Before you sell house quickly you need to know what price range to sell it at.
The ‘Guestimation’ of Valuing Property - An Art Form or Science?
According to the Estate Agent – quoting that the valuation of a property is the preserve of the professional. However, some websites say that their days have just been numbered. Online websites can access information from Land Registry – giving details of property address, type, and how much it sold for. Using this information someone selling a property can gauge what they should market it for.
Ensuring that your property is not under valued or over valued is as much common sense, as it is a structural engineer’s science - If your house is subsiding then it’s not going to be worth as much as one that is not! However if a house next door sold for £200,000, and has had a major face lift and yours is in the ‘dark ages’ then you cannot expect £200,000 for it – unless the house was sold several years ago. The combination of information from rightmove.com (I know of many bank and building society valuers who use this Rightmove for comparisons and this forms basis of a mortgage offer!) and the prices of houses sold in your area - with a bit of common sense should give you a good indication of what you should market your house at.
Use email4property .co.uk for prices of homes that have sold previously – go back a couple of years. Take into consideration what needs doing to the house – new bathroom, kitchen, decoration and etc, and allow for what it would cost and build that into the sale price.
For Example
Let’s take a typical street in Nottingham – Clumber Road
DATE PURCHASED ROAD NAME AREA TYPE PRICE 21-Dec-05 1 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Terraced £140,000 09-Sep-05 47 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Semi-Detach £185,000 26-Aug-05 21 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Terraced £153,500 05-Aug-05 39 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Semi-Detach £179,000 07-Jul-05 19 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Terraced £136,000 26-May-05 41 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Semi-Detach £177,000 10-Dec-04 65 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Semi-Detach £290,000 15-Oct-04 5 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DP Terraced £137,500 30-Jul-04 66 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DQ Semi-Detach £165,000 26-Jul-04 26 Clumber Road, West Bridgford, Nottingham, Nottinghamshire NG2 6DQ Semi-Detache £156,000
www.rightmove.co.uk shows two houses on the market;
131 Clumber Street, Semi detached on the market at £184,950 9 Clumber Street, Terrace on the market at £140,000
If the agents are indicating properties are selling within three/four months then the market is relatively buoyant – but longer than five means then the market is slow. (You would also know this from when the sale boards go up at a property in area and when the sold sign appeared – but ask the agent when a property that they are marketing went up and when it sold – if it has). If it slow then your sale price would reflect this. The housing market is very seasonal and a house sold in December, may have sold for a greater asking price in March through to September.
If you live a door or two away from 121 Clumber Road, sold at £153,000 and your house requires £5,000 worth of work, and is very similar to 121 Clumber Road then you would work from a base line of £155,000 to £160,000 – but selling at £150,000 if the market is slow and holding out for offers over £155,000 if you receive offers quickly.
Negotiating with the Estate Agent
So you’ve picked the agent and now you are going to
1. Tell the agent you are considering multi-agency, with a view of negotiating a Sole Agency agreement
2. Instead of a 12/18 week agreement negotiate a 6 week Sole Agency Agreement and ask for another contract to be left with you for the next 6 weeks. If there are no viewings then don’t send them the contract and change agent or if there are send.
3. Try to fix a price on the sale of the house instead of a percentage of sale price. If you feel that you would accept £150,000 ( don’t tell the agent what you are prepared to accept!) Then try to agree a fee on £140,000 at 1.5% - £2,100 + VAT = £2467.50. Then if it sells for much more you will save yourself hundreds of pounds.
4. If you opt for a Sole Selling Agreement then do as 2 and work at 1% of sale price or flat fee of £1500.00 if they appear to very good.
5. Or if you can DIY your sale – see Chapter “Be Your Own Agent”
The Do’s and Don’ts of using Estate Agents
1. When discussing properties in an area of your choice – show that you are knowledgeable about the area – indicate your research sources, probably the same ones that the agent uses!
2. Estate agents are professional ‘hard-nosed’ negotiators – be prepared for their ruthless bargaining tactics and don't let yourself be bullied. Take what they say with a pinch of salt, and try to look and feel confident.
3. Do Negotiate – Just say those great ‘money words’- ‘What discount will you do’ - and do this in person not over the phone
4. Get fees in pounds and pence – not a percentage of sale
5. Get more than one valuation – Putting a house on above market value means no sale – below and you sell yourself ‘short’
6. If you are selling a house then the agent should act for you and not the buyer.
7. Find out what you are getting for your money – advertising, brochures, internet, local coverage and so on.
….Oh Yes! Read your Contract – It’s the small print that usually stuffs you – if you don’t understand it ASK!
Your Rights and The Estate Agent
When selling a property you have certain rights.
When a potential buyer makes an offer on your property– The Agent by LAW has to tell you promptly and send in writing of all offers received by the estate agent (unless they are of a kind you have said in writing that you don’t wish to receive).
Offers are not binding and you should be able to re-negotiate the price and conditions of sale without penalty being accepted, before you exchange and complete on contracts.
When you enter in to an agreement with an estate agent must explain the Contract, the terms ‘sole agency’, ‘sole selling rights’ and ‘ready willing and able purchaser’ must be explained in writing and in wording required by law if used in the contract.
The Estate Agent must give you written details of how much you will be charged and when payments will be due. These Fees are usually paid on completion of a sale.
Once you have instructed the estate agent, Property Particulars must show written details of its size and features.
For sale
False or misleading statements - It is a criminal offence for an estate agent to make statements about the features of a property that are false or misleading.
NOTE: estate agents might be in a position to benefit personally from the sale of a property.
You must be told - promptly and in writing – if the estate agent or a relative or business partner of the estate agent who is selling your property wants to buy it. And you must be told if the agent might benefit in any other way (above and beyond the agreed commission) from the sale of your property.
Similarly, if the agent or a relative or business partner is selling a property, then the prospective buyer must also be told promptly and in writing.
Buying a property
Remember that estate agents provide information and property details to buyers, but they’re usually working for and paid by the seller. Know your rights and be prepared to bargain so that you get the best deal.
What to look out for
If you need a mortgage, shop around yourself for the best deal. Don’t be talked into taking out one the estate agent is trying to sell, unless you’ve compared it with other lenders’ offers
Estate agents must not discriminate against you if you buy additional services elsewhere or ignore their recommendations (for example, for insurance or a mortgage)
The agent must not mislead you
The agent must describe the property in a true and accurate way
You can make your offer subject to conditions, but the seller does not have to accept them
If you’re asked to pay a pre-contract deposit, check with your solicitor if this is necessary.
If so, is the money returnable if you don’t complete the purchase? Get a receipt
Don’t use the same legal adviser as the seller
If using the services of an estate agent to find a suitable property to buy, try to avoid buying a property where your agent is also acting for the seller. Under such circumstances, the agent may have a conflict of interest
To find a surveyor, ask friends or relatives for their recommendations. Or contact the Royal Institution of Chartered Surveyors (see useful addresses) Top tips for buyers and sellers
Check whether the estate agent is a member of a trade association, for example the National Association of Estate Agents (NAEA), Royal Institution of Chartered Surveyors (RICS) or the Ombudsman for Estate Agents Scheme (OEA)
Shop around and compare before you commit yourself
Don’t be persuaded to sign up to a mortgage, conveyancing or other services without checking the alternatives
Keep a record of all correspondence
Key terms
Estate agents: arrange the sale of a property by bringing together buyers and sellers. They usually act for sellers, not buyers -although this will not always be the case.
Estate agents advise on price, negotiate between sellers and buyers and handle advertising. For these services they usually take a commission – often a percentage of the purchase price and payable by the seller (if the seller is their client).
Sole agency: the term refers to your appointed estate agent - the only agent with the right to sell your property. You should be able to sell the property yourself without paying the agent a fee – provided that the buyer was not introduced to you by the agent during the contract period.
Sole selling rights: the estate agent that you have appointed is the only person with the right to sell your property. The agent is entitled to his fee even if you sell the property yourself. Multiple agency: you can ask several agents to act for you. But only the one that sells the property is entitled to a commission. Commission can be higher if you opt for a multiple agency deal.
Ready willing and able purchaser: under the contract, if the estate agent finds you a buyer who is prepared and able to buy your property and to exchange unconditional contracts, you must pay the commission – even if you decide not to sell.
Gazumping: even after an offer has been accepted, the estate agent has a legal duty to pass on any further offers unless the seller specifies otherwise. This can lead to gazumping – where a new and higher offer is accepted by the seller before exchange of contracts.
Mortgage: this is a long term loan, often secured on the value of the property.
The Financial Services Authority (FSA) can help you find the best deal (see useful addresses).
Surveys: a home buyer’s survey is a partial survey of the state of the property. A full structural survey tells you if the property is sound or whether major repairs are needed. This should be carried out by an independent surveyor.
Conveyancing: the legal side of buying property. It’s normally done by a solicitor or licensed conveyor, but some people take this on themselves.
What if there’s a problem?
If you are unhappy with the service provided by the estate agent try to sort it out with the local branch or head office. If that doesn’t work talk to your local trading standards department. The address is in the phone book. If the agent is a member of a trade association or the Ombudsman for Estate Agents Scheme, they might be able to help
Useful addresses The Financial Services Authority (FSA) 25 The North Colonnade Canary Wharf London E14 5HS FSA consumer leaflet line 0845 606 1234 (calls charged at local rate) Website: www.fsa.gov.uk/consumer The Royal Institution of Chartered Surveyors
If you are looking to sell your house quickly for a quick sale contact www.thepropertybuyers.co.uk
