When selling a property, it's tempting to cut costs and maximise profit wherever possible. However, in trying to save a few pounds here and there, many sellers fall into the trap of being penny wise and pound foolish - saving on the smaller details while neglecting the bigger investments that could have a significant impact on the overall profit.
Selling your home is likely to be one of the biggest financial decisions you’ll ever make.
When selling a property, it's tempting to cut costs and maximise profit wherever possible. However, in trying to save a few pounds here and there, many sellers fall into the trap of being penny wise and pound foolish - saving on the smaller details while neglecting the bigger investments that could have a significant impact on the overall profit.
Leading Northern property firm, Bradley Hall, shares its tips on making the right decisions when selling property, and how avoiding the penny wise and pound foolish mindset can lead to a smoother sale and greater financial rewards.
Common Penny Wise, Pound Foolish Mistakes When Selling Property
Skimping on Professional Help
One of the most common mistakes when selling property is trying to save on estate agent fees, either by avoiding using an agent altogether or opting for a cheaper service. Saving a 1-3% commission may seem like a good idea at first. However, professional estate agents do much more than just list the property; they bring market expertise, negotiation skills, and a network of buyers, all of which help sell the property faster and at a higher price. Without a knowledgeable estate agent, you risk pricing your property incorrectly, leaving it on the market for too long, or accepting an offer well below its true value. In many cases, what you save in commission fees is more than lost in the final sale price.
The better approach? Invest in a qualified estate agent who knows your local market and can negotiate the best deal on your behalf. Bradley Hall has been a figure on Northern High Streets for over 35 years and offers a full-service approach to property, ensuring you are supported from end to end.
Avoiding Necessary Repairs and Improvements
Many sellers try to save by avoiding repairs or renovations, choosing to sell their property “as-is.” While this may seem cost-effective, it can deter potential buyers, reduce the sale price, or attract offers that are much lower due to the perceived cost of future repairs. Small improvements, such as a fresh coat of paint, repairing broken fixtures, or sprucing up the garden, can make a huge difference in how your home is perceived and how quickly it sells. Even larger upgrades, like updating a kitchen or bathroom, often pay off by boosting the property's value.
The better approach? Invest in essential repairs and strategic improvements that will make your property more appealing and increase its market value.
DIY Photography and Marketing
In today’s digital market, most buyers first see your property online. High-quality photographs and effective marketing are crucial in attracting interest. However, some sellers try to save money by taking their own photos or hiring a cheap photographer with little experience in property photography. This can be a costly mistake. Poorly lit or unprofessional images can make even a great home look unappealing, reducing the number of interested buyers. Effective marketing goes beyond photos; it also includes home staging, virtual tours, and a strong online presence. Cutting corners on marketing means your property may sit on the market for much longer than necessary.
The better approach? Utilise Bradley Hall’s marketing strategy, ensuring your home has professional photographs and videos taken.
Handling Negotiations Without Expertise
Property negotiations can be complex, involving everything from understanding market trends to knowing which terms are acceptable. Sellers may think they can save by handling negotiations themselves, but they often end up with a worse deal, agreeing to terms that could cost them dearly later. Buyers usually come prepared with their own agents or legal advisors, putting sellers without representation at a significant disadvantage. As a result, sellers may accept less favourable terms than they would have if they'd had expert help.
The better approach? Engage a skilled negotiator, typically an experienced estate agent or solicitor, to protect your interests and secure the best possible price.
Overpricing the Property
Some sellers believe that setting a high asking price will leave room for negotiation. However, this can backfire. Overpricing a property often deters serious buyers and results in the home sitting on the market for an extended period. Eventually, sellers are forced to lower the price, sometimes multiple times, which can make the property look less desirable to potential buyers. A home that remains on the market for too long may ultimately sell for less than it’s worth, simply because buyers assume something must be wrong with it.
The better approach? Price the property competitively from the start, using a proper market analysis provided by a professional. Bradley Hall consistently outperforms national property market averages, achieving an impressive 99.23% of the listed price on their property sales, compared to the UK national average of 96.8%. Based on the national average house price of £282,000 that’s an extra £6,852.60 for its clients.
For Bradley Hall’s average list price of £477,540, that means that the property firm makes its clients on average £11,604.22 more than they typically would with other agents. *
Bradley Hall also excels in efficiency, with an average timescale of just 167 days between instruction and offer acceptance 13% higher than the national average.
The Long-Term Cost of Short-Term Savings
While it’s tempting to save a few pounds by cutting corners, when selling property, short-term savings can often lead to long-term losses. When tens or hundreds of thousands of pounds are at stake, small investments in the right areas can make a significant difference to the final outcome. In property sales, spending a little more upfront can often mean gaining much more in the end. Don’t focus on saving pennies if it could mean losing pounds in the bigger picture.
If you’d like an agent who can make you more money and sell your property quickly, visit www.bradleyhall.co.uk to find your nearest branch.
*Based on Bradley Hall’s average listing prices from September 2024 and the national average data published by the Financial Reporter in July 2024.
