Advertising your house
You should first of all find out how much the local papers charge for house advertisements and then draft the advertisement on the basis of how much you want to spend.
You could use existing advertisements as a guide to the format and wording. It is also possible to advertise very cheaply in shop windows.
It is advisable for you not to give the address but to provide a telephone number instead.
Finally you could consider drawing up details of the house in a similar way to that of an estate agent, for example, giving details of room sizes, community charge/council tax, local facilities and fixtures and fittings.
These details can then be given to potential buyers, either before they call, or at the time they view.
You could also consider advertising the property on the internet with portals like Location bliss.
If you wish to use an estate agent
If you wish to use an estate agent, you should find out about local estate agents and find out the following information:-
- what type of property the estate agent specialises in
- how much the estate agent will charge
- the reputation of the local estate agencies, if possible.
Estate agents must comply with laws that protect consumers from unfair sales and marketing practices.
Estate agents’ charges
Most estate agents calculate their fees as a percentage of the final selling price of the property. This can vary from less than 1% to 3.5%. This is known as the rate of commission.
You should check if you have to pay extra or the following are included in this fee:
- advertising costs
- costs of preparing details of the house including photographs
- a ‘for sale’ board
- VAT
If you decide to use an estate agent, the estate agent must confirm the charges and rate of commission that will be made. The estate agent must do this when they agree to act for you.
Sale by tender process where the buyer pays the agent's fee
Some estate agents are selling properties by a tender process where buyers view the property at an open day and make an offer through a sealed bid. The buyer will usually enter into an agreement to pay the agent's commission fee as part of the tender process. You are only charged a small marketing fee or no fee. The buyer pays the agent's fee on completion of the sale.
It is not against the law for an estate agent to sell a property by a tender process but it can be confusing for the seller and buyer if the agent isn't clear about the process. You don't have to agree to sell your property by the tender process.
The main benefit of selling a property by tender is that you won't have to pay the agent's commission fee. But the tender process may put off potential buyers as they may not want to pay the agent's fee.
The Property Ombudsman has produced guidance for estate agents on the sale by tender process which says:
- the tender pack should include details of the sale, the agreement to make an offer by tender and pay the agent's fee, the bid form, frequently asked questions and a key features document setting out the pros and cons of the process
- you must be told at the start that the buyer is agreeing to pay the agent's fee
- the agent's main duty of care is to the seller and the agent must avoid any conflict of interest of interest between the seller and the buyer
- you should receive advice about all of the options available to market your property
- you should receive information about the risks of selling your property by tender
- you should be told what happens if the buyer does not want to pay the fee and you want to sell to that buyer
- you should be told what happens if the actual buyer refuses to pay the fee
You can find the guidance on the Property Ombudsman website. If you think that the agent is not following the guidance, you should contact The Property Ombudsman.
What type of agreement can you have with the estate agent
If you use one estate agent to handle the sale this could be on the basis of a ‘sole agency’ agreement, or the agent may have ‘sole selling rights’, depending on the contract that you have signed. Both of these terms must be explained in writing if they are used in a contract.
Sole selling rights means that the estate agent will have the exclusive right to sell your home and you will still have to pay the estate agent even if you find a buyer yourself.
A sole agency is still only using one agent, but if you find a buyer yourself you don’t have to pay commission to the estate agent. A sole agency agreement should be agreed for a specific period of time.
If you appoint two estate agents to act together for you in selling the property, this is known as ‘joint agency’ or ‘joint sole agency’. A joint sole agency contract is where the estate agents involved share the commission when the property is sold regardless of which estate agent actually finds the buyer. The commission is usually higher for this type of arrangement.
If you appoint more than two estate agents on a 'multiple agency' basis, only the estate agent who sells the property will be entitled to the commission. Again, the rate of commission is usually higher than for a sole agency.
What does the estate agent do
The estate agent first of all visits the house in order to value it and decide on an asking price with you. You may wish to ask more than one estate agent to call and value the house. It is also advisable for you to check the price that the estate agent suggests by comparing it to similar houses in the area.
The estate agent will prepare details of the house for people who are interested in buying it. These details will include the number and size of the rooms and all the fixtures and fittings which will be left in the house.
The estate agent also arranges for the property to be advertised. You usually show potential buyers around the house yourself but, if this would cause problems, for example, if you are out at work or away a lot of the time, the estate agent usually is prepared to do this themselves.
Complaining about an estate agent
All estate agents must belong to an approved complaints redress scheme. Estate agents that don't join a scheme can be fined.
There are 2 approved schemes:
Property Redress Scheme
The Property Ombudsman (TPO)
If you have a complaint about your estate agent and they can't sort out the problem, you can complain to the scheme to which your estate agent belongs. Find out how to deal with problems when buying and selling a home.
Deciding who to sell to
Whether you have arranged to sell the house yourself or you have used an estate agent, you may find that you receive more than one offer for the house. You can sell the house to whomever you want and do not have to sell to the buyer who offers the most money.
You may wish to take into account whether the buyer:
- is a first time buyer
- has found a buyer for their own property. If so, is it part of a chain of buying and selling and how long is the chain
- is paying cash or is likely to get a mortgage
- wants to move at the same time as you
If you are using an estate agent, it is often easier for the estate agent to find out this information from the buyer.
It could be unlawful for a seller to treat people unfairly by discriminating against them.
For example, it is unlawful to refuse to sell a property, or to offer it on less favourable terms, just because the prospective buyer is of a particular religion or belief.
If you use an estate agent to sell your property, then it is unlawful to discriminate against someone because of their disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex or sexual orientation.
If you sell your home yourself, it is usually only unlawful to discriminate against someone because of their race.
Deciding on the price at which to sell
If you are using an estate agent, the agent negotiates with the potential buyer(s) about the price. The estate agent should try and obtain the best possible price for you.
If you are acting alone, you must negotiate yourself. You do not have to accept the first offer put to you and should not be rushed into making a decision quickly.
Accepting the offer
Even if you have accepted an offer, there is nothing in law to prevent you from changing your mind and accepting a higher offer from someone else.
You should bear in mind that when an offer is made and accepted the potential buyer can also withdraw - for example, they may not get a mortgage, or the survey may show up some structural problem.
If you are selling, it may be a good idea to keep the names and addresses of all potential buyers who make offers, in case the one you accept falls through.
Choosing who is to do the legal work (conveyancing)
When you have accepted an offer you, or the estate agent, needs to inform whoever is doing the legal work. You can do it yourself - although this can be complicated – or you could:-
- use a solicitor or
- in England and Wales only, use a licensed conveyancer
Using a solicitor
Most firms of solicitors offer a conveyancing service. Although all solicitors can legally do conveyancing, it is advisable to choose a solicitor who has experience of this work.
Using a licensed conveyancer (England and Wales only)
You can use a licensed conveyancer to do your conveyancing. Licensed conveyancers are not solicitors but are licensed by the Council of Licensed Conveyancers.
If you want to find out if a local conveyancer is licensed you can write to the Council of Licensed Conveyancers. For the address of the Council, see Buying a home.
Finding out how much it will cost
Before making a choice as to who will do the conveyancing, you should find out the probable cost. It is important to contact more than one solicitor or licensed conveyancer as there is no set scale of fees for conveyancing. You should:-
- check whether the figure quoted is a fixed fee or will vary if more work is required
- check that the figure includes expenses and VAT and get a breakdown of these costs
- find out what charges, if any, will be made if the sale falls through before contracts are exchanged.
Exchange of contracts
When contracts are exchanged, and before completion, the buyer may wish to visit the house, for example, to measure up for carpets or to get an estimate for building work. However, you should not allow any work to be done by the buyer before completion.
You should inform the fuel companies and phone company that you are leaving and ask for final readings to be made of the meters on completion day.
You should also inform the person at the council responsible for council tax, or in Northern Ireland, the Rate Collection Agency responsible for rates collection.
If the buyer is paying a deposit, this will be paid to your solicitor at exchange of contracts. The solicitor will hold this deposit until completion.
Completion
You must arrange to leave the house empty by completion day and to hand over all the keys. Your solicitor will receive the rest of the purchase price from the buyer and will pass this, together with the deposit, to you.