Once upon a time - when property prices were reasonable - a solicitor's fees were charged as a percentage of a house's sale or purchase price. In Never-neverland prices have gone through the roof yet solicitor's are still charging on a percentage basis even though the amount of work remains the same.
Some solicitors try to charge 1 per cent of the purchase or sale price plus £100 (#127) plus VAT. Others drop the £100 or say their normal fee is 1 per cent, but then offer a reduction to .75 per cent of the price plus VAT of 21 per cent.
The reality is that most property-conveying transactions involve basic paperwork which is often performed by junior staff in a solicitor's office, says Ms Sarah Wellband of REA Mortgage Services.
For example, the sale of two properties in a housing estate - a one-bedroom costing £150,000 and a five-bed in the region of £500,000 -involve the same amount of work for a solicitor, but the fees vary wildly.
Remember that shopping around and haggling are totally acceptable when buying services. Any provider who values a customer's business will be willing to bargain. Solicitors depend on repeat business and should be extremely amenable to assisting their customers during a stressful and expensive time.
It is absolutely essential to agree fees with a solicitor in advance and get it in writing. Ask your solicitor to drop the £100 and reduce his or her fee by 25 to 50 per cent. In some cases, a flat fee may be negotiated. Insist that the quote is broken down separately into fees, percentage charges and VAT.
If this is a problem for your solicitor, consider taking your business elsewhere. Many solo practitioners and smaller firms are more willing to offer customers a price reduction.
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