to selling and renting your own home

cutting out the middle–man The Gumtree guide... to selling and renting your own home cutting out the middle–man Contents… Foreword by Michael Holmes Let’s start at the beginning Cutting out the Middle Man Laying the foundations Do your sums There’s no place like home Draw attention to yourself Put on a show Closing the deal Finishing touches Moving on 3 4 5 6 7 9 11 13 17 20 22 cutting out the middle–man Foreword by Michael Holmes It is no great surprise that the number of UK homeowners considering a private sale is steadily increasing now that the internet - with its huge low-cost marketing reach - plays such a central role in the typical homebuyer’s search for a new property. Opting to sell your home privately instead of through an estate agent can result in an instant saving on fees of 1.0 – 2.5% of the sale price plus VAT. You will also have direct control of marketing, from pricing, preparing literature and advertising, to conducting viewings and negotiating offers. This is not an option that will suit everyone and there will always be a role for estate agents. For anyone who has the time to take calls from, and meet potential buyers and to show them around the property, a private sale is a very real option, as Gumtree’s new easy to follow guide to private sales and letting explains. Michael Holmes Expert tips... Michael’s top tips follow, wherever you see this sign throughout the brochure. cutting out the middle–man Let’s start at the beginning Moving home is always stressful, there’s so much to do most of us appreciate all the help we can get. That’s why so many people use estate agents when selling or renting their home, to save time and effort, and for the peace of mind that your property is in the hands of a professional. There’s no legal requirement to use an estate agent and you don’t need any qualifications to be one. You could get a job as an estate agent tomorrow and start selling other people’s homes, so why not sell or let your own and save money? u ve o m It might seem complicated, but this guide should give you all the information you need to do it yourself and save yourself some money. Advertising your home directly on Gumtree is absolutely free, which means every penny of the price you put on your own home goes directly to you. cutting out the middle–man Cutting out the Middle Man When you’re selling your home or renting a property you can give it your full attention. You will see the rewards of your hard work to make your home look attractive and market it and so you make every effort to make your sale go well. Estate agents have many properties on their books and can’t give any one property the attention you would and don’t have the same motivation you will have when dealing with your own home. Our research found that less than one in ten people actually find estate agents trustworthy, yet we still give estate agents £4,100 on average every time we sell our homes and £255 to let them. Most people use an estate agent because they don’t feel they have the knowledge or contacts to sell or let a property themselves. While estate agents do have a large database of potential buyers, Gumtree attracts over 4.4 million unique users every month. This is lots of people who will potentially be seeing the details of your property. “I’d moved house a few times and never felt that estate agents deserved the amount I paid them in commission. Selling my home on Gumtree was much less stressful and I saved £5,000” Wendy, seller cutting out the middle–man Laying the foundations Public perception is estate agents do very little to earn their commission (two thirds of people don’t even know what this commission is intended to cover), but you should be realistic about your expectations of selling your home. It will take some time to market and show your home yourself, however, given that our research shows that you’ll spend an average of 21 hours chasing your estate agent when using them, it will be a much more rewarding use of your time. Renting through Gumtree is much quicker than selling, in popular areas flats can be rented in days, but you will still need to spend time speaking to prospective tenants and showing the property. If you are renting the flat you should also make sure you are prepared financially if it takes a couple of weeks to find tenants. cutting out the middle–man Do your sums Selling Valuation is key. While it’s important to sell for the best price you can, you should also avoid too high an asking price. You should also be aware of factors such as stamp duty which will impact what buyers are prepared to pay. of your local Gumtree site to find conveyancers in your area. HIPs Home Information Packs (HIPs) are being introduced gradually: • If your home has three or more bedrooms you must commission a HIP before putting your home on the market • The easiest way to organise this is through your conveyancer • You can put together your own pack - visit www.homeinformationpacks.gov.uk VIY (Value it Yourself) If you do want to value your home yourself the first thing to look at is the price of similar homes in your area. There are now many free sites offering information on sale prices on homes in the UK, e.g. landreg.gov.uk, or you can look at prices currently being asked by local estate agents. For a more accurate price the easiest way to get a free valuation is through an estate agent. It’s a good idea to get three quotes and compare them – don’t just choose the highest price as some estate agents may give unrealistic valuations to win your business. Legal Eagles It’s always best to use a qualified conveyancer as property law can be complicated and cutting corners here may turn out to be a false economy. The Law Society have a database of qualified conveyancers at www.solicitors-online.com where you can find one, or look on the Business Services section for details on how to do this • If you don’t currently need a HIP, all searches will be commissioned by the buyer’s solicitor after a sale has been agreed cutting out the middle–man Do your sums Renting When deciding a price to rent your property for you need to consider: • Repayments - such as a mortgage on the property • Running costs – covering basic maintenance • Buildings insurance • Bills included in the rental price – council tax can add on hundreds of pounds a month Check out your local Gumtree site to find out what similar properties in your area are offered for. While you want to make as much money as you can on your property, the demand for property in your area will limit – or raise – the amount you can charge. “At first the rent I charged on my flat only just covered it’s costs, but as rental prices in the area have risen, I’ve been able to start making a decent profit” Peter, landlord cutting out the middle–man There’s no place like home Selling Keeping your house clean and tidy is the most obvious way to make it more appealing for buyers, but there are some other quick-fixes you might want to consider to show your home at its best. Buyers are looking to make the house their own once they’ve moved in, the more neutral the property is to start with, the easier it is for them to imagine it as their home. Try to see your home through the eyes of potential buyers – ask a friend’s help if you can: • Remove anything which really personalises the house • Cover dramatic paint colours with a quick coat of magnolia • If you’re a smoker, wash curtains and using an odour removing product on fabric furnishings • Do all those little DIY jobs you’ve never got round to like fixing leaky taps or wonky cupboard doors It might be a cliché, but the smell of fresh baking or coffee really makes a house feel like a home, and offering viewers coffee and cakes is the kind of personal touch estate agents just can’t match. “It was nice to be able to tidy round before buyers came round to see the house instead of having to keep the house constantly tidy so estate agents could take people round when they wanted” Alex, seller cutting out the middle–man There’s no place like home Renting Personal tastes vary greatly, so it’s best to opt for neutral colours to give your property the widest appeal. It’s difficult to ensure the property will be tidy if is currently rented, but most flat-hunters will be used to this and are prepared to picture it without someone else’s clutter. There are a few health and safety measures you’ll need to look into before renting your flat: • All gas and electrical appliances will need an annual safety check by a CORGI registered tradesman – you’ll be able to find one of these on your local Gumtree site resistance requirements, and will have a label on it stating that it does • Check out Gumtree’s sales and freebies section to pick up some furniture bargains - you can generally charge more for a furnished than an unfurnished flat, so if you can furnish your flat cheaply it’s worth doing u ove m cutting out the middle–man Draw attention to yourself It’s fairly cheap and easy to advertise in your local paper, with adverts starting from a few pounds, but to add much detail or an image can be expensive. More and more house-hunting is done online these days, and while as an individual you aren’t able to advertise on the major property websites it’s absolutely free to advertise on Gumtree and reach over 4.4 million visitors a month. Because Gumtree is divided into regional sites, you know you’re reaching people looking to live in your area rather than your advert being lost on a national site. X marks the spot If you do want an actual sign to advertise your property For Sale and To Rent posters can be downloaded from www.gumtree.com. There are colour and black and white versions available. Vital statistics Deciding what to include in your advert is mostly straight-forward common sense. If you’re selling your home, chances are you’re also buying one, so think of the information you appreciate when looking at a property and base your advert on this. The basic information on price, size and location should be included – with the Gumtree maps function you can let people know exactly where your property is. cutting out the middle–man Draw attention to yourself Picture perfect While estate agents may make properties sound more attractive than they are, for example, spectacular views often means you’ll be on the 20th floor, they must obey the Estate Agents Act 1979 & Misdescriptions Act. This Act applies to anyone selling a home, and means you must be completely honest when describing your property. As well as being illegal, embellishing the description of your property will prove frustrating for both you and potential buyers - they are likely to be disappointed when they see the property and you will waste time showing your home to people who are unlikely to buy it. Do describe your home as positively as you can, and provide as much information as you can. Key information to include is: - Number of rooms - Room dimensions - Location - Transport links - Local schools - Any other key points like an interesting history or local attraction. “My flat’s location is its best selling point, so it was great to be able to pinpoint it exactly with Gumtree maps rather than just naming the area” Anne, landlady cutting out the middle–man Put on a show Actually showing your home will be the most time-consuming part of the process. Many house-hunters find it difficult to view houses during work hours so being able to show your home in the evenings and at the weekend is a huge advantage. Telephone manners If you can’t always answer your phone while at work it’s worth changing your answer phone message to let people know that if they are calling about the property you’ll get back to them as soon as possible. The top two complaints customers made about estate agents was that they aren’t kept informed and their calls aren’t returned, so start your relationship with house-hunters well by returning calls promptly. “I had to spend some time taking calls from prospective tenants, but I felt much more in control of my renting than constantly chasing agents for updates” Jonathan, landlord cutting out the middle–man Expert tips... Security When arranging viewings, always take down the individual’s name and contact details, including a landline as well as a mobile telephone number and their address. This means you can send them printed particulars, but also that you have a record of whom you are meeting. Email details are also useful for making contact later. Make sure that you call back each individual to confirm the viewing arrangements, but also to check that the details they have given are correct. Ensure that someone knows both the time and location of all viewings and leave a record of the name and contact details of the people you are meeting. cutting out the middle–man Put on a show The grand tour Think about exactly what you will say when showing your home: • Don’t just lead viewers from room to room • Point out interesting features and key selling points • Bring the house to life by talking about how you’ve lived there • Point out changes you’ve made – it will show that you’ve invested in the property • Ask a friend to let you give them a test tour and find out what they think the highlights are Don’t try and gloss over any obvious flaws. If the bathroom obviously needs updating then acknowledge this, allow for this in your asking price and explain that you’ve done this. Time out You should also be prepared to hear negative comments about your home, don’t take them personally. All properties have negative points and as most house-hunters view in pairs they will need to discuss these. Try to allow them some time to themselves at the end of the viewing to talk about the house and think of any questions. If you can address any concerns while they are still in the property you may find it easier to close the deal. “I was surprised to find people selling their own homes, but found that I really appreciated speaking directly to the owner about their property rather than an estate agent” Louisa, Buyer cutting out the middle–man Expert tips... Viewings It is a good idea to let viewers have a wander around by themselves to gather their own thoughts. Most people will want to go away and think about things. It is not always easy to tell whether a buyer is hot or cold, but it is worth asking whether or not they have a property to sell, how long they have been looking, if they have a deadline for finding a property, what other properties they have looked at and the price range they have in mind. It is unlikely that you will receive an offer face to face after a first viewing. If someone is interested they will usually want to come back and take another look, often with someone else. cutting out the middle–man Closing the deal When you do receive offers on your property your negotiation skills will be important in securing the best price for it. As with all buying and selling, people may assume you are asking for a higher price than you expect to receive and are unlikely to offer you the full asking price. Set yourself a firm floor which you won’t consider offers under and stick to this. If an offer is too low then see if you can persuade them to meet you halfway. Selling It may be worth considering offers from first-time and other chainfree buyers as these usually result in an earlier process after a sale is agreed. Remember, you’re saving thousands of pounds of commission so you can afford to be a little flexible on your price. “Talking money was the hardest part of selling my home, but at least both the buyers and me know how the other really felt, rather than having to pass messages through estate agents” Paul, seller cutting out the middle–man Expert tips... Offers Once you receive an offer, ask for it to be made in writing and buy yourself some time to give it consideration, even if the offer is on or near the asking price. Take all offers seriously, even if they are insultingly low, as some people may be making a very low first bid just to test the water, but are willing to pay the asking price, or much closer to it, if they have to. Do not be pressured into a making a decision. If the property is newly on the market, it is a good idea to wait for at least two weeks before accepting any offers in order to assess the level of interest and to improve the chances of getting further interest and competitive bids. If you receive no further offers then you should try and negotiate the first offer to see if you can increase it unless you have set a fixed price and the offer is already at the asking price. If the offer is below the asking price you can try and get them to increase it by setting a level that you would find acceptable and giving them time to revise their offer. You may find that you have to negotiate, either face to face, over the telephone or by email, and the deal you strike will depend on your salesmanship and negotiating skills. cutting out the middle–man Expert tips... Accepting offers If you have interest from more than one potential buyer and receive more than one offer, you will have to keep all parties informed of their position and play for time. Set a deadline for offers and make sure each party is aware whether or not they are the highest bidder, either in writing, by telephone or by email. If there are still two buyers in the running and they are both offering a similar asking and both look good, you can either set a deadline for a best and final offer by sealed bid, delivered to your solicitors, or arrange a telephone auction. If you do decide to go to sealed bids, do not accept the highest offer without first considering the buyer’s position and their ability to go through to exchange of contracts. Are they a cash buyer? Do they have a property to sell? Is the offer subject to survey or any other conditions? Do they need to raise mortgage finance depending on a valuation survey? When are they likely to be able to exchange contracts? You can ask bidders to include this information, and their solicitor’s details, in their offer letter. cutting out the middle–man Finishing touches Selling After the sale has been agreed it’s down to your solicitors to do the hard work, so it’s no more effort than selling your home through an estate agent. All you need to do is: • Send the potential buyer a letter confirming the sale subject to contract – they will need to complete their mortgage, etc • Find out the buyer’s solicitors’ details and forward these on to your solicitor • Be available to let surveyors and any other inspectors the buyer requests in to see the property – even if you have a HIP many mortgage lenders will still carry out a mortgage valuation Your solicitors will notify relevant authorities such as the land registry and put searches in motion. Just complete all paperwork you’re sent as quickly as possible to ensure a quick sale. Stay in regular contact with your solicitor and update the buyer as much as you can and it should be an easy process. The last thing you need to do is hand over the keys when instructed to by your solicitor on completion. “There’s a lot of paperwork involved in selling a house, but I found that selling my house myself didn’t make it any more complicated” Ben, seller cutting out the middle–man Finishing touches Renting Once you’ve found suitable tenants there are a few precautions you should take before they move in: • Ask for references - if they are unable to provide any this probably means they aren’t good tenants • Draw up a reliable inventory especially if the property is furnished. This can be drawn up by you and signed by your tenants or vice versa • Photograph the property in detail so that if any damage is done you can prove it at a later date Finally, it’s usual to ask for a deposit in case of damage or unpaid rent. This is usually between one and two month’s rent, and must be returned to the tenant when they move out, if there is no damage or debt. You should give the tenants a receipt and keep a copy to avoid any dispute when it is returned. cutting out the middle–man Moving on As your moving date approaches you will need to make all the usual arrangements with a removal company – book well in advance, especially if you’re moving on a weekend. Most people also take this opportunity to have a spring-clean and get rid of unwanted goods and furniture. With Gumtree.com you can sell, swap or even giveaway your things. So you could make some muchneeded cash to help with moving costs or if you just can’t take a much-loved but low value item with you, offer it free to a good home through the freebies section. All you need to do now is celebrate your sale! cutting out the middle–man Moving on Conclusion We hope this guide has given you the information you need to sell your home. If you need any more encouragement to cut out the middle man, just think of the money you’ll be saving. ve uo m cutting out the middle–man Save £1000’s the middle man with Gumtree.com by cutting out