Approximate savings by excluding an agent

HampshireH

I've read and researched an lot on these forums and regularly contribute where my knowledge allows.

However we rent and are considering exploring an opportunity to buy the property we currently rent. We rent directly through the 'LL and there is no agent involved.

I have read EA fees at anywhere from 1-3% but what is the average? We would be looking to offset these against purchase price as no agent will be required.

It's a way down the line if we do it so as I said just exploring costs at the moment so we know what we would be coming for if we went down this route.

Also looking at any other costs which would be offset by selling to a tenant in situ. However I'm not finding very many which was to be expected.

Mutton_Geoff

1% plus VAT is normal in many areas, however, if an agent were appointed by the owner and marketed to others apart from you, if there were much interest in the property, the potential gain for the vendor is much much more than 1%.


I achieved greater than 25% improvement in sale price of my last property by choosing one agent over another (who valued it higher and was able to market it successfully at that price) let alone in trying to have sold it direct to my tenant.


Even if you were offering full market value, without that market being tested, the vendor may wish to split the saving with you rather than let you have it all anyway.


Where he will gain is the lack of a void period and other redecorating/prep costs prior to sale. You may have to move out for a day on completion as the property will need to be sold "with vacant possession".

HampshireH

Hiya

Yes I understand/appreciate the points you make. It wasn't on our radar until the 'LL mentioned if we were looking in the future then to give them a call first.

We are at the moment just considering what it would entail to decide how attractive an investment it may be rather then buying elsewhere. We would expect to pay market value. Others have recently sold in the area of the same layout etc so we have an idea of what it may be valued at currently but will keep an eye on the market.

Tom99

If houses in the area sell at c £100k-£150k then it might be 2%-3% but if they sell at £500k+ then I would expect 1% or even lower.

HampshireH

Thankyou. 250-300 so I guess 1. Something is realistic

PokerPlayer111

Might be worth mentioning in negotiations that money is saved by everyone involved not using an EA, also time + hassle. Person dependant how well this works out.

G_M

You'll also save moving costs, and possibly redecoration if you are happy with your home as it is.

The LL is likley to get the proprty valued, and may still hoose to advertise, to ensure there are no otther buyers willing to pay more than your are offering ( by enough to cover the extra EA fees).