Getting prepared
The paperwork | Preparation | Market Appraisals | Which Agent?
The paperwork
Most people do not plan ahead before marketing their homes. As a result "the system" breaks down frequently and causes movers unnecessary stress.
If, for example, you are selling leasehold property, then having a copy of the lease available for inspection early on could avoid a pet owning prospective purchaser, for example, from starting into a transaction where pets are not allowed, and then having to withdraw several weeks later because of this.
Accounts for the maintenance of leasehold property will be required at some point, as will a copy of the buildings insurance certificate. Often it is the case that these things are asked for only a short time before contracts are due to exchange – only to find that the treasurer has left for 3-weeks holiday! Having these documents available at the outset can save unnecessary delay.
The sale of freehold property, too, might benefit from your early preparation.
Do you know, for instance, where you can lay your hands on guarantees for any work that you or your predecessors have had done e.g. damp/woodworm/rewiring etc?
What about your extension – did you obtain Local Authority Building Regulations Consent? Was planning consent necessary? Was there any covenant in your deeds requiring you to seek consent of someone else prior to building an extension?
Guarantees and other documents could already be held with the deeds, but it’s best to make sure of this sooner, rather than when it’s too late! If you are thinking of selling then instruct your solicitor now to obtain your title documents from your lender or from your bank etc so that they might be checked. If you wait until you have found a purchaser then you might leave too little time to sort things out if there are any problems.
Preparation for marketing top
First impressions count. If your house has a great interior but the windows and front door have pealing paint, then you could spoil the overall effect and lessen your chances of achieving the top possible price.
Here is a list of things you might look at if you want your home to make the best impression –unless the property is to be specifically marketed as a "fixer-upper":
- Get rid of clutter. Piles of old newspapers and dozens of postcards attached to the fridge won’t help.
- Get rid of offending smells – pet smells and heavy cigarette smoke in particular.
- Think about rearranging your furniture. Lose the bed from the dining room that your mother-in-law uses each Christmas when she visits.
- Take advice from an experienced estate agent or a house doctor as to whether it might be worthwhile to do any cosmetic or essential work in advance of marketing.
- Keep the garden neat - if you have dogs, remove any "land-mines" they might have left behind before viewers step onto them.
- Particularly in the winter, the smell of fresh-baked bread or fresh coffee can help. Yes, that really is true!
- Kerb-appeal is vitally important. It creates the all-important "first impression". If the rest of the house is gorgeous and the front wall has collapsed and the grass is 3’ high, then your potential buyers might not even get as far as the front door! Lose just one potential buyer this way and you may have lost the person who would have paid the highest price!
Market Appraisals top
Many prospective sellers rely upon the advice of estate agents about the best price to ask for their property. However, not all estate agents are the same. Experience varies hugely throughout the industry. There is NO regulation of estate agents – anyone who is not an undischarged bankrupt can call himself or herself an estate agent – so be very careful about who you are talking to.
And even the most experienced estate agent is able only to give an informed opinion as to what he/she THINKS will be the likely result or marketing. The simple truth is that until any property is tested in the open market, nobody really knows what price will be achieved. Would you expect an auctioneer to know within the nearest £10,000 what the highest bid might be for a Picasso? The auctioneer won’t know until the hammer falls, and until that happens neither, interestingly, will the person who makes what transpires to be the highest bid.
Many new vendors make the mistake of appointing the agent who suggests the highest asking price, when the reality might be that the agent has over-valued the property just so that he can secure the instruction. Over-valuation helps nobody, least of all the seller who will have their expectations raised and then smashed to the ground once they realise that nobody wants to buy their home!
It’s a good idea to ask three agents to call around to see you. This will give you the chance to see which of them makes you feel most comfortable. If they advise on price, get them to justify what they are saying to you by telling you what similar properties they have sold or have for sale. Don’t be dazzled by an agent just because he claims your home is worth more than the other agents have said. Make him prove it and above all, don’t sign an agency agreement that ties you to any agent for weeks on end. You may find that after a couple of weeks of marketing, they’ll be suggesting a price reduction, so you’ll have wasted your time and will have achieved nothing. Worse, you’ll be stuck with someone who by now you would rather not have acting for you.
Which Agent? top
Many people invite three or so agents to say what they think the property might sell for in the open market. But it is a mistake to use this initial advice as the sole guide to which of them you should choose to sell your home. Read Market Appraisals and you’ll realise that the true value will only be understood once the market has been fully tested.
Before inviting agents to advise, look through local newspapers for firms who are already dealing with property that is similar to yours. Invite those agents to advise. Judge them not according to which say the highest price, but according to which give you the greatest confidence in their professionalism. Ask about the following: -
- Ombudsman for Estate Agents Scheme Are they members of the OEA? If not, then why do they not voluntarily belong to the main Government body that exists to protect YOUR interests?
- Professional Bodies Again, do they belong to any professional bodies? If they do then they are more likely to take their profession seriously. You’ve heard of bad estate agents, so why use one that hasn’t the confidence to belong to a body that can censure tem if they mess you around?
- Style or budget As with other things in your life, you get what you pay for. Budget agents charge a very low commission, but are unlikely to spend much on marketing your home. In fact, in common with dearer agents, they still have fixed overheads (staff/premises etc) so the only thing they can cut back on to enable them to charge less, is advertising and marketing. Given that this is a major function of estate agency, there would appear to be little point in using a budget agent unless you are happy to sell for less than your optimum price – you would probably do just as well by advertising privately. But if you want the best price for your home, then it is necessary to ensure that it is attractively presented to the widest possible market. A good agent will earn for you the difference in his fee, plus a great deal more. In other words, you could save a half percent on an agent’s fee but lose thousands through poor marketing!
- Where are their offices? A very important question because a good office location – with lots of passing pedestrian traffic – could make a big difference to the number of potential purchasers an agent may have registered. The more he/she has, the greater the chance that he/she will already have registered the person whom will pay the best price for your home.
- Where do they advertise?
Do they use the Internet? The Internet is becoming increasingly important to the successful marketing of property. Choosing an agent who uses this medium will enable you to reach a wider market and in turn this will increase your chances of success.
Newspapers Magazines Do they advertise in colour, or black & white? Do they use large photographs or small? If your home has a nice interior, will they use that in their advertisement? Remember that a good advertisement might well attract the attention of the person who will pay the highest price. A good advertisement could hugely influence the final price that you achieve for your home! Do they advertise nationally – this is especially important for larger homes?
Their terms top
Things to consider:
"Ready, willing and able" means that if an agent finds a buyer who is ready, willing and able to buy, then if you later withdraw for any reason you may be liable to pay the agent commission regardless of the fact that the sale never completed.
Minimum term top
If instructing sole agents – look for the minimum term of their agency. Many owners sign up for several months, promising not to instruct an alternative agent within the specified time. If your sole agent fails to perform, then you may not ask another estate agent to market your property until the agreement expires. Watch out, too, for a clause saying that only by serving a two-week notice AFTER the minimum term has expired may an agreement be terminated. Effectively, this means that if you have signed up for, say, a 12-week sole agency, you won’t be able to instruct an alternative agent until 14 weeks have expired – and only then if you serve notice in the twelfth week!
Sole Selling Rights top
By awarding an agent Sole Selling Rights you are saying that even if you end up selling the property to a member of your family, the agent will still handle the sale and will be awarded commission. This arrangement is, generally speaking, not used in the south-east of the country, and is more prevalent in the north.
Sole Agency top
Unlike Sole Selling Rights, Sole Agency simply means that you appoint only the one agent to market your property. This should give the agent confidence to spend more upon advertising and promoting your home. However, always make sure just how the agent will go about marketing – where will they advertise; will they just go for the quick kill or will they try for the best price? Keep the term of the sole agency short – no more than a few weeks – so that you can sack them if they fail to perform. Commission rates are usually lower for Sole Agency than they are for the other agency types.
Joint-Sole Agency top
You appoint two agents who co-operate with one another. The agents will want to co-operate with one another only if each trusts the other. Both agents share commission, usually with the lion’s share going to the agent that actually sells the property. Commission rates are usually a little higher for Joint Sole Agency than they are for Sole Agency.
Multiple Agency top
You appoint any number of agents who act for you on a “winner-takes-all” basis. Commission Rates are usually the highest that might be charged.
Limited Multiple Agency top
You appoint just two agents who act for you on a “winner-takes-all” basis. Not to be confused with a Joint Sole Agency, although many agents themselves do not understand the distinction! Commission rates are usually higher than for Joint Sole Agency, but lower than for Multiple Agency.
Where can I get advice about agents? top
- Seek recommendation from your friends (those who have recently moved), your solicitor or your financial advisor if you know and trust them.
- Look too for agents who have the confidence in their own professionalism to belong voluntarily to the Ombudsman for Estate Agents Scheme. Visit the OEA website to find out who the members are in your area.
Selling Without an Agent? top
- Advertising
Be prepared to advertise for several weeks. A clear, well-taken photograph increases your chances of success above advertising just plain text. - Preparing written details
These must be accurate and it also helps if they are attractively presented. Avoid superfluous adjectives. Avoid too much detail – people are rarely interested to hear that you have installed 15 additional power points in the lounge; just as long as there are enough – and there usually are. Use a photograph, or better, several. Try to use colour, as these pictures are more attractive and usually get a better response, leading perhaps to a better price. - Internet
There are many sites for private advertisements; some of them are free. But don’t rely solely upon this form of advertising, as you will not reach your full potential market until everyone is connected and each site is easily for purchasers to find. - Agreeing viewing appointments
You may find it easier to arrange for appointments to follow on from each other rather than for people to drift along as and when. This way you won’t need to stay at home as much. Also, when showing your house, do remember that you are inviting strangers into your home. Perhaps all you know about them is they have answered your newspaper advertisement. It may be advisable to make certain that you have a friend with you if you would otherwise be alone. - Negotiating
Often the hardest thing to do when selling your own property. It’s difficult to remain emotionally detached and it’s too easy to take things personally. It is always best to listen to what the other person is saying before laying your own cards on the table.
