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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.
Finding a Buyer Yourself
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:-
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Doing any repairs or decorating if this would make it easier to sell the house.
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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.
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:-
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What type of property the estate agent specialises in
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Whether the estate agent belongs to a professional association
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How much the estate agent will charge
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The reputation of the local estate agencies, if possible
Estate Agent's Charges
Nearly all estate agents calculate their fees as a percentage of the final selling price of the property, usually between 1.5 % - 2.5 %. 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:-
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 and can arrange for a Home Information Pack (HIP) to be put together,
You usually show 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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