Selling Your Home Ex-Estate Agent Tells All
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Selling Your Home - Ex-Estate Agent Tells All
I will show you an insight and offer advice to be more effective in selling your home, after you have been through the pages you will be armed with everything you need to help remove the stress from selling your home.
Obviously you are always loaded with TV programmes and internet pages to give tips with DIY etc, but none of them as far as I can see give you tips with choosing the right agent, getting the best fee, getting the best coverage, ensuring they earn there money etc As an experienced and successful sales negotiator and valuer I am passing on some of my inside knowledge to help yourselves move forward. Three stressful things in life and your home is one of them, your job and your family being the others, all have an impact on each other. Now before we go any further we must establish the objective of your purchase of my product, this is not advice on what colours to choose on the bathroom etc. So lets start at the beginning
What is your motivation to move? You must always ask yourself your motivations, it is a big step to move home and something you would not choose to do everyday of the week.
Moving home is a necessity in most cases, which means there will always be a market, people buying for the first time, families getting larger or reducing, the list is endless as to why people need or want to move home. As long as there is this kind of market you have a strong chance of selling. Things as you may know to slow down the market would be uneconomical reasons, so my main advice when making your decision, you must be 100%, if you are not 100% committed and there are hitches along the way, it will be costly, time consuming and stressful. People find themselves pulling out over the smallest thing sometimes just because they were never 100% in the first place. So we have established your house is going on the market
Understand your market
What category does your home apply too? Do you have a 1 bed to suit a professional commuter? 1st time buyer? Landlord? or do you have a 5 bed executive home to suit a family with a good income? You must understand your market, this helps further down the line when getting your house ready for viewings and dealing with your agent. Different price ranges appeal for different reasons, Up to 120k in most parts of the country will appeal to 1st time buyers, prospective property developers, and landlords or in some instances people needing to downsize. The introduction of no stamp duty has made this part of the market more appealing as it’s another cost saving, not massive but you will learn that every penny counts.
Up to 250k this is below the 3% stamp duty threshold so people who can afford up to this range are: people who have a property to sell, are upgrading or down-sizing, sometimes you get the professional couple with a good wage or sometimes people sell and go into renting to eliminate chains, you can get lucky sometimes, but understanding your market is having options for all applicable parties not putting your eggs in one basket. 265k region, this is where people try to haggle down to 250k to avoid 3% stamp duty there are ways around this i.e. vendor paid stamp duty etc but it is a funny price range, you will find 50% of the time people can afford the stamp duty but will try to avoid paying it out of principle, you must ask yourself who’s pocket is it better in yours or the government!! 300k and above, this is a range whereby people who have this amount of money do not always worry on stamp duty!! You will find house prices in this region normally attract offers but instead of offering one or two thousand less it’s usually five, ten or twenty thousand less. The chains can be quite long in these sales so always keep a thought on that.
Unless it’s a dream home or 5 people want the same house, you will always get lower offers despite the asking price. Which leads us too the pricing of your home. Some agents will encourage putting your asking price above the valuation to accommodate offers and achieve your figure, this in some cases works well, after all, if you don’t get the right price why should you go through the stress and finance of moving? However, you must get the right balance. The price is the make or break of selling your home, the days of people charging over the odds have disappeared, buyers have more rights and usually more options to buy elsewhere, which takes us back to understanding your market. If you get your price right you will have a smoother transition and an easier process from start to finish. If you get it wrong you will find your home will be on the market for longer than required, buyers wise up to recognising your property in the paper for 6 months or the house on with 50 agents. Let’s say you do sell your home at a
knocked up value then the surveyor down values your property? …….you face the road of re-working your finances and risk the chance of your sale collapsing, BE safe not sorry.
The value of your home I would recommend prior to getting your local agents round you do some homework, this way you will not get fobbed off with unrealistic valuations either too much or too little Try www.rightmove.co.uk Type in your specifics and postcode and see what is on the market or has already sold in your region, best to try up to ½ a mile radius or possibly up to 5 or 10 miles around. Be careful though, some neighbouring estates will be better than others, if you are local you should know the reputation of these areas Or If you have a neighbour sold in the last 6 months try to find out the actual selling price, usually you find you will have a similar layout/ house. An actual previous selling price of an identical build has more chance of getting through the survey and has a better representation of your value, unless the person sold out of desperation which is a different chapter in this book
What adds value? Forget the cosmetic condition for now, our house is unique to the others, the likes of how many bedrooms, extra receptions, extensions, conservatories, double glazing, garage, size of your plot, downstairs wc, en suites these usually add value, given improvements are done satisfactorily.
The cosmetic condition, landscaped garden these are the presentations added benefits to assist selling, not the deciding factor in the property value. Although worth considering the better the cosmetic the more chance of an asking price offer and better first impressions
Selecting the right agent After you have done your homework invite 3 agents around to provide a valuation. DO NOT SIGN A CONTRACT ON THE 1st VISIT Even if you know someone or if someone in the family works at an estate agency, you are still giving them a chance Select your valuing agent through these methods
Personal recommendations – as a businessperson, personal recommendations usually are safe bets, not in all cases but it’s a start Coverage in local paper – you are paying the agents fee if they sell your home, you want good presentation and attention to detail Coverage on main internet sites – the biggest way to communicate directly in this market especially for people that don’t know the area, most decent leads come through right move, there are other websites which are coming up closely behind, but at the time of writing this in my opinion, they are not there yet. You want a listing on local websites as well as the agent having a decent website, which I add has to be user friendly, people won’t search on it if they get lost on it!! Local reputation – you will see 5 for sale boards to the competitors 1 or you should have a rough idea in your area which agent sells well. Branch location – how many walk ins, are they in the centre of town, are they in amongst the leading agents? The attitude of the valuer – this is the person you are looking to place your trust in, How they present to you is how they will come across to buyers.
Ask the agent to bring a list of buyers on their books relevant for your type of property, examples of properties they have sold in your region and similar price range. If they object to this then how will you know you can work with this agent in selling your home?
You should have an idea after the valuations, doing your homework and answers to your questions about which agent you feel most comfortable dealing with, this is business therefore you want a good rate.
Getting the right fee Some houses sell quicker than others, to me a house mostly sells itself, the agents job is to introduce the right people and earn what you are about to pay them. The fee is a factor, this is money which can be in your pocket. On one hand you don’t want to pay too much on the other hand you want the job done. The easiest way to reduce a fee in most parts of the country is to sign a sole agency agreement. Even then, there is no harm whatsoever phoning your selected agent and explain the difference from them listing your home or losing it to the main competition is the fee, they can only say no to reducing the fee slightly, if they say yes you’ve saved some pennies. SOLE AGENCY term – 2 weeks is not enough 8 weeks is too long, if you sign a longer agreement then the agent may get a little relaxed, you have to keep them on there toes…no harm in agreeing to 4 weeks and if you are happy you will sign another 4 weeks, the idea is you are not tying yourself down and hopefully the agent will have a bigger incentive to do the job in the shorter space of time. In all truthfulness unless the agent know 100% they have the perfect buyer for your home, it does take a good 2 to 3 weeks to get interest generated, i.e. listed in the local paper, uploaded to the internet, mailed to all prospective buyers.
Get your agent working for you A larger agency will have in the region of 80 – 100 properties if not more, the agents are normal people….don’t laugh and fall off your chair!! They get up go to work, come home, sleep get up then go to work, this is a religious regime so what will make your property remain in their heads for when the prospective buyer is sitting in the branch or on the phone. A good idea is to get the negotiators doing the selling round to have a look, this way they know what they are selling, tell them anything they ought to know, I cannot list everything but you will know things you’d like them to point out. Another way is to add an incentive such as a complimentary bonus to the selling negotiator, if they know they are going to get a little extra on top of their commission then your home will stick out to them. It is not physically possible for them to give that many houses undivided attention, they will have houses in their minds which they know they can sell but when the next batch of properties come in they will think of those above yours.
Valuers will urge their negotiators to work on getting viewings on new listings, to impress the new vendors, so keep a nice regular contact with the person you get on with the most, usually the person who valued your property.
The Viewings Get the most from your agent in the sense that you know they are busy and you don’t want them thinking you are the owner from hell, but ask for a bit of 2-way dedication, i.e. if you are going out of your way for a viewing, letting a stranger into your home you want feedback within 24 hrs, it is a easy thing to tell you a buyer has others to see, but this is not feedback. Nine times out of ten after the viewing, the buyer will say something to the agent, the favourite is, how much are they willing to drop? This is a good sign that you have some interest, if the viewing ends quicker and the viewers
have no questions this usually means they will not go any further, so how do we know the good from the bad? Well most of you that have brought and sold in the past will know when you see a house in the paper or you know the area, therefore you want to see that house regardless. An agent will not pass on the opportunity of a viewing, if that person then decides when they see the house it is not what they expected, this is outside anyone’s control. So what can the agent take control off?? Well first and foremost, can the viewer afford the property? Your home is not a public viewing gallery for Mrs Jones who is being nosey nor will it help anyone if your viewers fall in love with your home and find out they cannot proceed any further….who benefits then? Not you, not them. No one…so a good agent will know the position of the viewer. Do not be scared to ask the agent questions about the potential viewing, i.e. does the home match the requirements, has the viewer got a home to sell, is it on the market….what I mentioned earlier about motivation is instrumental about your prospective buyer as well as yourself, I’ve known people to withdraw via reasons of speaking to a friend or cannot get their children into a school they thought they could etc…you will not win them all, but if you do monitor the person you let through your doors then you are more likely to get a sale from start to finish, if they show an interest. You will lose some viewings with this method and ultimately it is your decision, this is just a simple guide to help identify your buyer. This is also a 2-way thing, how can you play your part?? An agent can do so much, as long as everything right this far you are only inches away from selling your home. First thing you should do is keep your house clean and tidy at all times, most people will look beyond decorative order but will not accept a dirty home, people do not take in account you got 5 pets, 6 children, at work from 7-7, buyers will not tolerate walking into a place whereby they have to hold there breath, tip toe round objects etc. People always notice a clean home. Cosmetic stuff, some people are better than others at DIY, you have a lot of sites which offer good advice for that budget bathroom, the new modern kitchen etc, having all this done already does help, some buyers want a place whereby no work is required, others want some work to do and others will not like your taste. Like I said, you will not win them all, but keep that house clean, be ready for a viewing within 30 mins if you are serious.
Not everything is possible, but for the sake of getting the job done on your sale, you will need to make some sacrifices, be flexible as much as possible, remember it should only be for the short term….this includes ‘for sale’ boards, any exposure is a bonus, forget the neighbours and what they will say when they find out, if your decision has been made then you have no time for sentiments….you want a sale. Another tip is not to give anything away to the viewer, they can be craftier than the agent!!...They will probe but will try their best to get a price from you, should they make an offer, always refer this back to your agent and let the agent do their job. Some viewers will suggest cutting out the agent, this is not a wise idea, you will be liable in the sense that the agent holds a contract with you and they can pursue it. You have more security of having the buyer checked out by the agent, can you trust someone who suggests going behind the scenes? The same applies to a competitor who brings around the same client who has seen it before, if you have switched agents the introducing agent is entitled to their fee so don’t get yourself into this situ, do your homework on the viewers, write the names down if you have too.
Why has my house not sold? Do a checklist if these things below are marked with an ‘x’ and not a tick then you know where you shortfall is: 1) Price – if a decent house has not sold like you were promised then one factor can be the price, refer to the chapter with doing your homework before the agents gives you a estimated value…is your home in line with anything else in direct competition? You might be saying “I’m not the expert in house valuing!”…but who is? ...have you heard the one about the agent who went to university to study house pricing, or the new curriculum to include ‘how to value a house’??... Exactly…agents and surveyors alike, use the local market as rule of thumb, with the exception that your home might be better or worse the principals of valuing are 99% the same.
2) Have you played your part? Are you available for the viewings? What is the condition of the property? This will be a thorn in your side, if the condition is not on par, prospective buyers will only have an excuse to lower your asking price, despite the fact they are paying for bricks, water and the land it was built upon. I cannot stress the importance of having a clean home, despite sometimes the cosmetic condition. 3) Your neighbours, now lets not get into a neighbour war but this can impact on first impressions, i.e. revving that bike or the car being serviced by the wanna be mechanic, the head-banger in his bedroom who insists on having a volume equivalent to Wembley stadium or even parked cars‌the list can be long but you must ask yourself what would you think if you did not know the area and you walked up the road with these things going on around you? ..... There are not too many things you can do in this instance, most of it is outside your control, what is in your control is the time of the viewing, get it done when these things are at there lowest, be polite to a neighbour, plead with them that you are trying to sell your home and would appreciate for that short time they can play ball, only you will know to read the situation on this. 4) Has your agent done everything they possibly could? Phoned up and mailed every possible buyer? Given you good coverage in the paper without over exposure?, give feedback-good or bad ? Is your photo and detailed description up to scratch? Are you on the internet? Have they brought the right people around? If you feel your agent has not worked for you and you are tied into a contract, you can possibly argue they have not abided by the promises made nor or honoured their part of the contract, they will know at the back of their minds if they have done all they can.
You might be able to get out of your contract but not always, sometimes you can at least go ‘dual agency’ similar to multi agency but selecting one other agent to represent you for the sole agency fee.
Don’t get desperate unless you really have too Your next step? You can try a couple or few agents but try to avoid the over exposure unless you have reached that point whereby it has to happen. The cash incentive to the selling negotiator should get them working a little harder for you. For a quick sale, sellers also look into prospects of local investors or the new build company, not every circumstance will be the same, but be prepared if these people come round, it will be a case of ‘what is in it for them’ they will not be thinking of you when they offer 20, 30 % less than the asking price, they play on situations like yours. Other options are rent to buy, let out your property? Or last resort is to come of the market, it is not your time, go back on at a better time of the year.
Getting that offer Right then you have that offer, you feel the relief of all your hard work pay off, there is another appreciation of that place you call home, your smile has gone from cheek to cheek no more waiting in for viewings ….well, get the emotions out of your body straight away, unless you have achieved your asking price or at least the price you are happy to walk away with, emotions can sometimes take over, you will find yourself saying yes and kick yourself later, or your partner kicking you later !! Lets get the principals right 7 out of 10 times the starting offer is exactly what it says, a starting offer whereby it’s a formality you negotiate between the buyer – the agent – to you If you followed my advice earlier then you will know the ideal buyer can afford your property, if it did slip you by then find out how the purchase is being financed, is there a chain? If so, how big? How far has it progressed? Not all chains are bad, after all we all have to move somehow, if your agent has done their job, these topics will be covered before the offer is placed to yourselves…although sometimes agents can get carried away without doing the basics.
It’s the agent’s job to get the best price for you, the more money you get the higher their commission. In the same token the agents may tell you anything just to get a sale, pending your relationship you must judge if you are been given a service or spun a lie Other things to consider, when you got the offer, you don’t have to take your property off the market. Although most buyers will insist on it, you are entitled to keep it on the market until you see some activity with surveys etc. This is where you both have to play ball, give time restrictions like the solicitors’ details and survey paid for within 2 weeks, buyers are less likely to let you down if they have staked money on your property. Be clever, don’t risk losing the sale but in the same token don’t risk losing a prospective buyer, this is to your discretion.
What is included in the price? For the sake of a sale you may have to let something’s go like the fridge etc, but what is it? For the sake of a hundred pounds compared to the thousands you are selling for, these can also be good negotiating tools, legally you are only obliged to leave one light bulb. There are items which are a no-no, but on the other hand it saves you a job shifting that item about etc
What comes first the chicken or the egg ? You might be thinking, it’s the end of this write up and this guy has lost his marbles? What I mean by this statement is the situation of: should I sell before I look or should I try before I buy? To be honest there is no right answer, every situation is different, some sellers think there house will fly out of the agent’s window and they will be
stuck with nowhere to go? The truth is, not all houses fly out of the window, despite how much you love your home, despite the fact it’s a castle to you, some do ping out of the door and some don’t In favour of selling before you buy – you give yourself more bargaining power when finding your next home, you are an agents dream being a buyer who is ‘sstc’. Think how you would feel when you have buyers looking at your home, who do you have around first, the person who has sold or the person who hasn’t? You will also have the benefit of not being disappointed on losing a house because you haven’t sold. Don’t feel pressured in finding a home for the sake of it, I would sooner recommend renting. The moving home process has to be worthwhile so make sure you are comfortable with your purchase, you will know the right house when you see it. This also has a bearing on how likely the sale will go through, if you are slightly unsure and something did go wrong in the sales process then you may find yourselves not sticking it out, be safe not sorry. In favour of try before you buy – if you have found that dream house you have a true motivation, you will play ball with that prospective buyer and do what it takes to get your home sold, a danger is that you can get too desperate of losing that home you wanted, but if you have put yourself in this situ, be honest with yourself, it was a gamble and must face the fact it won’t always pay off.
UNDERSTANDING THE SALE PROCESS You’ve reached the part not only selling your house was difficult…boy, the aftercare can be just as bad!!!...This is the bit where I mean any slight hitch you must be 100%, especially at this stage. Ideally you have a simple chain everything gets past surveys, solicitors act quickly and you are one of the chosen few!!! Sorry to sound sceptical on this area but if I painted the wrong picture then you would be no wiser. As part of selecting your agent be sure to ask about the sales chasing process, do they have a dedicated member of staff? This is easier, if the negotiators follow there own sales this is a conflict of interest, they’ve already sold your house, they want the next deal, chasing your sale will use up their time.
Be sure that throughout the process you are kept informed and everything is hunky dory on your side, if solicitors or mortgage lenders need chasing be sure to do it. I know in some cases it is a hassle but if you have done everything right then it cuts out part of the stress, if you dragged your heels then it can bog you down.
So who does what in the sales Solicitors – arrange contracts between parties, local & land authority searches, process the money transfer from lender to your account etc Mortgage lenders – valuation survey, lend you the money Mortgage advisors - chase the lenders when required Agents – chase all parties involved. The list is long depending what your outcome is If you proceed onto your next home I wish you a happy home, if you are retiring abroad I wish you pack me in your suitcase!! Whatever the outcome I hope my insights has provided you with some ideas different to what you hear elsewhere and that it benefits you immensely Good Luck – and Best Wishes