Using an estate
agent or selling the property yourself
If you wish to sell your property you can find a
buyer yourself or use an estate agent. Before making a decision you
should consider how much each method would cost and how much time
you have available. If you use an estate agent, it will be more
expensive but the estate agent will take responsibility for
advertising, showing potential buyers round, and negotiating a price
for the house. If you wish to find a buyer yourself, it will be
cheaper but you will need the time to make all these arrangements
and deal with any problems.
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Finding a buyer
yourself
What price to ask
If you wish to find a buyer yourself, you must
first decide what price you want to ask for the property. Many
estate agents do free valuations so it is always possible to arrange
for two or more local estate agents to provide this information. If
you want a formal valuation, you could arrange for an estate agent
to provide this but you would have to pay a fee.
In addition, you can find out about the cost of
houses locally by looking at local papers, estate agents’ windows
and similar houses in the area.
Before deciding on a price, you may wish to
consider:-
- doing any repairs or decorating if this would make it easier
to sell the house
- arranging for a survey if you think there are any major
problems that might affect the value of the house, for example, a
roof in a bad state of repair.
You should also decide in advance if you are
prepared to include any extras in the sale, for example, curtains
and carpets. These are known as fittings. A price for these can be
included in the asking price or a separate price can be asked in
addition.
There are some items that you must sell as part
of the house unless you make it clear to the buyer that such items
are not included in the sale. These are known as fixtures and
include such items as fireplaces and a central heating system.
However, in some cases it is not always clear whether something is a
fixture or fitting so it would be useful for you to draw up a list
of any items you intend to remove or are prepared to sell to avoid
problems later.
It is normal practice for a potential buyer to
offer a lower price for the house than the seller is asking. You
might therefore want to allow for this by setting your price a
little higher than the amount you would like to get.
Advertising the house
You should first of all find out how much the
local papers charge for house advertisements and then draft the
advertisement on the basis of how much you want to spend. You could
use existing advertisements as a guide to the format and wording. It
is also possible to advertise very cheaply in shop windows. It is
advisable for you not to give the address but to provide a telephone
number instead.
Finally you could consider drawing up details of
the house in a similar way to that of an estate agent, for example,
giving details of room sizes, community charge/council tax, local
facilities and fixtures and fittings. These details can then be
given to potential buyers, either before they call, or at the time
they view. You could also consider advertising the property on the
internet.
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If you
wish to use an estate agent
If you wish to use an estate agent, you should
find out about local estate agents and find out the following
information:-
- what type of property the estate agent specialises in
- whether the estate agent belongs to a professional association
- how much the estate agent will charge
- the reputation of the local estate agencies, if
possible.
Estate agents’ charges
Nearly all estate agents calculate their fees as
a percentage of the final selling price of the property, usually
between 1˝ - 2˝%. This is known as the rate of commission. You
should also check if the following are included in this percentage
fee or have to be paid for in addition:-
- advertising costs
- costs of preparing details of the house including photographs
- a ‘For Sale’ board
- VAT.
If you decide to use an estate agent, the estate
agent must confirm the charges and rate of commission that will be
made. The estate agent must do this when they agree to act for
you.
What type of agreement can you have with the
estate agent
If you use one estate agent to handle the sale,
this is known as ‘sole agency’. It is usual for the agreement to
state that commission is only paid to the estate agent if they sell
the property. If you find a buyer yourself, usually you don't have
to pay commission to the estate agent. However, if you have an
agreement which gives them 'sole selling rights', the estate agent
is the only person who can sell the property. You will still have to
pay the estate agent, even if you find the buyer yourself.
If you appoint two or more estate agents to act
together for you in selling the property, this is known as ‘joint
agency’ or ‘joint sole agency’. The estate agents involved share the
commission when the property is sold regardless of which estate
agent actually finds the buyer. The commission for the joint agency
agreement is usually higher than for a sole agency. If you appoint
two or more estate agents independently, but the commission is only
paid to the estate agent who finds the buyer, this is known as
multiple agency.
What does the estate agent do
The estate agent first of all visits the house in
order to value it and decide on an asking price with you. You may
wish to ask more than one estate agent to call and value the house.
It is also advisable for you to check the price that the estate
agent suggests by comparing it to similar houses in the local
paper.
The estate agent will prepare details of the
house to send out to people who are interested in buying it. These
details will include the number and size of the rooms and all the
fixtures and fittings which will be left in the house. The estate
agent also arranges for the property to be advertised.
You usually shows potential buyers around the
house yourself but, if this would cause problems, for example, if
you are out at work or away a lot of the time, the estate agent
usually is prepared to do this themselves.
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Deciding who to
sell to
Whether you have arranged to sell the house
yourself or you have used an estate agent you may find that you
receive more than one offer for the house. You can sell the house to
whoever you want and do not have to sell to the buyer who offers the
most money. You may wish to take into account whether the
buyer:-
- is a first time buyer
- has found a buyer for their own property. If so, is it part of
a chain of buying and selling and how long is the chain
- is paying cash or is likely to get a mortgage
- wants to move at the same time as you.
If you are using an estate agent, it is often
easier for the estate agent to find out this information from the
buyer.
It is unlawful for a seller who uses an estate
agent to discriminate against a prospective buyer on grounds of
race, sex, disability, sexuality, religion or belief, either by
refusing to sell the property, or by offering it on less favourable
terms.
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Deciding on the price at
which to sell
If you are using an estate agent, the agent
negotiates with the potential buyer(s) about the price. The estate
agent should try and obtain the best possible price for you. If you
are acting alone, you must negotiate yourself. You do not have to
accept the first offer put to you and should not be rushed into
making a decision quickly.
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Accepting the
offer
Even if you have accepted an offer, there is
nothing in law to prevent you from changing your mind and accepting
a higher offer from someone else. You should also bear in mind that
when an offer is made and accepted the potential buyer can also
withdraw, for example, they may not get a mortgage, or the survey
may show up some structural problem.
If you are selling yourself it may be a good idea
to keep the names and addresses of all potential buyers who make
offers, in case the one you accept falls through.
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Choosing who is to do the
legal work (conveyancing)
When you have accepted an offer you, or the
estate agent, needs to inform whoever is doing the legal work. You
can do it yourself - although this can be complicated – or you
could:-
- use a solicitor; or
- In England and Wales only, use a licensed conveyancer.
Using a solicitor
Most firms of solicitors offer a conveyancing
service. Although all solicitors can legally do conveyancing, it is
advisable to choose a solicitor who has experience of this work.
Using a licensed conveyancer (England and Wales
only)
You can use a licensed conveyancer to do your
conveyancing. Licensed conveyancers are not solicitors but are
licensed by the Council of Licensed Conveyancers.
If you want to find out if a local conveyancer is
licensed you can write to the Council of Licensed Conveyancers.
Finding out how much it will cost
Before making a choice as to who will do the
conveyancing, you should find out the probable cost. It is important
to contact more than one solicitor or licensed conveyancer as there
is no set scale of fees for conveyancing. You should:-
- check whether the figure quoted is a fixed fee or will vary if
more work is required
- check that the figure includes expenses and VAT and get a
breakdown of these costs
- find out what charges, if any, will be made if the sale falls
through before contracts are exchanged.
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Exchange of
contracts
When contracts are exchanged, and before
completion, the buyer may wish to visit the house, for example, to
measure up for carpets or to get an estimate for building work.
However, you should not allow any work to be done by the buyer
before completion.
You should inform the fuel companies and phone
company that you are leaving and ask for final readings to be made
of the meters on completion day. You should also inform the person
at the council responsible for council tax, or in Northern Ireland,
the Rate Collection Agency responsible for rates collection.
If the buyer is paying a deposit, this will be
paid to your solicitor at exchange of contracts. The solicitor will
hold this deposit until completion.
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Completion
You must arrange to leave the house empty by
completion day and to hand over all the keys.
Your solicitor will receive the rest of the
purchase price from the buyer and will pass this, together with the
deposit, to you.
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