How much would be saved by not going through an estate agent?

kay_fin

Hi, im completly new to buying and selling but today my landlord has told us shes going to sell up. We have recently arranged a mortgage to buy a house at auction on sat, but at the right price the house were in now would be so much better. I was wondering if it would be possible for our landlord to sell directly too us without an agent and if so roughly how much she would save on fees, so we could make her an offer taking that into account. She is having the house valued on friday but we think its worth about 140,000-150,000. Any advise on this would be greatly appreciated, Thanks kate

djm1972

Hi Kate,

There's no need for anyone to use an estate agent. They don't play any part in the legal process (other than register their interest in the transaction with the solicitors) - all they do is introduce buyers to sellers.

With current house prices, most Estate Agents are taking instructions on a commission rate of 1% + VAT (that's what i've paid), so yes - there's definitely mileage in taking this into account by making an offer. If she sold through an agent she would be looking at commission of about £1700.

However....

If you were introduced to her as a tenant through an estate agent (many estate agents provide property management services for landlords) then it is very likely that there is a clause in her management contract that states that she will be liable to pay a commission (probably at their usual percentage) in the event that a tenant subsequently purchases the property - so bear this in mind.....!

Madmel

I think it depends on your area. Round here (Devon) most charge between 1.25 and 2%. 2% of £150k is £3k, but don't forget they add VAT onto that too which would take you to just over £3500.

If I was in your position, I would ring round a few estate agents to find out how much they charge for selling. Then you can speak from a position of knowing the facts when you speak to the landlady. Don't forget, if she sells to you, she might also take into account that you have no removal costs!

spunkeyrich

try and get a price in your mind after looking at others that you would be prepared to pay.

the above poster is right, there maybe a clause in the contract that they have to fee anyway.

however the owner will probably sell rto you for cheaper anyway cos they can get rent until exchange/completion and sell to a reliable buyer.

rather than lose rent by losing you to another proerty and leaving it empty while it sells.

rich

kay_fin

Thanks for your replies. We rented privatly so no letting agents involved, which is good, also the house came partly furnished, stuff which we dont want, and i doubt she wants back so we could offer to get rid of it for her, saving her money again (theres a lot of stuff in the loft from previous tennants) I will deffinatly ring around some agents tommorow and ask, thats a good idea. She also said they were selling because of money problems, which means she will be looking for a quick sale, so im hoping this means she might accept a lower offer if we made it, thanks again for replying, kate

Kaz2904

If any properties near you have sold recently check their sold prices on rightmoves website. You can get a rough idea what people actually paid then.

Jonny_B_3

We have sold our house to friends and so far its less hassle than with an estate agent! The solicitors do everything.

I knocked the potential EA fee off so he could afford it.