When is the right time?
- Generally, the market tends to be stronger in the spring and then picks up again in the late summer and early autumn. Your property will obviously sell quicker when the market is strong, and demand is high. Therefore, keep an eye on the property market and time your sale well.
- House sales are also affected by interest rates. Few people are willing to take out a mortgage when the Bank of England has voiced intentions of raising interest rates.
Look out for what is happening in your local area. Ask Estate Agents what they are selling and what has the greatest demand in the local marketplace and search online property transaction databases for sales in your area.
- If you are looking to buy a new home as well as selling your own home, it is recommended that you put your house up for sale before you start looking for new properties. Some buyers even wait until they have had an offer made on their property before they start looking. You will then be able to time the process much better because you will have an idea how quickly you can sell, and you can estimate the price your new home can be.
Negotiate the right price
Your negotiating power as the seller will be affected by the following factors:
- Amount of interest in your property – if offers are flooding in, you can pick and choose as you wish, however if your property has been on the market for some time with no real interest, the weaker your negotiating position as a seller.
- Current market conditions – if demand exceeds supply, then you can expect to receive a favourable price for your home. However, if the market is slow, you will not have the same negotiating power.
- Condition of the property – you will find it harder to negotiate if repair work is needed on your property.
- Time pressure – the tighter your time scale to move, the weaker your position in negotiations.
- Sentiment – selling your home can be a very emotional time but you are selling it, so try to keep your emotions out of negotiations.
The negotiating power of the buyer will be affected by the following factors:
- Chain or no chain – buyers who are not involved in a chain are in a better negotiating position to those who are. Look for those who are:
- First time buyers.
- In-between homes (might be renting now).
- Buying with cash.
- Investing (this won’t be their residence).
- Mortgage status – buyers whose mortgages have been pre-approved will be a better position than those who must wait for the paperwork to be processed.
- Time Pressure – as with the seller, the tighter your time scale to move, the weaker their position in negotiations.
The Role of the estate agent as your negotiator
- The estate agent works for the seller and they will try and get the highest possible price from the best buyer for your property. We have all seen Phil & Kirsty on ‘Location, Location, Location’ trying to negotiate the best deal for the buyers, a good estate agent will equally do the same for their client.
- They will know the condition of the market in their local area and the features of properties that make them more attractive to buyers.
- Knowing their local market well, they should also be able to identify key factors in the local area that potential buyers may be looking for, such as local schools and transport links.