DIRECT AND INDIRECT COSTS
Consider The Full Cost Of Selling Your Home
The thing customers love about our service is that they’re assured of a simple, certain and convenient house sale. The only drawback is that the offer we make is less than your home’s full value.
How much less than its full value? To get a good idea of the true cost of our service, it’s important to compare the price you’d end up with from us, to what you’d receive after selling your house on the open market. This is for a couple of reasons.
Estate Agent Sale – Direct Costs
Firstly, although we make a lower offer than you’d likely get selling through an estate agent, there are far fewer costs selling to us. (There’s no estate agent to pay as we buy from you directly, we cover your legal fees, and we don’t charge any fees).
Estate Agent Sale – Indirect Costs
Secondly, because a sale to us can go through much more quickly, there aren’t months and months of mortgage payments and utility and council tax bills to pay. It’s important to consider as well that, because the house isn’t going on the open market, there’s no need to get the house “ready” for viewings – most people usually spend money on repairs and maintenance before marketing.
So when you consider all the costs involved, the true cost of selling to us is probably much less than you might think.
Our online illustration tool is a really handy way to see what an offer from us on a home like yours might look like – and how that stacks up against alternatives. Give it a try now or read on below.
WHAT IS FULL MARKET VALUE
How Much We Offer
Our offer is based on what we call the “Full Market Value” of the property. As a rough guideline, this is the price you’d generally expect to achieve if you were to sell your house through a local estate agent in about 4-8 months.
Our thorough valuation process (which you can read more about here) helps us determine the likely Full Market Value of your home – and from this we can make our offer.
Generally, we offer in the region of about 80-85% of this price – but remember that there are no estate agent or solicitor fees for you to pay with our offer, and because we can complete more quickly you don’t have months and months of mortgage payments, council tax and utility bills, and so on. These costs amount to thousands of pounds.
Use our illustration tool for a good idea on how the price you eventually walk away with might differ if selling to Yes Homebuyers rather than selling with a local agent.
Factors That Affect Our Offer
There are many other factors we have to consider when deciding how much we can offer on your home. We know that the higher the price we can pay, the more likely you are to be happy to accept our offer. We have the financing here and we want to buy as many properties as we can – so we want to make you the best offer we possibly can.
But valuing properties is a difficult business and no valuation is ever certain. It’s not uncommon for two local estate agents to see the same property for us, and provide valuations with tens of thousands of pounds difference between them. So the business has to conduct a careful risk assessment and look at every property in detail when formulating our offer. We don’t want to offer too little and risk losing you as a customer, but we can’t risk paying too much and making large losses – so it’s important for us to work out the best price we can offer.
Broadly speaking, all the factors we look at are important because they affect how easy it will be to resell the property.
The easier it will be to resell, the more accurately we can predict the selling price, so the more we can pay as a percentage of the Full Market Value – because risk is reduced. This means we may need to make more cautious offers on properties that will be more difficult to resell – such as properties more likely to take a long time to sell. On the other hand, if you yourself have a very unique property that you worry may take a long time to sell, the value of our service is that much greater – because we can offer you certainty, simplicity, and work to a timeframe to suit you.
OUR BUSINESS MODEL
Where Do We Make Our Money?
As a seller, choosing to sell to us assures you of a simple, certain and convenient house sale. The only drawback is that we buy your home from you at a price less than its full value.
This is effectively where we then make our money – once we’ve bought your property we step into your shoes as the new seller.
So in essence, we now deal with the long, complicated, stressful and drawn-out sale you were hoping to avoid! By us going through the lengthy process and selling the house for it’s full value the company makes a profit.
Unfortunately for us though, as with any business the difference between what we buy your home for and what we sell it for isn’t all profit. We have lots of costs to consider too - often in excess of £10,000 per transaction, which come off our bottom line and unfortunately prevent us from being able to offer drastically higher prices.
We've covered this topic in much more detail here - Where Do We Make Our Money
Frequently Asked Questions
We’ve tried to answer many of the common queries about how much we offer in this article – but the best way of finding out will be to put a few details into our illustration form, and see what those figures look like for you.
If you have more questions though, head over to our FAQs section and we’ll hopefully have the information you’re looking for there – if you still can’t find what you’re looking for you can always get in touch, and we’ll be more than happy to help.