Guide To Selling
Even the experienced home owner can find selling their property a
confusing exercise, particularly as it’s something most only do a
few times in their life. For the first time seller, the process can be even
more baffling. Below are some tips for
optimising the interest in your property
to potential buyers.
The first step would be to appoint some professionals
to help you. Unless you are willing to pay for your own advertising and promotional material, this means choosing an Estate Agent to value and market your property for you. If you are planning to buy another property, you will also need to speak to a Financial Advisor about the current mortgage options.
Do you really need an Estate Agent?
This depends on whether you have the expertise, time,
patience and resources to do it yourself. The advantage of using an Agent is that they don’t charge you until they sell your property. Whereas if you market the property yourself you will in most cases incur some up front costs for advertising and promotion. A good Agent will have access to more potential buyers than you would otherwise be likely to attract with your own marketing. There is also the convenience of having someone else to field calls, help avoid time-wasters, and act as a go-between with negotiations. An experienced Estate Agent can offer advice and expertise too, for instance if you have problems with a chain, or receive multiple offers. The Agent will have seen these many times before, and will be able to handle things to your best advantage.
The valuation of your property
The Agent will visit your property to carry out a valuation based on the general market demand from current
buyers, the popularity of your area (shops, schools, etc),
the asking price of similar properties currently on the
market as well as those recently sold, along with any
improvements that have been carried out to the property.
The Agent will give you a verbal ’estimated market value’
from this, you can then decide on the price you wish to
market your property. Generally, an Agent will not charge
for this valuation. Be aware of an Agent who simply asks
the price you want for your property and agrees to market
at that value. The Agent should be able to demonstrate
why they think your property can achieve their stated
valuation. They may be able to quote a selling price they
have achieved for a similar property, or possibly have an
existing buyer who wants a property just like yours. But
ensure this is genuine: a few agents may try this as a
tactic to take the instruction on your property!
Which Estate Agent do you choose?
The first thing is to research the Agent you have invited for a valuation. When you telephoned them, did they answer swiftly and politely? Or when you visited their offices, were you made to feel welcome with your enquiry handled efficiently? Little things like this can also have an effect on your potential Buyer. Sometimes people may be swayed to the Agent that values their property higher than the others; however it’s a good idea not to be influenced by the valuation alone. If exaggerated, you may waste time with your property being on the market unsold. Remember too, that you are employing a whole firm, and not just the negotiator who valued your property. There is no substitute for recommendation, so ask your friends and neighbours about the estate agents you are considering.
The Agents fee
The Agent’s fee in Jersey can tend to range from 1.5-2% of the sale price, and is paid only on completion of sale. Sole Agent deals, where only one agent is instructed, can be less than Multi-Agent deals. When there is a shortage of property on the market, you will find Agents offering reduced rates, perhaps meeting or beating a competitor’s fee. Most importantly the service the Agent offers is likely to vary considerably depending on their fee. It may be worth paying a higher fee to an Agent of calibre with professional staff, high profile marketing and shop front, which will help achieve a maximum sale price as quickly and painlessly as possible. For example, if an Agent charging a fee of 1% sells your property and achieves a sale price of £250,000, the fee will be £2500, however if another Agent charges a fee of 2% but achieves a sale price of £255,000 the fee will be £5100, but you will be £2400 better off. Remember all Agents work on the basis of ’no sale - no fee!’ Choosing a reduced rate Agent can be a mistake if they don’t get results. An Agent who has the cost of well maintained premises, experienced staff, efficient computer systems, and professional advertising is truly earning their fee! Remember like any service provider an Agent with low fees, may cost you more as ultimately you only get what you pay for!
What can I do to increase the value of my Property?
Generally an Estate Agent would advise against any major improvements prior to placing the property on the market. This is because you will rarely recoup the cost of your investment, and it is likely the Buyer may change it anyway. However, there are a number of simple things you can do that can help enhance interest in your property. In general a good spring clean will be enough to present your home to a potential purchaser. Consider the layout of your rooms thereby maximising the feeling of space, rooms can look much smaller when there is a lot of furniture or clutter. Weed and clear up the garden, the outside space can be as important as the inside to some people. If you want to do any significant redecorating discuss it with your Estate Agent. They may be of the opinion that it’s not necessary, or advise you to stick to neutral colours thereby optimising the selling potential.
How should I prepare my Property for viewings?
First impressions do count, and the following tips should help purchasers to appreciate your property at its best. Although you may be at work when viewings take place, try to do whatever you can. Firstly make sure that your home is as tidy as possible, open the windows to let in fresh air. Try and de-clutter and clear rubbish if the viewing is at short notice. Vacuum clean and dust the main rooms and give the bathroom a quick wipe over. Draw back curtains to ensure maximum daylight in the rooms. Televisions and radios should be turned off though light background music is fine. Finally if possible try not to let pets and children interrupt the viewing; keep the kids occupied and the pets outside.
Who will conduct the viewing?
In all but exceptional cases your Estate Agent should be conducting the viewing; after all you are paying them a fee to sell your property. However preparing your property is your part; do ensure that all keys are readily available for them to open any garage, French windows, fire escapes etc. If you do happen to be there during the viewing, try to remain in one room and leave your agent to show the rest of your property. If the viewers have any questions for you they will be able to ask these at the end of the viewing whilst in the company of your agent.
What is the advantage of having an open viewing?
Open viewings are a good opportunity to give potential purchasers a general overview of your property and appeals to those people who are not registered with an agent or are only tentatively looking to purchase. It will be conducted by your agent and usually on a Saturday morning as this is the best time to generate a good turnout. As general rule you should not be present, so if you have a dog perhaps then is a good time to take them for a long walk. After each viewing whether private or open, your Estate Agent should provide feedback to you on how the viewing went, giving you any comments made by the viewer, details on any follow-up interest or hopefully a potential offer.
When I receive an offer, should my property be taken off the market?
Your Estate Agent will normally advise you against this, just in case the Sale falls through. Even if everything seems to be in order, it’s possible that after the survey, the Buyer may want to negotiate on price and you cannot reach a deal. If the Estate Agent does get other offers, under their codes of practice they are obliged to put them to you. Whether or not you wish to pursue any additional offers is your decision. However to do so risks discouraging your Buyer, who may pull out of the Sale and start looking at other property as a result. If the latter is not convinced by your assurances that you will not accept other offers so long as the Sale is proceeding smoothly, you could also consider making a verbal or written undertaking to take your property off the market for an agreed period of, say 2-4 weeks, whilst surveys and mortgage finance etc are arranged by the purchaser.
How does the Sale proceed towards ’Exchange’?
The sale process will be determined by the type of property being sold (freehold, flying freehold or share transfer) however would normally go something like this: With freehold or flying freehold properties the solicitor acting on behalf of the purchaser will contact your appointed solicitor to ask them to provide the legal documents of your property to carry out their searches, for this you will need to have certain documents to hand. These you may have from the original purchase of your property or they will have been retained by the solicitor who was acting for you when you made your purchase, however documents relating to any changes to the property (planning consents etc) will also need to be provided. Please note that obtaining documents can often cause delays, so it is in your interest to collect them as soon as your property goes on the market. In the case of a share-transfer property the solicitor acting on behalf of the purchaser will contact the company secretary and ask them to provide copies of the Statutory Records of the company to ensure thorough checks are carried out, along with confirmation of service charges at the property and any extraordinary expenditure planned. Remember that it can take a while for some of these documents to be sent through. And until their Solicitor has everything in their possession, progress is impossible. After settling any queries a date will then be set for exchange, in the case of freehold or flying-freehold property the exchange must be passed by the Royal Court which takes place on a Friday of each week. For share-transfer properties there is no requirement to pass through court and the exchange can take place on any given day. The final stage of the Salenormally takes 4-5 weeks from the date of accepting the offer. On Completion, the Buyer’s Solicitor hands over the purchase money to your Solicitor. From this, your Solicitor will pay off the mortgage provider, as well as deducting their legal fees, and whatever fee you have agreed with your Estate Agent.
How long should I give my Estate Agent to sell my property?
The period by which an agent will be able to secure an offer will depend on the current market conditions; however you should allow an Agent 6-8 weeks from first instruction. After this, it usually takes about 4-6 weeks for completion. Be aware that time scales do vary with market conditions and the processing of the relevant paperwork, finance approval etc.
What can I do to speed up
the sale of my property?
You can’t always guarantee that other parties in the sale won’t delay you. On your part, however, you can speed things up by doing as much of the work in advance of theSale as possible. Appoint a Solicitor once your property is placed on the market. Allow the Estate Agent reasonable access to the property to show potential Buyers. If possible, let them have keys to show the property when you are out and be flexible about last-minute viewings.
What happens if several Buyers put in offers?
If you’ve already accepted one offer but wish to accept another higher one, you should discuss this carefully with your Estate Agent. It may not be worth gambling for the extra money at the expense of time and uncertainty. What happens if the second Buyer suddenly pulls out, or lowers their offer before property Exchange? On the other hand, if several people are interested in buying your property, your Estate Agent may suggest you try one of the following techniques to be fair to all potential Buyers and still achieve a maximised price: Sealed bids: Buyers are invited to submit their final offers in writing, and the sealed bids are opened at a pre-agreed date and time. The highest offer wins. This method is seen to be fair to all Buyers. As people are casting their offers blind and have only one chance, they are encouraged to put down the maximum they can afford. However this system does not necessarily take into account which Buyer is in the best position to proceed. Contract race: The Buyers are advised that the Vendor will sell to the Buyer who can exchange contracts first. This avoids the Vendor having to choose between Buyers. There is no risk of choosing a Buyer who does not proceed, and of turning down others that might have done. However, there is nothing to stop Buyers withdrawing, since the losing party is left with Solicitor’s and Surveyor’s expenses to pay.
What if the Buyer reduces their offer at the last minute?
After survey, mortgage valuation or at the final stage before exchange of contracts, a Buyer could try to reduce their offer hoping that you will accept rather than go back to stage one to find another buyer. It is unfortunately quite common for a Buyer’s mortgage lender to err on the side of caution with a property valuation by as much as 15% below the Agents valuation. Sometimes buyers may proceed by making up the difference from their own funds. If this is not possible, others in the selling chain may be prepared to make up the difference so that the chain is not broken. If there is no valid reason and depending on market demand from buyers you may decide to find another buyer if they will not proceed. Whatever the reason for a reduced offer, estate agents and solicitors are adept at handling these situations and will advise you on your best course of action.
What if I have a property I want to move to, but cant sell my own?
It’s unlikely that going ahead with buying the other property will be a viable option, unless you have sufficient spare capital to do so. But you do have the option of letting your property (on a short let for 3 months) whilst marketing it for sale. Rents for short lets can be high – so you could cover your mortgage and have a bit left over to help with other expenses.
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Do I have to pay a fee to the Estate Agent if my Property doesn’t sell?
You won’t have to pay the Estate Agent any fee. However you may have to pay your Solicitor’s legal costs incurred to date.
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