LOOKING for a fast sale or the best price? As we approach the busiest time of
LOOKING for a fast sale or the best price? As we approach the busiest time of the property year, September, it’s time to start thinking about all your options to ensure you’re selling your home using the method best suited to your needs.
“Every seller’s position is unique and the reason you’re selling will differ from others,” said Antony Gibson, assistant managing director of sales at Romans, which has its local branch in Hart Street.
“Whether it’s the more traditional sale by private treaty, the faster and more definitive method of selling by auction, or by having an open house, you’ll have to explore the best method of sale for you.”
Most estate agents employ this traditional method.
• Step one: Details of your property are prepared and an asking price is quoted
• Step two: Details are advertised to prospective buyers
• Step three: Potential buyers view the property
• Step four: Interested buyers agree to the asking price or submit an offer of purchase
• Step five: Once an offer is accepted it is subject to formal contracts being prepared between the seller and the buyer and those contracts being signed and exchanged between the two parties
If a few buyers are interested in the property they will be invited to submit a ‘best offer’, ensuring the seller receives the best price.
Sales by private treaty generally allow greater flexibility, particularly around time scales, what items are included or excluded or even subject to sellers needing to find their next home to buy.
This flexibility is afforded to both buyer and seller and allows a full and proper assessment to be made of the property and sale before the transaction becomes legally binding.
Private treaty is ideal for:
• The majority of presentable residential property sellers looking to move house from one to another. “This is suitable for most residential properties and buyers but it’s vital that your property is valued correctly by an experienced estate agent from the outset” says Antony.
“In order to get the best price for your home you should instruct an agency with an extensive range of advertising methods and platforms to ensure it’s
advertised in front of as many prospective buyers as possible.
“The time taken, from start to finish, will vary dependent on your circumstances and market conditions so it’s important to bear this in mind, especially if you’re looking for a particularly quick sale.”
Selling property by auction is becoming more and more popular in the UK as people learn about the processes and understand the benefits.
Step one: When the property is advertised for sale by auction the seller sets a confidential reserve price, which is the minimum amount that the property can be sold for
Step two: Often a more comprehensive and extensive marketing campaign is utilised to encourage as much interest as possible within a defined time
Step three: Set viewing times are publicised for prospective buyers, who have secured their finances and completed their due diligence before they bid
Step four: The auction takes place and all interested parties bid against each other. The successful bidder is legally bound to purchase when the auctioneer’s gavel falls, as long as the reserve price is met or exceeded
Step five: The buyer pays a non-returnable 10 per cent deposit there and then and has to complete the purchase on the stated completion date which is normally 20 working days after the auction date.
Ultimately, when selling property by auction the bidders decide the final sale price, but as a reserve price is agreed the seller always knows the minimum they will receive for their property.
Selling by auction is ideal for: ï?¼
Home owners that need to sell quickly ï?¼
Executors that need to settle an estate ï?¼
People that want the security of a certain sale ï?¼
Properties that are vacant, unique, or in need of modernisation
Simon Clayton, director of Romans Auctions, said: “The best scenario is that two or more people are bidding on the same property as this competition can drive prices up beyond the reserve price, as we’ve seen in all of our auctions so far this year.
“A common misconception is that auction properties are all rundown and in need of renovation. In fact, any type of property or land can be successfully sold at auction, and it’s particularly attractive to sellers looking for a fast and secure sale, and the best price on the day.”
A sales method of this kind utilises the private treaty route but also creates the competitive nature of an auction room.
Step one: Details of your property are prepared and an asking price is quoted
Step two: Details are advertised to prospective buyers
Step three: Potential buyers are invited to view the property during the open house, often held on a Saturday or Sunday
Step four: Interested buyers submit an offer of purchase, normally quite soon after the open house has taken place
Step five: The sellers are presented with the offers and once one is accepted it is subject to formal contracts being prepared between the seller and the buyer and those contracts being signed and exchanged between the two parties.
Open house is ideal for: ï?¼Sellers who want the convenience of scheduling viewings all at the same time ï?¼
People who want to use the private treaty method but also to create a competitive environment.
Antony said: “This method of sale is particularly popular among families with young children or those with lots of commitments because they want the benefit of only having to tidy and prepare their house once for the viewings to take place.
“Several of our recent open houses events have attracted around 30 potential buyers creating a very competitive environment and resulting in asking prices being exceeded.”
Ultimately, the best way to find out which method of sale is right for you is to discuss your requirements with an estate agent. You can find a list of all the agents serving our local area at http://www.henleystandard.co.uk/property/agents.php