media poll on whether firms could charge additional fees for enquiries revealed that conveyancers wold not be keen, an overwhelming 93% saying ‘No’ to the question ‘Should conveyancing firms acting for vendors charge the other side to respond to enquiries?”

Comments on the poll acknowledged the importance of pre-sale enquiries, but shared frustrations around the number being raised.

“Enquiries are there for a reason, however unnecessary enquiries are just a nuisance and some people raising over 50 to 70 of them is ridiculous”

said one respondent.

“Of course the need to raise enquiries this cannot not be removed. Your instruction is to ensure your buyer client’s title is sound. The industry should focus, tell the consumer what we do and why. We must refuse to answer questions that are of a structural nature and those that the buyer should be able to reasonably know… CQS & CA protocol followed and all adopt a common sense is the solution.”

added another. On additional fees, one comment pointed out that any additional charge would negatively impact the home mover, to whom the costs would inevitably be passed, rather than punishing the ‘culprit’;

“Surely that (charging for enquiries) will just unnecessarily increase the cost for the buyer? Those extra fees are not going to come from the culprits’ pocket, are they? What would focus the mind of firms who raise standard enquiries is training and proper regulation…!

Analysis of separate sale and purchase quotes since 2018, provided by price comparison website reallymoving.com, reveals that sale quotes are on average 23% lower than purchase quotes. The data, which provides quarterly average prices for separate sale and purchase conveyancing quotations since Q1 2018, also shows that this remains largely unchanged over that period.

Happily, conveyancing fees in general are increasing, up 38% since 2018. The average sale fee in 2021 jumped 24% compared to 2020; from £653 to £811. Purchase fees saw a corresponding 25% jump, from £850 to £1063.