Cheapest Way to Sell a House

Selling a house can be expensive, with fees for everything from estate agents to solicitors and dealing with the necessary documentation.

These costs can eat into your profits, meaning you need to pay just as much attention to cutting down costs as you do to reach the best possible price.

If you want to know the cheapest way to sell a house, you’re in the right place.

The team at Property Solvers run through the costs of different options for selling a house, including estate agents, private sales, sell house fast companies / property buyers and auctions…

Estate Agents

For most people, selling a house means enlisting the help of an estate agent and making a sale through the open market.

However, estate agent fees can be high. Typically, you can expect to pay 0.9%-3.6% + VAT of your house’s sale price.

So, if you sell a house for £250,000, you would pay at least £2,250 + VAT.  These fees tend to be higher when selling property in London.

This might sound like a lot, but estate agent fees cover the following:

• Valuing your property and compiling an optimum pricing strategy
• Photography and floorplan
• Marketing and advertising on property portals such as Rightmove,  Zoopla and On the Market
• Carrying out viewings and open days
• Negotiation
• Buyer checks / anti-money laundering verifications
• Dealing with conveyancing solicitors
• Ensuring the sale progresses smoothly
• After sales service

Note that Price is often directly correlated to the quality of service and you will generally have to pay your own legal fees.

The good news is that you won’t have to cover these costs unless the property sale is successful.

Online vs High Street Estate Agent

Costs can vary significantly depending on the type of estate agent you choose.

The main distinction is between high street estate agents – who have a physical branch and can provide you with an in-person service – and online estate agents, who carry out everything online.

Many people like the service and security of working with a high street estate agent, but this isn’t the cheapest way to sell.

Online estate agents are generally more affordable.  Indeed, many have vastly improved in recent years as more people have become accustomed to using the internet – even for “bigger ticket” sales (like cars and holidays).

The result is that you can get a great level of service from the right online estate agency.

Independent vs National Estate Agent

You may be aware that there are both independent (or “local”) and national estate agents.

An independent estate agent specialises in one local area, and many sellers find they provide a better service. Also, they tend to receive a better commission, so they have more incentive to help you get as close to market value as possible for your home.

National agents operate around the country, so they have a higher profile. This can provide reassurance to sellers who want name recognition, but it results in higher fees.

Ultimately, whether you go with the cheapest estate agent possible or pricier traditional agents, this is never going to be the cheapest way to sell a house.

Private Sales – A Cheap Way to Sell a House?

If you like the idea of skipping the costs and hassle involved with estate agents, you may have considered selling your house privately instead. You may assume this would be the cheapest way to sell since it doesn’t require paying an intermediary, but it has its own costs.

It typically takes the longest to make a sale when you sell your house to a private buyer, which means that you’ll have to continue paying, your mortgage, utility bills and council tax for longer.

Also, the purpose of an estate agent or intermediary is to guide you through the process. Without them, selling a house can be a more daunting and difficult process, so going down this route isn’t a decision to take lightly.

Still, selling a house privately can be a viable way option if you have a network of family or friends to help you conduct the sale, and the skills needed for negotiation and executing the sale. In this case, you’re less likely to need an estate agent or other expert.

Costs of a Private Sale

The costs involved in a private sale may include legal fees, an EPC certificate, photography, and floorplans. This can set you back around £1,000+ in total.

Are Auctions a Cheap Way to Sell Your House?

Another way to sell your house is to list it for auction. This is becoming an increasingly popular option, especially for “problem properties” that are tough to sell on the open market.

Like private sales, auctions allow you to avoid estate agent fees and secure a faster sale. Instead of going through viewings and waiting for the usual exchange of contract process, you can simply list your property for sale with an auction house.

Instead of listing an asking price for your home, you will list a slightly lower guide price and a reserve price (which is the minimum you will accept for a final sale price).

The amount you get could end up being below the home’s true market value, making it a risky option. However, auctions are a great way to sell if you’re looking to dispose of a property that needs work.

When you use this sale method, you will usually have to pay an auctioneer fee alongside other hidden costs. These costs vary depending on the type of house auction you choose.  Here at Property Solvers, we charge 1.5% plus VAT (no sale, no fee).

In some cases, an online estate agent may offer an auction service too.

As a result, this isn’t the cheapest way to sell a house either.

Modern Method of Auction vs Traditional Auction

A modern method of auction is a newer alternative to the traditional auction for a house sale.

In a traditional auction, the winning bidder must put down a 10% deposit. They exchange contracts on the day of the sale and pay the rest of the fee later. The seller covers auction fees and commissions, which may be 2.5% of the sale price, plus a fixed fee for the auction and potentially legal fees too.

As for a modern method of auction, the winning bidder pays a reservation fee, which gives them exclusivity to buy the house and covers the costs of the auction.

The buyer then has 28 days to exchange contracts. This makes it more attractive to bidders who need a mortgage, which can open you up to a wider pool of buyers.

It’s worth noting that – whilst you may not be charged any fees – modern auctioneers usually pass these costs on to buyers in the form of higher buyer fees.  This, in turn, often means that they’re willing to bid less (if at all).

Auctions are therefore not the cheapest way to sell a house, but certainly have a number of advantages as a way to sell a home.

Property Buying Companies

For those who like the idea of a private sale but don’t have anyone to sell to, a cash house buying company can be an attractive prospect.

Cash buyers provide an instant cash offer for any property, regardless of its condition. They will then carry out a valuation and complete the process as quickly as possible.

A cash buyer generally covers the fees involved in selling a house, including the conveyancing costs (though it can vary, so it’s good to verify first).  As you’re the sale is directly to the company (in most cases), there are also no estate agency fees to worry about.

Technically, this is often the cheapest way to sell a house, beating online estate agents, auctions, and selling a house privately.

Since cash buyers will cover most costs, resulting in a fast and free sale.

However, pricier options like traditional estate agents help homeowners get the best price possible for their home.

Part Exchange

In a part exchange scheme, homeowners use the value of their property toward a new-build, and cover the difference in prices yourself.

Two independent estate agents will value the property and give it a “selling price” (which is below its market value) and make a formal offer.

This can make it a convenient option, but there’s a risk that you could sell your house before the new build is ready.

Costs of Part Exchange

You’ll have to pay legal fees and for a snagging survey in a part exchange scheme, which is typically £850 to £1,500.

A part exchange also means accepting a lower price for your house, so it’s not the cheapest way to sell your house.

Cheapest Way to Sell a House in Scotland

There are some differences to selling a home in Scotland versus England and Wales.

The main differences are:

• You need to produce a home report before selling
• Properties for sale have an “offers over” price rather than a fixed asking price
• Solicitors market the property rather than an estate agent
• The stamp duty equivalent for Scotland is Land and Buildings Transaction Tax

So, how does this affect the cheapest way to sell a house?

Since the home report is a legal requirement and must be carried out by a qualified surveyor, it’s an additional cost to consider.

Comparison of Home Sale Options

You can expect the cheapest estate agent in Scotland to cost at least 1% of the property’s selling price, which is similar to other parts of the UK.

There are also online estate agents you can use to sell a house in the region. And as is the case with England and Wales, an online estate agent is generally a cheaper option.

Property auctions, part exchange schemes, and private sales are available in Scotland, with similar costs.

It’s also possible to sell to a genuine cash buyer in Scotland, which is the cheapest way to sell a house.

Secure That Cheap Sale

Figuring out the cheapest way to sell a house isn’t as straightforward as it may first appear. Whether you opt for traditional or online estate agents, selling privately, auctions, a part exchange program, or property buyers, all have their pros and cons.

Sometimes the cheapest way to sell your house will result in achieving a lower selling price, which is the case with cash buyers.

If your priority is making your house fast and avoiding fees, consider Property Solvers for a quick house sale. As hybrid estate agents, we can offer both property auctions and a cash buying service. Call us on 0800 044 3733 to find out which option suits your needs best.