Comparison of Fees Incurred by an Estate Agent

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Estate Agents Our Service

You will wait a while for a meeting and then until photo's are taken and advertising and brochures are arranged.

Instant service, no waiting.

You will have to wait and pay for an HIP to be prepared before the property can be advertised. HIPs SUSPENDED 21-05-10

No HIP required. HIPs SUSPENDED 21-05-10

You will have to keep the house clean and tidy every day for six months or more.

No public viewings.

Any repairs or refurbishments will have to be taken care of and paid for.

Property bought as it is.

Average number of viewings to sell is 10 to 15

Only 1 visit but possibly none

On average you will get someone interested after 8 weeks. It is very doubtful if they will be a cash buyer.

Cash buyer on day 1.

They will make an offer that on average will be approx 10% below your asking price.

Price agreed and confirmed.

They need to sell their home first.

Not applicable

They need to arrange a mortgage. They may be refused a mortgage first time and have to try elsewhere. Could take 5/7 weeks.

Finance in place.

Their lender sends in a surveyor who may report adverse findings and then a further price reduction of around 10% is demanded.

Price agreed and confirmed.

Their house may not sell for six months or more.

Not applicable.

Meanwhile your solicitor is working away spending your money on searches and relevant legal work for a sale that could fall through.

FREE legal costs.

The chain can break down as your buyer loses their new purchase because the vendor will not wait any longer.

No chain

Your purchase falls through for the same reason or they receive an improved offer.

Sale already completed In 4/5 weeks.

The whole process can be extremely stressful.

No stress, No hassle.

Six months down the line you are no further forward.

Completed 5 months ago.

Typical example of a house with a Market value asking price of 160, 000.

Offer achieved through an estate agent in the present economical climate is 15% below the original asking Price.
Less 24,000
Deduct the approx fee to estate agent at 2% + V A T
Deduct the Approx cost of solicitors fee
Deduct the cost of the compulsory Home Information Pack (HIP)
Deduct savings on interest for mortgage assuming that the average sale takes six months to sell, (assume 5% APR)
Deduct the average discount that you would have earned by being a cash buyer of your next property.
Total real value of your property.

As you can see there are a lot of hidden costs to take account of and the lost opportunity of obtaining a discount as a cash buyer of your next home. Also remember that the costs of whatever you planned to buy, or spend on your new home will have risen substantially in the meantime.

The final true price obtained is well below the initial asking price through an estate agent.

A cash offer from an investor such in the current downward trend of the property market, will typically on average be around 25% to 30%* below market value. In the case above that could be around 112/120,000 subject to valuation by the lenders surveyor. You can now see from the example above that it is possible to go down this route without all the hassle involved in trying to obtain the higher price only to lose part of it through various factors.

* The above percentages shown will be adjusted regularly in response to the general price movements of the property market.

It is now official - The Office of Fair Trading has stated.

 If the contract term Sole Agent refers to your appointed Estate Agent as the only agent with the right to sell your property.  

You should be able to sell the property privately yourself without paying the agent any fee, provided that the buyer was not introduced to you by the agent during the contract period.

As selling to a fast cash buyer is a private transaction, no commission is due to the Estate Agent.

Get your free valuation based upon the true market value of your property.

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