The Sale Process

The Internet means that selling a home has never been easier, because of the new routes to match homebuyers and home sellers.

Traditionally most people have entrusted the selling of property to the experts in the estate agency business, with a minority opting to sell their property privately without the help of an estate agent.

Private Sales

The Internet offers an enormous advertising medium and View London Property can expose and promote your property to a huge audience of potential buyers. It used to be difficult to market your property; you were limited to newspaper adverts, for-sale signboards and word-of-mouth.

Selling via a Traditional Estate Agent

If you're feeling less confident or simply don't have the time to manage a private property sale then it's probably best to enlist the services of an estate agent to conduct the sale of your property.

The vast majority of properties are still sold via the traditional local estate agent.

1. Preparing your home for Sale

Before you start welcoming potential buyers for viewings, spend a bit of time, and maybe even some money on preparing your home for sale. Although a freshly painted ceiling does not increase the value of your house substantially, they improve the overall impression of your house and thus help to convince hesitant buyers.

Remember, the better your house looks, the more people will consider buying it, the more quickly you will get it sold and the higher the price you will eventually get for it.

The first thing a potential buyer will see of your house is its outside so make sure everything is clean, tidy and in a good state of repair. This includes doing up your garden, stairs, front door, and whatever else there is between the street and your front door.

2. Home Information Packs (HIPS)

All properties marketed for sale from 14th December 2007 in England and Wales will need a Home Information Pack.

Home Information Packs include the following documents:

• Home Information Pack Index
• Energy Performance Certificate (EPC)
• Sales statement
  
• Evidence of Legal Title
• Local Authority Searches

If the property is Leasehold, the HIP should also include a copy of the Lease and details of the service charge.

The person responsible for marketing a property (in most cases, the estate agent) must have commissioned a Home Information Pack by the time that the property is on the market. The seller is responsible for the cost of the HIP.

On 29 September 2006, the Search Code and HIP Code were introduced, delivering quality standards across both the property search industry and in Home Information Packs (HIPs).

If you are commissioning a HIP, you may wish to consider a company that is a member of the HIP Code. Alternatively, if you are commissioning searches or are compiling the Pack yourself, you may wish to consider a company that has signed up to the Search Code.

Critics have voiced concerns that the packs which cost between £400 and £700 to compile will simply make selling a house expensive and bureaucratic rather than speeding up the process as intended.

For more information on HIPs please refer to the Government's website:

www.homeinformationpacks.gov.uk

3. Valuation

No matter how you decide to do your sale you should always perform an independent property valuation first. This helps you estimate how much your house is worth and where to set the asking price.

Details are available through the Land Registry and other websites which will tell you how much properties have sold for on your road.

If you choose not to use an Estate Agent who will usually value your property for free, you have to do your own research by looking for similar properties on the internet, reviewing local newspapers and looking at letting agents windows.

View London Property staff are on hand to offer assistance.

4. Viewings

First impressions count and it is important to ensure that the property is presented in its best light before all viewings take place.

There's no need to mention any negative aspects, instead make a list of all the positive things which you can mention as you are going round the house, but don't overdo the hard sell.

Try and be as informative as you can, remember you know your property and the surrounding area better than anyone.

Try and be as helpful as you can by responding to any questions. Tenants can rarely be persuaded to rent a property, they will have fixed ideas about what they are looking for.

On average, a viewing should take approximately 10 minutes.

5. Negotiations

A negotiation involves two parties: do not make too many concessions without getting something in return. If the buyer and the seller eventually meet in the middle, it should be because both have budged a bit. Remember: you are the seller and are naturally in the stronger position.

Gazumping:
Even when you accept an offer, it is not legally binding until contracts are exchanged. However, if you intend to change your mind as soon as a higher offer comes along, you should tell the buyer so before accepting his offer. Although (unfortunately) not illegal, it is not good practice to simply drop the buyer after he paid for legal and administrative expenses.

Choosing a Buyer:
When choosing a buyer, there are several factors you should take into consideration:

• Agreement in principle. This is a mortgage guarantee issued by the lender and assures you that the buyer actually has the necessary funds to buy your house. Make sure your buyer has one.
• The chain. If buyers rely on the proceedings from a sale this poses a disadvantage to you, since one fault in the chain can cause a breakdown and upset your entire time scale. Look out for first-time buyers, buy-to-let investors, cash buyers and buyers between homes.

Offer accepted:
To create a good impression, send a letter of confirmation to the buyer once the sale price has been agreed and include your conveyancer's details. Although this is not a binding document, it gives the whole process an official and professional touch and helps to eliminate any doubts.

6. Conveyancing

Conveyancing is the legal work involved in buying and selling a property. It would normally be done either by a solicitor or a licenced conveyancer. Make sure you choose a good one. The best bet is word of mouth recommendations. Solicitors either charge a fixed fee (usually between £400 and £750), or a percentage of your house's sales price (usually 1%).

Whether you are selling privately or through an estate agent, you will need to appoint a conveyancer. The conveyancer will guide you through the sale process and keep you informed of what you need to do and when.

Once you have agreed the sale price with the buyer, the solicitor will send out a draft contract to the purchaser's solicitor who in turn carries out preliminary enquiries and orders a Land Registry search. They will also organise all the supporting paperwork (where applicable) i.e.: title deeds, copy of Lease, fixtures and fittings list, seller's questionnaire, planning consent, guarantees, copy of building regulations etc. The legal and administrative process is the main reason why property purchases take such a long time.

The draft contract consists of two parts:

• The Particulars of Sale spell out property details and items to be included in the sale.
• The Conditions of Sale concern the proposed completion date and deposit required on exchange of contracts.

The good thing about selling a property is that there are virtually no expenses that you have to cover for local authority searches, stamp duties and the like.

7. Exchange of contracts

The final contract between the buyer and the seller is prepared when:

• the solicitor (or licensed conveyancer) and buyer are satisfied with the final outcome of all the enquiries
• any surveyor's report has been received and any necessary action taken
• the buyer's formal mortgage offer has been received
• arrangements about the payment of the deposit have been made (usually 10% of the purchase price), is either telegraphically transferred or paid in the form of a bankers draft by the buyer's solicitor.
• the date of completion has been agreed.

You and the buyer each have a copy of the final contract which you must sign. These signed contracts are then exchanged. At exchange of contracts both you and the buyer are legally bound by the contract and the sale of the house has to go ahead.

It is worth noting that if you are selling your property privately or through an estate agent, the buyer can withdraw from the purchase right up until exchange of contracts.

8. Completion

Completion normally takes place a few days or a few weeks (depending on the personal requirements of the buyer and seller) after exchange of contracts

On the day agreed for completion:

• the mortgage lender releases the money
• the deeds to the property are handed over to the buyer's solicitor or licensed conveyancer
• You must hand over the keys and leave the property by an agreed time.

You have now sold your property!