There are a lot more options for selling your house than there used to be. The traditional route of finding a buyer through an estate agent is no longer the only way to offload your property. Whether you’re looking for a quick sale, hoping to avoid hefty fees, or seeking alternative buyers, it’s important to know what your options are and the pros and cons of each. Below, we explore several methods, including selling to the council, using estate agents, working with house buying companies, and opting for upfront fee agents like Purplebricks.
Will the council buy houses?
Selling your house to the local council might not be the first option that springs to mind, but it’s worth exploring if you’re looking to sell quickly and with minimal fuss. Whether your local council is currently looking to buy property will depend upon their specific circumstances.
One scenario is if your home is part of a regeneration area where the council is acquiring properties to redevelop or improve the area. In such cases, the council might make an offer to buy your property, often at market value, sometimes with added incentives to assist with relocation costs.
Another situation where the council may buy properties is through schemes aimed at increasing affordable housing. Some councils purchase homes to add to their social housing stock, particularly if the property is suitable for conversion or if it’s in an area with high demand for council housing. Selling to the council is not a straightforward process. Your home would need to meet specific criteria, and the process can be lengthy.
Buyers via an estate agent
Selling on the open market is the traditional route most homeowners take and still one of the most popular options for selling a house. This involves listing your property with an estate agent, marketing it to potential buyers, and negotiating a sale. The good thing about selling on the open market is that it opens your property up to multiple offers, which can drive up the final selling price.
Your property will be visible to a wide audience, increasing the chances of finding a buyer who is willing to pay your asking price. You have more control over the selling process, including setting the asking price, choosing the buyer, and negotiating terms.
However, selling on the open market can take several months. The process of finding a buyer, negotiating, and completing the sale is often lengthy. Property prices can also be unpredictable, and there’s no guarantee that you’ll sell your house quickly or for the price you want.
The process can be uncertain, especially if you encounter issues like a buyer pulling out, which can cause delays and frustration.
Selling to a house buying company
An alternative option is selling your house to a house buying company, sometimes known as a cash buyer or property buying company. These companies purchase properties directly from homeowners, often for cash and at a faster pace than the open market.
House buying companies specialise in quick sales. This is ideal if you need to sell your house quickly, perhaps due to financial difficulties, a need to relocate, or to avoid repossession. The price paid however will likely not be as much as it would be selling on the open market.
Once you agree to a sale, the process is usually straightforward with fewer risks of the buyer backing out. Since these companies typically buy in cash, you avoid delays associated with mortgage approvals. These companies often buy properties in any condition, so there’s no need for repairs or extensive preparations.
House buying companies often pay less than market value, typically around 75% to 85% of the property’s open market value. This is the trade off for the speed and convenience they offer.
Making the decision
Deciding between selling on the open market or to a house buying company depends on your priorities. If achieving the highest possible price is your main goal and you have time on your side, selling on the open market would be the better option. However, if speed and certainty are more important, particularly if you’re facing a tight deadline, selling to a house buying company could be the ideal solution.
In some cases, sellers opt to explore both options simultaneously. For instance, you might list your property on the open market while also obtaining offers from house buying companies. This strategy can provide you with a fall back option if a quick sale becomes necessary.
Finding a buyer
Once your house is on the market, the next step is finding a buyer. The time it takes to find a buyer can vary widely based on market conditions, the desirability of your property, and your asking price
Average time to find a buyer
In the UK, the average time to find a buyer is approximately 8 to 12 weeks. However, this can fluctuate depending on location, property type, and market demand. In a seller’s market, where demand outstrips supply, properties can sell within days or weeks. In a buyer’s market, it can take several months to secure a buyer.
Marketing your property effectively
Effective marketing is key to finding a buyer quickly. This involves more than just listing your property online. Your estate agent should proactively promote your home, arranging viewings, hosting open houses, and leveraging their network to find potential buyers.
Things that hold up a sale
While it’s possible to find a buyer relatively quickly, the process of actually completing the sale can be fraught with delays. Several common sticking points can slow down the sale process.
Mortgage approvals
One of the most common delays in the house selling process is securing a mortgage. Buyers often need to wait for their lender to approve their mortgage application, which can take several weeks. Delays can occur if the buyer’s financial situation changes, if there are issues with the property valuation, or if the lender requires additional documentation.
Legal issues
The legal process of transferring ownership, known as conveyancing, can also cause delays. This includes searches, surveys, and contract negotiations. If there are issues with the property title, boundary disputes, or if the property is leasehold, these can further complicate the process.
Property chains
Another significant factor that can hold up a sale is being part of a property chain. A chain occurs when multiple transactions are dependent on each other, so that if one sale collapses it can impact the entire chain. Chains can be notoriously difficult to manage, and delays are common.
Survey results
Buyers typically commission a survey to assess the condition of the property. If the survey reveals significant issues, such as structural problems, damp, or outdated wiring, the buyer may request repairs, renegotiate the price, or, in some cases, withdraw their offer. Addressing potential issues before listing your home can prevent this from becoming a stumbling block. In Scotland it is a legal requirement to prepare a home report which includes a survey. In the rest of the UK there is no such requirement meaning that multiple sellers will each need to pay for their own survey.
Things that speed up a sale
While several factors can delay a house sale, there are steps you can take to speed up the process:
Consider a cash buyer
Selling to a cash buyer can significantly speed up the sale process. Cash buyers don’t need a mortgage, which eliminates the risk of delays due to financing issues. Cash sales can often be completed within a matter of weeks but cash buyers may expect a discount in exchange for the quick sale.
Be flexible with viewings
To attract more buyers, be as flexible as possible with viewings. Allow potential buyers to visit at different times of the day, including evenings and weekends. The more people who view your property, the higher the chances of receiving offers quickly.
Instruct a good conveyancer early
As mentioned earlier, conveyancing can be a major source of delays. By instructing a reliable conveyancer as soon as you decide to sell, you can start the legal process early. This ensures that when you do find a buyer, much of the paperwork is already in order, potentially shaving weeks off the timeline.
Negotiate the chain
If possible, try to break the chain. This could involve selling to a first time buyer or a cash buyer who isn’t reliant on selling another property. Alternatively, you could move into temporary accommodation after selling, allowing you to break free from the chain and reducing the risk of delays.
Be realistic and open to negotiation
If you receive an offer that is slightly below your asking price but within an acceptable range, consider accepting it rather than holding out for a better offer that might never come. The longer your property remains on the market, the more likely it is to become stagnant, which can further delay the sale.
House not selling fast enough?
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