When trying to sell your home, it’s important to consider all options. After all, making an informed decision has to be the first step in any major life choice.
There are three options in the UK when it comes to selling your home. House buying companies, estate agents, and auction sales. Each method of sale comes with its own benefits and drawbacks that need to be considered.
House Buying Companies
House buying companies have the funds available to purchase your property in an immediate sale, bringing an offer within 24 hours.
Companies like Housebuyers4u can streamline the home buying process into a completed sale within 7-14 days.
A house buying company brings an almost instant transaction for those wanting a quick sale of their home. Once you’ve contacted the home buying company, the team will ask pertinent information about your home and property. They’ll follow up with a cash offer based on the valuation price. If you’d like to proceed, the team will complete independent RIC’s and work toward a formal offer.
The Drawback of House Buying Companies
House buying companies can typically get a bad name but sourcing a reliable and regulated company can ensure that your experience is quick and painless.
- Always confirm a company is a member of the NAPB and regulated by the Property Ombudsman Code of Practice.
- Likewise, always look for a company that offers a no-obligation quote for your property, so you’re not locked into a sale if you’re not comfortable.
Auction Sale of Your Home
If you’re looking for home buyers quickly, selling your home via auction may be the best solution. Unlike other selling methods, auctions can secure a sale within 30 days from date of the auction.
For example, properties requiring a quick sale, unusual properties, or poor conditions may benefit from using an auction sale. Setting a fair and realistic price is the easiest way to ensure interest in the property from multiple home buyers. When a home is listed fairly, competitive bidding (when home buyers bid against one another) can drive up the home asking price.
The Drawback of Auction Sales
If you’ve opted to sell your home by auction, it’s important to understand that there are fees and commissions you’ll need to pay.
- The average cost to enter your home into the lots for the day can be upwards of £300. This fee is paid the day of the auction, regardless of if the property sells.
- Additionally, you can expect to pay 2.5% plus VAT in commission to the auctioneer.
- Finally, the auction company’s marketing efforts can vary greatly, depending on the property type and target audience. This can substantially influence how many home buyers see your property, limiting your potential buyers to the auction company marketing efforts.
Selling with Estate Agents
An agent is responsible for helping connect home buyers to your property in a smooth and calculated manner.
They will typically get a set percentage on the property’s sale, ranging from 0.75% to 3.0%+VAT. An agent uses listing services to promote the property and current marketing techniques, increasing your home’s likelihood being noticed by home buyers. An estate agent will take care of any viewings and negotiations that come along with selling your home.
They will remove emotion from the selling process (after all, we become attached to sentiment).
The Drawbacks of Estate Agents
It’s important to understand that in the UK, anyone can become a real estate agent.
- No qualifications or licensing is needed, meaning anyone with a whim and heartbeat can become an agent virtually overnight.
- Marketing efforts are based on the effort of your agent. For example, some estate agents may heavily use traditional selling methods, whereas others may invest in social media and online marketing.
- Depending on the market, your home may sit for sale for extended periods of time, particularly if it is a buyer’s market.
- Finally, the fee basis for selling your home can quickly add up to thousands in extra fees and expenses.
The Bottom Line
When it comes to selling your home the best thing you can do is pick the sales method that best fits with your personal circumstances.
For some selling with an estate agent may be the better option. For those who want a quick cash sale – a house buying company may be a better option!