This Guide is intended to explain the typical steps involved in selling a property. After reading it, you should have enough knowledge to handle your sale with confidence.

Where do I start?

Do I really need an Estate Agent?

How does an Estate Agent arrive at a realistic valuation?

I’ve had several valuations. Which Estate Agent do I choose?

Should I go for a ‘Sole Agency’ or ‘Multi-Agency’ agreement?

How much do Estate Agents charge, and is this negotiable?

What about choosing a Solicitor? How much do they charge?

What can I do to increase the value of my Property?

How should I prepare my Property for viewings?

What’s the best way to conduct viewings?

When I get an offer, should I take my Property off the market?

How does the sale proceed towards ‘Exchange of contracts’?

How long should I give my Estate Agent to sell my Property

What can I do to speed up the sale of my Property?

What happens if several Buyers put in offers?

What if the Buyer reduces their offer at the last minute?

What if I can’t sell, but have a property I want to move to?

Do I have to pay the Estate Agent if my Property doesn’t sell?

Where can I get more information?


Where do I start?
The first step is to appoint some professionals to help you. Unless you are prepared to pay for your own advertising and promotional material, this means choosing an Estate Agent to value and market your property for you, and appointing a Solicitor to handle the legal side of the sale. If you are planning to buy another property, you may also wish to speak to a Financial Advisor about mortgage options.

Many people forget to appoint a Solicitor until a firm offer from a potential buyer suddenly jolts them into action. But there are several things a Solicitor can do to help prepare for a speedier sale. And experience shows that it’s a good idea to be ahead of the game, especially if you are buying another property at the same time. This is covered elsewhere in the Guide.

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Do I really need an Estate Agent?
This depends on whether you have the expertise, time, patience and resources to do it yourself. Estate Agents shouldn’t charge you a penny unless they sell your property. You only pay for results, and a good Estate Agent will draw in more potential buyers than you would otherwise be likely to attract.

There is also the convenience of having someone else to field calls, to weed out time-wasters, and to act as a go-between in tricky negotiations. An experienced Estate Agent can offer advice and expertise, too, if you have problems with a chain, say, or receive multiple offers. The Agent will have seen these many times before, and be able to handle things to your best advantage.

Remember: no up-front payment is required with Estate Agents. The Estate Agent you appoint will be working for you (the Vendor), not for your eventual Buyer. This is worth keeping in mind if you are buying another property at the same time: the Estate Agent’s chief duty is to the Vendor – who will eventually be paying his or her fee – and not the Buyer.

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How does an Estate Agent arrive at a realistic valuation?
An Estate Agent will visit you at your property to have a look around, and carry out what’s known in the industry as a Competitive Market Analysis (CMA). This shouldn't cost anything, and is based upon a number of criteria:

• General market demand from Buyers

• The popularity of your area (shops, schools, transport etc)

• Current asking price of similar properties nearby

• Prices recently achieved for similar properties nearby

• Significant works/improvements carried out to the property

The CMA will give you an ‘estimated market value’. From this, you can decide on the price at which to market your property. Agents do not usually charge for their valuations.

The Estate Agent will probably ask you a lot of questions. Don’t be put off. This is the mark of a professional Agent, who may ask you for your desired moving date, your reason for selling, and so on. Some people are wary about telling the Agent how quickly they want to sell in case it lowers the valuation. But a good Agent will tell you a minimum and maximum price they could achieve.

Be wary of any Agent who just asks you the price you want for your property and agrees. The Agent should be able to demonstrate why they think your property could achieve their stated valuation price. They may be able to quote selling prices they have achieved for similar property in the area, or have a Buyer on the books who wants a property much like yours. But ensure this is genuine: a few agents may use this tactic!

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I’ve had several valuations. Which Estate Agent do I choose?
Do some research on the Estate Agents you invite to value your property. When you telephone them, do they answer swiftly and politely? When you visit their offices, are you made to feel welcome? Little things like this can have a big effect on potential Buyers.

Sometimes people immediately plump for the Agent who values their property much higher than any others. But it’s a good idea not to be swayed by valuation alone. If a valuation is exaggerated, you could waste weeks of time while your property languishes on the market, unsold. It’s not unknown for an Agent to call you in a few weeks to suggest the property be marketed at a lower value. Remember, too, that you are employing a whole firm, and not just the person who came and valued your property.

Your gut instincts aside, here are some marks of professionalism that you may want to look out for:

• Polite, friendly and well-trained staff.

• Bright colour photos of properties in an attractive window display.

• Clear and helpful advice literature.

• High profile in the area.

• Efficient, computerised administration system.

• Comprehensive marketing e.g. newspapers, signboards, leaflets, Internet.

Also, if the Estate Agent has a web site where they can market your property online, so much the better. Potential Buyers all over the world can now view details of property for sale simply by hitting a few keys on their home computer. Why wait for details to arrive in the post, when they can have instant access to Estate Agents’ filing cabinets from home, 24 hours a day?

The leading Estate Agents in this field have developed sophisticated search facilities within their web sites, allowing buyers to search by specific criteria (e.g. "two-bedroom flats with garage, between £130,000 and £145,000"; "three-bedroom houses with garden in Tytherington" etc.), and to view full details with colour photographs. This will become an increasingly popular way of finding property. For an example of how your house or flat might appear on the Internet, use the property search section within this web site.

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Should I go for a ‘Sole Agency’ or ‘Multi-Agency’ agreement?
The jury is still out on this one. You might think that instructing three Agencies would give you three times as much chance of finding a Buyer for your property. But in practice, the same buyers will go to all the Agents anyway – and may even get the impression that your property is hard to sell, if they see everyone advertising it. On a practical level, dealing with several Agents can be time-consuming. And – perhaps most significantly – it is likely to be considerably more expensive to go for the ‘Multi-Agency’ option, rather than picking just one.

However, in some cases it may be wise to instruct more than one Agent. For example, if you have an unusual or rather grand property that stands out from others in the area, you might want to market it with both a local Agent and one in another area which buyers may more readily associate with your type of property. There again, an isolated property in the country might be considered as a possible ‘weekend retreat’ for London workers, say. So, in addition to marketing the property locally, it could be worth appointing a London Agent who would attract such Buyers.

Warning: You will find that most agreements include a clause that states that the Vendor must pay the Sole Agent their fee even if the property is sold to a Buyer introduced by another Agent. This is standard practice, intended to protect the Agent against spending considerable time and money on marketing a Property, only to find that the Vendor has instructed another Agent. Read the agreement carefully to minimise any exposure to extra fees.

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How much do Estate Agents charge, and is this negotiable?
An Estate Agent’s fee tends to range from 1-3% of the total sale price, and is paid on completion. ‘Sole Agency’ deals (where you only instruct one Estate Agent) tend to be significantly cheaper than ‘Multi-Agency’ deals.

When there is a shortage of property on the market, you will find Agents offering to match or beat a competitor’s fee, and cut-price offers appear in the property newspapers. You may be able to negotiate a favourable deal. In steadier times, most agents charge around 2%, but the service they offer is likely to vary considerably.

A higher fee is worth paying if the Agent has the experience and ability to get you the maximum price within a reasonable time. For example, let’s say an Agent charges a fee of 1.5% to sell your flat. If he achieves a final selling price of £100,000, the fee will be £1500. Now, suppose another Agent charges a fee of 2%. If he finds a buyer prepared to pay £105,000 for your flat, the fee will be £2100. But you will still be £4400 better off than taking the "cheaper" option.

Choosing the cheaper Agent is a mistake if they don’t get results. An Agent who has to carry the cost of well-maintained premises, experienced staff, efficient computer systems, and professional advertising is truly earning their fee.

And it’s worth saying again: "No Sale – No Fee". A bonus to the seller.

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What about choosing a Solicitor? How much do they charge?
It may be that you already have a Solicitor who can handle your sale. If not, ask your Estate Agent, friends and neighbours if they can recommend one. If you happen to choose a Solicitor who is recommended by your Estate Agent, communications between them will probably be very good. The Solicitor and Agent are likely to be in regular contact on a number of sales, so they won’t waste time chasing one another.

The Solicitor should be a specialist in residential conveyancing.

Fees start at about £300 for a basic conveyancing service but – as with Estate Agents – it may not be a good idea simply to go for the cheapest deal. Solicitor’s costs can mount up, so make sure their charging structure is clear at the outset.

Ask what sort of service you can expect: will a Solicitor handle your sale, or will it be a less experienced legal clerk? Does the Solicitor have reliable systems for obtaining information speedily from local authorities and financial institutions?

When you come close to "exchanging contracts" on a property (the legally binding part of the sale process), speed is often of the essence, particularly if you are also in the process of buying another property. The last thing you want is to be held up by an inefficient Solicitor.

Title deeds held with building societies or banks can take a little time to come through, but choosing a ‘fast-track’ Solicitor will mean that delays are minimised. Fast-track Solicitors start the ball rolling as soon as they are instructed, so that a draft Contract of Sale can be drawn up and sent to the Buyer almost as soon as their offer is received. They will also ask you to complete a "Vendor’s Questionnaire", to provide information for your Buyer’s Solicitor, which should reduce the number of queries and replies that have to be faxed back and forth between the two sides.

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What can I do to increase the value of my Property?
Generally Estate Agents will advise against major home improvements. This is because you rarely recoup the cost of your investment, and the Buyer may change it anyway. However, there are a number of simple techniques that can help enhance interest in your property:

Give the front door a coat of paint
Fill in and redecorate any cracks to walls and ceilings
Put a lock on any rear gate
Spring clean throughout the property
Weed and clean up the garden
Maximise a feeling of space – get rid of clutter
Decorating may not be necessary – discuss with your Estate Agent.
Make sure the shower works and is free from mould

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How should I prepare my Property for viewings?
First impressions do count, and the following tips should help viewers to appreciate your property at its best. Although you may be at work when viewers are brought round, try to do whatever you can -

Tidy up
Air the rooms
Hide clutter
Vacuum clean and dust the main rooms.
Give the bathroom sinks and baths a wipe over.
Have some flowers in the main room.
Fully draw back the curtains to get maximum daylight in the rooms.
On dull days, turn all the lights on and light any fire in the main room.
Turn the television and radio off (light music is fine).
Close all windows that are affected by background noise (traffic, trains etc).
Banish off-putting smells with, say, the aroma of brewing coffee.
Try not to let pets and children interrupt the viewing; keep them occupied.
Bear in mind that potential buyers can sometimes be a bit later than the viewing time arranged. With this in mind, when a viewing is arranged (and you want to be there), be clear about the window of time they have if you mean to go out afterwards. This will also help discourage lateness.

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What’s the best way to conduct viewings?
There are no hard-and-fast rules here, but do:

Agree with your Estate Agent who will conduct the viewing.
Ensure you have all keys readily available
Give time alone for viewers to discuss the property alone before they leave.
Resist the temptation to badger viewers for a decision or opinion during the viewing
A good Agent will call you with feedback after every viewing.

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When I get an offer, should I take my property off the market?
Your Estate Agent will probably advise you against this, just in case the Sale falls through. Even if everything seems to be in order, it’s possible that after the survey, say, the Buyer may want to negotiate on price and you cannot reach a deal.

On the other hand, if you leave your property on the market, your Buyer may naturally feel somewhat aggrieved, since they may fear they could be "gazumped" by a higher offer. If the Estate Agent does get other offers, under Estate Agency law they are obliged to put them to you. Whether or not you wish to pursue any additional offers is your decision. To do so risks discouraging your Buyer, who may pull out of the Sale and start looking at other property as a result. If the latter is not convinced by your assurances that you will not accept other offers so long as the Sale is proceeding smoothly, you could also consider making a verbal or written undertaking to take your property off the market for an agreed period of, say, 7-28 days, whilst surveys and mortgage finance are arranged by the purchaser.

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How does the Sale proceed towards ‘Exchange of contracts’?

In general, the sale process goes something like this:

Your Solicitor prepares the contract of sale. For this, you will need to have certain documents to hand. Please note that obtaining these often causes delays, so it is in the interests of the Vendor to chase them as soon as the property goes on the market. If your property if freehold, you will require:

Title documents (from you or your Bank/Building Society).
Evidence of payment of last Council Tax (last 12 months).
Paid utility bills.
Guarantees and warranties related to damp proofing, etc.
Gas safety check certificates.
NHBC certificates.
Planning and Building Regulations approvals for extensions etc.
If your property is leasehold the documents will be as above, except:
Leasehold title deeds will replace title documents.
A history of service charge payments.
A history of ground rent payments.
Remember that it can take a while for Building Societies and Banks to send some of these documents through. And until your Solicitor has everything in their possession, progress is impossible.

Next, the draft Contract of Sale and a copy of the title deeds (if the property is leasehold it will include a copy of the lease) will be forwarded to the Buyer’s Solicitor. The Buyer’s Solicitor will check the small-print of the contract, tit,e deeds, service charges, and so on. This checking process may involve many specific queries. A good Vendor’s Solicitor will deal with many of these in advance, by asking you to complete a ‘Vendor’s Questionnaire’, which may cover:

Restrictions/boundaries.
Owner’s understanding of rights of access.
Any disputes over the above.
Guarantees/insurance policies e.g. NHBC.
Utility services at property.
Planning.
Lists of fixtures and fittings.
Exchange of contracts:
After settling any queries, the Buyer’s Solicitor will also need to obtain a satisfactory local search, and a copy of a mortgage offer. Once satisfied, the contract will be signed and a cheque for the deposit sent by the Buyer to the Vendor’s Solicitors. Exchange of contracts can then take place. Exchange means that the transaction is legally binding.

At this point in the procedure, it is important that the Buyer arranges building insurance cover for the property, as technically the property comes under the Buyer’s ownership.

Completion:

The final stage of the Sale is normally set 2-4 weeks from the date of Exchange. On Completion, the Buyer’s Solicitor hands over the remainder of the purchase money to your Solicitor. From this, your Solicitor will pay off the Building Society or Bank (if there has been a mortgage on the property), as well as deducting their legal fees, and whatever fee you have agreed with your Estate Agent.

And there you go. It’s (sometimes!) as easy as that.

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How long should I give my Estate Agent to sell my property?
You should allow an Agent 6-8 weeks to get a secure offer. After this, it usually takes about 4-8 weeks for an Exchange of contracts, and a further 2-4 weeks for Completion. Be aware that time-scales do vary with market conditions.

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What can I do to speed up the sale of my property?
You can’t always guarantee that other parties in the sale won’t delay you. On your part, however, you can speed things up by doing as much of the work in advance of the Sale as possible.

• Choose a "fast-track" Solicitor who will obtain and hold the Title Deeds in readiness to prepare a draft Contract of Sale, and to apply for a Local Authority Search (see Question 8).

• Allow the Estate Agent reasonable access to the property to show potential Buyers round. If possible, let them have keys to show the property when you are out.

• Be flexible about last-minute viewings.

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What happens if several Buyers put in offers?
If you’ve already accepted one offer but wish to accept another higher one, you should discuss this carefully with your Estate Agent. It may not be worth gambling for the extra money at the expense of time and uncertainty. What happens if the second Buyer suddenly pulls out, or lowers their offer before Exchange of contracts?

On the other hand, if several people are interested in buying your property, your Estate Agent may suggest you try one of the following techniques to be fair to all potential Buyers and still achieve a good price:

Open bids ("Dutch auction"):
The Agent negotiates with each Buyer until they drop out, one by one, and the highest offer is left on the table. This method can achieve a high final offer from the Buyers most in a position to proceed. But negotiations can get fraught and you could lose serious Buyers if they get fed up and pull out.

Sealed bids:
Buyers are invited to submit their final offers in writing, and the sealed bids are opened at a pre-agreed date and time. The highest offer wins. This method is seen to be fair to all Buyers. As people are casting their offers blind and have only one chance, they are encouraged to put down the maximum they can afford. However this system does not necessarily take into account which Buyer is in the best position to proceed.

Contract race:
The Buyers are advised that the Vendor will sell to the Buyer who can exchange contracts first. This avoids the Vendor having to choose between Buyers. There is no risk of choosing a Buyer who does not proceed, and of turning down others that might have done. However, there is nothing to stop Buyers withdrawing, since the losing party is left with Solicitor’s and Surveyor’s expenses to pay.

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What if the Buyer reduces their offer at the last minute?
As the time to Exchange Contracts approaches, your Buyer may think you can be pushed into accepting a reduced offer (rather than lose the sale, and having to go all the way back to Stage One). It’s important not to panic, get furious and call the Buyer yourself. Instead, agree on a course of action with your Solicitor and/or Estate Agent to show the Buyer that you’ll not bow to such tactics.

In the first instance, for example, your Solicitor may wish to contact the Buyer to reassert your position, demanding whether they are serious about proceeding with the purchase, and asking for any serious reason to be put in writing. It may be that, when the Buyer’s bluff is called, they will soon back down. The success of this tactic does depend on whether either party can afford to delay the Sale. If the Buyer sticks to their guns, you will have to weigh up whether it is worth finding another Buyer. Carefully discuss the options with your Solicitor and Estate Agent. You may be able to reach a compromise with the Buyer.

Sometimes a Buyer may reduce their offer after the survey, or after their mortgage valuation survey. You will have to negotiate through this, again taking the advice of your Solicitor and Estate Agent. It is unfortunately quite common for the Buyer’s mortgage company to err on the side of caution, and value the property at up to 15% below the Estate Agent’s valuation. Sometimes buyers may proceed despite this by making up the difference from their own funds. If this is not possible others in the selling chain may be prepared to make up the difference – your Estate Agent and/or Solicitor will advise if appropriate, and carry out negotiations.

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What if I can’t sell, but have a property I want to move to?
It’s unlikely that going ahead with buying the other property will be a viable option, unless you have sufficient spare capital to do so. But you do have the option of letting your property (on a short let for, say, 3 months) whilst marketing it for sale. Rents for short lets can be high – so you could cover your mortgage and have a bit left over to help with other expenses. If your Estate Agent does not offer a short let service, find one who does. Short lets do not attract capital gains tax – another plus point. Find out more at short lets.

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Do I have to pay the Estate Agent if my Property doesn’t sell?
You won’t have to pay the Estate Agent any fee. However you may have to pay your Solicitor’s legal costs incurred to date, although some Solicitors, particularly those operating a ‘fast-track’ service, may operate a ‘no sale, no legal fees’ scheme and it is worthwhile speaking to your Estate Agent about this before instructing a Solicitor.

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Where can I get more information?

Surveyors:
Members of The Royal Institution of Chartered Surveyors (RICS) are bound by strict rules of conduct on matters such as client confidentiality and conflict of interest. Members advising clients must hold professional indemnity insurance and follow regulations governing the handling of client’s money. Continual updating of skills is compulsory for practising members. www.rics.org

Removals:
The British Association of Removers (established for over 100 years) can give you a list of removal firms in your area. The B.A.R. inspect and vet these firms, and can therefore testify to their reliability. They recommend that you contact three of their members to match the one most appropriate to your needs in terms of price and service. British Association of Removers, 279 Grays Inn Road, London, WC2 8SY. Tel: 020 7837 3088. www.bar.co.uk

Disclaimer
This buying guide is provided by thepropertyguide.co.uk. Readers should take any advice at their own risk. thepropertyguide.co.uk accept no responsibility for any action taken, or loss occurring as a result of any advice/information in their guides. This guide does not cover the Scottish estate agency system.