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Buying and Selling Property » Selling Property Advice » Sell Property Privately
Sell Property Privately
The thing about selling your property privately is that it is possible and it is not one of those unattainable tasks. There is no guarantee that hiring an estate agent will ensure a perfect deal to your selling requirements. You might not get the price you thought you expected and also it could take months for the deal.
Most of the people feel very strongly about the usual Estate Agents not doing their job well and just don't deserve the fee they indict, which is why we have to try and sell our property in our terms.
The rise in property prices have shot up dramatically in recent times. Just because the fees are related due to the percentage of your property's value, many estate agents have achieved an all time high gains. Not that they are working any harder for their money or serving you with better service. They have regained supremacy in the selling game.
The question is should you attempt selling property privately? The answer is based on the reports and facts; so it is a big YES.
To sell property privately will cost about £500 (to do the job properly) and the amount of money you'll save really makes the extra effort worthwhile.
As soon as you think about the estate agent's fee as a percentage of the definite revenue you will make from your deal. When you sell for and subtract from the price you purchased finally the end result will conclude the total amount of money you will be losing out on.
When you try to sell the property on your own you keep hold of your deal and also instantaneous response on each and every feature of your sale. The uncertainty of depending on the estate agents can be avoided all together. Youcan be convinced that your transaction is in receipt of all the notice it ought to have. You could actually make a profit and sell for a higher price. For a lot of estate agents making a sale is all that is important. His attempt which involves in conciliation for an extra £5,000 - £10,000 for you will benefit only gains and £100 - £200 more in charge for him. So it is not adequate motivation for an estate agent to look for the best possible price or the price you expect.
You must be wondering that if selling property was so easy then why some people hire agents to sell their properties. It seems that using an estate agent is the easiest and the most convenient thing to do. Many might think that they might not be able to give enough time and thought to the complete transaction. They also could consider the professional's sales will shelter them from defaults and harvest a better price. If and estate agent convinces a buyer to pay more than the expectation for a certain property the buyer's mortgage lender will stop the sale from going through at an inflated price.
When a mortgage lender's valuation does not substantiate a buyer's offer, it's instantly apparent to one and all that the property is overrated and so why someone should pay more?
The most frequent consequence of a "down-valuation" is that your buyer's mortgage application is declined. If your mortgage is refused then it will result in no sale and also a waste of your time. The only technique to sell off your property is to lessen your cost value or else buyers will remain fewer at the mortgage valuation phase.
Today's owners who want to sell have tendency to take up the challenge on their own. More and more individuals have found out that if they use a bit of awareness, can organize a few steps, want to save their hard earned money realise that they can sell property privately. The Office of Fair Trading show points towards 1 in 10 homeowners who now endeavour into selling property privately. The OFT interviewed a sample of these private sellers and their findings were dramatic:
91% reported the whole process ran extremely smoothly. Most said they would do it again.
There is even a recent study by the "Interactive in Media Retail Group", IMRG (The global e-retailing industry body) looking at the rise in popularity of selling a house privately.
They forecast that by 2010 nearly half (that's 700,000) of all property sold in the UK each year will be without the help of a traditional Estate Agent. You could also try selling property by going dual .This is when you sell property with an estate agent but also use the Internet to try and find a buyer yourself. This has become a very popular option for many reasons like-When you look for a buyer by yourself; you steer clear of having to pay the estate agent. You could advertise to the right kind of people and have more buyers' conscious of your property this will help you sell for a good price. You are the boss of the time taken and can sell real fast or wait for some time till the right deal is made. The estate agents night feel the heat because of you.
You should be aware of the couple of important things to consider if you plan on going dual:
You require comprehending the terms found in an estate agent's contract.
You must be aware of the current OFT guidelines on using a private sale website alongside a traditional estate agent.
Selling property at an auction is not for every seller. You might not find it the best way to sell property of an "everyday variety". The end result could lead to selling at a lower price you had planned to sell. Selling property at auction can be justified when your property needs lots of repairs and renovation work. It's an extraordinary conversion and is difficult to value or it is exceptional and extremely pleasing or it is a rental property with sitting tenants.
Why Sell Property at Auction?
Most people choose an auction because it guarantees a sale on a specific date (as long as it's the right sort of property).
Auctions are good for property that has the combination of being both unusual and sought after.
They sell for more than if sellers just deal with buyers on a "one to one" basis.
There are many disadvantages of making a sale at auction-
The main shortcoming is that it's one of the most costly ways to put on the market.
Normally, the charge for selling at auction is around 2.5% + VAT of your properties value.
If your property does not sell, you'll still have to pay £1,200 - £1,400 +VAT to cover the auctioneer's costs.
These take account of:
Your listing in the auction register
The Surveyors inspection of your property
The Sale Board
Drafting of legal documents
General advertising and marketing costs
The handling of the "pre-auction" enquiries
If you are sure and have made up your mind about selling at auction and you feel your property would be put on the market well at auction, the paramount thing to do is find an Auctioneer and get their view.
You need to keep in mind that the Auctioneers, like estate agents are not charity workers, they want your business and listen to their ideas and views without hesitations.
Ahead of making any commitments to anything, be convinced that your property is truly an actionable property you need to get a few of the auction catalogues and also look for the kind of properties set to go for the purpose of the auction. Look for something that could be like yours.You might even find it of use to stopover at an auction or two and witness the kind of property that sells well. Find out where to get more information from.
Make a sale to grab quick cash
If you really think you need to make a sale for the best possible price that this method of selling should be considered. Usually you require this method for quick money if:
If you are being threatened with taking back the property.
If you would like to sell your property and give it out on rent which means freeing-up cash while keeping your home
If you require the money quickly
Bereavement or divorce means you want to sell your property and move-on as quickly as possible.
You've inherited property that you want to cash-in quickly.
You're emigrating and your property is proving difficult to sell.
If you need to know about how quickly can specialist cash buyers act then the time frame would be exchange of contracts which can take anywhere between 24hrs - 7 days. The completion can then be fixed to your preferences.
What is your desire for the total price expectation?
Anywhere between 20 to 30% below OMV ( OMV stands for Open Market Value)
"Open market value" is the price you'd get if you sold through an estate agent.
The cash buyer using either a Chartered Surveyor or the independent opinions of 3 local estate agents will assess this.
"Open market value" is not the valuation figure an estate agent has given you when trying to secure you as a client. That figure is just part of their sales pitch and often very inaccurate.
In spite of what the sales spin may say on their websites, across the industry the "cash buying business-model" only really starts to work when property can be bought at a 17% discount (and this is what you should be prepared to accept before contacting any cash buyers).
In almost all cases the first offer you'll receive will be at a 20% discount level - negotiate, it'll be worth it!
Here's an example of what you can expect:
"If the cash buyer works out that the true value of your property is £180,000, he'll offer you £144,000 (that's 20% off).
Then with a little negotiation, you should be able to get the offer up to £149,400 (that's 17% off)"
Cash buyers provide a service - One that gives you a certain and speedy sale.
As you are no doubt aware - certainty and speed are rare commodities when selling property - you have to pay for them!
How much of a discount you eventually sell for depends on which company you choose to run with and how saleable / rent-able the company feels your property is.
If your property is "right on target" in terms of what the company is looking to buy, you can get lucky and be offered anywhere up to 90% OMV - this is rare though and you should not enter into this with that sort of figure in mind.
What Does it Cost to Sell to a Cash Buyer?
It actually depends on which cash buying company you choose to do business with.
Many of the large, nationwide companies insist you pay for a surveyor's valuation before they'll make you an offer.
Here at we feel this is unreasonable and would recommend that you steer clear of any company demanding an upfront charge.
We would also recommend that you find buyers that will pick-up your legal fee (always throw that into the negotiations).
A Word of Warning!
When someone needs the services of a cash buyer, it's normally because they're in a bit of a fix.
There are lots of people out there willing to take advantage of your situation.
Be very careful with whom you choose to do business!
There is one scam in particular that should immediately have your bells ringing:
Anyone guaranteeing to pay between 90%-100% OMV is LYING!!
They are trying to get their foot in the door and they can be very persuasive!
Before you know it, their promise of "full market value" has disappeared.
They'll string you along (probably telling you that they're waiting on the Local Authority Searches to come back) until you're absolutely desperate to sell.
At the last minute (when you're most vulnerable) their offer will be reduced (often to well below the standard 20% discount rate) and you'll have no choice but to sell for much less than if you'd gone with an upfront and reputable company!
Many have written and contributed to by property professionals from some of the UK's most successful house building companies.
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