{"id":668,"date":"2022-07-05T14:00:24","date_gmt":"2022-07-05T14:00:24","guid":{"rendered":"https:\/\/springbokproperties.co.uk\/blog\/?p=668"},"modified":"2022-07-05T14:00:24","modified_gmt":"2022-07-05T14:00:24","slug":"cheapest-way-to-sell-house","status":"publish","type":"post","link":"https:\/\/www.springbokproperties.co.uk\/blog\/cheapest-way-to-sell-house","title":{"rendered":"What is the Cheapest Way to Sell a House?"},"content":{"rendered":"

When you\u2019re selling a property, something that\u2019s often overlooked is the cost of selling. The way you sell will make a big difference to the amount you\u2019ll need to pay. <\/span><\/p>\n

Estate Agents<\/span><\/b><\/h2>\n

Most people automatically gravitate towards estate agents. A lot of high street agents work on a commission basis. What this means for you as a seller is that you\u2019ll need to pay to the agent a percentage of the final sale price. <\/span><\/p>\n

Typically this will be around 1%; although it can be up to 3%. At 1%, the fee you\u2019d pay for a property valued at \u00a3179,950 is \u00a31,795. At 3%, that would rise to \u00a35,385. It\u2019s going to be a significant amount of money \u2013 whatever the sale price of your property \u2013 so it\u2019s worth keeping in mind. <\/span><\/p>\n

A fee structure that is based on commission will give the estate agent an incentive to sell your property for more money. Then again, they may get greedy, and the result is that your property stays on the market and does not get sold. <\/span><\/p>\n

An alternative is the fixed-fee pricing model. The benefit of this for you as a seller is that you\u2019ll know exactly how much you\u2019ll be charged. The downside is that the agent may feel that they\u2019ve done all the work for your fee and not put in the extra effort to sell your property because they won\u2019t gain any more money. It’s therefore important to understand not only the fee amount, but also the model that is used by the estate agent you\u2019re considering. <\/span><\/p>\n

If the agent does use a fixed fee model, you\u2019ll usually have the option of paying upon completion of the house sale or paying before the property has been listed. Naturally, the second option may not be ideal if you need the cash from the house to pay for it to be sold. Also, paying before the property has been listed could prove to be expensive if your house does not sell at all.\u00a0<\/span>\u00a0<\/span><\/p>\n

It is usual for your solicitor to take out the cost of your estate agent fees when your house sale completes, so although you won\u2019t actually see the transaction come out of your bank account, it is a big cost that cannot be overlooked when you\u2019re calculating your finances.\u00a0<\/span>\u00a0<\/span><\/p>\n

What Does the Estate Agent Fee Include? <\/span><\/b><\/h2>\n

Knowing what you\u2019re getting for your money makes it easier to understand the fees that are being charged. When you sign up with an estate agent, you\u2019ll receive a contract that details all the jobs that they will do on your behalf. Typically, you can expect the estate agent\u2019s fee to include:\u00a0<\/span>\u00a0<\/span><\/p>\n

    \n
  1. Valuing your property (based on their research and knowledge of the local market, sale trends and price history)<\/span><\/li>\n
  2. Taking high-quality photographs<\/span>\u00a0<\/span><\/li>\n
  3. Creating floorplans<\/span>\u00a0<\/span><\/li>\n
  4. Creating an advert for your home, including writing an informative description\u00a0<\/span>\u00a0<\/span><\/li>\n
  5. Responding to enquiries and organising viewings<\/span>\u00a0<\/span><\/li>\n
  6. Installing a \u2018for sale\u2019 sign at your property<\/span>\u00a0<\/span><\/li>\n
  7. Conducting viewings<\/span>\u00a0<\/span><\/li>\n
  8. Sourcing a buyer from their own contacts of previously interested parties<\/span>\u00a0<\/span><\/li>\n
  9. Marketing your property on internet portals (such as Rightmove)<\/span>\u00a0<\/span><\/li>\n
  10. Negotiating with buyers<\/span>\u00a0<\/span><\/li>\n
  11. Conversing with solicitors<\/span>\u00a0<\/span><\/li>\n
  12. Operating costs (such as their business overheads and fuel) <\/span>\u00a0\u00a0<\/span><\/li>\n<\/ol>\n

    It\u2019s common for estate agents to ask you to sign a contract that ties you into listing your property exclusively with them for a minimum time period. You\u2019ll need to check this because you could find there are additional fees to pay if your circumstances change and you decide not to sell.\u00a0<\/span><\/p>\n

    Whether the agent you choose is an online agent or a high street agent, it is usual for them to have a clause in their contract about withdrawing your property from the market mid-contract. If, for whatever reason, you do have to withdraw your property from the market: <\/span>\u00a0<\/span><\/p>\n