Average UK property prices have risen by 22% since the end of 2019, according to official government figures. With every pound of their budget being squeezed, aspiring movers are eager to explore their money-saving tips. Could a private house sale be the answer?
What is a private house sale?
A private house sale is one that does not use an estate agent. Instead, property owners will find their own buyers and deal directly with them throughout the sales process. Both parties will still use a conveyancing solicitor to handle the legal aspects of the sale, but the home owner will usually be responsible for other aspects of the home sale handled by the estate agent.
What are the pros and cons of selling a private home?
Before you consider selling your private home, it’s important to consider both the benefits and potential risks of doing so.
When you manage your own property sale, you have the opportunity to have a greater level of control. You will be dealing directly with your buyer and will therefore be able to keep a close eye on how the sale is progressing.
With the average UK property currently priced at just over £286,000, and estate agents charging an average of 1.5% of the sale price, you can typically save over £4,000 by selling your own private home. The higher the value of your property, the more you can save.
- More labor-intensive sales
Handling your own private home sale will be much more labor-intensive than selling through an estate agent. It’s important to make sure you have enough time not only to find your own buyer but also to complete the sale and deal with upfront communication with the buyer. You will also need to arrange your own Energy Performance Certificate (EPC), gather your own information about your buyer’s personal circumstances (eg whether they have a mortgage agreement in principle) and negotiate a sale price. This type of interaction can be difficult to handle unless you are used to this type of discussion.
- Limited pool of potential buyers
Selling your home privately means you will be unable to list your property on websites such as Rightmove and Zoopla, which are only for use by estate agents. Not being able to access these popular portals means your pool of potential buyers will be significantly smaller than selling through an estate agent. As a result, there is likely to be less interest in your property and you may achieve a lower sale price as a result.
For more information on private home sales, you can read this guide Guide.