Residential Property Sales

Residential Sales: Advice and Best Practice

There are a number of reasons an owner might want to sell their residential property, and these will have an impact on how they manage the sale.

Someone wanting to sell their property in order to buy another will have more factors to consider than someone who doesn’t need to sell in order to buy somewhere new else to live. And someone who has found themselves in a ‘chain’ of property buyers and sellers knows just how fraught this situation can be. The pressure placed on an owner in order for them to be able to buy the house of their dreams can sometimes mean having to take quite a loss on the sale of their property. There are few sellers lucky enough not to find themselves in such a chain, so when it comes to selling property, you want to do all you can to ensure that you find a buyer for your home – one that’s trustworthy and sees the transaction through to the end.

First, a seller will need to know how much his or her property is worth. While it’s tempting to base your estimate on the sale prices of neighbouring properties, this isn’t always a wise move. There are a number of factors that have to be taken into account when determining the sale price of a property; most important is probably the time of sale, as market forces dictate eventual sale prices. And this could be why your neighbour’s house may have sold sold for more or less than your property does.

When obtaining valuations from estate agents on the sale price of your property, it’s wise to someone with good local knowledge and experience. And don’t be tempted to instruct the agent who gives the highest valuation! Do a little research on the companies you’ve contacted for the valuations. Do they have the necessary experience of your area? Which agents have sold properties in your street or block? Talk to friends and neighbours to get feedback on the agents you’re considering instructing.

Chartered Surveyors are members of the Royal Institution of Chartered Surveyors, one of the highest regarded professional bodies in the property industry.

Your agent’s fee will be based on a percentage of the eventual sale price of your property. Whether you instructed them as a sole agent or whether you instructed more than one agent will also have a bearing on the eventual fee you pay. Agents’ valuations are usually free and most agents have a ‘no sale, no fee’ policy.

In determining the sale price of your house, you’ll also have to take into account how quickly you want to sell your property – this will be important if you’re in a ‘chain’ of transactions as mentioned above. Your agent will usually advise on a sale price ‘range’; the top price being the figure you may want to market your house for initially, the bottom price being the absolute minimum you should consider selling for. You and your agent can agree at what price to market your property depending on your current situation. While you may pick a price mid-way in the range, if you’ve not made an offer on another property but intend to do so within, say, the next two to three months, you may want to market your property for the maximum suggested price as there’s no pressure, at the current time, to sell.

Listen to your agent and take his or her advice on board. Your agent sells properties for a living, remember, and their experience will let them know what does and doesn’t help sell a property. Keep all lines of communication with your agent open: if you’re content for your agent to show prospective buyers round your house while you’re not there, give them a key. The relationship you have with your agent is a two-way street, and although you may think that as you are paying for their service there’s no more you need to do, building an effective relationship with your agent certainly won’t hamper the process and may result in a quicker than average sale time.

Likewise, if your agent suggests improvements you can make to your property in order to convert enquiries into a sale then take these on board. Keep your property looking its best, especially if you are uncertain when potential buyers may be coming round to look at it (although a professional agent should always advise you of a viewing even if you are not going to be present at the time).

A HIP (or “Home Information Pack” is now compulsory for all property entering the market. The pack contains important information that buyers and sellers need to know. This pack should enable buyers to make more informed decisions about purchasing a property, leaving fewer surprises for a seller that could delay the process.

If your property is on the market for a considerable length of time without an offer, you may wish to consider lowering the price; again your agent will advise when and if this is the right move to make. When an offer is received, if you feel it is too low, your agent will be able to negotiate on your behalf – they will also advise whether you should accept the price eventually offered.

Selling residential property can be particularly stressful, especially if buying an alternative property is dependent upon it; this is, after all, for most people, the single biggest purchase they will make in their lives. It therefore pays to arm yourself with as much knowledge and information as you can to ensure that you come out of the process at the other end as best off as you can.

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