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Per Ollie Coopermoney team
Estate agent fees are one of the big expenses when selling a home – but changing rules and the emergence of private selling websites have made it more common for people to do everything themselves.
But how easy is it – and what do you need to know? We spoke to industry experts to find out.
Firstly, what do real estate agents do with your money?
A real estate agent typically charges between 1% and 3.5% of the sales price.
This means that for the average house price (£284,691 in December), you could pay between £2,846 and £9,964 in commission fees.
“When you use a real estate agent, their fees include taking professional photos, listing your home, conducting property tours, and negotiating a price on your behalf,” he says. Jack Smithson from home ownership website Better.co.uk.
Additionally, a real estate agent will compile comprehensive details of your home, including room sizes and descriptions of fixtures and fittings.
“They will also provide a concise summary of the local area, highlighting amenities, schools and transport links,” adds Jack.
And they will perform buyer checks for you (more on that later).
It seems like a lot, but…
“Selling your home alone can be a manageable process with a few key steps,” says Jack.
Preparation
You should start by thoroughly researching house prices in your area, using sites like Rightmove and Zoopla – but seek out free valuations from local estate agents to ensure you have a realistic asking price in mind.
Next, you want to take high-quality photos of your home.
Jack advises using YouTube tutorials to learn new filming and editing techniques that can take you to the next level.
You then want to write down what makes your home unique.
“When browsing other listings for inspiration, take it a step further by emphasizing what you love about living in and around your home,” suggests Jack.
“Whether it’s the refreshing scent of the coast or the peaceful sounds of village life, incorporating these details can help potential buyers visualize life there,” he advises.
Just like using YouTube for photography tips, you can use free tools like ChatGPT and Grammarly if you need help with your writing, says Jack.
Announcement
This is probably the biggest advantage of going through an established real estate agent – your home is much more likely to be seen because they will have an established audience and market. But it is very possible to do this alone.
“When it comes to advertising your home, explore a variety of avenues, including local newspapers and social media,” says Jack.
“Consider using sites like Strike which allow individuals to list their properties for free on platforms like Rightmove,” he suggests.
Views
Once you’ve secured a few viewings, you’ll have the opportunity to make it a little more personal than estate agents ever could – a real plus.
“Explain the reasons for your decision to purchase the property, highlight its unique features, and share the aspects of your neighborhood that make it a desirable place to live,” says Jack.
The little things matter when showing people around – so try to get an objective look before bringing anyone.
Do the things you would normally do – make sure it smells good and is clean and tidy.
“Finally, it’s worth knowing that you must legally provide potential buyers with a free Energy Performance Certificate (EPC).”
The sale itself
Perhaps the scariest aspect is the physical exchange of contracts and money.
A real estate agent would typically oversee the process from accepting the initial offer to transferring the keys to the new owner.
However, if you go it alone, you will need to become the central point of contact – bridging the gap between your lawyer or intermediary and the buyer and their legal representative.
“Once you have accepted an offer on your property, your first task is to write what is called a memorandum of sale,” says Jack.
This document is a written confirmation of your acceptance of the offer and details the agreed price, along with any specific conditions you have both agreed to.
“It is then recommended to engage the services of a lawyer or conveyancer to ensure all legal obligations are met,” says Jack (of course, you will need to do this even if you have an estate agent).
The cost of hiring one typically ranges from a few hundred to over £1,000, depending on factors such as fixed fees, hourly rates, complexity of the sale and additional costs such as property searches or land registration fees.
“In the absence of a real estate agent, you will be responsible for keeping your buyer informed about the progress of the sale. This involves regular updates on the status of legal proceedings and any relevant developments,” says Jack, before adding that this can actually be a good thing.
“By assuming these responsibilities independently, you will have greater control over the sales process. However, this will require you to be exceptionally organized and you will also need to be very good at communication.”
Any risks you should be aware of?
Rita Patel, legal director at law firm Browne Jacobsontells us that the biggest risk for those selling their properties without a real estate agent is the lack of a vetting and vetting process for the potential buyer.
Real estate agents will verify the buyer’s identity and verify the buyer’s proof and source of funds – without this, there is no way to assess whether the buyer is legitimate and capable of purchasing.
“While this process is something that lawyers can help with, it often comes at an additional cost and you will need to start from scratch if there is an issue with the identification and/or financial eligibility of a potential buyer,” says Rita.
More generally, selling without an agent can lengthen your selling time.
“Zoopla suggests this timeframe is typically around 17 to 34 weeks, but with no one available to consistently promote and drive the sale of the property at every stage, working alone drags out this process,” says Rita.
“Agents can also help mediate any potential breakdowns in communication between the buyer and seller – reducing the likelihood of having to go back to the market and start again.”
The advantages
Laura Owen-Brown, a PR manager from Gloucestershire, tells us she intends to sell her house without an estate agent in the near future.
“My disappointment with real estate agents stems from a lack of familiarity with the properties they tried to sell me when I was purchasing my current home,” she says.
“They couldn’t tell me about the details that really matter, like the ideal times for sunlight in the garden, how much council tax I would pay, what material the roof was made of, places where I could walk my dog off-leash or the impact of post-football game traffic on Sundays.
“These types of details can shape the experience of living in a home for years to come and are just as important as the square footage, EPC rating or how many bedrooms a property has,” she adds.
She says the current “transactional” approach to selling homes feels “impersonal and outdated” to her.
“Yes, I will have to deal with more administrative tasks, but the time and money savings will make it worth it. Establishing direct contact with buyers and lawyers, without third parties holding everything up, will mean I can be in control and have transparency throughout the process, especially during negotiations,” she says.
However…
As Laura says, it’s a question of whether you have the stomach for admin and are happy to take the risks on financial background checks.
If you are aware of all this and are willing to take on the organizational burden, you can save a lot of money.