“What a waste of money.”
It’s something we’ve all heard someone say. And if we’re honest with ourselves, something we’ve all done at some point.
Buying that jumper that never saw the light of day.
The gym membership that got about as much use as a sun lounger in Antarctica.
Or forgetting you were subscribed to that ‘it’ll change my life’ monthly service you never ended up using.
But don’t feel too bad because your money spending mistakes probably pale into insignificance compared to the one below.
Not so friendly
In 2005 ITV bought the social networking site Friends Reunited for a reported £175m. Then Facebook popped up in 2006. Uh oh.
ITV sold Friends Reunited for £25m in 2009. The website closed down in 2016.
The good news is at the end of this article I’ll share a link on how to make your cash go further from Mr Moneysavingexpert himself, Martin Lewis.
Across the UK, we see people wasting their money by using estate agents who charge a cheap fee to sell a home BUT end up getting their client a lot less for the property due to a lack of skill or will.
This difference, particularly in the South Hams, is often tens of thousands of pounds.
Cheap Agencies are Not Cheerful
Look at this simplified but relevant example (please note the sums don’t include VAT which most agents charge).
An agency says they’ll charge you a 1% fee to sell your home, which they put on the market for £250,000.
You’ve chosen them over an agency that charges a 1.5% fee. You wanted to save a few quid.
But the cheaper agency only gets you £225,000 for it – they blame the market and tell you this is the best you’ll get for your biggest tax-free asset. After their fee you have £222,750 left.
In a parallel world, the other more motivated and skilled agent gets you the asking price of £250,000. They put more money into marketing your property, the quality of their staff and are much better negotiators.
They take their well-earned £3,750 fee leaving you with £246,250 — £23,500 more.
So, the ‘cheaper’ agent, who at first glance looked to be saving you dosh, ended up wasting it.
I hope that’s given you some valuable food for thought.
If you found this article interesting, please share it with a friend.
Oh, and here’s a link to that money-saving page that might come in handy.
If you have any property related questions, please get in touch as I’d be delighted to answer them for you.
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Harriet George – Matching people with property