Private Sale vs EA

Have had the opportunity recently to speak to two house owners planning to sell their house privately in order to save on the EA fee.

What are the advantages/disadvantages to this from the vendor’s side?

And, equally, from the buyer’s side?

When I buy, I’m gonna buy off a private vendor. :smiley:

Reminds me a bit like painting walls.
Too many landlords I know think they can paint.
One, who will forever stick in my mind, decided it would be a good idea to put down new carpets before they got started.

Some things you’ve just got to do- nothing better than a nice new carpet between your toes when you’re painting. Old sticky carpets are the worst.

I have a special place my heart for people selling privately :slight_smile:

I think there are many things in life where you should hire a professional rather than doing it yourself. But IMHO, the fees charged by EAs at the moment (from what I’ve heard) are not equal to the value they provide for sales. 1.5% + VAT means they take over 9k of a 500k sale.

The hardest bit to quantify is the value of a MyHome listing, which is currently restricted to member EAs only. You could make an argument that MyHome has such a monopoly on house sale ads that this alone is worth thousands as it significantly expands your pool of buyers. So it’s a difficult call.

To me the value provided is the same regardless of the house price, so charging a % on the sale price makes no sense to me. On the other hand, if EAs really are great negotiators, I would be perfectly happy to pay an EA a flat €1500 plus 20% of anything over my target price (based on recent PPR sales of equivalent properties). Can’t see them going for that though :smiley:

I’ve yet to meet an EA who negotiates. They either relay instructions from the vendor or they play purchasers off each other.
They don’t actually negotiate anything. I genuinely struggle to think of a ‘service’ which adds so little but costs so much.

I can see the value of a 3rd party taking bids and passing on etc as people can be uncomfortable with that but not for 1.5-2%.

Even the legals to a flat fee these days - why not the EAs?

In the US, there are several websites to assist people who want to bypass the EA’s, For Sale By Owner, being the most prominent. It’s theoretically possible to save fees of 6%, yet my empirical experience is that way less than 1% of sellers chose that route.

Marketing your property is not as easy as it appears, and many buyers are reluctant to bid on a property if there is no EA involved, because of the danger of buying a pig-in-a-poke, and having no recourse. It’s much more attractive to sellers than buyers.

forsalebyowner.com
forsalebyowner.com/?utm_expi … 43%2Cd.aWw

What recourse do you have if you buy a pig-in-a-poke from an EA?

They might get a severe scolding from the IAVI. “Ah now, don’t be doing that again.”

I think the industry is more regulated in the US compared to Ireland. Generally takes a minimum of two hours of Government mandated form signing at closing/settlement. Government oversight, can fine EA’s and take away license. Penalties and disciplinary action are maybe tougher and more frequent. Check the buttons at the top of this link.

dllr.state.md.us/license/mrec/

Having viewed a number of properties over the last few weeks, I would never opt to view a property for sale by the owner again. One house was very dated, was asking a premium and smelled of dog piddle. It is really difficult to run straight for the door when the proud owner is hell bent on showing you ever nook and cranny. It is also really difficult to give frank or honest feedback when they keep phoning you up needily.

So if you found a perfect house for bargain price in ideal location, but sold by owner - you would skip it?

Well I have to be honest, I genuinely would not go to see a house being sold by the owner.

Having just sold our own house, I was grateful to have the agent as a buffer for various reasons. As soon as we accepted the offer, the people who were buying from us had their mail redirected to our house and we got the agent to have a word with them, telling them to stop. They also “popped by” once, unannounced when we had visitors, as they wanted to see if we had an outside tap in the back garden. I was sort of relieved they knocked as we had spotted them looking over the wall, and not knowing who they were gave my son quite a start.

I would never buy or sell without an agent. Moving house is stressful enough.

One man’s pig in a poke is another’s only requiring the owner to put his or her stamp on it…