How NOT to lose over £6,000 when selling your home.
When it comes to selling a property, many homeowners focus solely on the cost of hiring an estate agent, often opting for the cheapest option. However, it's essential to understand the difference between cost and value, especially in property transactions. The most expensive thing you can do is to put a good buyer in front of a bad agent!
Investing in an experienced estate agent who is also a skilled negotiator can lead to a significantly higher sale price, making the extra investment worthwhile and more profitable for you.
Cost: The Price You Pay
Cost refers to the amount of money paid for a service. In the context of estate agents, this includes:
• Commission Fees: The percentage of the sale price that goes to the estate agent.
• Fixed Fees: Some agents may charge a flat fee instead of a commission.
A common misconception is that all estate agents provide the same level of service, leading sellers to choose the agent with the lowest fees. However, this approach can be short-sighted.
Value: The Benefit You Receive
Value is what you get in return for the money you spend. In property terms, value is determined by:
• Sale Price: The final amount your property sells for.
• Speed of Sale: How quickly your property sells.
• Quality of Service: The support and advice you receive throughout the process.
An experienced estate agent offers value that goes beyond just taking photos and listing your property online. Here’s how:
The Role of an Experienced and Skilled Estate Agent
1. Negotiation Skills: One of the most critical roles of an estate agent is negotiating the best possible price for your home. An agent with strong negotiation skills can secure a higher sale price, which can more than offset their higher fees.
2. Professional Marketing: Experienced agents know how to present your home in the best possible light. This includes high-quality professional photography, virtual tours, and compelling descriptions that attract serious buyers.
3. Targeted Advertising: Skilled agents use a combination of online platforms, social media, and their network of contacts to reach potential buyers who are most likely to be interested in your property.
The Financial Advantage
Consider this example: If an experienced agent negotiates an additional £10,000 on the sale price of your home, this amount significantly benefits you as the seller. Even if the agent's fee is £3,000 higher than a cheap and less skilled agent, the extra £7,000 you gain from the higher sale price makes the investment worthwhile.
Here’s the breakdown:
• Without Skilled Negotiation: You sell your home for £500,000 with a cheaper agent, paying a 1% + vat fee (£6,000).
• With Skilled Negotiation: You sell your home for £510,000 with an experienced agent, paying a 1.5% + vat fee (£9,180).
Despite the higher fee, the net benefit is:
• £510,000 (sale price) - £9,180 (agent fee) = £500,820.
• Compared to £500,000 (sale price) - £6,000 (agent fee) = £494,000.
In this scenario, you end up with an extra £6,820 by choosing the more skilled agent.
The most expensive thing you can do is to put a good buyer in front of a bad agent!
Conclusion
When selling your property, focusing solely on the cost of estate agent fees can be misleading. The true value lies in the additional benefits a skilled and professional agent brings to the table.
The job of an agent is not just to sell your home. It’s to achieve a premium sale price for your property by negotiating the highest possible price which puts more money in your pocket.
The next step
It all starts with a sales advice meeting from Duncan. Click below to see the different options available for you.
If you’re thinking of selling a property and would like to have an informal chat and some advice, you can call, text, WhatsApp or email me at any time.
07969 638349
duncan.kaye@keysandlee.co.uk
Duncan has been selling homes in Romford for 23 years and helped thousands of people, couples and families move to a new home.
Having sold family homes, probate properties, off market homes and high value exclusive estates, Duncan will be able to work with you to achieve an outcome that suits your specific needs.