How to sell a house: Selling advice as prices fall
Selling a home is never easy, but finding a buyer when prices are falling adds an extra layer of problems to the mix.
With estate agents currently having an average of 66.7 properties on their books, but only making 9.7 sales over the last three months, according to data from the Royal Institution of Chartered Surveyors (Rics), the days of sitting back and waiting for a buyer are gone.
Are sellers forced to slash prices to find a buyers, or there any other ways to secure a deal?
Daniel Barnes goes round the houses and tries to find the best way to sell a property.
Setting the price
The constant cry from estate agents of late is for sellers to be realistic about prices.
With prices dropping and a home on the market for weeks - by the time a deal is secured the market may have moved downwards making your initial fair price seem over-demanding.
However, dropping the price too far can, of course, leave you out of pocket.
In such a market it is near on impossible to know the true value of a property.
Richard Hair, past president of the National Association of Estate Agents and owner of Essex-based Hair & Son, said: "At the moment prices are not falling, but perhaps not in a month's time.
"The plan clearly on a falling market it is important to organise a sale as early as possible.
"If you look at an average property in London at around £300,000, which doesn't buy you much, it is falling £6,000 in one month, which is frightening."
Jon Neale, head of development research at estate agents Knight Frank, explains people are still expecting 2007 prices.
"People tend to overstate the value of their own home. They accept house prices are falling but don't think it affects their home.
"People tend to understate their house price fall."
He explained for those buying for the first time in the last five years it is hard to accept the price drops, but more seasoned homeowners how have seen prices rise and fall before were likely to be more realistic.
"If you have been only used to a rising market, then you have to accept things have changed."
"People have to price at a reasonable level to achieve a sale."
"In a moving market, attention must go to a competitive price in the first place," explains Miles Shipside at Rightmove.
"Prices have to competitive so there is room to negotiate rather than pricing at rock bottom."
"Some buyers will try to knock you down.
"Look around and see what is selling and at what prices. Be blunt with an estate agent and don't accept a price that is pie in the sky."
"And regularly review the price."
"If you have an individual property you can be aggressive with the price, but if it is just run of the mill look to be the cheapest on your street."
He also advises those with something different on the inside of a property - be it a loft conversion, extension or added bathroom - to make sure it stands out with the best interior shots or placing the extra information slip on the sale board.
He also suggests that people work hard on promotion. "Make your property stand out with large adverts. And have lots of interior shots and change them frequently on the website."
Pick the best estate agent
"I think it is very very important in this market to seek advice from an estate agent, and preferably one who has been through it all before - although no-one has really been through a market like this before," says Mr Hair.
"If you go to four different estate agents, you get four different prices. But neither the cheapest nor the highest is the most appropriate.
"Ask the agent for evidence. Firstly they are working on real properties and sales and secondly that they are selling similar properties in your area."
Mr Shipside adds: "Look at who has got the most for sale boards, which has fresh stock and if they present properties well.
"Presentation is critical as your home has to stand out well."
When picking an estate agent, Mr Shipside suggests homeowners turn into a private investigator.
"Look at the quality of their adverts, but do more research. Would you buy a home off them? See if they get back to you when you call. Is the phone always engaged? Are they answering the phone?"
And working with estate agents he suggests providing estate agents with an incentive to sell you property, such as a case of wine, and try to encourage a number of different agents from the same office to look at the property so they know what they are talking about when talking to buyers.
Doll up your home and cut the price
Simply making your home as attractive as possible to make a sale is as important now as ever.
Decluttering and revamping - to the point a good half dozen property TV shows sprung up in the boom - can push your property ahead of the competition.
In the boom it was about push that extra few grand out of the buyer, now it is about making them fall in love with the property to the point the debate is over and they want to buy now.
"If you don't sell after a month, then reorganise a face-to-face meeting with your agent to him to give you fair advice," Mr Hair suggests.
"In a falling market there is an urgent need to find a buyer. If there is no buyer in a month, review the situation with the agent."
He explains at such meetings sellers may have to prepare for estate agents to offer criticism or even being rude - claiming in as many as 25 per cent of properties are failing to make a sale as people are doing their best to sell their properties.
Mr Hair said: "We have had to a bit rude to people about the state of their cupboards or clear driveways. You have to accept a significant part of selling is down to you and how you present the property both externally and internally."
He explains people not making the effort to present their properties well goes back to attitudes tied to a rising market.
"It all goes back to the time when people thought they could sell anything if you gave it to the estate agent. In the present market you have to make an extra effort."
He explained people cannot live in a property in the same way when they are trying to sell it, so the dog can't have free rein, the children can't mess up the garden and the toys have to be put away.
"It makes a very big difference. The price might be right, but you need people to come through the front door."
He explains in the current market it is important for properties to be fresh, and if they appear to be stagnant selling is even harder.
While in a rising market people could get by on sitting back on waiting for a buyer, in the current circumstances more effort is needed, Mr Hair declares.
Mr Shipside, meanwhile, urges regular meetings with the estate agent.
"Have regular meetings with the agent and ask for viewing stats," he advises.
"If people are not looking at the property, it is ugly, overpriced or badly located."
He explains if the property looks ugly improvements and new photos can make a difference or if it is overpriced then you can lower the price.
"If it is badly located, you can't move so you must reduce the price."
Switching agents or more than one
Mr Hair advises against have a line of for sale signs from different agents outside a property.
"Each estate agent, if you have many, will put the property on the same websites and if it is seen a dozen times by buyers they may think something is wrong.
"In this day and age, a single agent is the best route. But make the initial choice carefully.
"And it doesn't help to chop and change estate agents, as you lose continuity and buyers become suspicious.
"Get a good agent first and there will be no need to change."
He advises sellers should have confidence in their agent and not go for the lowest fee and the highest asking price.
"The first three weeks and the most important and you have one chance to be fresh. The first weeks are vital."
He added by choosing a NAEA member, there will be added security as they will meet certain professional standards and meet a strict code of conduct.
Hips
Home information packs - a bête noir for many in the property industry - are now obligatory for any property going onto the market.
Mr Hair is seeing reports from his area - Essex - of Hips slowing the property market.
"People are being put off from putting their properties on the market.
"The supply of properties has definitely slowed and April is usually a good time for new properties to come onto the market."
He added the only possible good news coming from Hips was the possibility that it the Conservative party wins the next election they stated their intention to scrap the packs.
However, Hips do have their benefits for sellers, claims Mike Ockenden, director general of Ahipp.
Mr Ockenden explains: "The first thing is that buyers should have a Hip with a Hip code logo on. This guarantees standards and that providers have professional indemnity insurance."
He added the inclusion of the Property Information Questionnaire (PIQ) in Hips also speeds up the completion of a deal down to 28 days.
The PIQ provides details upfront, and Mr Ockenden explains this stops more deals from falling through.
He adds those against Hips are now becoming a "Luddite splinter" as more and more people are converted to the benefits.
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