How to beat the estate agents

D0 IT YOURSELF; Why should you hand over your hard-earned cash to a man in red braces?

The estate agent is becoming an endangered species as the trend for self-help penetrates the property market. People are forgoing the usual round of estate agents in favour of cheaper and often more effective methods of buying and selling homes.

The most visible substitute has been the free advertisement magazine. The first of these to make an impact was Loot, started in London 11 years ago, which has since set up separate editions covering the home counties, the Midlands, Liverpool, Manchester and Ireland. It has subsequently been joined by the likes of Hot Property, which so far only covers the South- east. More established magazines have also jumped on the bandwagon, including Exchange & Mart, whose property section comes out once a week. Exchange & Mart and Loot also have Internet sites.

The Internet itself is also beginning to pose a threat, with sites advertising everything from luxury condos in America to secluded villas in the Bahamas.

But an extensive search in our office could only reveal UK Property (http://www.uk-property.com), although several estate agents have their own sites. Kiral Leelasena, of Total Solutions (London), the company that developed UK Property predicts a growing role for the Internet in private property sales. "It is still early days, but the site is growing in popularity and we are now getting 1,000 hits a day." UK Property is one of the few web sites designed for private buyers and sellers, and the cost to advertise is a reasonable pounds 30.

Of course, the chief benefit of cutting out the estate agent is cost, but before you decide to go it alone, you ought to think of the disadvantages: for a start it will mean a lot more work. Alison Barr, co-author of Which? Way to Buy, Sell and Move House (pounds 10.99) says the main problem for a vendor using small ads is time. "Fielding calls and showing people around will give you plenty to do."

An acquaintance who advertised in Loot said he was deluged "by a flood of applicants, and I have had at least 50 phone calls in the the last couple of weeks." Of these, only a handful were real prospects so advertising the property through a newspaper or magazine does increase the workload for the seller. Many of the callers will be unsure of exactly what they are looking for, while others will be unfamiliar with your area, and some will just not turn up even though they have made an appointment.

So how much are you likely to save? The cost of selling a house through an estate agent has come down dramatically from the 3 per cent of the mid-1980s, but it is now creeping back up from a low of 1 per cent, and stands at around about 2 per cent. So for a property worth pounds 50,000, you can assume pounds 1,000 will end up in the estate agent's pocket. However, not all estate agents are bad. A decent local one should know the area well, determine the most likely sort of buyer for your property and should be a source of impartial advice on valuations and conveyancing. If you are a seller probably the most important thing is the valuation of your property. You will already have one guide to this figure - the amount you paid when you bought it.

You can work out a rough figure from the annual percentage change in property prices over the period you have owned your home. You can obtain figures for annual house price changes from the Halifax or Nationwide, which also provide, more importantly, regional breakdowns.

You should also research the house prices in your area. The best way to do this is by visiting local estate agents - which may sound as if it is defeating the object of the exercise, but remember you are not paying for this privilege. Although it would be pushing the bounds of propriety to visit the properties they have on sale, you can at least check the street address, and whether the external aspects match those of your own home. Marketing is the next step. You should advertise the property consistently over a period of time. A month should be a minimum commitment at the start, and you may have to extend the period that you are advertising, depending on location, and the price which you are prepared to accept.

Loot now offers readers a new service called Private Sale. For a cost of pounds 59.99, the DIY home-selling kit includes a boxed advertisement for 60 days in the magazine, a Private Sale board to place outside your home, an information pack and access to free legal advice if you hit any hitches. However, you must obtain your own conveyancing solicitor separately.

Buying a house through the small ads could not be easier. While there is nothing to save - only the seller pays commission to the agent - it still offers several benefits over the traditional estate agent. For a start, in most cases you will be able to contact the seller immediately, and, if the property sounds suitable, arrange an appointment as soon as is convenient.

Buy copies of the relevant magazines each week - Loot comes out five times a week - and select all the houses in your price bracket. Before visiting the property, obviously, you should spend time on the telephone to see if the property matches your requirements. If it advertises a small patio garden, which it transpires is the size of a pocket handkerchief, and you want something larger, then you can save yourself a wasted journey.

If you are thinking of making a big move, say from Manchester to Exeter, you can still find properties advertised in national newspapers, or Exchange & Mart, which covers them by county.

A final word of warning: however careful you are about buying , always bear in mind that ultimate of warnings - caveat emptor.

TIPS

Sellers

Make sure you have your own solicitor lined up. You can't do it all by yourself.

In your advertisement write a clear, detailed description of your property. Make sure you highlight any special attractions.

Work out a budget for your advertising campaign, and the publications in which you will advertise.

Be sure you have a good idea of the value of your property, and that you are happy with that valuation. Work out a cut-off price below which you will not sell. That also stops `gazundering' - the unpleasant trick of cutting an offer at the eleventh hour.

Buyers

Take the time to research how much you can afford to pay.

Go along to local estate agents to find out the cost of the sort of properties you are interested in.

Make sure you have a solicitor to handle the conveyancing.

Buy and read all the publications in your area which carry private sale property advertisements.

Make a checklist of questions to ask advertisers on the telephone, before arranging an appointment. This can save a lot of time, and wasted journeys.

Always let an advertiser know as soon as possible if you will be unable to make an appointment. It is a matter of common courtesy, and the goodwill may prove very useful if the property proves to be the home of your dreams.