How do I sell my house quickly for a good price?
You’ve heard the phrase; ‘time is money’. If you want something doing quickly, then there’s usually a premium to pay. Selling your house fast and getting the best price is no different. Property buyers (typical, first time, cash or investment buyers) expect a discount. Therefore you need to accept that you’ll get less when selling a property quickly.
There are several ways to sell a house fast at a good price, but there is no consistency as to how much you will receive, whichever method you decide to use to sell your home.
Selling quickly through Estate Agents
Using an Estate Agents isn’t always the best way to secure a quick sale as the majority of prospective buyers who use estate agents aren’t usually in the position to complete a purchase quickly. Estate Agents attract first-time and repeat buyers as well as professional investors and amateur buy-to-let landlords. There is a general scale of how much they’ll pay and how fast they’ll buy your home, but this varies according to market conditions.
Estate Agents – Types of buyers and selling timescales
- First-time buyers. When selling via an Estate Agent, it’s unlikely you will receive 100% market value even when selling your home to a first-time buyer, because many people will expect to negotiate and agree on some price reduction, however small. Again as above, this depends on whether it’s a buyer or seller market (supply & demand). A first-time buyer will buy in a reasonably quick timeframe as they have no complicated chains, although, often strapped for cash, any ‘down valuation’ of your home, may see them asking you to reduce the price further. Estimated selling timescale three to six months.
- Second-time buyers or homeowners dependent on the sale of property to purchase another. These type of purchasers are probably the most problematic regarding the timescale involved in selling your home. Often the purchase of your home is dependent on the sale of another or several sales. Often the chains will break, and your buyer may back out altogether. These sales can drag on for many months or even years in some unfortunate cases. Estimated selling timescale three to eight months.
- Investors. Most High St Estate Agents will have built up relationships with reliable local & national investors who have purchased properties from the agent over a period. These will be reliable in the sense that once they agree to buy a property, then they won’t usually back out. These investors will complete a purchase within two months but will expect a discount in return for buying quickly. Investors typically use borrowed money, i.e., they have an agreed line of credit with the bank (overdraft facility). Often investors are buying to rent out; therefore they are less interested in cosmetics or saleability. What matters is how much rent generated as a percentage of the price of the house including any repairs.
- Cash buyers. Buyers with money in the bank do not need to sell a property to buy another; these are the best type of customers you could want. However, cash comes at a price, and they’ll know that. Expect cash buyers to want to negotiate the best possible price for your home. Cash buyers can complete in weeks, not months, but again the proviso is they can still change their mind at the last minute, and surveys can throw up further delays. Estimated selling timescale two to three months. There is no particular profile for cash buyers; they can be professional investors, amateur buy-to-let individuals, someone who has inherited money or sold a property and has ‘cash in the bank’. Again these type of buyers will expect a discount of sorts.
Selling via an Estate Agent doesn’t always guarantee a quick sale at the best price. You need to understand the type of buyer bidding on your property, each comes with a risk factor of how much they’ll offer, the likelihood of them pulling out of the purchase or reducing their offer at the last minute. The skill of a good local estate agent comes into play in assessing the variables of price, selling timescale, buyers status and reliability.
Selling fast to professional property buyers
Professional property buyers. This category of a is usually a company who have done this for years. Their business model is to generate leads from newspapers, maybe sometimes Estate Agents and online from specialised websites. They have a model from which they will adhere, i.e., offering a fixed percentage of a property’s value, usually between 70% and 85%. These buyers agree on a sale in 24/48 hours and then complete the purchase in anything from 7 days to 6 weeks.
Are there any steps that I should take before check out the various ways to sell my home?
How to sell a house quickly for a good price is very subjective. What is a ‘good price’ for some sellers will be unacceptable for others?
Before considering the different ways how to sell your home, do some homework.
- How much do you need to get from selling your home?
- What’s your desired selling timescale?
- What value do you put on any external factors forcing your hand, i.e., job relocation, separation, creditors pressing, etc.
- Do you need to factor in any reduction in mortgage payments when selling, as this is part of the money you spend during the time your home is on the market?
- Is your home saleable, will it attract a buyer, are there any cost effective ‘quick win’ improvements to make it worth more and sell faster? An investment of a few hundred pounds may increase the value by several thousand.
Then do some basic research into the value of your home, the local housing market and gather up some data.
- How much are houses similar to yours selling for in your town? Check this using Rightmove and Zoopla.
- What is demand like for your type of property, semi, detached or terrace? Call a couple of local estate agents and get some feedback, then ask them out to give you a free valuation.
- Check the value of your home for free using online property valuation tools.
- Complete a few quotation requests from online cash property buyers (like Flying Homes).
Armed with all of the above, you should now be able to whittle everything down to several options to consider in more detail!
There is no easy answer, selling property quickly for a satisfactory price is fraught with complications and the nuances of the housing market!