Thinking about selling – what next?
The last couple of decades have produced a massive change in what I used to call ‘The Itch Cycle’. Sounds a bit strange, but is a measure of how long anyone stays in their own home.
Using London as an example, back in the late seventies – when I started selling property – those owning in London trod a well worn path and would start with a one bed flat in somewhere like Fulham, then a two bed flat in Clapham, a three bed terraced house between the commons maybe before a final move to the Countryside when they had children. Each of these would have a gap of about four years.
A sea change in Stamp Duty, now called Stamp Duty Land Tax, means that these moves are confined to probably two of the above and the gap between them more like 13 years.
The point I’m making is that moving house now is a huge deal necessitating squeezing every last Pound out of a sale and putting the onus on getting it right squarely on the shoulders of a seller who probably won’t have had experience in the market for over a decade.
Here are 13 important things to remember…
You are selling and buying in the same market – so given most sell to buy something bigger the gain is best in a tough market. You may ‘lose’ a perceived £25,000 on your sale but ‘gain’ £50,000 on your purchase. Oddly, most perceive the best time to upgrade is in a good market. Of course, for many Silversurfers, downsizing is as likely, BUT the actual amount you’re spending is what counts.
Never actually make an offer on a property to buy until you’ve accepted an offer on what you’re selling. No worries with looking around and making sure that what you want is roughly in your price-range though. Once you’ve done that simply concentrate on maximising sale price. If I had £5 for every time a seller has got obsessed with something they’ve seen, over paid as result and undersold in a panic.
Consider renting a property IF you get a great offer but haven’t found anything. Renting is a valid option and turns you into a cash buyer – NO CHAIN- these are magic words to an estate agent!
Get three agents round, no more. A local small outfit you know, a bigger national/area player and in the modern era either one of the new breed of ‘online’ agent.
Don’t get blown away by price and fee. Does the agent sell the type of property you are selling – if not why are you talking to them. How many buyers do they have in your range – ask for proof. Sadly 90% will still pick their agent on price and fee – most regret the decision.
Don’t give more than six-eight weeks as a sole agency to any one agent. You’ll know within two if they’re doing it right. You can then use moving to another agent as leverage.
Think about a performance fee. Online agents have a fixed fee, which might work for you, but the high street agent could bring a bigger ‘book’ of agents and may respond to an incentive. Think about a lower fee up to a base price with, say, 10% of anything over a punchy target going to the agent. Maximising that selling price is what it’s all about.
If many potential buyers have seen your property don’t take the first offer – find out what the other’s think first. Competitive bidding is the ideal. If there are a lot of buyers showing an interest suggest an open house to your agent – nothing conveys a sense of urgency like seeing other buyers.
It’s a pain, but keep your property looking good – go and stand outside and imagine you’re the buyer. Would you buy it, most buyers have done so within 30 seconds. First impressions really do count.
Make sure you’ve got all your legal ducks lined up – get your Title Deeds from your lender, make sure all relevant documents are to hand, service charges, get your managing agents to provide the pack ready to go. It will cost you a bit BUT when that buyer offers the price you want nothing finds them out faster than receiving a full legal pack immediately. If you don’t get it together you could be waiting a month to get papers out when you accept the offer.
Don’t be afraid to instruct two agents in competition, it’s called a multiple agency. You’ll pay a higher fee to the selling agent, but nothing gets an agent going more than not wanting a competitor to make the commission. Consider paying the online agent’s up front fee – it’s not a huge amount in the scheme of things and gives you a chance to test both high street and online agents.
Like most things in life it’s the squeaky wheel that get’s the oil, so make sure you are regularly in your agent’s face. Expect a call every week.
Mostly though relax, if it’s going to happen it’ll happen!
