Follow these top tips on how to sell your home successfully in a buyer's market.
Selling your home in a falling market may not always seem like the most financially astute decision, but what should you do if you have no choice? Maybe you have a baby on the way and you need more space, or you have a found a new job which involves relocating. Or perhaps, like many people in this recession, you've lost your job and have to sell your home as soon as possible.
Whatever the reason, selling up when the housing market is slowing down is a challenge. But there are plenty of positive steps you can take to make the whole process as painless as possible.
So, take a look at my seven top tips for selling your home this year:
1. Get ready
First things first: Your property might get snapped up more quickly than you thought, so you don't want the process held up because you're not prepared yourself. If the sale drags on, you're leaving yourself wide open to gazundering - when your buyer reduces their offer before the exchange of contracts takes place. (After all, they could argue house prices have fallen since they made their offer.) So if you're moving to a new home make sure you have your mortgage and finances arranged, and a solicitor at the ready as soon as you can.
Also make sure you have the Home Information Pack (HIP) for your property ready including an energy performance certificate. You'll need to give this to prospective buyers from day one. This is essential for all sellers in England and Wales.
2. Choose a good estate agent
Most sellers will ask three estate agents to value their property and then choose the one which quotes the highest price. But there's more to it than that. Check out each agent's track record on selling similar properties in your area. How successful are they? Find out how they plan to market your property too. Compare the fees for selling your property as they can vary a lot and check your happy with the terms of the contract.
Once you've chosen an agent, ask them for tips on anything you can do to make your property sell more quickly. Tap into their expert knowledge on the local market to give you the edge over other sellers.
You may be tempted to save money by selling without an agent, but the results could be disappointing. If you're in no hurry, you could try going it alone for a while. If offers aren't forthcoming you may need the help of the professionals.
3. Is the price right?
This is the most important thing to get right. If you set the price too high, you won't attract any buyers. Simple as that. But if it's priced correctly, it should sell.
So don't just rely on one estate agent's valuation. Get several, and do some research yourself using property search engines like rightmove.co.uk, findaproperty.com and particularly propertysnake.co.uk - which gives details of houses in your area which haven't sold, due to unrealistic pricing.
You can also check the prices similar properties in your postcode have sold for using nethouseprices.com (it uses Land Registry data, but unlike the Land Registry, allows you to access it for free), and get a free online valuation from Zoopla. (You can also buy a more in-depth report from valuation firm Hometrack, but be aware it costs £19.95.)
4. Spruce up your home
It sounds pretty obvious but make sure the property is spotless before any viewing. It's a really good idea to give your home the 'house doctor' treatment. You'd be amazed how many down-at-heel properties still appear on property websites.
Here are some very quick tips to give you some ideas on how to get your place spick and span:
- Keep gardens, drives and paths tidy
- Repair windows, repaint fences and the front door
- De-clutter every room
- Repaint in neutral colours
- Get rid of old carpets, and think about wooden flooring
- Use mirrors to make small rooms look bigger
- Make sure lights, taps and everything else works, and make any necessary repairs
- Replace doors on units to give the impression of a new kitchen/bathroom
For more info, read This is the way to sell your home.
5. Your sales pitch
If you've decided to show potential buyers around your home yourself, make sure you show it off in the best possible light. Viewings are your chance to brag about how great your home is, and don't forget to mention all the plus points about the surrounding area.
Ask your estate agent what type of buyer is likely to be attracted to your property and pitch to them accordingly. Don't forget to get feedback from your agent following a viewing. This could give a valuable insight into why your property isn't selling.
6. Negotiate
When you do get an offer, try to negotiate with the buyer if it's too low. If you really are desperate to sell, you could offer to meet them halfway, and see where it gets you. And try to give them a good reason why you think the offer is unacceptable. For example, if local properties going at that price are obviously inferior to yours - they don't have a garden, or a garage, or as many bedrooms - then you can demonstrate this easily. Remember, facts are obviously a lot more convincing that emotional arguments.
In this market, it may be wise not to take the house off the market until you've exchanged contracts (although your buyer may insist that you do). This will help to prevent gazundering, and will put your buyer under pressure to speed up the purchase from their end.
7. Look at the alternatives
If all else fails and you've had no offers, or at least no decent offers, it's time to rethink your position. Ask yourself whether you really need to sell. If you need more space, is it possible to extend your home? If you're struggling with your mortgage, can you take in a lodger? If you need to relocate, perhaps you can rent your home out.
But at the end of the day, if you can't explore any other option and you really do need to sell, there's only one thing you can do: Reduce the price. Again, and again, and again. Eventually you will find a buyer - but bear in mind that the longer you wait, the bigger the reduction will have to be. Until, of course, the market recovers... but that could be a long, long time away.
Whatever you decide, I wish you the best of luck!
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More: Falling house prices bring out potential buyers | The four horseman of the housing apocalypse
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