Over the last decade, we’ve witnessed a revolution in how we buy and sell properties. Increasingly, vendors are abandoning the more traditional routes like using an estate agent in favour of other (less expensive) methods.
High street agents’ fees can vary from 1% to 3%. Doesn’t sound like much on the surface. But when you apply a 1.5% commission on property selling for £500,000 you have to pay £7500 in fees.
Unsurprisingly, more and more people are seeking alternative ways to sell their homes to avoid paying such exorbitant costs.
So, if you want to cut out the expensive middleman, and in the process save yourself lots of money—here are four alternative ways to sell your home.
Use an online agent
Online estate agents first emerged around ten years ago. If you don’t want to pay loads of commission, this is a far cheaper option. The costs vary but start as low as £100 and go up to around £1000 (depending on what kind of package you choose). Do want a hands-off approach where the agent only markets your home? Or do you prefer a hybrid package where the agent values your home, writes up the marketing brief and organises viewings. These options will vary in cost—the former is cheaper and the latter more expensive.
The Pros
- Saves you lots of money.
- You have more control over the selling process.
- Clear pricing breakdown.
- Flexibility—you can pick and choose the best options to meet your needs.
The Cons
- Be prepared to pay upfront, rather than after the sale has gone through.
- Check the valuation. Most agents are nationwide so probably lack local knowledge and expertise required to value your property accurately for your area.
- Check the fine print. For instance, certain price packages may expect you to commit to using in-house services.
Do it yourself
Thanks to the internet and social media, selling your home without using an agent has never been easier. But, be prepared to work hard.
The Pros
- Saves you money—no commission to pay.
- More control over the process. For example, you organize viewings and meet potential buyers.
The Cons
- Work—you need to be willing and able to put the time and effort in.
- Inexperience—lacking knowledge about the local market can be a big disadvantage. For instance, you risk getting the sale price wrong. If you undervalue you lose money. Or if you overvalue you put off potential buyers.
- You’re more vulnerable to possible fraudsters. Estate agents have experience of checking potential buyers’ financial situations and have safeguards to protect you against fraud.
Sell to a cash buyer
Who is a cash buyer? This is someone who doesn’t need to get a mortgage or take out a loan to buy your property. If you want a hassle-free sale or need to sell your home fast, using a cash house buyer is a great option.
The Pros
- No chain, so the sale is less likely to fall through.
- Less complex and much faster sale—we’re talking weeks rather than months to finalise.
The Cons
- Cash buyer offers may fall below your asking price.
- Investors and companies tend to be cash buyers, so they’re looking for a good deal to get bang for their buck.
Auction
Anyone can sell at auction—whether you’re a commercial business or a residential homeowner. The old perception that properties for sale via auction are derelict or simply represent a chance to pick-up up a good deal cheaply, isn’t true anymore. There’s a growing popularity in using the auction house to sell family homes as it’s faster and can potentially make you more money.
The Pros
- You get your money fast. As soon as it’s sold, the buyer has to pay you a 10% deposit immediately. Buyers then have usually a month to pay the remaining 90%, which goes directly into your bank account.
- Get a higher price. For instance, If you have a few people interested and a ‘bidding war’ erupts—this can substantially push up the final sale price.
- No gazumping, no chains, no falling through. When you hear the hammer drop, your home is sold, and there’s no backing out.
The Cons
- There’s a risk. The final price isn’t guaranteed (although you can leave a reserve). Nonetheless, you may get less than you want.
- Fees. So, it might end up costing more than using a high street estate agent. For instance, you have to pay auctioneer’s fees (whether your property sells or not) and solicitor fees.
Need help selling your property?
If you need to sell your home quickly, but you’re concerned about that its location or condition will put off potential buyers. Don’t worry—House Buy Fast‘s ‘we buy any house’ service can remove the stress by managing the entire process on your behalf.
