Sellers Guide
How to sell privately
- What the Estate Agents don't want you to know.
- With more and more of us now considering selling our own property privately, can this really be done?
- I am with an Estate Agent can I still advertise on 3up2down?
Estate agents contracts - sole agency, multi agency, ready and willing & able purchaser, sole selling rights - If I sell my home privately do I still need to pay the Estate Agent?
- How to complain about your Estate Agent?
- Valuing your house.
- Home Information Pack.
- Taking Photos.
- Creating your online advert.
- Prepare yourself and your property for viewing.
- Received offers and Negotiation.
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What the Estate Agents don't want you to know
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How qualified are estate agents?
There are no qualifications needed in order to set up as an Estate Agent anyone can setup an agency and start trading tomorrow.
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How do they value your house?
Estate agents cannot value your property only qualified surveyors can carry out property valuations. Estate Agents can only use their local knowledge and experience to suggest the market value of your property.
The problem with this system is that the Estate Agent you have asked to suggest the asking price of your property wants to get your instruction so they meet their target. And the easiest way to do this is to provide an inflated property value to impress you and get you to sign on the dotted line and tied into a contract. As a result of this tactic you won't get many viewing's you don't sell and what I find unforgivable you waste precious time. The Estate Agent will then meet their next target by suggesting you reduce your property price to a realistic asking price, which if you want to sell you do.
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How do they market your house?
Estate agents main focus is the internet. Why? Because over 70% of UK property buyers now search the internet first when looking to buy property. With more and more people searching for their next property online, high street estate agents are catching on to the fact that the Internet is taking over the high street for home shopping, and that an online presence is more important than a high street presence.
Estate agents also like you to use their 'for sale' boards, because 'for sale' boards are very effective at attracting passing buyers who may be viewing a property close by or those out and about looking to move to a particular area.
"It's not uncommon for anything between 30-50% of buyer enquiries to come from for sale boards"
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Who conducts the viewing's?
These days estate agents only arrange appointments for prospective buyers to view the property and expect you to show them around.
Why? Because they know that you, the property owner are likely to be a better guide for conducting viewing's because you know your property better than anyone. You are in the best position to answer any questions by a potential buyer; an estate agent will not know what the neighbours are like!
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What commission do they charge?
Expect anything from 1.0% to 4% of the agreed sale price. For example, a property that sells for £200,000 with an estate agent's fee of 2.0% commission would mean the total amount payable by you is £4,000 + VAT = £4700! They will also make an undisclosed commission if they have arranged your home information pack plus a disclosed amount if you use their nominated solicitor.
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Are their services really worth £4,000 plus?
Within the last few years the government has been so concerned with how estate agents operate they have conducted a number of major reports into the problems of buying and selling property in the UK.
Other consumer groups such as Which? have also conducted their own studies and found evidence that some estate agents had committed serious violations of the law, and that in their report 50% of consumers were dissatisfied with the service they received from their estate agent.
With increases in property prices over the last 10 years how can estate agents justify charging a percentage fee of the sale of your house? Are they working harder? Providing a better service? The reports conducted by the government and Which? suggest they are not or can they get us a higher sale value and more money for our property? This I feel is doubtful due to the commission system.
The key problem using a estate agent is the percentage commission fee structure, as estate agents rely on the quick turnaround and sale of property on their books in order to survive.
This means that if you have a sale price of £200,000 and you get an offer for £190,000 the agent will want you to accept the low offer. Why? because they will be losing only £200 on a 2% commission sale basis and don't mind you losing £9,800 for quick turnaround. The percentage commission pay structure means that it simply makes no business sense and is not worth the estate agents time or extra effort to find the buyer willing to pay another £10,000. That's why they like price reductions as they can shift more property more quickly. Using a estate agent will therefore not guarantee that you will obtain a higher sale price, in fact as they have lots of property on their books they are unlikely to be able to focus all their efforts into selling your property.So why do you need an estate agent? To generate viewing's? You can do this yourself and save yourself the price of a new kitchen, most properties sell themselves as long as you pitch the sale price right.
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With more and more of us now considering selling our own property privately, can this really be done?
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I am with an Estate Agent can I still advertise on 3up2down?
Yes, 3up2down lists your property for sale, buyers contact you directly and we play no part in negotiation. However, if you have chosen to use the estate agent's solicitor you may need to instruct a new solicitor that is not connected to your estate agent.
Check the small print of your estate agent's contract to make sure that they haven't specified a clause stating 'Sole Selling Rights' rather than Sole Agency Rights, Multi Agency or Ready. 'Sole selling' means your estate agent is the only one with the right to sell your house, even if you find a buyer yourself you will still have to pay the agent's commission.
The Different Estate Agent Contract Types Explanation of Terms:
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Sole selling rights: the estate agent that you have appointed is the only person with the right to sell your property. The agent is entitled to his fee even if you sell the property yourself. Warning: This contract could cost you thousands needlessly*.
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Sole agency: the term refers to your appointed estate agent - the only agent with the right to sell your property. You should be able to sell the property yourself without paying the agent a fee, provided that the agent did not introduce the buyer to you during the contract period.
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Multi agency: you can ask several agents to act for you but only the one that sells the property is entitled to a commission.
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Ready, willing and able purchaser: under the contract, if the estate agent finds you a buyer who is prepared and able to buy your property and to exchange unconditional contracts, you must pay the commission even if you decide not to sell. Therefore, if you have this type of contract and you find a buyer yourself you will need to inform the estate agent that your property is no longer for sale. Warning: This contract could cost you thousands needlessly*.
*If you have this type of contract request that you agent alter your contract to either sole agency or multi agency (depending on how many agents you are with). If they refuse give your written notice to end the contract according to the terms and instruct another agent once you are free.
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If I sell my home privately do I still need to pay the Estate Agent?
No. The Office of Fair Trading states that so long as you have not signed a contract with a clause giving the agent "sole selling rights" you do not have to pay them. For more information go to Office of Fair Trading.
In spite of this some unethical estate agents may try and get commission from you by making threats to take you to court. In those circumstances we would suggest that you register a complaint with the Office of Fair Trading and get their FREE advice. See below for more information on making a complaint against an Estate Agent. View a recent court ruling supporting private house sales and confirmation of your right NOT to pay commission if the Estate Agent has not played a part in the sale of your property.
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What if you need to complain about your Estate Agent?
If your simply not happy with your Estate Agent try to sort out with the local branch or head office. If this is unsuccessful and you are using them to sell your property consider giving your written notice to end the contract according to the contact terms you signed and instruct another agent once you are free. You could also consider selling your property privately for FREE on this website even while you are still in your contract period and if you find a buyer yourself you won't have to pay them a penny as long as you don't have a contract giving the Estate Agent sole selling rights.
If matters have got so bad you need to make a complaint we suggest you take a formal approach to ensure that the matter gets dealt with promptly. Start by registering your complaint with the Office of Fair Trading. They will give you FREE legal and consumer advice plus practical help with wording your letter of complaint and replies following any written responses you may receive. Your compliant should be made in writing to the Estate Agents with the heading "Official Complaint". You will need to outline clearly the reasons why you are complaining and how you would like the matter resolved. The letter should be sent recorded delivery and suggest that you keep copies and evidence of postage.
Once the Estate Agent receives your letter they should then consider your compliant and write and confirm their response. If however you are unable to resolve the matter between you, once you have received their final response you can refer the matter to the The Ombudsman for Estate Agents. Just download a form from their website.
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Valuing your house
You can value your own property by following the guidance on our valuations page.
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Home Information Pack
It is a legal requirement to have a Home Information Pack for all domestic homes that are placed on the open market for sale in England and Wales.
If you are going to use an estate agent they will offer you their own Home Information Pack (HIP). However, be very careful as some estate agents are charging you either more commission, an additional fee or their contract terms may not be favorable. 3up2down can provide you with an instant, competitive HIP quotation, with flexible payment options.
Get your HIP now and pay later
Or
Pay now and save money
For more information on HIP's go to our HIP's Page
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Taking photos
Before you take any photographs of your property ensure the location is clean and tidy, de-clutter rooms so they appear larger. Outside cut the grass and remove weeds from flower beds to ensure that the shots you take capture your property at its best. Also consider how light will affect the mood of your property, it is normally best to take pictures of the exterior on a sunny day.
Set your digital camera to take photos to at 1 Mega pixels, more guidance is available on our help page.
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Creating your online advert
You must first register and setup a new account and follow the instructions on the registration form. Once you have setup your account, log into your account by entering your e-mail address and password in the login section on our home page, go to 'My Advert(s)' in the top menu, then click on 'set up an advert'. Guidance and help is provided throughout the form, simply complete the form working through each section step by step.
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Prepare yourself and your property for viewing
- Organise yourself by setting up a viewing diary so that you can keep track of appointments.
- Plan your pitch, it's up to you to lead the viewing and guide buyers through a prepared route so that they see the property in its best light.
- Keep all your doors closed so they see each room individually.
- Keep your property as clean and tidy as possible, de-clutter - rooms with lots in them appear much smaller.
- Smells are important so one 'trick' is to have fresh coffee on or the smell of fresh bread baking - alternatively a neutral air freshener will mask any unwanted smells.
- Buyers may ask you for information on your property (e.g. how much is the council tax, quarterly utility bills and water rates etc.) so be prepared.
- Have several copies of your HIP available, viewers may request a copy.
- As you guide them through the property get some background information - Are they in a chain? Have they sold their property? Are they a first time buyers? Have they got a mortgage agreed in principle? etc... just so you can build up a picture.
- Do not leave valuables lying around.
- Give them space and time to make decisions, however don't leave viewers alone in a room for too long.
- For safety, make sure you are not alone in the house when conducting a viewing
- If anyone rings your doorbell wanting to look around, take their details and arrange a viewing for another time instead.
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Received offers and Negotiation
The process of selling your property is straight forward if you follow a few simple rules depending where you are located within the UK.
In Scotland
Under Scottish Law when you accept an offer to purchase a property, a binding contract is formed which the you the seller have agreed to sell the property to the buyer for a set price and within a agreed time scale.In England & Wales
If you are in any doubt you should always seek legal advice before accepting an offer.
Offers accepted can be withdrawn for any reason as no legal binding contract is formed. Only after exchange of contracts is a legal binding contract formed.First be prepared as most initial offers can be lower than the asking price so don’t be offended. This means you may need to negotiate to a level you will accept. However before you accept any offers find out your buyer's position and take your time to consider the full picture including their offer.
Find out:-
- Have they the funds in place? E.g. mortgage agreement in principle? Or cash?
- Are they in a chain? If yes is it complete?
- How soon can they complete the purchase?
A high percentage of property sales fail to complete because the buyer is not in a position to proceed or they say they are but in reality they are not. This may be because they are selling their house and have not found a buyer or some part of the chain is incomplete or the buyers are unable to get the mortgage they need to buy your property.
To avoid falling into this trap it is reasonable to request confirmation from a third party such as the buyer’s mortgage adviser and/or estate agent and/or solicitor to ensure buyers are able to proceed. Doing this will ensure that you’ve done all you can to be certain that the buyer can genuinely proceed with the purchase.
What if the buyer(s) are not in a position to proceed?
You should thank them for their offer but keep your property on the market and not accept any offers until they buyer(s) can proceed with the purchase.
What if you have more than one interest party and get an offer from one of them, that’s acceptable but lower then you would like?
Be honest and let the potential buyers have the full picture and let them know what you would accept to take the property off the market its then up to them. Accepting an offer only to decline it later because you have another higher offer is a risky game that may break the trust you have with the buyers and your chances of a sale.
Once you have accepted an offer it is a good idea to send a letter confirming your acceptance of the buyer's offer (note: this letter is not legally binding in England and Wales, but it adds an official feel to the proceedings).
You should also take the contact details of the buyer(s) and details of their solicitor to forward to your solicitor in order that they can start the conveyancing process. Get a solicitor quote.
Its also good practice to get an idea from the buyers when they anticipate the surveyor will be in contact so you can chase them if there is a delay. Expecting a surveyor within a week of accepting an offer is not unreasonable. Delays can occur if the lender the buyer is using has not completed their application checks and references. So if you have not heard anything contact the buyers for an update and get them to chase their mortgage lender or broker and get back to with an anticipated date when the surveyor will be in contact.
Agreeing to keep in regular contact possibly twice a week on a set day by e-mail or telephone should ensure that any problems get identified early on.
It will also provide reassurance that the buyer(s) are committed to the deal and help you keep on track for your agreed target completion date.
Yes. The UK is slowly waking up to the fact that it's easy to sell your own property yourself, save thousands in commission and take the driving seat in your sale. All you need to do is put a little effort into presenting your home (which you should do anyway), pitch the sale price right (see our valuations page) and to have a marketing plan. Which is simple part, if your serious about selling your property privately and your going to be effective you will need to market your property both on the internet (which is free with us) and locally with your own for sale board as you want as many people as possible to know your property is for sale.
Do you need a for sale board?
Yes. It's not uncommon for anything between 30-50% of buyer enquiries to come from for sale boards so you'll be mad not to have one. Order your property for sale board.
Once you found a buyer, you need to be certain they can proceed (see offers and negotiation) and arrange to keep in regular contact each week.
Still think your estate agent is worth thousands of pounds - I think not. Save thousands of pounds by marketing your property with 3up2down with your own ‘for sale' board and free Internet advertising, you'll be amazed how easy it is. Setup your advert now or find out more...
