ConsumerValue: Housing
6. Selling a home
Selling a property in the current economic downturn can be challenging – limited access to credit, concerns about further house price falls and reluctant bidders can make the experience stressful, in particular if you are under pressure to make the sale.
So it is important to set yourself up for success at the minimum cost, by being smart in how you organise the marketing of the property and efficient in arranging the necessary legal processes.
The principal cost areas involved in the sale of a house where you should be able to achieve savings through good planning relate to the following:
Strike a deal with your estate agent
The fees charged by estate agents and auctioneers for selling your house can vary dramatically.
A range of 0.7% to 2% of the sale price would not be unusual, in addition to advertising and administration charges running into hundreds of euro.
Unfortunately, very few estate agents declare their fees for the sale of property on their websites or in their marketing materials. Correspondingly, it is difficult to find any reliable sources of comparison information.
This makes it necessary to put in the time and effort to ring around and make enquiries directly with the agents concerned.
The current difficult housing environment may have resulted in agents seeking higher percentages to compensate for lower transaction volumes.
Generally, the rate tends to be higher outside Dublin, but these fees are usually negotiable.
Remember that this is a highly competitive market and that the service offered by estate agents is not always identical in terms of the networks they use to promote your property, the tools they have to market it etc.
It's well worth making a broader judgment based on all aspects of the service they can offer rather than just plumping for the cheapest quote.
Besides price, find out:
- Where they will advertise your home
- Whether the agent has many houses for sale in the area
- How many of these are sale agreed
- Whether the agent has a waiting list of people looking for a house
Most agents will offer their best rate for sole rights to the property, i.e. your commitment that you will not place it for sale with any other agents.
But you should satisfy yourself that the agent has a realistic prospect of selling the property, based on information they provide around their recent performance and their list of potential purchasers.
Finally, remember that if your property does not sell and you are unhappy with the performance of the agent and decide to move, you will still be liable for expenses incurred in the marketing of your property, so take this decision very prudently.
It may be better to wait a little longer with your current agent, unless you are very confident entering an agreement with a new agent will dramatically expedite the sale.
Sell it yourself
This may sound unusual, yet almost one in 10 residential property sales takes place without involving an estate agent.
Before you embark on this route, it’s important to consider its advantages and disadvantages.
Remember in the first instance that it is important to form a solid view as to the value of your property.
Once engaged in the process, you will certainly need to devote time to managing it – answering all enquiries personally, arranging viewings, negotiating with any prospective purchasers etc.
However, you know your home better than anyone and so you may be best placed to market it effectively.
Costs
To get an idea of the costs involved, the website Sellityouself.ie charges prospective vendors €195, while Privateseller.ie charges from €199 for a range of services.
Another useful site is www.youbuyfromme.ie, charging €74.95 for an unlimited listing. Daft.ie is another very popular online property sales and rental website, with prices starting from €195.
If the online world is not for you, consider advertising in local or national papers - after all, you'd be paying any advertising costs incurred by an estate agent on your behalf anyway.
Even here, it may be possible to secure a level of discount, depending on how many adverts you purchase – just ask. Remember, the worst that can happen is a refusal, which will leave you not one cent worse off.
Building Energy Rating (BER)
From 1 January 2009 a BER certificate is compulsory for all homes being sold or rented in Ireland.
A BER is similar to the energy label for a household electrical appliance like your fridge. The label has a scale of A-G. A-rated homes are the most energy efficient and G the least efficient.
Purchasers or tenants of houses or apartments are entitled to a BER so you should think of having a BER assessment carried out in preparation for marketing your property.
BERs will be carried out by specially trained BER assessors, registered by Sustainable Energy Ireland (SEI). A list of BER Assessors is available on the SEI website.
BER fees
There is no a standardised fee for a BER assessment, although a range of €280 to €350 seems average for apartments and standard three-bedroom semi-detached properties. Again, this is a competitive market, so seek several quotes and feel free to discuss the quotes with your preferred Assessor.
If for whatever reason you are not satisfied with the rating for your property, you can revert to Sustainable Energy Ireland with your concerns. It has review systems and procedures in place to validate the work of registered Assessors.
Although there is no current evidence to this effect, BER ratings may come to have an impact of sale or rental prices over time so an accurate reflection of your property’s status may have a cash value.
Legal fees
Check the section on legal fees for more tips on arranging the conveyancing of your property.