Sometimes you need to sell your house fast. It’s usually a decision driven by a change of circumstance: sometimes good like a new arrival, or a new job; and sometimes bad like divorce, death or debts.
When selling your home, most people have two key questions:
- How much will they get for their home? and;
- How long will the process take?
Your home is likely to be your biggest asset so selling for a price you’re happy with in the timeframes that you need, can make or break your next steps.
In this article, we outline the different ways you can sell your home, highlighting the pros and cons from a speed level.
TRADITIONAL ESTATE AGENTS
- Local Knowledge
Estate agents do know your area inside out. It’s the old school business model with bricks and mortar locations, so the ones that are still there, are the ones that are doing something right. The main player in your area will have built a database of contacts up over years, so they should be able to find you a buyer fairly quickly if the price is right and the local market strong.
- Unpredictable timescales
How long is a piece of string? An estate agent simply acts as the middleman, connecting you to a buyer. They have no control over the process and can’t guarantee that a sale will actually go through; 38% of agreed sales fell through in 2018 due to stricter lending rules, buyers changing their mind at the 11th hour, Brexit uncertainty, and property chains collapsing. With so many elements out of the estate agents control, it is difficult for them to put a timeframe on a sale.
One thing for sure is that they can’t compete with cash buying companies or auctions in terms of speed of sale.
- High Fees & Commission
Selling your home can be costly, especially with estate agents. You’ve got their fees, solicitors fees, and usually ‘sprucing up your property’ fees to factor in. And their fees are not cheap. They usually charge around 1% of the overall sale price; for a property worth £250,000, that would be £2,500.
The fee does include valuing your property, advertising costs, online listings, photography and floor plans, but with Rightmove and Zoopla now doing most of the legwork in terms of finding a buyer, people are finding it harder and harder to justify exactly where their money went – cue the rapid rise of online agents as a result.
- Non Refundable Fees
Online estate agents have a great fees system from a business perspective. It’s not great for you though.
Most of them charge an upfront fee, or ongoing monthly fee, rather than taking a commission once the sale is completed. That means that once you’re signed up, their job is done – your money is either in their bank or you’ve agreed to pay them in monthly instalments.
They therefore don’t really care whether you sell your home or not, as it actually doesn’t matter to them.
It also means that from a timescale perspective, the sale of your home is entirely in your hands; it’s you that will have to do all the legwork, from viewings and securing a buyer to negotiating a sale, and completing.
- You’re On Your Own
Agreeing a sale is only half the battle. There’s a lot of legwork that goes in to ensuring that an agreed sale actually progresses to completion. Granted a solicitor should guide you with this, but it is entirely your responsibility to manage communications with the buyer and solicitors – something that is very time-consuming and can be stressful.
If you do call the online estate agent for help, then you’ll speak to someone in the call centre. And it’ll be a different someone every single time. Personal service isn’t really how their business works.
If you’re unsure with what you’re doing, or have little spare time, then online definitely isn’t the right option for you and will probably result in a long drawn out process.
PROPERTY CASH BUYING COMPANIES
Their business structure is solely focused on simplifying the selling process and making sure that it is quick. Once a price is agreed, then they can usually exchange within a couple of days.
- Sell as Seen
Property companies, like Hull Cash Buyers, guarantee to make a cash offer on any home they see, no matter what state of disrepair it is in; missing windows, stained walls, cracked tiles, an unusable kitchen – you get the picture!
So, you don’t need to worry about factoring in renovating time or costs to make your property fit to sell.
- No Selling Fees
There is no middleman. They are the buyer.
And without a middleman, there are no selling fees or commissions to pay – so more money in your pocket.
Plus, it’s a guaranteed sale. There’s no risk of issues with finance or buyer drop out, so once timescales are agreed then they won’t change.
- No Solicitor Fees
Some companies, like Hull Cash Buyers, will also cover your legal fees if you use their chosen solicitor. The benefit is twofold: you don’t have to spend time finding a solicitor; and you have no additional fees to pay.
If you do choose to sell your home to a cash property buying company, then make sure that you choose a local one rather than a national one. You’ll get an accurate price for your home, a personal service from local people, and you won’t be tied into a contract. Want to know more? We’ve gone into detail on local property company benefits here.
Like property cash buying companies, things move fast at auction. So if speed is at the top of your priority list, then it’s certainly an avenue to consider. Your house either sells in the auction room, or it doesn’t.
The problem with auction is that you can get a much lower price for your home than you would on the open market. It’s essentially a gamble on the night.
As well as the risk of a lower price for your home, there is a big fee to pay for selling your home at auction. The standard fee is £5,000 + VAT up to a minimum of 3.5% + VAT. This is payable by the buyer, but the buyer will factor this into their bid, so it’s still essentially coming out of your pocket.
If speed and price are both key considerations, then local property companies are your best option, as they tick both boxes. If you live in Hull or East Yorkshire and want to sell your home fast then get in touch with Hull Cash Buyers on 01482 655346.