Nearly all of us trying to sell our homes will do so through an estate agency. The average agency needs around two sales a week to stay in business, turnover is actually more important than rising house prices and that is why you will find firms offering gimmicky commission deals when and where the market is sluggish - beware, they may also be giving you a low valuation of your property to help boost their sales.
Your property is worth what someone will pay for it. You may well come away from discussions with your estate agent with the impression that valuing property is an art not a science and a black art at that! An accurate valuation is essential and should be your first step when considering a sale. Ultimately, however, the only proof you will have of the accuracy of the valuation is the number of people who come to view the property when you have put it on the market.
Some agencies have started to impose a minimum fee. This can be as high at 3% for multiple agency. At the very top end of the market, agency fees can go over 5%, selling a £500,000 house in the centre of town could easily land you with an estate agent's bill of £10,000.
Most agents charge between 2.252.5 per cent for sole agency and between 2.53.0 per cent for multiple agency. If you do decide to go for multiple agency, it is best to choose one of the small independent firms in your area as well as one of the big corporate agencies. If you need to sell quickly, multiple agency is your best bet.
By law, all estate agents are required to explain their charges before you sign any agreement. They are also required to pass on all offers promptly in writing. Once you have decided to sign up with an estate agent, do not sign a letter that says charges will be payable for introducing a purchaser 'ready, willing and able' to buy, you could find yourself having to pay commission if for any reason you withdraw before contracts are exchanged.
Under existing legislation covering England and Wales (but not Scotland) the deal between purchaser and seller of property does not become legally binding until contracts have been exchanged. Any offer to buy that you receive will have been made 'subject to survey and contract' which means that neither you nor the buyer is legally bound to go through with the transaction and each may withdraw without incurring a penalty right up to the point of exchange of contracts.
Avoid signing anything which gives your agent sole selling rights, otherwise again you¹ll be stumping up commission even if you sell privately. House-swapping, if you can arrange it, may be cheaper but remember stamp duty is still payable on the difference in value between the two properties, even if the difference is less than £60,000.
You are not legally required to keep a "log book" for your house but you may find it easier to sell if you have neatly to hand such documentation as damp-proof and woodworm warranties; receipted invoices for any work done on the property (roofing, decorating, etc.); warranties for new boilers; certificates from the Local Authority Building Control. A potential purchaser will also be interested in your running costs, so have bills for gas, electricity, water and council tax to hand for them to view. Also be clear about "fixtures and fittings" - will you be selling curtains and carpets with the property? List the items to be included in the sale.
