If you wish to sell your property you can find a buyer yourself or use an estate agent. Before you decide you should consider what the costs are and how much time you have available. If you use an estate agent, it’s going to 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 to advertise it do your own viewings as well as negotiating the price, so you will need the time to make all these arrangements and deal with any problems, most people prefer an estate agent who can take any hassle away so you can concentrate on finding your new home and moving.
The other consideration when selling your property yourself is the selling price, unless you have experience selling a property this could quite easily become a burden and in the end cost you thousands of pounds, whereas an estate agent has the experience of valuing properties.
Using 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:-
- what type of property the estate agent specialises in
- how much the estate agent will charge
- the reputation of the local estate agencies, if possible.
Estate agents must comply with laws that protect consumers from unfair sales and marketing practices.
Most estate agents calculate their fees as a percentage of the final selling price of the property. This can vary from less than 1% to 3.5%. This is known as the rate of commission, however, with such competition some use a set selling price. We recommend you get three quotes to see what agents really do charge.
You should check if you have to pay extra or the following are included in this fee:
- advertising costs
- costs of preparing details of the house including photographs
- a ‘for sale’ board
- VAT
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 an estate agent
If you use one estate agent to handle the sale this could be on the basis of a ‘sole agency’ agreement, or the agent may have ‘sole selling rights’, depending on the contract that you have signed. Both of these terms must be explained in writing if they are used in a contract.
Sole selling rights means that the estate agent will have the exclusive right to sell your home and you will still have to pay the estate agent even if you find a buyer yourself.
A sole agency is still only using one agent, but if you find a buyer yourself you don’t have to pay commission to the estate agent. A sole agency agreement should be agreed for a specific period of time.
If you appoint two estate agents to act together for you in selling the property, this is known as ‘joint agency’ or ‘joint sole agency’. A joint sole agency contract is where the estate agents involved share the commission when the property is sold regardless of which estate agent actually finds the buyer. The commission is usually higher for this type of arrangement.
Deciding on the price
If you are using an estate agent, the agent negotiates with the potential buyer(s) about the price. The estate agent should try and obtain the best possible price for you. If you are acting alone, you must negotiate yourself. You do not have to accept the first offer put to you and should not be rushed into making a decision quickly.
Accepting an offer
Even if you have accepted an offer, there is nothing in law to prevent you from changing your mind and accepting a higher offer from someone else.
You should bear in mind that when an offer is made and accepted the potential buyer can also withdraw – for example, they may not get a mortgage, or the survey may show up some structural problem.
If you are selling, it may be a good idea to keep the names and addresses of all potential buyers who make offers, in case the one you accept falls through.
Next step is choosing a conveyancing solicitor
When you have accepted an offer you, or the estate agent, needs to inform who to choose to do the legal work, we recommend using a conveyancing solicitor as trying to do it yourself can be a minefield.
We recommend you go online and get a quote with: https://www.conveyancing-online.co.uk/get-a-quote/
