What are the steps of selling your home?
Firstly, you want to get an estimate of how much your home is worth. You must be aware of this because you will be incurring a cost when selling your home. Once the mortgage on your home is paid off, you will have to settle this cost against the amount of remaining sale proceeds.
You should speak to your lender and check your mortgage paperwork whether you have to pay an early repayment charge.
Keep in mind that this is an early stage. Therefore, the figures given to you will only be an estimate.
Do you have a property in mind which you want to move into? At this stage you should plan out the expenses you will be incurring in purchasing your new home and how that will be financed.
Click here to get a better idea regarding the cost of selling your home.
Should you rent your next home instead of buying?
The cost you will be incurring will be decreased should you decide to rent for a while. This will put you in a position where you can make better decisions.
If you are going to be renting next, you do not have to compromise on your sale price because you will not be under any pressure to complete the sale of your next home.
If you decide to rent while selling your home, you will be a more attractive buyer because there wouldn't be any property chains.
Additionally, you can also sell your home before you buy a new one. Conversely, you can decide to buy your new home and sell the existing one simultaneously.
Hire an estate agent
It would be best if you used a local estate agent or an online estate agent to help you manage your property's sale.
It would help if you made a comparison between the local estate agents based on a review of their services, specifically with regards to how quick are they to sell and can they achieve the asking price.
Further, you should carefully read the contracts and ensure you understand its terms.
Obtain an Energy Performance Certificate
Energy Performance Certificate is a document that provides information regarding the property's energy consumption, and it ranks them in a category from A - G.
You will be required to provide it to potential buyers when you sell your home.
How much do you want to sell your house for?
Do you already have a figure in mind? While you may desire to sell your home for your desired price, it will help if you carry out research and get to know the market prices.
Buyers may ask you for a discounted price. You may want to add 5% to 10% to the sale price to cater for this.
Prepare your home for viewings
It is pertinent that your house is staged correctly. It would help if you tidied the place up, fix up the paint or any other thing that requires fixing. This will not only increase the value of your home but will also result in a faster sale.
Hire a conveyancer
Now you to hire a conveyancer who will carry out the legal and administrative of selling your house on your behalf.
More precisely, you need to decide if you want to hire a solicitor or a licensed conveyance.
Shop around to find a conveyancer who is providing the best services in your budget.
Accepting an offer and negotiating the deal
Your estate agent will pass on all the offers on the property to you. You can ask the estate agent to negotiate the price on your behalf.
You have to formally accept an offer to proceed further with the conveyancing process.
However, parties are not legally bound till the exchange of contracts has taken place.
You may also have to negotiate with the buyer, depending on how the survey turns out.
What fixtures and fitting will be included in the deal and how much will the buyer pay for them.
Exchange the contracts
By exchanging contracts, you will become legally bound to sell the property to the buyer. The buyer will submit a deposit with you simultaneously with the exchange of contracts.
If you back out of the deal after this point, the deposit will be returned to the buyer, and you may even have to pay significant penalties.
Once the contracts have been exchanged, you are responsible for maintaining the house until the sale is complete. Therefore, make sure that you have home insurance.
Completion means the day agreed between the parties for the sale to take place and when the remainder of the sale proceeds will be given to you.
Your conveyancer will register the transfer of ownership of the property with the Land Registry.
Paying off the mortgage and settle up with the conveyancer and estate agent
Your mortgage lender will have given you a precise redemption figure for your mortgage. The sale proceeds on completion, will firstly, be used to pay off the mortgage.
After that, you will have to pay the conveyancer and the estate agent.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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