Buy or sell your home without an estate agent
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Estate agents are not renowned for being transparent or upfront, whether you're buying or selling a property.
New findings from estate agent comparison website Ipostcode.com show agents are often guarded about the amount they charge sellers and that there is great variation in the level of fees levied.
The majority of London agencies quoted 1.5% commission, it found, but some quoted just 1%, while others quoted as much as 2.5%.
This means that, for the average London property priced at £342,749 (according to the Land Registry), the seller could be paying anything from £4,113 to £10,282 including VAT to sell the same home.
While estate agents are quick to point out that their fees are negotiable based on either a realistic valuation of the property, or depending on the price range of the property, this discrepancy is pretty off-putting.
The major outlay
At the same time, separate new findings from Lloyds TSB show estate agents' fees account for the largest share of the cost of moving home, at 38% of the total bill.
Perhaps unsurprisingly then, with households tightening their belts in the current uncertain climate, more and more people are giving serious consideration to the idea of ditching the estate agent altogether when selling - or buying - a home.
Sarah Beeny from property site Tepilo.com told MSN Money: "Now more than ever people need to save money - and you can do this by cutting out the estate agent."
Here we look at how to go about going it alone, starting with selling a home.
What are the options?
If you're planning on bypassing the estate agent, there are several options available to you.
You could look to sell directly to family or friends, or by word-of-mouth, or you could advertise in the local newspaper, or put up a prominent "for sale" sign outside your home to get passing footfall.
The internet is also a great tool you have at your fingertips, as even though you won't be able to market your property on key portals such as Zoopla, Rightmove, Findaproperty, Globrix, there are plenty of other sites on which you can advertise.
Marketing your home
This month saw the launch of Property Place (Apps.facebook.com/propertyplace/), which lets you sell your property using the social networking power of Facebook.
Sohail Rashid, founder of Property Place, says: "We're all feeling the pinch and looking at ways to save money. The site is a cost-effective way to reach a huge audience in minutes, as you can share the listing with your social network and beyond for just £75. You can upload details of your property in minutes and manage the whole process in one place."
The app also allows you to arrange viewings through Facebook's private messaging, and to create property wish lists to share with friends.
Other useful sites include houseweb.co.uk, thelittlehousecompany.co.uk, propertybroker.co.uk and tepilo.com - and don't forget the likes of gumtree.com and craigslist.co.uk.
Image © Getty Images
Setting the price
If you're cutting out the agent and going it alone, you need to get the price right.
This is especially important in the current market, as if you are too optimistic, you could find yourself waiting a long time for a sale; after all, a house is only worth what someone is prepared to pay for it.
You can get a good idea of the market by looking at similar properties in your area, in estate agents' windows, newspaper ads and online.
Kate Faulkner from Designsonproperty.co.uk told MSN Money: "Reaching a realistic asking price is down to your own research on sold property prices. Make use of online valuation tools, such as the new one from Experian called Propertycheck.co.uk."
Other useful sites include Landregistry.gov.uk and Nethouseprices.com.
Compiling your advert
The key is to put in as much detail as you can into your advert, to make your property stand out from the competition.
With many of the dedicated private sales websites, you can personalise the description of your property; it's also worth paying for professional photographs, as this can make a big difference.
Beeny says: "Photos are one of the biggest factors when trying to sell your property online."
Remember the ad will need to include all the sales particulars, such as a floor plan, general description, room-by-room low-down, a list of what's included and contact details.
By carrying out a little research you should be able to source cheaper options for the floor-plan and Energy Performance Certificate (EPC).
Faulkner says: "Make sure you shop around for your EPC; you can usually get a competitive price by going direct to a local energy assessor."
Conducting viewings
As a DIY seller, you need to be prepared to conduct the viewings yourself.
Make sure you read up on how to show potential buyers around; useful tips include giving viewers space, not being too pushy and focusing on pointing out things the buyer won't know.
Faulkner says: "You're going to have to organise and conduct the viewings yourself, so think hard about how you're going to do this - and the time this will require. Also keep safety at the forefront of your mind at all times."
Image © Monkey Business Images - Rex Features
Negotiating with potential buyers
Without an estate agent to help you, you're going to need to negotiate hard with potential buyers.
Estate agents are skilled at selling homes and trained to get the best possible price, so you're going to have to do all you can to achieve this on your own.
Stand your ground and be prepared for some tough conversations, as you won't get the same distance from potential buyers that you would with an estate agent.
Finding a solicitor
A crucial part of the selling process is appointing a solicitor to assemble all the necessary preparatory documents.
Mark Montgomery from 1st Property Lawyers, says: "Ensure you have chosen one who will keep the process moving and chase other parties."
Look out for firms with good feedback on review sites, and ask family and friends for recommendations; a good starting point is unbiased.co.uk and lawsociety.org.uk.
Word of caution
If you're serious about selling privately, there's no escaping the fact it will require a lot of time and effort, as you will have to do everything yourself.
You will miss out on the estate agent's exposure both on the high street and online; you also miss out on interest from potential buyers already on their books.
That said, you may be able to build a more trusting relationship with the buyer as you are dealing with them directly, enabling the purchase to move forward more quickly - and potentially saving yourself a fortune.
To read about buying a home without an estate agent, click here.
Graham Oates. Sorry, I did not see your posting before adding my latest. You really need to have your Agency Contract (you must have been provided with one) carefully inspected. I feel that any reputable Estate Agent would be ill advised to pursue you by legal means for recovery of anything other than reasonable, and previously agreed, out-of-pocket expenses in relation to the marketing of your home. An appearance in whichever Court would give them a dose of adverse publicity, once the full story is told. Your experience with 'gazundering', where the intended purchaser made a last ditch attempt to deny you a further £15,000 by taking advantage of your (presumably known to him/her) vulnerability is particularly vile, but is a product of the way real property is sold here. You have been an unfortunate victim of the ridiculously long period of time which is currently absorbed by 'conveyancing' as well as the basic dishonesty of your potential buyer in not keeping to his/her word. I genuinely wish you and your wife good fortune in the future.
As a former Estate Agent, I feel that articles such as this always miss out two very relevant points.
I have experienced many occasions where, perhaps, six Agents were invited to value a potential client's house and the first question they were asked was, 'How much do you charge?' when the most relevant question should have been 'How much can you get for my house?' It is a fact that the 'cheapest' Agents, particularly those who are under pressure from sales targets within their companies, will not necessarily have the informed tenacity to hold out for the highest, or best, bid (after all, it is a form of auction).
On the buying side, why do most potential buyers go to Estate Agents first? Like them, or loathe them, Estate Agents are generally accepted as part of the process and, believe it or not, there is a certain 'comfort' factor in doing what others do. It is human nature after all.
Having bought and sold 8 times in the last 18 years here is my rough guide to using estate agents.
Always negotiate there % if they are not flexible enough move on until you find one that is.
Always insist that they do the viewings, it's what your paying them for.
Actually read the contract before you sign and if your not happy with it negotiate some changes,it's a contract it should be open for negotiation.
Always include in the contract a shorter get out date, it makes them work harder.
Remember YOU are selling your home they are just advertising it.
The term "introducing a buyer" means getting a potential buyer across the threshold and not just dishing out details.
One last thing you are there employer and if they do not come up to standard i.e. do what the are supposed to do you can sack them.
I was interested in seeing a website at the start of the article, ipostcode.com. It could save me some time and possibly money. They claim to contact all the agents for me then "All Agents will be compared on; Fees / Commission, Sole Agency, Marketing, and the agencies USP "
I just tried to upload my property but they are only servicing London at this stage. Has anyone used them?
Hi Christine
We sell properties all over the UK. Just look at the property in Scotland we recently put live. the property had been on with local agents for well over a year. Since we put it on there is been some interest but no sale yet. Our brochure was seen by The Sunday Times who contacted us and arranged with the client to a feature in their newspaper. If it sells I am sure he will be most happy to pay £250 rather than over £10,000 with a traditional estate agent. The most important thing for anyone selling a property is to get exposure on Rightmove. Simon is quite right it is just so powerful and even though I do not like Rightmove due to the way they use the monopoly they have I would never ever leave Rightmove.
thanks Simon, I think your suggestions were along the lines I was thinking I would probably take. When I bought the property (whilst living on the mainland) I used local agents websites to search out properties so assume that others will also do this. However since then I've read such a lot about the power of Rightmove that it brought this question to mind.
thanks again for your advice and I will probably do as you suggest when I'm ready to sell
Christine that is a very good question, and to be honest i'm not sure of the correct response. However my answer would probably be to give to local agent a shot first, as they would have more local knowledge and a better chance of advising you of the correct price for your property. You could perhaps do this for a period of 12 weeks, which is the standard term of most agents sole agency contracts. If after this, if you feel things arent going as you'd hoped then a change to the mainland agent may be the next step. The power of Rightmove cant be understated, however local knowledge,and having someone close to you is also very important.
Mike Matthews, a fellow voice of sense, welcome to the debate. The above article is full of what woudl happen in a perfect scenario, not taking into account the hundreds of hours of work and frustration that the homeowner would use trying to sell their home and then push the sale along.
I cant see many homeowners ringing a solicitor to ask about replies to requisitons!
Ann, that of course as the homeowner is up to you!
And Norman, i agree with you. Having always worked in independantly owned estate agents, i have never come under those sorts of pressure. Local reputation is more important that squeezing out that extra sale, however i do know people who have come under pressure from Corporate Agents to just take any offer.
The bottom line for anyone trying to sell their home is that they will noly sell it fo a price that they are happy with. However, particularly in times like these, that price will completely decide how long your home takes to sell. The question every seller has to ask themselves honestly is "is my price realistic or am i being stubborn?"
No disrespect, but i have to laugh at your last comment. People who cant sell their houses, but have had neighbours sell, always say their neighbours house was priced for a quick sale, which actually meant that it went on at the right price and sold.
Yes some people are put off by there being no bath. This may sound silly but it is what people have said over the years. Also by being on with estate agents, does make you look a little desperate.
My advice would be ditch one of your current agent, whichever one you get on with best, or if not then probably the one that has had it the longest. If you dont want to do that, the bare minimum you have to do is make sure that they are both marketing your house AT THE SAME PRICE!
I notice that Simon Bell mentions that selling Agents are trained to get the best possible price for their clients. Unfortunately this is not always the case. In my experence as an Agent (now retired) there are many large multiple Agencies where sales staff are put under unwise pressure by the imposition of targets. This opens the possibility of abuse, especially in a slowish market, where the sales staff member is panicking to meet an unreasonable personal monthly target and consequently brings extreme pressure to bear on a vulnerable seller (perhaps beneficiary of an estate) to accept an inappropriate offer.
Otherwise, Simon talks complete sense.
Having had a look at it i would say that you have several problems. Firstly you have 2 different agents advertising your house at 2 different prices. Not this maybe your fault, and it might not be, but it doesnt give a clear idea to buyers as to what you are trying to do. Secondly, i can see that another house sold in your road last year for £149,950. Now whilst this property also had 3 bedrooms, it did have a longer drive, and appeared to have some sort of loft room, bringing more useable space.
The bottom line is that if it is a "bargin" why has it not sold?
