With house prices in the UK stabilising from the highs of the last few years, the market is shifting in balance in favour of buyers and sellers are finding prices more competitive. Statistics from the National Association of Estate Agents (NAEA) reveal that the average estate agency currently has six buyers for every property for sale on its books, compared to eleven at the same time last year. However the NAEA is advising homeowners that it is still a good time to sell a property and the following tips should help make the sale.
1) Make sure you are ready to sell
Before putting your house on the market, make 100% sure that it is the right time for you to move house and that you want to do so for the right reasons. It is estimated that up to 25% of house sales in the UK fall through every year and many of these are due to people changing their minds about selling their house. If you are looking to upgrade to a more expensive property, ensure that you have your finances in order and know how much you can borrow.
2) Pick the right agent
Choose an agent who has the knowledge and experience relevant to your situation and one that knows the local area well. Ask friends for their recommendations and don’t be afraid to ask different agents how they plan to value and market your property effectively. Although cost is important, do not automatically go for the highest valuation or the lowest fee. Make sure you consider the whole package including if the agent is a member of a professional body such as the NAEA. This ensures that the agent is bound by a professional Code of Practice and rules governing their conduct.
3) Research the market – adjust your expectations to match reality
Research thoroughly other properties for sale in your area and how much they are selling for. Websites giving house prices use data from the Land Registry which is a snapshot of the price at which the property was last sold for and can be misleading. It is important to consider all the aspects of a property, as although yours may appear the same as one down the road, they may have added value through a conservatory, loft conversion or similar. Take note of which properties are selling quickly and what features are leaving homes stuck on the market.
4) Be realistic about your asking price
If you have picked an experienced estate agent and researched local prices in your area, then you should be able to set a realistic asking price that is correct for the property and the current market. Your neighbour may well have sold their identical property for a certain price last summer, but the housing market is constantly changing and they may have been selling at a time when many sellers were able to almost name their price. The market has cooled slightly since and buyers are now more in control of setting the price they are willing to pay.
5) ‘Dress’ the house – first impressions count!
Make sure the house is clean, tidy and uncluttered. In a recent survey of estate agents, almost three quarters recommended a de-clutter and thorough clean of a home’s interior as the best way to boost appeal to buyers. Neutral colours work best if you are able to redecorate, and make sure you pack away personal belongings and keep the house well lit and warm. Also, many housebuyers judge a property on how it looks from the street so make sure your home has kerb appeal – touch up shabby paintwork and make sure the garden looks neat.
6) Give it time
Don’t expect a sale within days of your house appearing in the local paper or after the first three viewings in the current market. The average selling time for a home is currently ten weeks, with approximately 15 viewings but this can vary dramatically across the market and some areas are seeing much quicker sales while others are much slower. However if your home has been on the market for some time and there has been little interest, it is likely to be overpriced. Speak to your agent about dropping the asking price to a more realistic level.
7) Be prepared to negotiate
Expect offers well below your asking price. You do not necessarily have to accept these but, if reasonable, use them as a starting point for negotiation. The average discount achieved by buyers is currently around 4%, compared to a low of 2.3% last summer, and many buyers are aware that they can negotiate slightly with sellers. An effective estate agent and good knowledge of the current local market will enable you to judge whether an offer is reasonable.
Peter Bolton King, Chief Executive of the NAEA comments: “Some homeowners may be finding it a little more difficult to sell their property at the moment. The market has shifted and is now more balanced in favour of buyers, meaning that sellers have to be realistic. However many sales are still being made if sellers are willing to adapt their thinking and follow our advice.”
