Selling your house in the current market generally means waiting a long time to find a buyer. But there are ways to speed up this process.
Know the current situation in the housing market
Before you put your house on the market you need to be aware of what’s happening out there. Estate agents are warning that the outlook for the property market in 2009 is extremely bleak amid rising unemployment and a lack of affordable mortgages.
At the beginning of 2008, Royal Institute of Chartered Surveyors said estate agents were selling 23.9 properties every three months compared with 32 per three months at the beginning of 2004. That figure has dropped to 10.1 over the past three months - less than one property a week. It is the lowest level since the Rics records began in 1978.
Price your property realistically
Phil Tennant at Hamptons International says vendors who price their properties at realistic levels are finding buyers, while those who are still seeking high prices are not even attracting viewers. He said properties have generally fallen 20-25 per cent from their peak value and some sellers are even considering offers for 30 per cent below 2007’s levels.
Other agents said the expectations of buyers and sellers were more in sync now than a year ago, so more transactions were taking place. Some properties that were very keenly priced were still attracting multiple offers from prospective buyers.
Cluttons has been experimenting with pricing properties at 40 per cent below the peak price of August 2007, which has created serious competition amongst buyers, resutling in sales at around 25-30 per cent off peak price.
James Hyman, partner for residential sales at Cluttons, said: “It is better to undercut the current market level and consequently generate plenty of interest and lots of viewings, creating a situation when buyers are competing to secure the property. in our experience, this will result in a faster sale and higher final sale price than pricing the proerpty more expensively, creating less footfall and failing to attract any potential buyers.”
Cluttons recently sold a two-bedroom maisonette in Balham which was marketed at £200,000 and went to sealed bids with 11 offers, resulting in a final sale price of £232,000. The sale was agree within ten days of the property going onto the market.
By obtaining several valuations you can be sure that the price of your property reflects today’s market. David Bexon, managing director of email4property.co.uk, says: “Do not allow yourself to be driven by prices in your area/street. It may be to your advantage to undercut other sellers in your area.”
But don’t go too low
The ”big drop’’ in price should be carefully calculated. ”Remember that buyers are still going to want to negotiate, so you need to factor this in,’’ says Jonathan Haward, managing director, The County Homesearch Company. Consider going to the next round number for example. Bear in mind that properties that are ridiculously cheap are viewed with suspicion.
Smarten up your place to attract a buyer
People selling houses that have recently been refurbished or that were in good condition are more likely to get a sale than those whose properties that need work.
”People don’t like the unknown - they don’t like not being sure how much money they might have to spend - so presentation is key,” said Bruce Tolmie-Thomson at Knight Frank.
Other things to do when showing buyers your house, according to Jonathan Haward, managing director at The County Homesearch Company, include keeping pets away and out of site, keeping the garden tidy in case the buyers drive by before coming in, keeping the house smelling nice and adopting a no smoking rule. “You don’t want people to be put off a property by something as small as the smell of a room,” says Haward.
Beware of guzundering (where buyers pull the price down at the last minute)
The best way to avoid this is by being upfront about any potential problems from the start. It may be tempting to skirt over any underlying issues that could impact on your return, but it is not worth the stress of being held to ransom at the eleventh hour.
Avoid delays in the selling process
There’s a greater chance that a buyer will pull out or gazunder if the exchange of contracts is delayed. Exchange Ready Packs, enhanced Home Information Packs that contain additional necessary information for conveyancers, ensures that the buyer’s solicitor has everything needed right from the satrt of the process and can reduce conveyancing times from the current average of 80 days to as little as seven days.
Ashley King, managing director at Simply HIP, says: “Collect all the information they buyer will want to see upfront, such as guarantees on building works, or copies of planning permissions.”
Wait for a firm offer on your property
If you have a home to sell, there is barely any point even viewing other properties unless you have an offer in place from motivated buyers says Haward. In some cases, estate agents are refusing to show properties to people who are not in a position to proceed. If you need to sell, remember that until you have a firm offer yourself, you will not know how much you have to spend.
Eliminate the problem
The best way to deal with a chain is to avoid it. A buyer with a mortgage in place is in a stronger position to avoid delays. Seller might consider selling their homes and renting for a period to shorten a chain or keep it complete.
