Comparison

You might believe that you can realise the full market value of selling your house by using an estate agent, but have you considered the real cost of doing so?

The following example should help to illustrate the real costs involved:

Example


Asking Price

£150,000

Offer

The average sale price is 7% below the original asking price

-£10,500

Estate Agent Fee

The typical fee is 2.5%+VAT

-£4,095

Solicitor’s Fee

The typical fee is from £700

-£700

Interest Payments

The average house takes 6 months to sell. During this time interest repayments on the home owner’s mortgage will continue. Here the figure is based on a mortgage of £100,000 at a 5.5% interest rate

-£2,700

Lost saving on next property

A cash buyer can typically achieve a discount of 8% on their next property purchase. This example is based on upsizing to a property with an asking price of £180,000

-£14,400

Value of Estate Agent Sale

In this case the true value of the sale is 78% of the original asking price.

£117,605

 

It is interesting to note the final figure; the real value of the estate agent sale in this example is 78% of the original asking price – i.e. 22% or £33,195 less than the original asking price. If the home owner in the above example accepted a lower offer to achieve a quicker sale, had a larger mortgage or one with a higher interest rate the true value of the sale would be even less.

How we Compare

Surprised by the above and wondering how we compare? Nottingham’s Rapid Property Buyer is different from other property buyers. We will not try to heavily discount your property. Depending upon the solution that best fits your needs, our offers can often be for the full market value of your property (or higher than market value where we put in place a negative equity solution).

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