Are you thinking of selling your home? Well, the thought of selling your house can be overwhelming. This is because it may be one of the major investments that you have worked hard for; hence the decisions you make could either cost you or save you. This is particularly true when you are selling to buy another property. So, here’s a step by step guide to selling your house:
- Review your reasons for selling – You may be wondering why this is important when you already have your mind set on selling your home. Well, you will be surprised to know that some of the reasons for selling can actually be fixed without selling off your home along with the memories.
For instance, if you are selling because you want a home with more space, why don’t you think about converting the attic, building an extension of even digging out the basement? The cost of expanding might be much less than the cost of moving.
You might also want to look at the status of the property market. With the fluctuating nature of house prices, you might be unable to afford a new home upon selling your current home. There are numerous factors you need to think about like being in negative equity or even going through a divorce among others.
- Work out your finances – Yes. This is crucial especially if you are servicing a mortgage as you need to notify your lender of your plans, find out your outstanding mortgage and the possibility of early redemption penalties. Here, you also get to establish how much your house is worth and calculate the amount you will keep after paying off your mortgage. If you are selling to buy another home then be sure to take into account the size of the mortgage you will need.
- Make a decision on whether to buy or rent – Although renting for a while can inflate your overall expense, it takes off the pressure of buying a new home. Thus, you will not be lured by the thought of selling your house at a low price just because you found your dream home. Similarly, you will also not rush into buying a home that is less than perfect because a new buyer for your current home has been found.
- Determine who will sell your home – At this point, you need to determine if you will sell through a high street estate agent or an online estate agent. You can then research briefly on the agency you have opted for while carefully drawing comparisons on whether they achieve the asking price, if you should use multiple agents and how much you need to pay in agency fees, among other things.
- Decide your initial asking price and final price – This is one of those agonizing decisions you have to make in the sale process. Thus, it calls for you to research the local market well, get valuations from estate agents and take into account the fact that buyers will often try and negotiate for a discount.
- Prepare your home – With all the preliminaries out of the way, you need to get the property to be market ready. When well staged, your home should sell faster and for a good amount. Take time to tidy up, eliminate clutter and give your home a fresh lick of paint in neutral colours. Most importantly eliminate all bad oduors before opening it up for viewings by potential buyers.
- Hire a conveyancer or solicitor – Once you have your property ready for the next buyer, find a conveyancer or solicitor that will handle the legal aspect of transfer of ownership. At this point, you need to know how much you need to pay in conveyancing fees before engaging the conveyancer.
- Fill out relevant questionnaires – You need to fill out several questionnaires and forms that provide information to the buyer providing information on the property for the buyer.
- Accept an offer – Potential buyers who have had a chance to view the property will make an offer through the estate agent. You have the liberty to accept, reject or negotiate the offers to ensure you get the best price before accepting and asking the agent to take the property off the market. Keep in mind that accepting an offer is not legally binding hence you could change for a higher offer even though this can be frustrating for the buyer.
- Negotiate the draft contract – Both you and the buyer need to agree on the time between exchange and completion, the fittings and fixtures that are included and any discounts prompted by problems highlighted in the survey.
- Exchange contracts – By exchanging contracts with the buyer, you are legally bound to sell the property to them and vice versa. Consequently, you will have to face the consequences if you opt to pull out.
- Move out – If you are still living in the home you are selling, this is the time to move. Generally, it is advisable to move long before a buyer is found because it is less stressful. Besides, it gives you ample time to fix fittings and fixtures as highlighted in the contract.
- Complete the sale – With everything out of the way, you can now accept the payment in exchange for the keys. The conveyance will then register the transfer of ownership with the land registry.
If you owe the mortgage lender, you will do well to settle with them at the earliest opportunity. Overall, the process of selling a house is quite involving but with a good estate agent by your side, you can be sure to sell fast and for a good price.