Ruban Selvanayagam
Company: Property Solvers
With one in three house sales falling through, getting the outcome you want is often easier said than done.
Yet, although fate certainly has its role to play, there are a number of reasonably simple ways to help things move more securely and achieve your desired price.
Based on our 15+ years’ experience, the following three posts summarise the contents of our extended guide on how to sell your house fast [101 tips].
In part 1, we go over some of the initial steps you can take to get a head start. You may want to skip to parts 2 and 3 if your property is already up for sale, but it’s sometimes good to run through everything to make sure all your bases are covered.
Finding the Right Estate Agent
Finding the right estate agent can feel like looking for a needle in a haystack, but there are several tactics you can use to maximise your chances of success…
We recommend approaching at least three local estate agents. Check which ones have the most ‘SOLD’ signs in your area and ask people you know for suggestions.
Online-only operators such as Emoov and Purple Bricks are also an option but may have different pricing models – so always read the small print.
You might also consider using 'Find an Agent ' services such as Get Agent, Net an Agent and EstateAgent4Me which use technology linked to the Land Registry so you can see which ones are selling the most, the differences between asking and selling prices and much more.
Whichever way you choose to find an estate agent, you want to work with a professional with a proven track record, so ask them questions such as:
- How quickly are they selling homes?
- How many properties have they sold in recent months?
- What’s the difference between asking and sales prices?
Remember – talk is cheap, so ask for proof!
You should also find out about the person who will show your property to buyers. Make sure they are competent and have visited at least once – watch out for agents that send whoever is ‘free’ who may not know about your situation.
Check they open at weekends (a common time for viewings) and that they can deal with out-of-hours enquiries. Make sure you’re clear about how they will update you on viewings and check that the commissions they charge are in line with the local market.
Ask about the marketing plan too. Your property should appear on Rightmove, Zoopla, On the Market and the agency’s website. Check what other properties are listed and ensure their adverts are well put together. Good estate agents get further exposure through property listings, newspapers and magazines, leaflets, etc. and should have a network of potential buyers to promote your property to.
If you are unsure about an agency, a Google Search can reveal a lot. Sites like Trust Pilot, Reviews.co.uk, Feefo, Revoo, All Agents and Rater Agent provide customer reviews, while social media profiles are another good place to find recent feedback.
You can check online if they are members of professional bodies where they will be struck off if they behave in an unethical manner. Good estate agents also have in-house surveyors who have experience of valuing property accurately in your area. You can check credentials on the Royal Institute of Chartered Surveyor (RICS) website.
Another thing to be careful of is 'too good to be true' pricing. Some agents promise an unrealistically high price to make you choose them.
After comparing the different options, we suggest choosing just one agent to market your property. Using more could make you look desperate, and you may negotiate a better price if the agent knows you will use them exclusively.
Before signing any contract, check the commitment (tie-in) period and terms and conditions. Three to four weeks is usually enough, and you can change at the end of this period if you are not satisfied. Make sure the fee is only payable at exchange of contracts and not when the agent finds a ‘willing and able’ buyer (a dirty clause that has fooled sellers in the past!)
Understand Your Local Market
Knowing what’s happening locally can help you make better decisions on how to sell. Read the local property pages and speak with people who have bought and sold recently.
Unless there is a lot of competition (a ‘buyers market’), people often sense when something is priced too high, meaning the house lingers on the market and loses its appeal.
Although estate agents’ estimations can give you an idea, we recommend using the Land Registry – a government portal that collects property sales data – to understand the real value. There are some great tools out there including Net House Prices, Property Price Advice and Our Property that track real sold house price data. You can also see historical data on the Rightmove and Zoopla search listings.
Look at what other properties are on the market. Note how long it’s been on the market, its condition and how yours is priced in comparison. The best way to do this is by entering your postcode into Rightmove or Zoopla and searching the surrounding area.
People buying property will often look at the surrounding environment. Make sure that the external aspects of your home look as good as the neighbouring properties on the street, as “Keeping Up with the Jones’” matters!
Getting Your 'Ducks in a Row
Make sure that everything is ready to proceed so that less time will be wasted once you agree to the sale. This includes having all your identification and paperwork in order.
Ask your solicitor to send you the TA6 and TA10 forms (also the TA7 for leaseholds), often referred to as the ‘sellers pack’. Make sure a good solicitor deals with legal issues. People often forget about early redemption penalties with the mortgage lender and the other costs of selling and moving home.
Having an Energy Performance Certificate with a high score will always serve you well. This usually means your house has double-glazing throughout, cavity wall insulation and an up-to-date central heating system.
The house must also be safe to use. For the electrics, look for a qualified professional registered at the NICEIC or the NAPIT who can produce an Electrical Inspection Condition Report and flag any issues.
Also, make sure that all the radiators are in good working order, and evidence of a well-serviced boiler and central heating system shows potential buyers that they don’t have to worry. The contractor should be registered at the Gas Safe Register for this type of work.
Preparing Your Home for Sale
Once this is all done, you should then start to prepare your property before showing people around.
Most buyers and mortgage companies require a professional survey prior to exchange. To anticipate and avoid any future problems which could ruin the sale, carry out your own ‘survey’ examining all sides of the house from top to bottom and making sure the property is weather-proof by checking the roof and guttering and looking for any unusual stains. It may even be worth speaking to a professional who can help you deal with any problems.
For repairs, you can find local tradespeople with references and reviews on websites such as Check a Trade, Local Heroes or My Builder. Fix everything that does not work; you may be surprised at how ‘minor’ problems issues like jammed doors, broken handles, cracked tiles, etc. can change the perception of your home.
If you can’t afford to resolve a certain problem, don’t try to cover it up. It’s definitely better to be honest with prospective buyers, as people will wonder what else you are hiding.
Regarding serious problems such as structural movement, cracks, dampness and timber decay, there are a few options:
- Deal with the issue (which may mean taking the house off the market) and pay the cost to resolve;
- Inform buyers and be prepared to accept a discounted price;
- Promise to resolve the issue prior to completion under a legal contract.
Whatever you do, do not lie. These issues will appear in the homebuyer’s survey anyway and potentially ruin the sale.
When preparing for viewings, think about when you first bought the property…
- What attracted you to the house in the first place?
- What do friends and families love about the house? Are these features highlighted?
- What has improved since buying the house and how will the buyer notice the differences?
- Do the rooms make you feel relaxed and comfortable?
Stand at the doorway of every room and try to look at things from an outsider’s perspective. Ask trusted people you know for their honest opinion about your property. Remember, a well presented and inviting home creates an emotional attachment that remains in people’s minds.
See Part 2 of this series by clicking here.
The Property Voice Insight from Richard Brown
This is a very comprehensive series about selling your property. Whilst much of the emphasis is perhaps from a homeowner-seller perspective, many of these principles apply equally to an investor or developer seller too.
In addition to what has been said above, here are some additional tips on the placement of your property for sale.
Firstly, if you are a regular investor, buying and selling properties in a local area, try and get to know your local agents personally. Estate agents are people too and so building a bit of rapport ahead of the formal business side of things could help when it comes to instructing them to sell. In my case, with a flip project, I often try to build a relationship with the same agent that sold me the property in the first place. Often, you can gain at least some brownie points, if not some special treatment (like them favovouring your offer above others), just by being friendly and promising to place the resale with them in a few months time, once your project is completed.
However, also keep in mind that estate agents often specialise in certain properties or districts. If you are selling a high-end property in a smart area with all the bells and whistles after an extensive remodel and refit, then there is little point in placing it with an agent that specialises in the cheap and cheerful end of the market.
Next, as has been alluded to in the article, do your own homework on the property valuation and don't fall for the high value 'vanity listing' approach that some agents use. Often an agent will value your property high just to flatter you into thinking your property is worth more than it is. Why? So, they can win the listing that's why! Then next 4-8 weeks will then be spent managing your expectations downward...along with the price! So, its a false economy really. A realistically priced property should fly out of the door within the first 4-6 weeks, so if you have already been approached to reduce the price within this time, or if the viewing activity is low, you can bet that you have fallen for the flattery high valuation con. So, research recently sold property prices of a similar nature, quality and location to your property and look at your property as if through the eyes of a buyer.
The final tip I would have in this section is that I would also suggest mystery shopping the agent both before the placement and once it is listed...how do they treat you as a would-be buyer? Insist on weekly updates and stats...property listing hits, inbound inquiries, first and second viewings and offers received should all be readily available at the touch of a button for the agent, so ask for it. Also, make sure you get feedback from the agent after each viewing, see if you can improve on anything that is coming up repeatedly. Finally, be careful with any apparently low-ball offers, especially before or immediate after the property is fully listed...there might be something fishy going on in that situation.
That's it for now, make sure you read the other parts in the series now too...