Estate Agent Costs Explained
Are you planning on selling your home soon? Perhaps you are looking to move to a different area for a change of employment, to help an ailing relative, because your family is growing or due to the breakup of a relationship. Whatever the reason, if you are thinking of doing things the traditional way with the help of an estate agent or agency, it may be in your best interest to stop and think for a moment whether it’s the right choice for you.
Just because it’s the norm, doesn’t necessarily make it the best choice. Especially when you consider the costs involved. In the following post we are going to briefly touch upon those costs and also highlight a way you can avoid estate agent fees and other expenses when selling your home.
What Costs Are Involved?
Price is a big factor in the current housing market. Not least of all because of the expenses involved in moving out. If you go about things the traditional way, you have to contend with the fees estate agents require. What are those?
The first thing you need to understand is that there are two main ways estate agents charge for their services – with a fixed rate and commission-based.
Fixed Rates
Fixed rate fees are exactly as they sound. They are the set prices for specific services offered by real estate agents and agencies. What the fixed rate will be for selling your property will depend on the level of services you require. For instance, while the prices normally start at around the £800 mark, if you require extras like assisted viewings and floor plans, you will often have to pay extra for the privilege of these.
Many fixed rate estate agents also offer the option of you paying upfront or deferring payment so you can cover it at a later date. This sounds great, until you realise it comes with conditions. By deferring payment, a loan contract is created with a 3rd-party financial advisor and this will often incur extra costs, like interest, so you may end up paying even more than you expect to in the first place.
Commission-Based
The other type of estate agent is the one that charges commission for the services they provide, meaning of the final agreed price when you close the sale of your house, they get a percentage value. As this depends on the property price, the commission costs vary. The fee generally covers:
Realistic valuation of property based on research of the local market, including past sales data and trends
- Negotiation costs
- Online marketing for the property
- Assisted viewings
- Putting up and removing “For Sale” and “Sold” signs
- Professional-quality property photographs
- Precise measurements and floorplans
Avoid Paying Fees for Selling Your Home
Although it is often advertised as being the only sound way to sell your property, if you don’t want to deal with estate agents (and we can understand why) and don’t want to pay any extra than you have to, why not choose an option for selling your property that won’t cost you a thing. How is this possible? By speaking to a property cash buying firm like Cash Home. We will do all the work for you, and buy your property within a week, or a timeframe that suits you.
It doesn’t matter the reason for selling, or if there is anything wrong with the property, all homes are considered.