When Receiving An Offer On Your Home Think Of Net Not Gross
We feel when vendors are receiving offers for their properties a large percentage of you focus on the figure before fees are paid. However, the figure you need to consider is the figure that will be left after estate agents fees have been paid. Basically sellers need to consider the net fee not the gross amount. The gross amount is not the amount that will be coming to you on completion it will be the net.
This is especially important if you choose to move estate agents. For example they go from a local estate agent charging £5,000 commission to an online estate agent like FastMove who only charge £600. If in this example the local estate agent have your property marketed for £200,000 and for whatever reason they don’t manage to sell it. You then decide to list the property on the market for £200,000 with an online estate agent and receive an offer of £195,000 but you don’t feel the offer is enough. At this point you need to think would you have accepted an offer of £198,000 with the local estate agent? If the answer is yes then there is no reason why you should not accept the offer of £195,000 with the online estate agent because the net amount is going to be higher.
£195,000 less the commission of £600 (the commission charged by the online estate agent) leaves you with £194,400. £198,000 less £5,000 (the commission charged by the local estate agent) leaves you with £193,000. Basically although the offer is lower from the potential buyer is less the amount you will receive in your pocket is higher.
Here at FastMove this is something we are strongly discussing with our vendors who have moved to us from a different estate agent. We feel people are now starting to understand the importance of this point.