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Negotiate The Fee With Your Agent Before Hand
If you decide to use a traditional high street agent, you should consider negotiating the estate agent fees ahead of time to save money while selling your home. This comes down to asking questions. In a nutshell, play chess with questions. Negotiate hard on commissions.
It is important to note that, on average, an estate agent will charge about 1.5%. However, if you negotiate hard, you can get the commission down to about 1% or less, especially in the current market. If you do your calculations, this will save you a fortune.
For example,…
The current average UK house price is £250,000 as of October 2020. If you were to sell your home for this price and the commission is 1.5%, the amount would be £3,750. If you get the commission down to 1%, the amount will be £2,500. The lower the commission percentage, the lower the fee will be. For this reason, consider negotiating your fee to save money.
The reasons the estate agent will agree to work for a lower fee
Well, there are several reasons why an estate agent will work for a lower fee. The primary reason an agent will work for a lower fee is if they are very sure they can sell your property quickly and they do not want you to go to their competitor.
Consider Going For An Online Estate Agent – However You Need To Be Aware Of The Disadvantages
There are many benefits an online estate agent can offer. One of these benefits is greater exposure and control over the selling process. However, just like everything else, online estate agents have a disadvantage you should be aware of: they are very expensive without negotiation power. That is because online agents often lack knowledge of the local market.
Moreover, online estate agents will ask for upfront fees, which are not cheap and may leave you out of pocket if they fail to sell your property. If you compare these limitations with those of traditional estate agents, (who strictly work on a no-sale, no-fee basis), it seems like a huge limitation. With online estate agents, you may end up paying more, but the chances of a sale are high.
For this reason, it is wise to consider both the pros and cons before going with online agents. For more information about this, consider reading the following article: Online vs. Traditional Estate Agents.
Choosing A Solicitor Wisely
Time is money! For this reason, you want the selling process to be as smooth as possible. You should choose a solicitor who will carry out the prep work before the buyer is found. Doing this will speed up everything when the buyer makes an offer. A good lawyer can save you weeks of the negotiation process.
Consider A Professional Home-Buying Company
You should always consider a professional cash house buyer. A majority of these companies will offer you a good deal that will save you money. Moreover, they are more secure compared to traditional selling routes. The best thing about home-buying companies is that there is no fee you are required to pay, and you will get paid exactly what they offer you. This means there will be no unpleasant surprises down the road.
Moreover, these companies are far quicker, less complicated, and stress-free compared to the traditional market. If you calculate the time it takes to complete the whole process, you will save money in the process. The price the company offers you for your property may be worth it in the long run compared to what you will get when you go the traditional route.
Moreover, companies like ours can tailor your transaction time to fit your situation, which is probably a good deal if you need money quickly.
Do Not Go With The Recommended Agent’s Surveyor Or Conveyancer
If the estate agent recommends a surveyor to you, it will likely be received as a referral. This means that they will be paid to refer you, and the cost will be passed on to you. Sometimes estate agents will only refer you to solicitors who will pay them large sums of money rather than looking for the best job.
Moreover, there will also be a potential conflict of interest, especially if the solicitor is commercially dependent on the agent. If you look at it from another angle, it is like they are working for the agent and not you.
Reviewed and edited by Albert Fang.
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Article Title: Saving Money On Estate Agent Fees: The Tips
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