Are You Planning To Sell Your Home or Investment Property? Need genuine London Property selling advice?
London property selling advice
I only ever acquire property for our members. I will not sell property for them as I believe this is best done by the estate agents. However, because I deal with every estate agent in prime central London, I know what some agents do very well and what others do badly. I also know what some owners do to make their homes difficult to sell.
In the worst cases the sellers actually manage to devalue their homes.
Members always question me before they join our club about how big a reduction in price we can negotiate. This misses the point. Some properties are grossly overvalued and negotiating 30% off the asking price may mean nothing. The question should be: “How can you ensure we buy the best property available on the most favourable terms possible?”
Many of our most successful purchases have happened when the property has been undervalued and we have pounced on the opportunity. You do not want this to happen to you.
Of course I do advise members on how to sell their home. I also suggest what they can do to make the sale as smooth as possible.
London property selling advice - Main points
Clear Your House Of Clutter Before The Agents Value It – This may be difficult if you have lived somewhere for years. However, you need to show your home in its full glory. If a room has too much furniture or has books strewn everywhere it will seem much smaller and possibly darker than it is. Do not underestimate most buyers’ lack of imagination. You need to try to present a blank canvass. It sounds like a cliché, but we all have different tastes. If you need to place furniture or boxes in storage then do so.
Decide Why You Are Selling And How You Want The Property Sold –Sounds obvious but ask yourself: Do you need to sell quickly? Do you want the property sold discreetly? You need to advise the agents of this – if you need to sell quickly, but the agent puts an ambitious value on the property, this may not be in your best interests (at the same time do not appear desperate. Ask the agent what the market is like and what price would achieve a relatively quick sale.)
London property selling advice - Choose Five Agents To Value Your Home – This is hugely important. Valuation is not a science. I can guarantee you will receive a spread of valuations that can sometimes differ by 25% if not more. The simplest way to decide which agents to choose is to visit www.primelocation.com or www.globrix.com and see which agents are selling homes similar to yours.
Questions to ask the agents when they are doing the valuation:
“How many similar properties do you have on your books?” – If they have a lot, you may want to enquire why they have not sold any!
“What have you sold similar to this recently?”
“How long did it take you to sell that?”
“How many applicants do you have looking for this type of property at the moment?”
“How have you reached this valuation?”
“Please can provide details of a comparable property that you have sold recently?”
“How will you market the property?”
“What do I need to do to the property to make this easier for you to sell or to achieve the best price possible?” – The good agents will offer simple advice (e.g. remove clutter, excess furniture, etc.). Listen to them, because they should know what is attracting their buyers.
Negotiate Their Fees – Agents can charge from 1% - 2.5%, but it does not hurt to see if they will drop their fees. It will only take a second to ask and could save you thousands. Two words of caution:
- This does not mean you should automatically choose the cheapest option. The competence of the agent is the most important factor.
- Do not necessarily go with the highest valuation – if the agents cannot justify their valuation, they may just be trying to get your instruction and plan to reduce the price at a later stage. (If you prefer another agent you can always ask them to market your property at a higher valuation – the very good agents should advise you why this may not be a good idea – the choice ultimately, though, is yours).
London property selling advice - Check The Contract – There may be a clause stating you must instruct the agent for six months. If you are selling a fairly standard style of house or flat, then I would negotiate a shorter term (see managing the agents below).
Make Viewings Easy – Give the agents a key so they can show the house on short notice. Also be flexible on viewing times. You must remember that successful people are inevitably busy. They may only have brief openings when they can view property and these may come at short notice. The harder you make it for agents to show potential buyers, the harder it will be to sell (there are exceptions to this rule at the super-prime end of the market or if you have a unique and especially desirable house).
Allow The Agents To Handle The Viewings/Do Not Get Involved Yourself – Buyers often find that being shown a home by the owner is awkward. If you start describing what you find wonderful about your house you are more likely to alienate the buyers as they may have totally different tastes. If there are special features that you think need to be highlighted, draw up a list to give to the agents. If they are good they should be able to match specific points of interest to the relevant buyers.
London property selling advice - You Must Manage The Agents – Keep track of the number of viewings and ask for feedback. If the agent is not showing the property to buyers on a regular basis, then you have a problem. Also check the listing on the websites. A friend of mine once asked me why his house was not selling. I looked at a website and saw it was being advertised as a flat rather than a house! (Another reason why relying on the websites to find property is not the best way to approach the issue).
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