We guide you through the selling process, from deciding to put your property on the market through to settlement day.
Essential steps to a successful sale
1. Decide when to sell
Putting your property on the market at the right time is crucial, so seek advice from an estate agent or a solicitor who sells property.
2. Decide how to sell
You can choose to market your property:Through Tepilo - for free!
Through a solicitor - He or she will provide a full estate agency service and register your property with the local solicitors' property centre. In addition to a conveyancing fee, you will have to pay a selling commission (a percentage of the sale price), though many solicitors now charge a single percentage to cover both selling and conveyancing Through an estate agent - Before instructing an agent, ascertain rates of commission and what they include Privately - If you plan to do this, be sure you understand what is involved and how much time you will have to commit
3. Choose a solicitor
Whichever method you use to sell your property, a solicitor will need to be involved at the conveyancing stage.
You may already have a legal adviser experienced in this type of work. If so, you should warn him or her in advance that you are putting your property on the market. Events can move quickly once you accept an offer (a binding contract sometimes follows in as little as a few days), so he or she will need an opportunity beforehand of inspecting your title deeds (which will be borrowed from your lender if you have a mortgage) and requesting searches to confirm that the property is not affected by any local authority notices, orders or proposals.
If you do not already have a solicitor, personal recommendation is often the best way of finding one, so ask around.
Before entering into any agreement, obtain a written estimate of fees and costs, ensuring that you explain clearly on what basis you wish the solicitor to act for you.
4. Set a price
Although, in some circumstances (for example, if a quick sale is required), a property may be offered at a fixed price, it is usual to quote an ‘offers over' (or ‘upset') price. This will normally be the minimum the seller is prepared to accept. However, bearing in mind that prospective purchasers frequently offer more than the asking price, you may decide to quote a price below your minimum.
The amount by which offers may exceed the ‘offers over' price will vary according to the type of property, the location, and current market conditions. If you are selling through a solicitor or estate agent, he or she will advise you on both the price you should ask and the price you can expect to achieve.
The sale process
Once you've done all this - and ensured your property is looking its best, inside and out - you're ready to go on the market:
1. Noting interest
You may get an idea of whether or not people are seriously interested when they come to view. However, this is not always the case; sometimes, the first indication that an offer is on its way may be a phone call your solicitor/estate agent receives from another solicitor saying that he or she has a client who is interested in buying your property.
If you are selling privately, potential purchasers will notify you direct of their interest.
2. Surveys
In most cases, those who have expressed interest will then ask their solicitors to organise surveys. You will need to arrange for the surveyors to have access to the property.Only properties for sale prior to the launch of Home Reports that are for sale without one will require a survey, that is unless the mortgage company asks for one if the Home Report is older than 3 months.
3. Receiving offers
If the survey results are satisfactory, offers are likely to follow. Should several potential purchasers express an interest, it is customary to ask everyone whose interest has been noted to submit formal written offers to your solicitor/estate agent, through their solicitors, by a specified date and time. If you are selling privately, offers should be lodged with your solicitor.
Your solicitor/estate agent will advise you whether to fix a closing date, and, if so, when it should be. Where there is competition, you may achieve a higher price if you bide your time.
When the closing date arrives, you and your solicitor/estate agent will have to decide which offer to accept. You are not obliged to choose the highest offer, or indeed any offer. Particularly if offers are close, you may wish to take account of other factors, such as the proposed date of entry, how much is being offered for extras, and so on. If the price is acceptable but other conditions are not, your solicitor/estate agent will negotiate with the solicitor of the person making the offer.
4. Concluding the missives
If you are selling through an estate agent, he or she will forward to your solicitor the offer that is to be accepted. Your solicitor will send a qualified acceptance to the purchaser's solicitor, pending adjustments to points of detail. Neither side is legally bound at this stage.
Once all details have been negotiated and finalised, the two solicitors will exchange letters. You and the purchaser are now legally committed.
5. Settlement
When the missives are concluded, your solicitor will undertake further legal formalities, including:
Sending the property's title deeds to the purchaser's solicitor, so that he or she can examine them and prepare the disposition (transfer document) Answering any questions raised by the purchaser's solicitor, and adjusting the terms of the disposition if necessary Liaising with your mortgage lender, obtaining a redemption statement (which shows the sum to be repaid on completion of the sale), and preparing the discharge document Organising searches of the Registers of Scotland, to demonstrate that there are no adverse entries in respect of the property or your title Arranging for you to sign the dispositionOn settlement day, your solicitor will send the disposition and other documents to the purchaser's solicitor, receiving the purchase money in return. After repaying any outstanding mortgage and/or other loans, and deducting his fees and other costs, he will pay you the balance of the sale proceeds.
Congratulations - your sale is now complete! Bring out the bubbly.
With thanks to BuyAssociation.
