A quick house sale can save you more than you think! Have you ever stopped to think how much it costs to sell property on the open market? And, even worse, remain on it for a while? Unfortunately the costs add up quickly and can erode a significant chunk of the sale price you eventually receive.
When selling a property, the costs to take into account are…
- Estate agent fees
- Solicitor fees
- Vacant property issues
Quick Move Now takes a look at the amount you could save with a quick house sale by using a real-life example…
OPEN MARKET ROUTE
Mr and Mrs Penry had their property valued at £139,995 and it went on the market at this price in June 2011. By July there had been no interest so the agents advised lowering the asking price to £129,995.
At this price a few viewings occurred and in August a £120,000 offer was made which was accepted. Unfortunately the buyers could not secure the mortgage and the sale fell through in September.
Due to worsening market conditions, the price was lowered on estate agent advice in October 11 to £114,995 and in November, after hosting many viewings, the Penrys accepted an offer of £110,000 and at last completed on the sale of their property, six months and -£29,995 later.
Had the Penrys followed the home buyer route, their experience would have been vastly different.
HOME BUYER ROUTE
- Estimated resale price: £125,000 (true market value)
- Part exchange offer: £106,250
- Discount arranged on new home: Â£10,000 (as the result of becoming a cash buyer)
PACKAGED OFFER: £116,250
- Estate agent commission: -£3,000
- Solicitor fees: -£660
- Council tax: -£840
TOTAL SAVINGS: £4,500
TOTAL OFFER VALUE: £120,750 – this would have been paid immediately and they would have received over £10,000 more than they managed to achieve on the open market!
Although at first glance, using a home buyer might not seem like the most financially advantageous solution for selling your house, once you calculate just how much money you lose by selling on the open market, the perceived difference can become much smaller, or even non-existent!