Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
In an increasingly independent world, the general public has access to a vast amount of resources that decades ago would not have been imaginable. From cloud computing to remote working, we are also now able to undertake fairly large scale tasks on our own without professional help. The vast resource of information that is the internet has made sure that help is at hand wherever we turn.
This is also the case when you decide to move / buy a new home.
For years now, people have been able to search for their dream property online, but have always had to include real estate agents every step of the way.
This isn’t the case anymore, and it’s been proven that an increasing number of people are now turning to a DIY approach when it comes to buying and selling. However, does this really save you time and money? This blog post investigates…..
Example A – The DIY Home Seller
So, you’ve searched for your dream property and want to sell your existing home – which happens to be in Nottingham, for example.
There are a variety of sites you can use for this, but the first step is to contact a company which provides the tools and services required for selling your home as a personal project. For a fee, they’ll send you a ‘for sale’ sign and then advertise your property on major sites which dominate the market such as Rightmove and Zoopla. It does still cost money, but it’s estimated that depending on the property you’re trying to sell, you could save up to £6,000 doing it this way.
After researching house prices and resale values in Nottingham, you would then get to work obtaining certificates, documents and evidence for potential buyers. There’s one small problem however…
What if your property doesn’t sell?
The house has been on the market for a while, and so far, you’ve managed to save money by not letting any estate agents in Nottingham in to the selling process. But, you’ve only had a small amount of interest, and the time you have to take out of your day to work on the sale of the home is becoming prohibitive. Not only may this become a frustrating process, but you also have to bear in mind that if you have signed up for independent sale in relation to any advertising company, you will still be charged a fee around £500. OK so it’s still a lot cheaper than using agents, around about £5000 cheaper than using agents, but what if you can’t manage to sell and eventually revert to using an estate agent after time?
Not only does that defeat the initial purpose of independent selling but it also means that you would have paid your independent advertisement fee of £500 on top of the cost of using an estate agent as well as wasting the time investment.
What do the traditional agencies have going for them?
Firstly, the estate agents in Nottingham, or the estate agents in Leicester, Birmingham, Bristol, London or wherever they are, will have a deep understanding and knowledge of the local area. They’ll be well versed on the in’s and outs of the property market and will be able to give personal advice based on your specific needs.
Secondly, practice makes perfect when it comes to price negotiating. It’s a skill many people think they possess, but in reality, it’s better to leave it to the professionals who know how to drive a hard bargain and get a price that is deserved.
Thirdly, and finally, all estate agents in Nottingham or wherever they may be are part of the financial ombudsman scheme – which provides people with safety and confidence in the knowledge that financial compensation is available if things go awry.
In this article, we’ve looked at some of the points and issues surrounding the DIY vs. Estate Agents debate. There is no denying it has become increasingly popular to go down the route of doing it yourself, however, you must bear in mind that even in today’s world, real estate agents have the professionalism and expertise to provide a competitive edge to your sales process.
How about you all? Have you used real estate agents or the DIY approach in the past to sell or buy a house? Why did you choose one over the other?
Share your experiences by commenting below!
Photo – http://farm5.staticflickr.com/4008/4590480945_4050b966bf_z.jpg