House simple - free selling. What's the catch?

BurnsieUK

So, I want to sell my property (note, “want” not “need”) as I live in a flat and want to live somewhere with outside space and little more privacy.

I also would rather put my £80pcm maintenance charge towards my own DIY costs/mortgage!

Anyhow, my deposit for a new place will be made up from the equity of my place I’m selling (standard), and thus, I want to sell if for as much as possible, and pay the agency/etc as little as possible (also standard).

Problem is, I don’t think my property has gone in value a lot. I bought for £110k in 2015 and there’s one round the corner from me on for £115. My friends live somewhere similar and sold for £5 profit.

Obviously, when costs are added up, that might be a little over £2k profit (I would have saved more if I kept renting!).

I have seen an advert from House Simple offering free house selling…. Yep, free!

I cant see the catch… you get 6 months advertising (on all the usual sites etc), you do not have to use any additional service such as their own/recommended conveyancing.

But things are too good to be true are usually just that….

So, what would be downside be? I’m guessing they won’t be as motivated to sell as others? I have to do my own viewings (not a huge drama, I think I’d do a good job!)

Another downside is that I will be a first-time seller, so might need some hand-holding?

Any comments on the above?

need_an_answer

Are you sure they sell your house for free?

A very quick look on their website and under the section where they compare themselves to other EA's it seems to suggest there is a flat fee of £995


I've no idea how that compares to a haggled % quotation for a traditional EA but there have been several threads recently regarding online agents,purple bricks being one,where actually its more cost effective to go down the traditional high street agent route and many potential buyers prefer to deal with high street rather than online

davidmcn

I presume the catch is that you (and your buyers) get a hard sell to use their associated solicitors, mortgage advisers, surveyors etc from whom they get kickbacks (though they give the impression there's no obligation to use any of those). Though these days, other estate agents do much the same thing and charge you a fee on top.

pinkteapot

need_an_answer wrote: »

Are you sure they sell your house for free?

A very quick look on their website and under the section where they compare themselves to other EA's it seems to suggest there is a flat fee of £995

Google suggests they're doing limited time offers where it is free in certain areas:
https://www.housesimple.com/yorkshire

Probably areas where they're trying to build brand awareness as under the T&C's of the special offer, you have to have a 'for sale' board up.

Can't see anything worrying in the T&Cs. It's free so long as you accept an offer within 6 months.
https://www.housesimple.com/yorkshire-terms-and-conditions

Though this Yorkshire one has expired so OP is probably in another area. Doubt the T&Cs have changed though.

Downsides will be the same as for all online agents (PurpleBricks etc) - you're much more 'on your own'. We recently offered on a house being sold through Yopa and the price negotation was direct with the vendor - no EA in between. :eek: Very odd. Where online agents really fall down is post-offer sales progression - chasing the chain and hand-holding anyone who needs it to get the chain to exchange.

Based on my experience of that negotiation too, I'm certain a traditional EA could have got higher offers out of us and the other people who were offering, which I'm sure would have exceeded the amount the vendor saved on fees.

martindow

pinkteapot wrote: »

Can't see anything worrying in the T&Cs. It's free so long as you accept an offer within 6 months.
https://www.housesimple.com/yorkshire-terms-and-conditions

Quoted from your link:

9. This promotion exempts you from having to pay our selling fee of £995 inc. VAT if the conditions of this promotion are met. Please note that an offer must be agreed within 6 months from the "go live" date but that there is no time period during which your property must exchange or complete as part of this promotion however your property will only be marketed by us for a period of 6 months from the date your property “goes live”


So, you would have to pay if there are no offers or a low offer is made which you turn down. doesn't seem very appealing. I think I'd give it a miss.

BurnsieUK

But could you not just take it off the market at that point?

gary83

BurnsieUK wrote: »

Problem is, I don’t think my property has gone in value a lot. I bought for £110k in 2015 and there’s one round the corner from me on for £115. My friends live somewhere similar and sold for £5 profit.

Obviously, when costs are added up, that might be a little over £2k profit (I would have saved more if I kept renting!).

I don't see the problem, the flat hasn't gone up as you'd have liked but could have been much worse, In 2015 you had 110k which you spent on a flat, you've lived in it for four years and potentially looking at selling it for £110k-£115k, in that scenario you haven't lost money, your not in negative equity.

I don't see how you'd have been better off renting, when buying in 2015 you had 110k and having lived in the property for four years you you still have 110k. Had you been renting at, hypothetically say £500 a month that's £6000 a year or £24,000 over the 4 years you'd have been worse off by. I'd be very surprised if any mortgage interest or the maintenance charge of £80 a month would have added up to anywhere near that much.

As well as that any gains you could have potentially made due to price increases that had occurred just due to the rise of the housing market or the popularity of the area would also have been wiped out by the larger price increases of the bigger, more expensive property you're looking to buy next.

martindow

BurnsieUK wrote: »

But could you not just take it off the market at that point?

But then you wouldn't have received an offer within the 6 month period and would have to pay. Or have I misread the terms I quoted above?

Lornce

We sold our house through house simple and it was a very good experience. They charged £995 inc VAT on a no sale no fee basis which was more than 2x cheaper than the local estate agents and i actually really liked their online portal to deal with viewings/offers etc.

However not sure on their promotion so read the T&C's of it first, I thought i would give an input to how our journey was with them.