Lawyers, estate agents, brokers….How to get the best deal
“All professions are conspiracies against the layman.” – George Bernard Shaw
George was right. But that was back in the early 20th Century. They don’t get away with ganging up on us as much as they used to thanks to new laws banning cartels.
You can also make the most of insurance and tax breaks to minimise dental and medical costs.
And we can take advantage of at least some new element of completion as professions like solicitors are now allowed to advertise and compete on price.
Here’s how to get the best deal on professional fees:
Estate agents
Fees: 1%-3%
Are they worth it?: Estate agents get a bad press and you don’t have to have one. You can sell your home yourself. I've done it before and it’s not that hard.
But you have ask how much extra you might get for your home if you do use an agent?
And they probably do justify their fees, in fairness.
3% commission is a bit much but 1% is certainly a good deal for the professional guidance and interaction with potential buyers, who might be put off by the owner showing them around. (They won’t be able to bitch about the décor, for example).
Tips: There’s no harm in haggling. If your local agent quotes a high commission figure, ask him if he’ll consider reducing it.
Solicitors
Fees:
Wills: From €100, Probate: 1%
Conveyancing – from €1000
Are they worth it? For wills, yes. You can draw up your own will with templates that are available online once you’re careful to do it right.
You need to sign it with two witnesses who also must sign in your presence. These witnesses cannot stand to gain from the will. And your signature must come at the end of the will. A home-made will is better than nothing but with so much money at stake and so little cost involved, it makes much more sense to use a professional. They will also advise you on dividing up your estate to minimise tax with tips like distributing assets widely among relatives who have a low tax-free threshold – or even making some gifts before you die to use up the annual €3k allowance for this.
Some solicitors charge little quite low as they want to get appointed to do probate on your will as well. That fee may not sound like much. But when it involves an estate with property attached, it adds up to a tidy sum - €5,000 in the case of a €500,000 estate. You don’t have to appoint the same solicitor to do probate, but the 1% fee is standard so there’s no way around it. You should be wary of appointing a solicitor as your executor, which is the person responsible for distributing the will. Appoint someone you know who’s got a head on their shoulders but isn’t a beneficiary. They can appoint a solicitor if they feel the need for help and will have one anyway for probate.
Tips: Haggle if your solicitor charges too much for conveyancing. Or shop around – you should be able to get one to do it for around €1000.
The lower-priced lawyer should even be more experienced as he or she will have to get through more business to make a decent buck.
Some credit unions have arrangements with solicitors to do wills for free for members.
Doctors/dentists
Fees
Are they worth it?:
Well, yes of course if you’re sick or in dental pain. But the trick is to make sure you’ve the best health cover you can buy – and don’t forget to keep receipts and claim back medical expenses cover.
Tips: Some health insurance policies offer excellent cover for everyday expenses – such as Laya’s Simply Connect Plus, which allows you to claim back €500 on things like GP, dental, physio and outpatient expenses. That will ease the pain of going to the doctor as much as a dose of paracetomol. You can claim back all medical expenses and non-routine dental costs (such as for implants and crowns) at the end of the year. Download a Med1 form the doctors bills and a Med2 for the dentist.
Accountants
Fees: From €99 (incl VAT) (for tax returns)
Are they worth it?:
They can be. Again, ask if the professional service can justify the fee? If you paying €250 to have your tax returns done by an accountant who knows the ropes, they’re probably going to save you more than their fee – as well as reducing the hassle and time involved. You also get to reclaim VAT if you’re registered for it and write off the bill as an expense if you’re self employed.
Tips: Online accountants claim they can save even PAYE workers lots of money. Taxback.com claims its average refund for PAYE workers is €880. It’s fee is 10% commission on your savings +€40 as a handling fee. Self-assessed accounts cost €239. Paylesstax.ie charges from €99 for self-assessment accounts but €299(incl VAT) if you want them to submit the return as well.
Investment brokers:
Fees: From €100 per hour
Are they worth it?:
If you’re a novice investor, you certainly need some expert advice. Veteran investors may prefer to do their own thing.
Good advisors can make you a fortune – or they can cost you dearly.
Tips: Make sure you understand just how they are rewarded. Many people baulk at paying €150 fees for advice, thinking that’s an outrageous sum. They prefer to turn a blind eye to the commission-based system, which can extract up to €5000 from their savings and raise questions about the objectivity of advice. Is the broker recommending you switch investments because he makes fat commission on the deal?
However, if you understand the commission system, you may not only get reductions – you could even get the broker to pay you some of the commission he or she gets from the financial company he invests in on your behalf. The important thing is to know how the system works so you’re not taken for a ride.