What Is The Cheapest Way to Sell A House?
The cheapest way to sell a house is through us, but what are the other options available?
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What Is The Cheapest Way to Sell A House?
The cheapest way to sell your house in the UK is to sell without the assistance of a traditional estate agent, which could be done privately or through an online estate agent. Doing so can sidestep the high commission fees that conventional estate agents typically charge.
Other avenues of house selling, like Cash Buyers and Auctions, will position themselves as the cheapest way to sell a house, but you will be losing profit on the property as they sell it for below market value.
Are Traditional Estate Agents The Cheapest Way To Sell A House?
Selling a house with a high street estate agent was one of the most common ways to sell a property, but there are better options.
Local estate agents have physical offices and places of work, providing an in-person service. If your property sale does not complete, you usually won’t have to pay anything.
The traditional estate agent usually offers a more hands-on approach by conducting valuations, photographs, floorplans, EPC surveys, advertising on property portals, viewings and negotiations on your behalf.
You may also benefit from receiving the best price for your property as local agents may try and sell your property for more as they receive a larger commission.
The downside to traditional estate agents is that they will charge anywhere from 0.9%-3.6%+VAT of the selling price of your property. If your property sells for £290,000, then that could be anywhere between £2,610 to £10,440.
Is Selling Privately The Cheapest Way To Sell A House?
Selling privately is not the cheapest way to sell your house, but it will be less expensive than selling to a traditional high street estate agent.
Although you won’t have to pay any estate agent fees, you will have to pay for legal fees, removal costs, EPC costs and everything else associated with selling a property.
Selling a house privately will also mean that you need a property expert to guide you through the process, and you will be required to do much of the leg work.
Although this may, on the surface, seem like a cheaper option than using an estate agent, it’s also important to note that it will be one of the longer processes to sell your property.
As a result, you will spend more money on utility bills and council tax while you wait for the property to sell.
The private house selling process can be pretty daunting, so we have written this step-by-step guide to help you decide if it is right for you:
It would help if you used property portals such as Rightmove and Zoopla to see what similar properties are selling in your area, and this will allow you to get a general idea of how much to set your asking price at.
You will also need to work out a figure that would be the lowest you are willing to sell the property for, as this will come in handy during the negotiation phase.
Once you’ve set your asking price, you must get your property into selling condition — a fresh lick of paint, de-weeding your garden, new carpets and improving your curb appeal.
Once your property is in selling condition, you should take photographs of your house and write a stunning description to entice buyers.
As an independent party, you cannot post a property on Rightmove or Zoopla, but you could advertise your house in the local paper.
When you begin to get interested potential buyers, you can organise viewings of the property. You should ensure that you stay organised and don’t double book any viewings while giving yourself enough time to show the buyers around the property.
If the potential buyers appreciate your property, they may put forward an offer. You will likely need to negotiate this offer with the potential buyer and remember the lowest selling price.
Being flexible will be helpful in this situation but try not to go beneath your lowest selling price. It can be somewhat stressful if you have not negotiated before, especially when you need an estate agent to do it on your behalf.
Once negotiations have been satisfactorily agreed, you must send the potential buyer written confirmation of the agreed selling price. This process is not legally binding, but it will prove that you are serious about selling to the buyer.
After accepting the offer, you can begin instructing a solicitor and starting the conveyancing process.
This is the most important and longest part of the house-selling process, and while you DIY it, we highly recommend that you outsource it to a legal professional.
Are House Auctions The Cheapest Way To Sell Your Home?
Selling a house via a property auction will allow you to sidestep estate agent fees and sell your property far more quickly when compared to trading on the open market.
The process is relatively simple; all you need to do is find an auction house (auctioneer), decide on a reserve price, prepare your property for photographs and open days, and then get ready to exchange contracts on the auction day.
The auctioneer will do most of the leg work for you, such as marketing, conducting house viewings/open days and handling the negotiations for you on the auction day. Your property will sell if the reserve price you set at the start has been met.
The downside to selling via an auction is that although you are sidestepping estate agent fees, you will have to pay legal, advertising, room hire, and auction fees.
The auction fees are a commission of the sold price sold to the auction house, which is usually around 2%+VAT of the final sale price of your property.
If you sold your house for £290,000, this could be £5,800+VAT which may be more than selling with an estate agent.
There is also no guarantee that your property will sell at auction, meaning you will lose money on legal fees and the auction costs and still have a property to sell.
Is Selling To A Cash Buyer The Cheapest Way To Sell A House?
Using a cash buyer to sell a home may only sometimes be the cheapest way to sell a house, as you will be trading below market value. Cash buyers may be investors looking for a good deal and may offer a lower price than the market value.
It’s essential to compare offers from different cash buyers and weigh them against the property’s market value, which you can work out by using recently sold house data from your local area on Rightmove or Zoopla.
Although Cash Buyers do not require a mortgage to buy your property, closing costs and fees may still be involved with the transaction, so it’s important to compare these costs when considering different offers. You will also need to cover solicitor and conveyancing fees.
Cash buyers may want to purchase your property as is, as they will be looking to renovate it and flip it for a profit, which can benefit you if the property needs repairs.
However, if the property is in good condition, you may benefit from selling with an online estate agent for a higher price.
Is The Cheapest Way To Sell A House Via A Part Exchange?
Part exchange can be a good option for selling a house and securing a new property, but better alternatives may exist.
A part exchange is selling your property to a home builder or developer in exchange for a new property from them.
The process can be a convenient option as it eliminates the need to find a buyer for your current property, and you can move straight into the new build once it has been built.
However, the cost of the new property may be higher than your current property’s value, so that you could pay more overall.
Additionally, the developer may not offer you the total market value for your current property — they will usually give you around 80%-85% of your market value.
How Does The Part Exchange Process Work?
You must find a new build development and approach a developer to check if they offer part exchange on their properties.
The developer will then check that your property is eligible for a part exchange and organise for two independent estate agents or valuers to view and evaluate your property.
The two valuers will be asked to value your property based on a selling price rather than the asking price. Once the valuations have been received, the developer will make you a formal offer, usually below market value.
If you accept the offer, then the conveyancing process can begin. The downside to a part exchange is that even though you exchange contracts, you may be met with a delayed completion.
Delayed completion is when there is no guarantee when your property will be finished, so there is no exact completion date. By the time you’ve sold your property, your new build may still need to be built, and you will have to pay for temporary accommodation.
Are Online Estate Agents The Cheapest Way To Sell Your House?
Online estate agents tend to be cheaper than traditional high street estate agents, as they typically offer a range of fixed-fee packages, which are more affordable than the percentage-based commissions of conventional agents.
This is particularly advantageous for higher-value properties, as the fixed fee can be significantly less than the percentage of the house sale price.
Online estate agents are estate agents that operate almost exclusively online. But, most online agencies will offer a more basic service than a high estate agent, which comes at a lower cost.
Some online estate agents will charge additional fees for services such as viewings and open days, and some may require payment upfront before any sale has been made.
They may also offer a different level of support than traditional agents, which could disadvantage those less experienced in the selling process.
But not all online estate agents are the same.
Which Online Estate Agent Is The Best To Sell My Home?
If you want to sell your house for free without all the fees and hidden costs, you’ve come to the right place.
The Property Selling Company offers a complete online estate agent service without fees because we want to change how you sell houses. The days of expensive solicitor fees are behind us; we’ll cover everything so you don’t have to.
By offering you a tailored service, we will be with you every step of the way and carry out all the leg work. We will advertise your property on Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals for free.
Selling your property has always been challenging; over the years, we have built a seamless process to provide excellent service and help you sell for free.
You will benefit from our team’s expertise in the property industry and marketing, legal and completion services.