The Dangers of Selling Your Property Privately - What You Need to Know
Estate agents' fees are expensive and usually the higher the value of your home, the higher the charge. But, much of the work involved in estate agency is hidden behind the curtain. Unless your agent calls you daily with an update about what they have done that day, you, as the homeowner, might be left in the dark.
Some people mistakenly believe that all estate agents do is take a few photos, upload them to a website and wait for a buyer to call. If this were the case, it's understandable why you might question the value of their fee. However, the reality is far more complex. A good estate agent's role in the house-selling process is crucial, and the difference between a skilled professional and a novice can significantly impact your move. Their expertise is not to be underestimated.
And when you consider the work that really goes into selling your home, you might feel differently about the fees. Essentially, you and your estate agent will be working together for a year or so, once you factor in the pre-marketing period, where photoshoots are taking place, to the launch and marketing, negotiating offers and securing a sale, then moving into the legal process which can take quite a long time. To have someone in your corner, working on getting your family moved into your dream home for a year, a few thousand pounds doesn't sound too bad.
But what if you simply can't get over the costs and opt for a private sale instead. You are saving money, right? And you don't need the agent to get the property online because you've found a buyer on your own. But, could you have left money on the table? How do you know if your private sale is a good deal if your property has not been fully marketed? How do you know if your buyer even has the money to pay for it?
Leaving money on the table: Without a middleman, it's likely that the negotiation of offers will not be as successful. Yes, you will no doubt be able to come to an agreement, but will you have maximised the amount that the buyer will pay? Having an intermediary helps with the awkward feeling that surrounds a tough negotiation. Having an intermediary who is an expert in negotiation will undoubtedly result in a higher offer for your property.
As estate agents, we have a legal responsibility to ensure the buyers have the funds to buy the property. This not only ensures they can pay the price our sellers have agreed to but also that the funds are legal and not the result of money laundering. As a private seller, you might be a target for buyers trying to avoid these financial checks. With an estate agent, you can rest assured that these checks are being carried out, protecting you from potential risks.
Overcoming Issues: No two properties are the same. Each comes with nuances and quirks that must be ironed out during the sale process. This could come in the form of a boundary question or an issue with a covenant that, whilst you have lived in the property you may have been blissfully unaware of. It only rears its ugly head when you try to sell. Estate agents will have seen or dealt with most potential issues, and we are adept at overcoming problems to help you on your way. Without an estate agent, you only have the solicitors to resolve these things. Whilst it is true that they can highlight the issues, the back-and-forth of negotiation and coming to a resolution that all parties are happy to proceed with is not their forte. If left in the hands of the solicitors, it is likely to be handled by letter, which takes each side a week to write and send, making the process push into months and months before you move. The likelihood of a buyer or someone in the chain losing patience and withdrawing from the transaction increases with each passing month.
Holding it all together: Estate agents act as a linchpin in the moving process, holding it all together. An agent who is good at progressing sales to completion, keeping everyone informed, and moving everything along smoothly is worth their weight in gold.
It is true, as the owner of your home, there is no requirement to use an estate agent to sell, but if you decide to DIY it, you could be adding stress and frustration to your life, selling your property for less than it is really worth and increasing the risk of your buyers pulling out of the deal, all to save a few thousand pounds that you likely could have made back in the negotiation of the sale anyway. For example, if an agent charges £4k to sell but can get an offer of £10k more, then they have more than paid for themselves and actually, in the grand scheme of things, cost you nothing at all!
Selling your home privately is fraught with pitfalls. Instead, get in touch with our team of property experts, who can guide you through the process and maximise the offers from buyers.