|
Many home owners sell their homes to move to a different area or to buy a bigger property. You may also want to sell if you are having problems paying for your home and need to move somewhere more affordable.
The process of selling a home is basically the same for all sellers. It usually involves dealing with estate agents, solicitors and your buyer. Selling your home privately usually works out cheaper. However, you will have to find potential buyers and deal with the advertising and viewing arrangements yourself.
Finding an estate agent (if you decide to use one)
Different agents offer different packages so it is usually worth getting a few quotations to find the best one for you. Many estate agents provide free valuations, so you can shop around before you decide. You normally have to pay a percentage of the sale price as commission to the agent. Ask what services are included, and check whether you will have to pay any fees on top of the commission.
When you employ an estate agent, you enter a legal contract. If there's anything you don't understand, ask the agent to explain it or get advice from a solicitor. Check how long the contract is for and whether you have the right to cancel it. Keep a copy of the contract and make a note of any verbal agreements you make with the agent.
The bill is too high
The estate agent's bill should include a detailed breakdown that ties in with what was written in your contract. You may not have to pay the extra costs if your bill wasn't calculated in the way that was agreed in your contract. You may need help from a solicitor if the estate agent insists that you must pay.
Back to top
Accepting an offer
You can accept offers from more than one buyer. You have to inform both buyers if you decide to do this. You don't necessarily have to accept the highest offer you get. Many buyers will make an initial offer below the asking price, so you should expect to negotiate. You may still have to pay fees and commission if you get a private offer but you have signed a contract with an estate agent.
What the offer means
The offer that the buyer makes is not necessarily the price s/he will pay if the sale is finalised. The offer should always say that it is 'subject to contract'. This means that there is still room for negotiation about the conditions of the sale.
Calling the sale off
Either you or the buyer can call the sale off at any point between an offer being accepted and exchange of contracts. You can do this if you get a better offer, or decide not to move for any reason. The buyer can ask for a contribution towards any fees or expenses that s/he has lost if you call off the sale. You don't have to pay unless you made a legal agreement when the offer was accepted, saying that you would pay.
Buyer's valuation and/or survey or homebuyer's report
After you accept an offer, the buyer's lender will send a qualified valuer to assess the value of the property. This will help the lender to decide how much the buyer can borrow. The lender will insist on at least a valuation. A survey or homebuyer's report may be carried out at the same time.
The surveyor has to leave your home in the condition s/he found it. S/he can't disturb fixed items without your permission. You don't have to give permission, but the buyer may be put off if you don't.
Valuation report
The valuer will produce a report saying how much the property is worth and how much the buyer will be able to borrow towards it. The valuer may say that the property isn't worth the price that has been offered if:
- it is overpriced,
- expensive repairs are obviously needed,
- the property is not a normal residential building.
If the problems are serious the buyer's lender may not provide a mortgage for the property. The lender can hold back part of the loan until repairs have been carried out and inspected. This is known as retention.
Surveys and homebuyers' reports
Most surveys and homebuyers' reports will indicate that the property needs repairs. Surveyors often point out the worst possible outcome. However, many repairs are relatively simple and inexpensive, and won't affect the property's value.
If the report says the property needs expensive repairs the buyer may ask you to:
- get the problems fixed before the sale,
- reduce the price.
Your solicitor can do most of the negotiation involved in this as part of preparing the legal contracts.
Back to top
The legal preparation (conveyancing)
Selling a home involves a legal process to transfer ownership of the property to the buyer. This is known as conveyancing. Most people hire a solicitor to do this.
The buyer can pull out at any stage until contracts have been exchanged. You may want the buyer to sign a legal agreement saying that the sale can't be called off as long as you exchange contracts within a certain amount of time. You will probably have to pay extra legal fees to do this.
Checking the documentation
All the legal documents relating to the property and the local area need to be carefully checked. The buyer's solicitor will carefully examine these documents to make sure everything is correct, and that you have the right to go ahead with the sale.
You must agree exactly what is included in the sale before preparing the contacts. If you later take away things that were included in the price, the buyer can ask for them to be returned or claim compensation. If you leave behind things that weren't part of the sale, the buyer can ask you to remove them.
Pre-contract enquiries
The buyer's solicitor will ask you (or your solicitor) certain questions. For example, if there were any problems with the neighbours. If the property includes land, the buyer's solicitor will want to know where the property boundaries are, and who is responsible for maintaining them. You could be sued if you don't answer truthfully.
Preparing the contract
Your solicitor will then negotiate with the buyer's solicitor to draw up the final contract. This stage often involves considerable delays, as you may not agree to everything the buyer wants. All the conditions of the sale need to be agreed before contracts are exchanged. Your solicitor will normally do most of the negotiating on your behalf.
How much does it cost?
Solicitors' fees are sometimes worked out as a percentage of the value of the property, and are sometimes a fixed amount. The amount you have to pay will also vary depending on how much work is involved, and whether you are buying somewhere else. You will also have to pay for any fees that are part of buying and selling.
Legal fees are not normally refundable, even if the sale falls through. If the buyer pulls out before contracts are exchanged, you can ask for help with your costs. However, the buyer doesn't have to help unless you signed a separate legal agreement saying that this would happen if s/he pulled out.
Back to top
Exchange of contracts
Once all the details have been agreed, the contracts between you and the buyer must be signed. The contracts are exchanged and the buyer pays a deposit. Once this happens, there is no more room for negotiation and neither side can pull out of the deal. You have to sell, the buyer has to buy and the price can't be changed. It is therefore essential that:
- all the legal documents have been thoroughly checked,
- any survey or homebuyer's report has been carried out,
- any repairs or other work you agreed to do before the completion date are finished,
- the buyer's mortgage has been formally agreed,
- the buyer has the money for the deposit.
The buyer is usually responsible for the costs of buildings insurance from the date you exchange contracts. If the property is damaged between exchange of contracts and the completion date, the buyer's insurers will usually have to pay for any repairs that are needed. However, you are still responsible for your personal belongings. Make sure your contents insurance is valid until you move out.
After the exchange
The completion date is usually between seven and 28 days after you exchange contracts, but can be as little as 24 hours. Before the completion date the buyer's solicitor will carry out any final checks and organise the rest of the money for the purchase.
Back to top
Completion date
The completion date is when the buyer becomes the legal owner of a property. You can't enter the property after the completion date without the new owner's permission. It's usually no more than a month after contracts have been exchanged and could be as little as 24 hours.
You will get the remainder of the sale price and pay for any outstanding costs involved in the sale. You will still have to pay back everything you originally borrowed if your home is sold for less than you owe (leaving you in negative equity).
If you haven't done so already, you should inform your bank and other important contacts of your new address and arrange for your post to be redirected.
Back to top
Problems with the sale
Selling your home can be complicated and time consuming, particularly if you and the buyer are selling one home to buy another. Problems can arise at any stage in the process, and may cause long delays.
Back to top
The costs involved
There are hidden costs involved in selling, particularly if you are buying another property at the same time. You are likely to have to pay other expenses before you move in to your new home.
If a sale falls though, or you decide to accept a better offer from another buyer, both you and the buyer will probably lose any money that you have already spent in connection with the sale. Back to top
|
Environmental Health Department addresses (
