Lucy Denyer
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When James Rolfe, 32, began developing property in 2003, he sold his first two homes through an estate agent. The third time round, he decided to find a way of keeping all that commission for himself. So he got a friend to design a board to put up outside the house, a three-bedroom semi in Rawdon, near Leeds, and created his own website.
He also listed it on Rightmove.co.uk, a property portal, advertised in the local paper and “carpet-bombed” local businesses – newsagents, the post office, even fish-and-chip shops – with A4 flyers. Within two months, he had an offer of £199,000, higher than three of the four valuations he had received from estate agents. “It might have taken me a bit longer, but I’ve saved about £5,000,” Rolfe says, estimating that he has spent £2,000 on his personal marketing campaign.
Many others may follow Rolfe’s example and bypass traditional estate agents after the launch by Tesco, Britain’s largest supermarket chain, of a website, www.tescopropertymarket.com, that allows owners to market properties for an introductory price of £199.
Not surprisingly, the agents are not happy about what many see as an attempt to do them out of business. Within days of the launch, Spicerhaart, one of the largest groups of agents in the southeast, pulled all its advertising from Tesco’s website. It was followed swiftly by Fish4homes, a property portal that would have provided a large slice of its listings. The portal claimed to have been “misled” by the nature of Tesco’s strategy. The supermarket retorted that the site had been “put under pressure from some estate agents who do not understand our offer”.
Before rushing to sign with Tesco, though, it is worth considering all the ways of selling your property. And remember that, however you choose to sell your home, you will still need a solicitor to do the conveyancing.
PROPERTY PORTALS
How it works: You list your property for sale, upload photographs and give as much information about it as possible. Potential buyers browse the website and get in touch with you directly if they’re interested.
What it costs: Prices vary. For £9.99, Sellmyownhome.co.uk will give you a basic listing on its website, which it says has 250,000 hits a month. For £79.99, you can have your home listed on other property-finding sites, including Fish4Homes, Home.co.uk and Properties Direct, which together claim more than 2m hits, and receive a personalised forsale board. Brightsale.co.uk, which claims up to 20,000 hits a month – and links to the larger portals – charges 0.5% of the asking price, but the fee includes a valuation and legal services. Meanwhile, Homesforsale.co.uk is offering a free listing for anyone selling a property in the next few months.
Benefits: Much cheaper than using an agent. You’ll save considerably on agent’s fees, and anyone in the country can visit the website to view details of your property. What to watch out for: It could be tricky to decide on your asking price without an agent’s advice, especially if you have an unusual property. Not all portals allow individuals to advertise (Rightmove, for example, takes listings only for agents), and the less popular websites don’t get nearly so many hits.
Success rate: 8/10 – include as much detail as possible
NEWSPAPERS
How it works: Place an advertisement in the classified section for as long as you like; buyers will then get in touch with you directly.
What it costs: An advertisement in Home (two columns wide by 5cm), seen by a potential 3.3m readers, costs £340. Loot, a newspaper dedicated entirely to classified adverts, charges the same for a three-month national listing, appearing in its London, Manchester and Liverpool editions. A single 6cm x 6cm box in the Yorkshire Evening Post will cost you £164.86.
Benefits: You can catch the browser who may not have been consciously searching for property. What to watch out for: Check the newspaper’s circulation figures – and make sure it attracts the right kind of reader.
Success rate: 8/10 – good for blanket coverage and serendipitous sales
AUCTION
How it works: The auction house will take photographs and put together details for a catalogue, which will appear three weeks before a sale, giving prospective buyers time to look round and arrange surveys. It will also value the house, giving a nonbinding guide price. Once the hammer has gone down, the sale is binding on both sides. The buyer pays a 10% deposit and the sale continues as it would through an agent.
What it costs: Not much less than an agent – auctioneers’ fees are usually about 1.5% of the property’s value, and there is a catalogue entry fee of £375-£700, depending on how much space you take. You will also need to pay a solicitor to complete the sale.
Benefits: It can be a good way to get rid of a property that needs modernising. Auctions also make for a quick sale. “The auction date gives everyone focus,” says John Weatherall, head auctioneer at Andrews & Robertson. And, he adds, sales are sometimes agreed prior to auction, which makes it even quicker. What to watch out for: “Unless a property is unmodernised, it’s not always the best place to go,” says Weatherall. “Most auction buyers are looking for some kind of discount to attract them to it.” If you receive an offer before auction, the contract must be signed before the date of the sale, otherwise it will be auctioned anyway.
Success rate: 7/10 – if your house isn’t in great nick
How it works: Pearl McCafferty, 53, posted a video of her £310,000, three-bedroom penthouse flat in Renfrewshire on YouTube, the video-sharing website, in February. Prospective buyers can take a two-minute virtual tour, accompanied by haunting music.
What it costs: Free.
Benefits: Access trendy web surfers who wouldn’t be seen dead on a property portal. What to watch out for: YouTube isn’t usually the first stop for people wanting to buy a house.
Success rate: 3/10 – full marks for ingenuity, but, despite more than 2,000 hits, McCafferty has yet to sell
How it works: Post details and pictures of your property on the online auction site, decide how long you want it to appear for and set a start price. Play safe by including a reserve price.
What it costs: A fixed fee of £35 to post the property; £2 extra to fix a reserve price.
Benefits: People love the idea of online auctions, which can drive prices up. Catch bored office workers surfing the web in their lunch hours. What to watch out for: Beware chancers: it’s a nonbinding sale.
Success rate: 5/10 – will appeal to nonconformists
EXCHANGE
How it works: Swap your house with someone else who wants to move. At www.swap-homes.com, sellers register their home and list where they would like to move to and the site searches for potential swaps. Money usually changes hands, as it’s rare to find someone who wants to swap a property for one at the same price.
What it costs: From August 1, £34.99. Until then, it’s free.
What to watch out for: The website accepts no liability, so be sure to get professional advice.
Success rate: 7/10 – the website has about 8,000 properties on it at present
BUYING AGENTS
How it works: You approach a local buying agent, who has a list of clients looking for property in the area. If one likes the look of your home, you can arrange a private sale.
What it costs: Nothing; the agent is paid by the buyer. Those looking in this way are mainly high net-worth individuals not interested in anything for less than £500,000.
Success rate: 7/10 – if you’ve got a nice pad
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