SELLING YOUR HOME WITHOUT AN AGENT

More and more people are selling their home themselves? There are many benefits. (Read the Guardian Report).

House price inflation falls to 2.7% in February

Save £1000's
The average price of a property in the UK (Jan 2008) stands at £180,473. You would pay over £1,800 (1% + vat) to an estate agent in fees. If you are prepared to measure up, take photos, write a description and deal directly with a buyer, you can earn that commission yourself! The Office of Fair Trading states that if you find a buyer yourself under a sole agency agreement, you don't have to pay the estate agent's commission.

You are in control
You know when people are coming and can prepare accordingly. You instantly know if a buyer has any interest, instead of wondering because your agent isn’t communicating with you. You can advertise where and how you want to, schedule showings when it’s convenient for you and talk directly with prospective buyers yourself.

You know your home best
Agents cannot portray all the pertinent information about the house like you can, after having lived in it. The construction, utility costs, the schools, the neighborhood, what is special about the area and the house, as well as other details about the property.

Truly interested buyers
You know people that are viewing your property are truly interested because they have personally made the effort to be there...they haven’t been dragged there by an agent who doesn’t seem to understand what the seller is looking for. Serious buyers make good offers. Bogus buyers waste your time and money. In the worst of all possible scenarios, you may unintentionally allow someone with criminal intentions into your house.

The sale of your property gets the attention it deserves
Since you are selling your own home, you obviously have your best interests at heart. It is not left up to an Agent who has 10, 20, 30 or more other properties to sell. Let's be honest. How much attention can an agent give to each property.

What about security?
You decide what contact details are published in the advertisement. People only visit your home when you invite them and you are present. Estate Agents may bring anyone to your home even when you are out. When arranging a viewing always ask for telephone number, name and address of anyone viewing your property and ask them to provide some ID. Always have a friend or relative with you while the viewing is taking place.

Potential Pitfalls

Selling your house yourself, without having an agent represent you, is a transaction commonly referred to as a For Sale By Owner or FSBO. To execute a successful FSBO be aware of the potential pitfalls.

Valuing your property
Valuing your own property is simple! You can do this by researching properties that have many similarities with yours and other properties that are for sale in your area and see what they are selling for. There are several websites that can give you a more accurate figure than any Estate Agent. Take a look at UpMyStreet (just enter your postcode and select Property Prices) or even The Land Registry (just select ‘Postcode Sectors Only’ in the drop down box and enter your postcode sector). Or you can carry out a valuation on your property at Nationwide. If you overprice your property, it isn't going to sell. Agents who know property values will, in fact, avoid it like the plague. In the end, you may not get as much for your house as you could have by pricing it realistically to begin with. If you under price your house, you may sell it below its market value — shortchanging yourself thousands, perhaps even tens of thousands, of pounds. Say good-bye to the commission you "saved."

Prepare your house for sale
Your familiarity with your house can be a liability if it blinds you to your house's flaws. You may like your house's clutter and quirks, but their dubious charms may turn off prospective buyers. One important benefit that a good agent offers is a fresh pair of eyes and a desire to whip your house into get-it-sold shape.

Negotiating the selling price
If you know that you're a weak negotiator, you have to be especially careful about selling your house without an agent. Not knowing smart negotiating tactics can cost you £1000's. Even if you are a good negotiator, your financial and emotional involvement in the sale may cause you to lose your cool when bargaining with a buyer, or you may undermine the deal, appearing greedy.

Don't misrepresent your property
Selling your house yourself to save on Estate Agent commissions is a hollow victory if the buyers sue you after exchange of contracts because you didn't give them the mandatory property disclosures about problems, such as work you did on the property without a building permit. Your solicitor will inform of you of all the legal requirements for selling your house.

Financially qualify prospective buyers
When someone makes an offer on your house, don't take your property off the market until you're sure that the buyer's are going to be able to swing the deal financially. Few buyers are wealthy enough to pay cash for your house. Most buyers need to qualify for a mortgage. If the buyers are pre approved for a loan with a conventional lender, terrific. Pre approval means that they've gone through a rigorous financial examination. If, however, the buyers are just starting to shop for a mortgage, inquire about their occupations, incomes, and the source of their down payment for the purchase.

Showing people around
Avoid being impatient, aggressive or unfriendly. You may end up spending a few months in contact with that person, so it is best to create a good working relationship from the outset. Offer them a drink, but try not to be over-friendly to the point where they think you are making advances. The last thing you want the visitor to think is you are desperate to sell the house. Make sure you have the prospective buyer's details, and remember their names. Don't pressurize viewers, give them the chance to look around themselves. On leaving, they will feel more satisfied that they have given the house "a good going over". They may as well see the visible defects now, as the surveyor's report will detail them anyway. Explain What is Included With the House. State from the beginning what will be included in the sale. By telling them now, you will save a lot of problems in the future. Print a list to give to the buyer which shows them everything that comes with the house.


Security
We recommend leaving off your house number/street when advertising your property for security reasons. You can give this to any prospective buyers when you know they are genuinely interested. When arranging a viewing always ask for telephone number, name and address of anyone viewing your property and ask them to provide some ID. Do not agree to travel to meet a prospective buyer at their request, especially if they have previously not viewed your property in person. We recommend to simply ignore any enquiries of this nature. Remember - common sense prevails! If someone makes you an offer on your property without having visited your property, treat their approach with caution.

If you live alone, make sure a neighbour, friend or relative knows that you are showing people round. Ask them if they could be in the house when the potential buyer comes round. Confirm your appointment time after you have talked to your friend or relative, to make sure they are available to come round at the proposed time. Find out how many people are coming round, and ask whether they will be bringing children. If your house is not use to accommodating youngsters, put away any breakables. Put away any valuables.

If you begin to feel suspicious during a viewing, call the police or have a companion call them. Don't leave your guests unattended. They should not feel pressured by your presence and most people would not realistically expect to be left alone. Do not divulge any confidential information, such as how security system or safe works until you have exchanged contracts.

Buyers Guide
Be selective before you arrange a viewing. Ask yourself whether the house meets all your requirements. Never get your heart set on a property before you've even set foot inside. Don't rely on the property's description, make your own judgment. Be prepared to wait for the right house and never make an offer just because you are "fed up with looking" - you'll regret it in the long run. Ask the vendor how long the house has been for sale. This will give you an indication to the house's asking price and potential. Is the house already "Under Offer". Try to find out the reason for the sale. Enquire what comes with the house (e.g. fixtures and fittings). Always view a house in daylight and avoid bringing your children if possible. Don't view too many properties in one go. You'll only wear yourself out. Try to create a friendly relationship with the vendor. You may end up making an offer.

Useful Links:

upmystreet.com

nethouseprices.com

mortgage calculator

4homes

artfarmprints

house price index

OFT Advice

multimap

fastcashsale

The Complete Mortgage Guide

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