By Emma Simon, UK
Whether you are looking to sell or let, the following tips should enable you to make the most of your property ¬and get the best price you can:
1. Set a realistic price If you put too high a price on your property it could put-off potential buyers; likewise pricing the weekly rent too high may mean the property sits empty for months.
Many people start with an overly-optimistic price, knowing that they will be prepared to negotiate. But such tactics could prove counter-productive in the current market conditions and simply deter potential buyers.
Check property websites and local papers to find out what comparable properties are on the market for. Watch when For Sale signs switch to Sold signs and contact the agents.
If they think they may be able to sell yours as well they should give you information about how far the price was reduced before a sale was agreed. Always contact at least three agents to get a realistic valuation and dispel your own inflated ideas as to what the property was worth.
Don’t get suckered into simply sticking with the agent that plucks the largest valuation from thin air.
2. Price intelligently, and be prepared to be flexible Clearly if the value of your home hovers around one of the stamp duty thresholds, it may make sense to reduce the price.
Currently these buyers pay 1 per cent stamp duty on properties sold for more than £125,000, 3 per cent when the prices rises above £250,000 and 4 per cent on those sold for more than £500,000.
Remember this tax is charged on the whole purchase price, so pricing just below one of these thresholds will save potential buyers a significant amount of tax. However, there is speculation that the Government may make concessions on this tax in the Autumn, although this may just be for first-time buyers to kick start the housing market again.
As a result many buyers may be sitting tight to changes are confirmed. The downturn in the property market will mean that all buyers will want to haggle, so be prepared to do so. But have a clear idea in mind what the minimum you will go to will be.
3. Know your target market If you are selling a family home, then make sure you convert any study or storage room back into a bedroom. This is likely to be far more attractive to potential buyers.
Likewise, someone selling a bachelor-pad flat, may want to declutter one room to make into an office, or even convert part of a larger room into a separate office space. This is particularly important in the rental market.
Think about what type of tenant you want and make sure your property as far as possible meets their needs.
4. Get a good deal from your estate agent With agents selling an average of just one property a week, many may be willing to negotiate on fees. Most charge a lower fee – typically 1 per cent of your property’s selling price – if they are the sole vendor.
If you opt for this make sure the agent does not have any lengthy lock-in clause which would prevent you switching to another agent if they fail to sell your property.
Ideally you should be free to move a week after handing in written notice to the agent. Most agents say fees are ‘non-negotiable’, although anecdotal evidence suggests that in current conditions some are open to offers.
But one insider points out: “For the first time in the past few years agents are having to work really hard to sell properties, so some are extremely reluctant to negotiate on price.” Make sure any agent is a member of the National Association of Estate Agents.
If the agents in your area charge similar fees then “mystery shop” a few of the properties on their books: pose as a buyer and opt for the one that makes the most effort to flog you a home. And don’t leave all the work to the agent. Be pro-active yourself.
You know what your home’s key selling points are so make sure you tell both the agents and any viewers. Is it near a good school, in a friendly neighbourhood or close to shopping facilities?
And there is nothing to stop you advertising your property online yourself; although do check whether you have a “sole agency” or “sole selling” contract. If you have the latter your agent will still pocket their fee, even if you have found the buyer yourself.
5. Avoid long housing chains Katie Tucker of mortgage brokers John Charcol says those looking to sell a property are always advised to avoid long housing chains where possible, but this is particularly true in current market conditions.
Last year just one in 10 housing transactions fell through, now one in three fall through. “The smaller the chain the better, there is less chance of a buyer getting cold feet or failing to secure mortgage finance.”
If your finances permit it, consider selling your home and taking a short-term rent. This may strengthen your negotiating position when you come to buy ¬ as you will effectively be a first-time buyer, without a chain behind you.
6. Exchange contracts as soon as possible Once you have exchanged contracts there is far less chance that the deal will fall through – as the buyer will then lose their deposit. Melanie Bien a director of independent mortgage broker Savills says: “Return any form or information requested by your solicitor as soon as you can and check in daily by phone or email to see how things are progressing.
It is also worth keeping it touch with the estate agent and buyer to ensure things are proceeding as they should be.”
7. Make first impressions count Halifax Estate Agents says that while many people concentrate on internal decoration, they can overlook the outside appearance of their home.
“The first thing a prospective buyer sees is the outside of the house. A tidy garden and clutter-free drive can make a big difference.” Similarly a fresh coat of paint on the front door and window frames, polished door knobs and letter boxes and checking how curtains look from the outside can work wonders.
8. Tart up the inside, without spending a fortune Complete all basic repairs ¬ such as touching up paintwork, filling cracks, sealing the bath and straightening cupboard doors.
These are usually inexpensive improvements but help create a far more favourable impression. If you can’t face the work yourself call in the professionals, who will revamp your home for about £500 a day.
More expensive renovations – such as new bathrooms, kitchens and loft conversions – may help you sell but according to Abbey you are unlikely to recoup the outlay with property prices falling. Suzy Maas, one of the founders of The Final Touch, a firm of house doctors, advises homeowners to think about space, light, cleanliness and smell. “Clear clutter, minimise furniture and incorporate mirrors where possible,” she says.
To filter light through the property keep doors open, use soft glow bulbs and use side lamps rather than overhead lighting. It goes without saying that your property should be spotlessly clean but she suggests organising cupboards, cellar, loft and garage, as many prospective buyers will want to inspect the storage spaces too.
If you have too much clutter then put some of it in storage or asks friends or relatives to store it temporarily, she says. Final flowers, fragrant candles and oil burners can create a welcoming atmosphere.
As a last resort some families even roast coffee beans or bake bread as such smells usually register positively on visitors.
9. Don’t take you house off the market too soon Remember the best bidder is not always the best buyer.
Ask your solicitor to check that their finances are in place. If they are still waiting to have a mortgage granted do not take your home off the market. With cash buyers check where the funds are coming from and ask for proof that cash is held on deposit.
Don’t take your house off the market until your buyers have paid for surveys and valuations, (or better still exchanged contracts) as until this point they can walk away from the deal without losing a penny.
10. If all else fails, drop the price “There is only one reason why a property does not sell in anything but the depths of a recession, and that is the price,” says Trevor Abrahmsohn from Glentree International.
We are not in such dire straits yet, so if you need to sell quickly start cutting the price. Remember that even if you drop the price below your conform zone, remember you may be able to negotiate a proportionate reduction of any property you are buying.
And if you are moving up the property ladder, this may give you a bigger saving on the house you are buying compared to the hit taken on the one sold.
If you enjoyed this post, feel free to subscribes to our rss feeds
Loading ...
