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Selling a home
When you sell your home, ensure you use reputable registered estate agents & associated companies, this will aid in the smooth running of the transaction. Image Finance Ltd has developed this guide to help you understand the selling process. You’ll find plenty of practical tips and sound advice.
Choosing an estate agent
Marketing your property
Sellers Checklist / Moving Costs
Home Information Packs
Agreeing the sale
Instructing your solicitor or conveyancer
Exchange of contracts
Completion
The estate agent sells your house for you – and they try to make sure they get the best possible deal in the specified time. You pay them a fee for acting on your behalf, so you need to make sure you employ a reputable firm.
Ask the estate agent if they are an Nation Association of Estate Agents (NAEA) and/or Royal Institute of Chartered Surveyors (RICS) member and look out for the NAEA & RICS logo.
Using local agents
It’s a good idea to choose a local estate agent with experience of selling homes like yours. Here are some points to follow before you make a decision:
Types of agency
There are different types of agency contracts which you can enter into. These are:
When you’ve decided which agent (or agents) to go with, ask them to come round to discuss the sale with you.
An estate agent will offer good advice on the best way to sell your particular property – whether by negotiated contract, auction or sealed bid.
They’ll also tell you how much you can realistically expect to get after you’ve paid all the fees and taxes, and whether smartening up your home will increase the selling price.
Let the agent know how quickly you want to sell, as this could affect their advice. An estate agent can also help you look for a new home if you haven’t already found somewhere and can arrange for it to be surveyed for you.
Once you enter into a contract with an agent, they have to give you details in writing of their charges and the length of contract.
Make sure you understand the contract fully before you sign, you don’t want to sign into a lengthy tie-in.
Your estate agent can advise on ways to get the best price for your property.
Here are some tips for showing round potential buyers:
Here's a brief summary of the various costs you have to consider when you sell your home:
Estate agent’s fees
These are likely to be between 1–3% of the sale price plus VAT. Charges vary from one agent to another, so it‘s worth checking on fees in your area.
Solicitor’s fees
These vary from place to place. Expect to pay the solicitor about 1% of the total agreed price – but check the range of services they’ll provide for the fee, and ask if they offer a no sale, no charge deal. It’s often worth choosing a solicitor on the recommendation of a friend or colleague – otherwise contact the Law Society to find firms in your area.
Surveyor’s fees
If you’re moving to a new home, it’s worth paying for a survey on the new property from a qualified RICS member – especially on older properties, or buildings you want to extend or renovate.
Again, surveyors’ fees vary, so compare prices before choosing, and negotiate the fee to match the size and type of property. Ask the surveyor exactly what‘s covered in the survey, so you know what you‘re paying for.
Moving costs
The cost of moving varies according to how many belongings you have, how difficult they are to pack, how far you’re moving and the time of year. Shop around for the best deal – and remember it’s worth checking to see if the quote includes insurance.
Storage
If you’re not moving straight into a new home, you may have to consider storage. The costs for this vary according to how much you need to store. As a rough guide, a two-bedroom house will probably fill up to four containers, and a three-bedroom house can fill six.
From 10 September 2007 the requirement will be for houses with three bedrooms or more to have a Home Information Pack (HIPs). Smaller properties will be phased in before the end of the year.
What is a home information pack?
A home information pack (HIP) provides information to buyers about a property for sale. The government has introduced HIPs to offer buyers more information about properties they are considering buying, up front and free of charge.
The home information pack is prepared by the seller and contains a number of documents including an Energy Performance Certificate (EPC) that will contain information on the property’s energy efficiency.
Documents in the home information pack will include:
A number of other documents can be included in a HIP on a voluntary basis. These include a Home Condition Report (HCR).
Those selling a property have to ensure that a home information pack is commissioned before the property is marketed for sale.
What is an Energy Performance Certificate ?
An energy performance certificate (EPC) provides information on how energy efficient a home is on a scale of A-G similar to a white goods energy rating. The most energy efficient homes with the lowest fuel bills are rated A with the least energy efficient properties rated G. The EPC also includes information on the impact a home has on the environment and provides advice on cost effective energy saving improvements that could be made.
Homes are assessed and energy performance certificates produced by qualified home inspectors or domestic energy assessors.
What is a Home Condition Report ?
The home condition report (HCR) is an objective report on the condition of the property that can be relied upon by buyer and seller. The report will be in a standard format and will cover matters of importance to a buyer - the general condition of the property taking account of its age, character and location and any defects or other matters requiring attention. The report will be produced by a fully qualified home inspector. Currently the HCR is not a mandatory requirement but estate agents and pack providers can include one in a home information pack on a voluntary basis.
How do I get a HIP ?
If you are selling your home, there are a number of options. Usually a HIP will be prepared by an estate agent but you can request a HIP through a solicitor or use a specialist pack provider. Many estate agents and HIP providers are RICS members who are regulated and have a code of conduct to protect you and ensure that you receive clear, impartial and expert advice.
If you are buying a home, a HIP should be made available to you through the estate agent or directly from the vendor.
Can I compile my own HIP?
You can compile a HIP yourself if you're marketing a property independently or even if you're using an estate agent, you can still put together the HIP yourself. To produce your own HIP you will need to ensure that you have all the required documents. You can arrange for a solicitor or conveyancer to acquire the searches and legal documents and the Land Registry can provide evidence of title.
To acquire an energy performance certificate and a home condition report you need to find a registered home inspector or domestic energy assessor. A home inspector is qualified to undertake both a home inspection and an energy assessment whilst a domestic energy assessor is qualified to produce energy performance certificates only.
RICS has been approved by government to regulate RICS members carrying out home condition reports and energy performance certificates for inclusion in home information packs.
Why choose an RICS home inspector or energy assessor?
RICS is one of the most respected and high profile standards and membership organisations for professionals involved in land, property, construction and environmental issues worldwide.
The RICS home inspectors and domestic energy assessors registers regulate the activities of home inspectors and energy assessors and ensure that government prescribed standards are met. The RICS registers ensure that home inspectors and energy assessors are qualified to carry out their duties and require a Criminal Records Bureau check to provide assurance to the public that they are admitting someone into their home whose character has been validated.
Membership of RICS is seen as the benchmark for the surveying profession – the mark of property professionalism worldwide.
How can I find an RICS home inspector or energy assessor?
You can find an accredited person to undertake an energy performance certificate or home condition report online at www.hcrregister.com
Most property is bought and sold through estate agents. Once you have chosen your property, you may be able to negotiate with the seller on the asking price. Owners do not have to accept the first offer that is put to them and you can make them an increased offer. Negotiation on the price of the property is often easier if there are repairs to be done, or if the seller is looking for a quick sale.
Before you sign anything, make sure that you know what is included within the asking price. Check whether you are keeping all the fixtures and fittings as listed in the property details. If you like the carpets, see if they are included too. You will find furniture isn’t usually included, unless it is specifically listed.
Remember, always check what is included in the price before agreeing the sale. Once you are happy, agree the terms in writing as oral offer is never legally binding.
Once you have chosen a property you will have to consider:
You will need to employ a solicitor to handle the legal aspects of selling your home.
Once a buyer has been found for the property your solicitor will liaise with the estate agent and the buyer’s solicitor.
After all the enquiry forms and contracts have been signed and returned, this is the point at which it is time to exchange, where, if applicable, your buyers solicitor will request deposit monies. The buyer and the seller will agree a date for completion, i.e. the date that the seller will need to move out of the property.
This is the stage at which the sale becomes legal and binding.
The date of moving will have been agreed by both parties. On completion day the funds will be exchanged between solicitors and the keys should be left with the estate agent for collection by the buyer.
Time Scales
An average purchase without complications, will take approximately 8–12 weeks, subject to both parties being in agreement, this timescale may be longer if the property being purchased is in a chain, or if you have a property to sell.
Using the services of Image Finance Ltd offers real peace of mind because:
Further information
Image Finance Ltd has a range of free property guides including:
For a full list please go to Image Finance Ltd FAQ’s