Are Private House Sales Cheaper?
When it comes to selling your home there are ultimately three goals. Sell your house fast, sell your house for a great price, and sell your house with as little cost to you as possible. Of course, many of us take the route of the traditional estate agent which can result in the sale. Unfortunately, the costs associated with such agents often leave a lot to be desired. Some of us go for cash house buyers who buy the home instantly and operate with a no fee business model.
What if we decided to do it ourselves? Can we sell our home privately and spend less than if looking to sell via any other means?
In short, the answer isn’t clear. A private house sale is cheaper in one respect. With no estate agent fees, you are already saving significant sums, but without their vast resources, you could find yourself spending more trying to get the house seen. In the worst case, lowering the asking price considerably to try and drive interest may be the only option.
In this edition of our blog, we look at whether a private house sale can work out cheaper than heading down the more traditional routes.
What is a private house sale?
A private house sale is where you take on all aspects of the sale yourself, avoiding estate agents or cash house buying companies. It can be an attractive route to sale for many as the lack of estate agent fees can see you keep more money in the bank. With estate agent fees running into the thousands, this can be a welcome saving. However, that saving can come at a cost. Estate agents have a wide range of resources to help get your house seen by many people and seen in its best light. Professionally taken photographs, exposure on portals such as Rightmove and a dedicated property expert managing viewings and handling the sales process, can mean the cost can be justified. It’s just the length of time it takes to complete that can be somewhat burdensome.
Is a private house sale cheaper than using an estate agent?
A private house sale is potentially cheaper than via an estate agent but can come at a cost. You can expect to pay £3000, or more, in fees to estate agents for example. A sum you would certainly prefer to keep in your bank account rather than hand over to somebody else. However, that expense could well be worth it. If you choose to sell your home privately, you are not able to promote it via the popular Zoopla or Rightmove platforms. This limits your potential reach considerably and therefore sees fewer offers. With fewer offers, you may be forced into accepting one lower than you had hoped, and one that sees much more than the value of the fees taken off your house price.
Could an online estate agent be cheaper than selling privately?
Online estate agents are rising in popularity due to their low-cost approach to selling your home. Fees tend to be significantly cheaper than the high street alternatives but can vary from just a few hundred pounds to more than £1,000. You’ll also be required to pay the fees upfront. With a more traditional estate agent, much of the cost is deducted from your final selling price. This can make things a little trickier if you don’t have that disposable cash at hand when you want to sell. Overall, an estate agent, whether it be online or on the high street, will see you spend more on the costs you would have hoped to avoid, but those costs could pale into insignificance when compared to the value you may lose with fewer offers.
How much will a private house sale cost me?
If you decide the route to sale may be more cost-effective by selling your house privately, you’ll need to begin working out costs for all the aspects the estate agent will normally handle.
This ranges from photos that portray your home in its best light, through to the legal disclosures you must make to sell a house. It doesn’t end there though. You need to embrace your salesperson mentality as you will also be leading viewings and negotiations, and this can get tricky juggling it with family and work life. Don’t forget, to get those viewings, you’ll need to advertise. And with Zoopla and Rightmove both out of the question and the estate agent window not possible, you’ll need to get creative to garner interest.
The legal side of a house sale is complicated, and one error could jeopardise the sale, so hiring a solicitor will be vital to ensuring a compliant and thorough process is adhered to.
So, what costs can you expect to incur trying to sell your house privately?
- Professional photographer
- Solicitor hire
- Advertising costs
- Floor plan drawings
- Energy Performance Certificate
With a solicitor potentially charging £1,000 or more, an EPC costing up to £120 and marketing costs varying from £100-£1,000 and beyond, it could be a close call as to whether you end up paying more or less selling privately. Much depends on the final commission the estate agent would take when you sell. Some commissions can equate to just over £1,000 but at the higher end of the scale, you could see £6,000 or more taken from your selling price.
Is it worth selling my house privately?
You can do well selling your house privately, especially if demand is high, you’ve priced the property well, and you are actively trying to achieve a sale. Hard work and a bit of commitment can result in a sale that sees you achieve a similar price to the one you may have achieved through an agent, and with no commission to sacrifice, you can walk away with more cash. However, estate agents, regardless of any bad press, are the experts in the field and can help you overcome difficulties you may otherwise find hard to navigate your way through. The fees can be costly, but the workload required from you is significantly less. Ultimately, you must weigh up whether you have the time and resources to do it all yourself or would rather spend the money and have someone else look after it for you.
An alternative way to sell, that guarantees your home sells, and won’t cost you anything, is to use Gaffsy. We buy any house, regardless of its condition, location, or type. This means you don’t have to worry about getting those perfect pictures taken, managing viewings, or finding the best way to market the property. Instead, we make a free, no obligation cash offer for your home. If you accept, we then purchase it in as little as seven days. With legal fees covered, you’ve even less expense to worry about. Why not contact our team today to find out more about this seamless, stress-free route to sale?
