The Selling Process
- Use an Estate Agent or sell your home yourself?
- Choosing an Estate Agent and a sale price
- Who to sell to?
- Accepting an offer
- Choose and instruct a Solicitor/Conveyancer
- Exchange of contracts
- Completion
USE AN ESTATE AGENT OR SELL YOUR HOME YOURSELF?
Let’s face it; we all know that you could save money by doing the sale yourself (and setting your own price), just as you could by doing the conveyancing yourself! However, most people instruct Estate Agents for several reasons:
- They will advertise your home both in the press and in their office
- They will handle the negotiations on your behalf
- They will show potential buyers your home if you prefer
- They will only charge when you have achieved a successful sale
- They will man their office through working hours to catch more enquiries
- They will be able to use their local knowledge and experience to advise on price
So, which one to instruct when there is a wide choice? Considerations you may wish to bear in mind are:
- Their experience in the local area
- The prominence of their premises (more people will see your home in their window)
- Do they want to charge any extras, or tie you to a long period of Sole Agency?
- Do they want a “Sole Selling Rights” agreement?
- Do they have a good reputation locally?
- Do you know a friend or acquaintance who recommends them?
CHOOSING AN ESTATE AGENT AND A SALE PRICE.
Assuming that you do instruct an Agent, then you need to decide whether to make them Sole Agents or to instruct one or more other Agents. Our advice is usually to instruct an Agent as Sole Agent for two reasons. First, it incentivises the Agent to sell your property as they will consider it really worthwhile to advertise to the fullest (several adverts for the same house in the press make a property appear “stale”). Second, the Sole Agency commission will be less on your sale. Where two Agents are instructed as Joint Sole Agents, both Agents are paid a fee on sale, but you will typically pay an extra 0.75%. On Multiple Agency, you instruct as many Agents as you want, but that will usually double the fee. Sole Selling Rights are where the Agent will charge a fee even where they don’t introduce the buyer – so even if you sell to your family, they will still get paid! Salisbury Henderson do NOT enter into such agreements.
Your sale price will be a question discussed by you and your Agent, and will appear in the signed agreement that is legally necessary before the property can be marketed, along with the fee agreed.
WHO TO SELL TO?
Your Agent will have sent your property details (after having obtained your approval for their accuracy) to all interested parties on their register, and any callers to their office wanting information. They will then advise you when a prospective purchaser wishes to view you home, and organise a time for the appointment. Once a viewing has taken place, the Agent will follow up afterwards to establish whether there is interest in your home from that person, and gain any feedback from them if they’re not interested. Such feedback, which is rarely given to you directly, can be useful if comments can be addressed to improve the saleability of your property.
After a successful viewing (usually not the first), a prospective purchaser will make an offer for your home, which will be communicated to you by your Agent. As your Agent will explain at this stage, there are a few matters to mull over before giving your decision:
- Is the purchaser a first-time buyer? If so, they can proceed really quickly in most cases.
- Does the buyer have a mortgage already arranged if needed, or are they cash buyers?
- If they have a property to sell, what are the details of the “chain”?
- What date for a move do they have in mind, and does this fit in with your own plans?
This is a stage at which a good Agent can make a huge difference, using their experience to put an offer under proper scrutiny to enable you to make an informed judgement. Your Agent may well advise that the buyer should be asked to increase their offer, and will obtain any conditions from the buyer such as survey, mortgage, etc..
ACCEPTING AN OFFER
Once you have accepted an offer, this is not legally binding until contracts are exchanged, and your Agent will make sure that the buyer does not slow the process down unreasonably. At this stage, a good Agent’s sales-chasing skills are crucial, and their experience will highlight any problems as soon as they arise.
INSTRUCT A SOLICITOR/CONVEYANCER
You may have an existing Solicitor or Conveyancer that you wish to instruct, or Salisbury Henderson will be happy to recommend a firm to you. Always ensure that you clearly understand how much you will be paying before going ahead – all Conveyancers and Solicitors are used to providing fixed itemised quotes.
EXCHANGE OF CONTRACTS
When contracts are exchanged, and prior to completion, the buyer will probably wish to pay another visit to, for example, measure up for carpets and curtains. You will also need to inform your utility providers of your coming move and arrange final readings. Although the buyer will have paid a deposit on exchange, this will be retained by your Solicitor/Conveyancer until completion.
COMPLETION
You will have arranged with the Agent an appropriate time to drop in the keys and vacate your property, and the sale proceeds (net of fees) will be sent to your bank account.