Which method of sale?

 

Selling A House Via an Estate Agent
Most people still instruct an Estate Agent but it is not a legal requirement and it does not guarantee a sale the best price you can get. Worse instructing an estate agent may actually cost you thousands – see how to get the best price and avoid unscrupulous estate agents. More and more sellers are waking up to potentially better methods of achieving a sale.  

 

Selling Property Privately
Why do it:
1.It can save you thousands in estate agents fees and it is not that complicated. Marketing your house your self will cost £120 – £600 (depending on how and where you advertise). Many private sellers find the Internet is the best place to market.
2.No estate Agent taking unfair advantage see how to get the best price and avoid unscrupulous estate agents.
3.Marketing your own property gets 100% when you do it whereas the time is only a fraction of an Estate Agent’s day.
4.It could be argued that you’re more likely to achieve the highest sale price by selling privately.

Selling Houses at Auction
Not the best way to sell your average property because you are unlikely to achieve the highest price. Useful for unusual properties, which are likely to sell for more than if sellers just deal with buyers on a “one to one” basis. Note: If the property sells you have to move out 28 days after the hammer has fallen.

Why do it:

1.If it is a rental property with sitting tenants
2.If It is unique and likely to be in great demand
3.If it is difficult to value using traditional valuation methods e.g grand designs style bespoke house or idiosyncratic conversion

Disadvantages:

1. It is expensive – the commission for selling at auction is around 2.5% + VAT of your properties value.
2.    If you do not achieve your reserve price you will still have to pay £1,200 – £1,400 +VAT to cover the auctioneer’s fees which include:
(i)The Surveyors inspection of your property
(ii)The Sale Board General advertising and marketing costs
(iii)Your listing in the auction catalogue
(iv)Drafting the legal documentation
(v)The handling of the “pre-auction” enquiries

 Selling to Cash Buyers and “Sell and Rent Back” companies
Rarely a good option. Only really suitable if moving is a higher priority than getting the best price. Usually you will only fetch 65-85% of your properties open market value but in return you get speed. Exchange of contracts can take as little as 24 hours to 7 days if you chose a reputable one. However beware of parasites – they are waiting to exploit weak sellers and will not hesitate to lower the offer once they smell desperation. For this reason we suggest you get expert advice from a financial advisor before going down this route and only deal with companies if you have got a personal recommendation from someone you know and trust.

May be appropriate if:
1.    Your chain has collapsed and you’re totally desperate to sell.
2.    You need money quickly and cannot raise it elsewhere cheaper than your loss of profit.
3.    Bereavement or divorce means you want to sell your property and move-on as quickly as possible.
4.    You’ve inherited property that you want to cash-in quickly.
5.    You’re emigrating and your property is proving difficult to sell.
6.    You’re being threatened with repossession
7.    You would like to sell your property & rent it back (freeing-up cash while keeping your home).

Costs You Should Be Aware of

(i)surveyor’s valuation (£200 – £300)
(ii)legal costs – although decent companies will meet these
(iii)Anyone who says they can show you how to “Sell your property in 7 days or less for full market value” is almost certainly just stringing you along. Once you become more desperate with time they will reduce their offer and you will end up selling for less than if you’d gone with a reputable company.

For more on conveyancing click on the drop down or revisit derby conveyancing solicitors.