Private House Sale or Use an Estate Agent

As with any house sale, there are usually costs involved. If you have opted to put your house on the market, you will need to factor is different costs which will eventually impact on the final amount of cash in your hand. A real estate agent may make the entire process of selling your home much easier but the commission may have a fairly significant impact on the price you finally receive. A private sale can also be costly, with attorney fees, and administrative costs taking a small chunk out of your profits. Even if a private house sale may seem like the better option than dealing with an estate agent, it is important to bear in mind that you may still need to undertake advertising and other methods to market your home.

Quick Sales to Agencies

If you need access to quick cash by selling your house, then you may have to consider selling to a professional buyer like an agency. While this may only get you 75% or less of your house value, you can assured of a quicker sale. With an agency sale, you will also not have to bear any costs for the sale as legal expenses and administrative costs are covered by the agency, and not by you as the seller. If you are considering selling your house to an agency, it is important to consider the following.

• Approach more than one agency and compare the offers on your house. Ask each agency about their procedures, length of time to conclude the sale and any expenses that you may be landed with.
• Ask the agency if they provide a ‘sell and rent back’ option so that you can live in your house after the sale until you find some alternative accommodation that may be more affordable.
• Analyze house prices in your area and hire an independent assessor to give you a valuation. If you are losing more than 30% on selling your house to an agency, then you may have to reconsider your options or try to negotiate with the agency.
• Calculate the cost of doing minor renovations and repairs that may increase the value of your house. While an agency may not change their offer significantly, the investment in doing up your house may yield you more from a private sale.
• Budget yourself for additional living costs and renting another property and calculate if you can afford the move. While the quick cash in your hand from a fast house sale to an agency may seem like a better solution to settle higher interest rate credit, it may not be sufficient to improve yoru financial situation should your new living costs affect your budget.
• Consider options like extending your mortgage slightly to settle debs with a higher interest rate. While this may not be the best approach to your financial worries, it may allow you to retain your house while reducing your overall debt.
• Speak to your bank about the settlement costs in paying off your mortgage. While you may be able to get 75% of your house value through an agency, you may not save significantly by selling your house if you have a substantial amount still owing on your mortgage.