Author: Allison Thorpe Added: August 5, 2008
Right then, I want to sell my property! I've got two choices; go with the tried and tested local estate agency or should I consider a For Sale by Owner site and sell it online myself? If you decide to sell via an Estate Agent then here is what to expect them to do for their fee! Actively advertise your property - in their windows, via Internet and local advertising. Talk to prospective purchasers about your property and subsequently arrange viewings. Give you regular (usually weekly) updates about the general interest in your property, how many viewings have been arranged, what the 'feedback' from the viewers has been and what type of marketing they will be doing the following week. Take colour photographs of your property, both internally and externally. Provide a professional valuation on the property and advise on any necessary price adjustments due to current local market conditions! Within a day of the offer being made, they should write to all parties. Once they have found that all-important buyer, they should then do the following: Once a sale has been verbally agreed, it needs to be confirmed in writing. The agents will produce a Memorandum Of sale. This includes all the important information needed to proceed with the sale. It should have the following: The full name/s of the Vendor (You!) and the Purchaser/s and their contact details including address. The full name of both parties' solicitors, including full address, telephone & fax numbers and full name of the person dealing. What the purchasers' position is - either In Rented, SSTC (Sold Subject to contract) or Cash Buyer. The purchase price (written in figures and words) and anything that has been included in the sale - i.e. washing machine, curtains etc. The Memorandum of Sale is then sent out to all parties (Vendor, Purchasers and both Solicitors) by the Estate Agent. Once Solicitors have been instructed the Estate Agents will monitor the progression of the sale, liaising closely with the Solicitors, Mortgage Company/Financial Advisors and of course the Vendor and Purchaser. This is where the Estate Agent is invaluable as they are used to dealing with professionals on a daily basis and know the kind of questions to ask so that they can find out how the sale is going. They are also able to act as an intermediary between Vendor & Purchaser, therefore relieving any unnecessary tension between the two parties. House moving is notoriously a stressful time, so things can get a little tense at times!! The Estate Agent should be used to this and by monitoring things closely (know as 'Chain Chasing' or 'Sales Progression') will be able to alleviate any anxieties. Once you have exchanged contracts then you are almost there! By the time you have exchanged contracts you would have agreed a completion date. On completion day your Solicitor will notify your Estate Agents when the funds have arrived so that they are able to release the keys to your purchasers. The downsides to having an Estate Agent are that you will have to pay them a fee for their services (ranging from 1-2%) and also that you are fairly reliant on them to give you regular (and accurate!!) updates on how things are progressing with your sale. Your other option is to manage the whole thing yourself using FSBO (For Sale by Owner!) sites. If you choose this option, you need to remember that you will have to do all the liaising yourself (including any awkward situations!). You are perfectly entitled to do so and of course you will not have any Agents fees to pay. The actual marketing of your property is solely down to you: You can erect a private sale board at your property. Place an advert in the local paper (although this is quite costly for an individual, whereas this is included in you estate agents fees). Advertise on the internet (but once again quite costly and maybe not in the right area that would give you the best coverage for your property). You could however use an FSBO website, who will charge you a one off fee to advertise your property with photos and full details supplied by yourself. They will also give you a For Sale board to erect at your property. You would need to consider how people would contact you - i.e. a mobile telephone number; FSBO sites will also give you a secure telephone number. You would also need to think about how and when you would show people your property. If you work, you may need to either take some time off (if convenient) to show people around or restrict viewings to evenings and weekends. However, an Agent would be able to accompany people to your property (a good safety aspect for you) or they could have a key to your property so that they could show people around during the day. Both of these would mean that you would not lose that potential purchaser due to inflexibility. Once you have agreed a price with your purchaser and instructed Solicitors you would then need to 'Chain Chase' - please see above for what that entails!! However, you should bear in mind that you aren't able to make direct contact with certain people in your chain (i.e. the Solicitors beyond yours and your Purchasers). You may even find that your Purchasers Solicitors are reluctant to talk to you too! This is where an Agent is quite valuable! In conclusion, I would say that FSBO sites obviously have their benefits, in that you are in control and your costs are fairly minimal. However, the benefits of using an Estate Agent are quite significant. They can market your property in many different formats, therefore reaching a wider section of potential purchasers. They also have the experience and knowledge to monitor the progression of your sale. Personally I do not feel that it would be a good idea to use both options, as I know that some estate agents will view this as a multiple agency type arrangement! They would not like the idea of using both as there could be a dispute on who introduced the purchaser to the property - a potential minefield - obviously if it was the Vendor then they would not earn the commission! At the end of the day it is your property, so go with whichever option suits your own personal circumstance and preferences.
--- Allison Thorpe writing for Estate Agency Fees Direct is an Estate Agent with over 15 years experience in the sector. Allison offers impartial advice on choosing estate agents, surveyors and use of internet services when selling property online.
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