Great Ways To Save Thousands When Selling Up
Considering that the average person moves eight times in their life, selling a property is an occupational hazard. Moving into a new home is a special and exciting time, but it’s also scary and stressful. The main reason is that the chances are high you will have to sell before you can buy. Anyone who is halfway through their eight moves will know that isn’t straightforward. In fact, it’s downright difficult what with trying to find a buyer and luring them into making a bid. Even worse are the fees. Yep, when you sell a house, you have to shell out money. Obviously, this hits the wallet hard and takes away from your bottom line, yet it’s the game.
Or is it?
Realtors and agencies will tell you that paying a chunk of the commission is the best option, but they have skin in the game. Sure, paying out makes life easier; however, that doesn’t mean it’s mandatory. The truth is that the average person can save thousands with a handful of helpful hints. And, yes, you can find the main ones underneath for your viewing pleasure. Happy reading and good luck!
Use Supply Leverage
As the politicians keep on telling the general public, there is a lack of affordable housing in the UK. Why they don’t do anything about it is another matter altogether. The issue you need to focus on is leverage. Yes, it’s not nice that hardworking people can’t afford properties, but they do have enough money for your house. A typical home is well within most buyers’ budgets, even if they don’t want to part with the cash. However, don’t let them take the initiative and dictate proceedings. The cold, hard reality is that you have something which is high in demand and low in supply. As a result, there is no reason to accept any offer which is under the asking price. Okay, you might knock off a grand here or there, yet five to ten thousand is ridiculous. Hopefully, the demand will lead to a bidding war which will increase the price. Never mind losing money – you might make some on the side.
Cut Out The Middleman
One of the biggest expenses is estate agent’s fees. Say their cut is between five and ten percent, they stand to make a nice little earner. In the past, sellers didn’t flinch because the task was impossible without their expert help. Today, it’s different thanks to the World Wide Web. With the internet, it’s possible to sign up to sites such as Trulia or Redfin, websites that put listings online. The benefits are wide-ranging, but the main one is that it provides the missing piece of the puzzle. Now that online platforms are available to buyers, there’s no need for an agent or agency. Simply create a listing and wait for the customers to come to your door. A savvy tip is to use digital marketing to increase traffic to the posting. Search engine optimization is the process of utilizing keywords and phrases, and you can do in the description. Some people even sign up for paid advertising on Google to boost their hit rate.
Or Find One That Doesn’t Charge
Does a real estate agent that doesn’t charge commission even exist? The answer is yes, and they are trendy. Currently, there is a television advert marketing the agency Purplebricks. Their unique selling point is that they are an online and offline estate agency that doesn’t charge commission. Queue milk pouring and faces in cakes. Although it’s suspicious, and it is, the claim seems to be legitimate as more and more people hire them. However, you should understand that they have to make money, and they do so by including key services in the contract. Still, solicitor fees are cheaper on average than 10% commission of a £250,000 property. Purplebricks isn’t the only company with the gimmick, but it is the main one. For others, check out House Simple and Hatched.
Learn To Haggle
By now, your negotiating skills will be quite sharp thanks to your dealings with buyers. But, the haggling doesn’t start or stop there because agency fees are also open to discussion. Estate agents will tell you that it’s a flat rate that isn’t flexible, but that’s them protecting their bottom line. The truth is that the industry is competitive and they need clients to bring in new revenue. With that in mind, it’s vital to understand that they will lower their fees and save you money. Awww, how nice! To get the best deal, the seller has to get to grips with the agent’s fees first and foremost. A typical transaction can go as high as ten percent depending on the company, but they don’t get all of the money. Usually, the amount is split between the two agents and then there are broker fees too. So, trying to half their commission isn’t going to work. But, dropping it by one or two percent might not hurt them as much, while saving you thousands.
Pay A Flat Rate
Property owners that do use an estate agent should be wary of one-off payments. No, not because they are a scam but because they can save you money. As part of the service, agencies will provide professional photos, floor plans and for sale signs to name but three. To name more, they also throw in valuation and online property listing. Paying £300-£500 for all of the above will get the bells ringing because you are bound to be suspicious. However, anything under £750-£1000 for these services is very affordable. The photos alone can carry a value of a couple of hundred quid, and that’s without the signs and property listings. Obviously, you can do everything mentioned without the help of an estate agent because photographs and for sale signs aren’t hard to find. And, it might be cheaper. Still, the odds of slicing hundreds of pounds the price are zero to none. Sometimes, it’s better to pay upfront and avoid the hassle.
Find A Cash Buyer
Unfortunately, only the mega-rich and drug dealers have the cash needed to buy a home. Considering the rich and famous have mansions, and no one wants to deal with a drug enforcer, you might think money is out of the question. Think again because it isn’t the case. The average person won’t have a quarter of a million under the mattress, but that is why you go to corporate cash buyers. A business like Warrior Property Solutions understands the potential and buys as many as possible. To cut out the red tape, they offer cash in the hopes the transaction will go through as quickly as possible. Now, the offer might be lower than the price of the house, but you have to remember there are no fees. From commission to surveying costs, they waive the majority of them in return for cash. As a result, the money you walk away is purer profit than if you went through the banks and estate agencies.
Cut Survey Fees
A full inspection is mandatory if there is a bank involved, and that is going to cost. But, the rest of the services which get added to the top are pretty pointless from your point of view. An architect is a prime example. Sure, he or she can spot problems, but it isn’t as if the property is going to collapse anytime soon. Unfortunately, they only add fuel to the fire because the buyer wants the house to be in perfect condition. So, you have to go back and spend a small fortune to get the deal back on track. Thanks, you wannabe Gaudi! Avoiding this scenario is essential, and it’s possible with a general structural inspection. All you need to do is show the buyer that the survey came back with no major issues. They will want to do one of their own, but they will also be wary of hiring an engineer. After all, a survey costs £500 whereas an architect charges that per hour.
Speculate To Accumulate
The idea of spending money to save it sounds ridiculous, especially when you are moving out. However, there is a method to the madness. Buyers want the best property on the market and will pay the right price for the privilege. Sure, it won’t be their home until they make changes, but the foundations need to be visible. For example, they might want a house with a big garden and a conservatory to enjoy the summer sun. Or, a couple that is keen on safety might need a garage to keep the car secure. If you have these features, it will make the property stand out from the crowd. Just as importantly, it allows you to increase the asking price by a considerable sum. Therefore, you stand to make or save money, depending on you look at it.
Selling a house does include expenses, but they don’t have to wipe out your profit margin.