I want to sell my house – through an estate agent

Once I decided that I want to sell my house, my first instinct was to contact an estate agent. Luckily, I remembered something that someone once told me about exorbitant commission fees, over-valued asking prices and bad service they received from estate agents. So I did my own research:

According to statistics, 90% of UK homeowners automatically turn to an estate agent when it’s time to sell. But just because everyone else jumps into a fire, should you do it too?

After doing quite a bit of reading, it became abundantly clear that if I want to sell my house through an estate agent it is going to cost me a lot more, and there’s no guarantee that I’ll sell for the best price.

Although it wouldn’t be fair to say that all estate agents are rubbish, consumer group Which? Published a report that stated:

"Consumers entering the home-buying or selling process are substantially disadvantaged by the way estate agents currently operate."

In support of this, the BBC's Whistleblower program found evidence of serious violations of the law and a massive 50% of consumers voicing dissatisfaction over the service received from their estate agent. The program further unearthed clear evidence of bribery, fraud and deception.

Although that had me a bit worried, I decided to compile a list of pros and cons on estate agents anyway:

The pros of using an estate agent to sell my house:

• They’ll valuate the property for me.
They’ll recommend valuable improvements I need to make to sell my property.
• They’ll prepare my property description, take good photos, and measure the rooms.
• My property will be advertised in local papers and on the Internet.
• My house will be advertised in their shop window.
• I’ll be supplied with a For Sale board.
• They already have a list of buyer enquiries they could match to my property.
• They will conduct the viewings.
• They deal with offers and will negotiate the sale.

The disadvantages of using an estate agent to sell my house:

• They might give an inflated value just to get my business, then drop it later on.
• Exorbitant commission fees.
• Bad service.
• My house might stay on the market for months.
• They can’t guarantee there will be no chain breaking.
• They’ll probably advise costly property improvements before I sell.
• Intrusive and irritating house viewings at all times of the day.

Let’s be honest, widespread lack of consumer confidence in estate agents is nothing new. And if I think about it, I had my fair share of terrible estate agency practices when I bought my property!

I want to sell my house – privately

I have to admit, despite knowing that I can save a lot of money by selling my house privately, the thought is quite daunting. The main advantage – the fact that I will save on estate agents’ fees – is obvious. But do I actually have the expertise to pull this off?

The advantages of selling my house privately:

• No estate agents’ fees and commission.
• I keep control over the sale.
• I always know exactly what’s going on in terms of my sale.
• I don’t have to rely on the word of estate agents.
• I don’t have to worry about inflated valuation and selling prices.

The cons of selling my house privately:

• I might not have enough time or knowledge to properly market my house myself.
• I don’t know how to distinguish a genuine offer from a waste of time.
• I have to do all the paperwork myself.
• There is no buffer between myself and the buyer.
• Because I’m emotionally attached to the property, I might make the wrong decision.
• I am not trained in negotiation, and might not get the highest price.

A recent study by the global e-retailing industry body, IMRG (Interactive in Media Retail Group) predicts that by 2010, nearly half (that’s about 700,000) of all property sold in the UK every year will be a private sale. However, I’m not totally convinced that this is the way I want to sell my house.

I want to sell my house – fast for cash

Although this isn’t a method I initially would’ve recommended, I’ve decided that it’s a great option for home owners who need a quick, guaranteed sale.

After doing extensive research on property investment companies like MPG Investments (one of the first UK property buying companies), I was impressed by their transparency, quick sale guarantee, no fees promise and service excellence.

Although it is a fact that I will receive between 15 – 25% below market value if I sell to MPG, I’ve learned that I won’t have to spend a penny on commission fees, valuator’s fees or even legal fees. I won’t even have to spend money on any renovations on my house, wait for months to find a buyer or worry about last-minute chain breaking.

Also, if I ever faced repossession, debt problems, collapsing chains or relocation, I could be worry-free within 7 days.

The pros of selling my house fast for cash:

• A valuator will be on my doorstep within 24 hours of my first call to MPG.
• I’ll receive a guaranteed offer in only 48 hours of the call.
• I can sell my house to MPG in only 7 days.
• The valuation won’t cost me anything.
• I don’t have to spend a penny on legal fees.
• There are no commission fees.
• There is no danger of chain breaking.
• I don’t have to make any improvements to my property.
• MPG will buy my house, no matter where it is in the UK.
• Because it is a cash transaction, I will have the cash in my bank account within 7 days.

The cons of selling my house fast for cash

• I will only be offered 15 – 20% below market value for my house.

I want to sell my house – at an auction

After speaking to a number of people and having a look on the Net, I realised that selling property at an auction is not for the feint-hearted. However, it would be a good option if it was a rental property with sitting tenants (which it’s not).

The pros of selling my house at an auction:

• My house will be exposed to a lot of eager buyers.
• I’m guaranteed a sale on a specific date.

The cons of selling my house at an auction:

• It's one of the most expensive ways to sell.
• Typically, the commission for selling at an auction will be around 2.5% + VAT of my property’s value.
• If my property doesn't sell, I'll still have to pay up to £1,400 +VAT to cover the auctioneer's costs.
• I can expect to achieve a far lower price than I would want.
• The fixed costs of an auction might even outweigh normal estate agents’ fees.
• I will have to pay my solicitor to attend the auction to oversee the signing of the contract, which is a large additional cost.
• I am obliged to let all interested parties into my house, as well as make the property available to various surveyors.
• I’ll need to be ready to vacate the property within 28 days.

My conclusion

Since I’ve decided that I want to sell my house, I’ve learned quite a lot. One of the most important things I’ll always take with me, is the fact that I should choose the selling option that suits me best.