Spoiler alert: there are cheaper solutions that don’t suck!

But yes, sure, our traditional high street brokers are generally painfully expensive!

With home prices rising in the UK and with typical UK brokers charging anywhere from 0.75% – 3% commission on the sale price, it’s not surprising that many home sellers are reduced to crying tears when they get the bill.

According to the UK House Price Index (September 2021 edition), the average house price in the UK was at a record high of £270,000.

Do you know what that means?

You can pay between £2,025 and £8,100 + VAT in commission to your local estate agent for thrashing your property. Yes, OUCHIE! That is absolutely heartbreaking!

But you know what really bugs me about the outdated and killer commission-based pricing model? Well, it’s the outdated and killer commission-based pricing model.

To be specific, it’s the fact that the price we pay is NOT a reflection of the amount of work put into the sale, but rather is based purely on the value of the property, so some of us pay a lot more for same service level.

Luckily we don’t live in the stone age anymore; we are not barbarians sleeping on rocks! Times have changed and home sellers now have options that better suit modern and fairer times!

In short, why are brokers so damn expensive?

I think it comes down to “because it’s possible”

Frankly, I really think that’s it.

It’s a bleak prospect, but I’m sure it’s not incredible.

When an entire industry comes together and embraces the same pricing model, it’s very hard to fight, even if it’s unfair and makes little sense. I’m not saying brokers don’t offer value, nor would I fail to acknowledge the lavish overheads they have to cover (packaged Mini Coopers certainly don’t pay for themselves), but there seems to be a real problem when two people provide the exact same service. get a bill thousands of pounds apart.

Welcome to 2021: Online brokers with fixed costs

Is a fixed fee pricing model the right solution? I think so. Or at the very least, it’s fairer. And I’m certainly not the only one, which is why ‘online’ and ‘hybrid’ brokers like Purplebricks & Yopa [house-selling] game and have become ridiculously popular with sellers in recent years due to their low fixed costs. Essentially, it doesn’t matter how much you sell your house for, everyone is coughing up the same price. That sounds exactly as it should be, Turn right?

Flat rate online brokers make it possible for you to: sell your house for € 500,- (the average cost of an online real estate agent), while the average high street real estate agent charges somewhere between 0.75% – 3% of the sale price, which based on the average house price in September 2021 of £270,000 would cost between £2,025 – £8,100 + VAT.

Now I’m not going to tell you that an online agent like Purplebricks is a similar replacement for a traditional high street agent, because they are not. There are differences – compromises have to be made to reach the low prices – but what I will say is that online agents have made it incredibly easy and cost effective to sell a home. Of course, you should be aware of the key differences between online broker and High Street so that you can decide which option is best for you. For more information you can go through my…

I know I’ve mainly used Purplebricks as an example of an online agent, so I wouldn’t be surprised if there’s a handful of people yelling at the screen, “what about [insert a different fixed-fee online agent]?”

I hear you loud and clear, and here I come.

Purplebricks is the most popular broker online (technically they’re a ‘hybrid’ broker, but tomayto, tomahto!), so it’s a brand that most people are familiar with, and that’s the only reason I’m flaunting them. In reality, there are dozens of other reputable online brokers offering similar services, some of which are more highly valued and significantly cheaper.

The Average Flat Fee Online Brokers Charge £500

Companies like Purplebricks and Yopa are the most expensive examples of online brokers today. The average cost is approximately £500, and the cheapest service is currently provided by an online agent called Strike (formerly Housesimple). They charge – wait for itnothing! I don’t give a shit, their service is completely free. It’s legit and I’ll go into more detail about Strike’s free home selling service here.

Anyway, I doubted too much, here are some images that will tell the story better…

Examples of online brokers with fixed fees
Rating
4.7
TrustPilot Reviews
Duration
6 months
Includes / Notes

No reimbursement package

*YES, Strike gives you 100% free service, with no strings attached.

However, Strike currently only sells properties in England in two forms. They offer a “hybrid” service (ie including a personal appraisal by a local agent) for real estate in the Midlands, North West and Yorkshire etc. Specifically the following zip codes: B1 – 50, B6 – 99, BB, BD, BL, CA, CH1 – 4, CH25 – 34, CH41 – 49, CH60 – 66, CH70, CH88, CH99, CV, CW, DE , DG, DH, DL, DN, DY, FY, GL1 – 20, GL50 – 56, HD, HG, HR, HU, HX, IM, L, LA, LE1-19, LE21, LE41, LE55, LE65 – 67 , LE87, LE94 – 95, LN, LS, M, NE, NG1 – 25, NG31 – 34, NG80, NG90, OL, PE10 – 12, PE20 – 25, PR, S, SK, SR, ST1 – 21, ST55 , SY, TD, TF, TS, WA, WF, WN, WR, WS, WV, YO.

For the rest of England they offer a “virtual” service, which includes everything on the list, but instead of a personal valuation you will receive a digital valuation report.

Price

Free

*Free

Visit websiteBook free personal appreciation
Rating
4.9
TrustPilot Reviews
Duration
12 months
Includes / Notes

Pay in advance package

* Add Rightmove premium listing to your cart and apply the discount code during checkout.

Price

Action running

£595 Inc VAT
(Regular price: £625)

visit website
Rating
4.5
TrustPilot Reviews
Duration
12 months
Includes / Notes

Pay now package

*Selling charge of £1,499 in London and surrounding areas.

Price*£999 Inc VAT visit website

All right, I’m done.

I would like to hear your precious thoughts…

xoxo

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