The selling process
What you need to do to get a good price for your home.
Click on the links below for more information:
- First steps: have your property valued
- Top tips: appointing a selling agent
- Setting the price
- Offers over vs offers around
- Setting a closing date
- Accepting an offer
- The conveyancing process - missives
- Repaying your mortgage(s)
- All contracts signed by us are binding
- Settlement day
Looking for a free market appraisal? If so click here and one of our advisers will get in touch.
First Steps
Before you can decide about your next move you will need to establish how much you are likely to get for your existing property. The easiest way to find that out is to arrange to have your property valued without obligation by Hunters Residential.
Many sellers will invite more than one estate agent to value your property. We are not afraid of opposition! All we would suggest is that you choose your agent by comparing service levels. Often the temptation is to choose the cheapest agent or the one who provides you with the highest valuation, however you should ask yourself whether you would rather save a few pounds or be assured of a greater chance of selling your property.
When our valuer calls make sure that you ask as many questions as you can - only then will you get a real feel for the quality of the service that you are likely to get.
To arrange for a "no obligation" valuation of your property click here
Top tips for appointing your selling agent
Here are a list of 13 critical questions you should be asking your prospective selling agent. How many boxes can your proposed agent tick?
- Will you provide me with the direct dial number of the Partner in charge of the estate agency in case I need to make contact?
- Will your valuer provide me with a full detailed marketing plan, including a quotation of fees, rather than simply tell me how much he thinks I am likely to get for my property and how much he will charge?
- Can you also arrange for the negotiator who is handling my case to visit my property so that she can accurately answer any queries raised by purchasers?
- Will I be provided with a dedicated sales negotiator and will that negotiator attempt to contact every viewer so that we can get relevant feedback?
- Is the negotiator who will be handling my case experienced in estate agency work?
- Does your firm have a Buyers Register so that they can immediately match our property with potential buyers and if so, are you happy for me to see it?
- Can you arrange to cover viewing appointments for me if I am unavailable or simply don't wish to deal with them myself?
- Can you advertise our property in the ESPC and GSPC websites unlike real estate agents who are not permitted to do so, and do you have your own web-site to advertise my property on?
- Can you provide different styles of quality Sales Particulars for me to choose from and does every set of Particulars include both a floor plan and location plan?
- Does your estate agency team have regular stock meetings when the staff can discuss the progress of every case and, if necessary, agree a new marketing strategy?
- Is your main property office open 6 days a week or do you just work between 9-5 Monday to Friday?
- Do you have your own independent mortgage consultant so that I don't need to go elsewhere to find appropriate finance if I also intend to purchase property?
- Do you have an experienced team of residential conveyancers to handle the legal part of the transaction?
No need to ask how Hunters Residential performed in that particular test - we tick every box and our aim is to you exceed your expectations every step of the way.
Setting the Price
Setting the right asking price is crucial to a successful sale. Too low and you may attract the wrong buyers who may have lower expectations of the price than you are hoping to achieve. Too high and you may put off potential purchasers.
To a great extent your asking price will be dictated by the Valuation figure shown on the last page of your Home Report. It is almost unheard of to advertise your property at an asking price in excess of the Home Report valuation and frequently the price is set somewhere slightly below that figure. There is not a right or a wrong way to set your price. It is something that you need to discuss and agree with your selling agent.
The next question is whether to market the property at Offers Over or Offers Around a stated figure or at at Fixed Price.
Offers over vs Offers Around
What is the difference between "Offers Over" and "Offers Around" a certain figure? In practice we have found that there is little or no difference. When the market was at its peak sellers advertised their property at Offers Over a certain figure and fully expected to receive offers well in excess of that asking price. In a slower market however we have found that the asking price is being seen more as a "guide price" and frequently the first offer that you receive will be some way below that price. That is why it is critical that you seek advice from a solicitor who is experienced in the market.
Frequently sellers will choose to advertise at a Fixed Price and this is an indication that they will accept the first offer in reasonable standard terms at that price. In years gone by a fixed price indicated that there might be a problem with the property but nowadays it is a perfectly legitimate marketing tool. However in the current slower market as buoyant as we have seen in the Edinburgh area a fixed price might eliminate the chance of receiving the proverbial "offer that you can't refuse".
ESPC figures are showing that less than 1 in 4 properties advertised at a Fixed Price are actually achieving that price so it is essential that you speak to our advisors and they will talk you through this important decision.
Setting a Closing Date
If a number of potential buyers note an interest in your property it is likely that we will advise you to set a Closing Date i.e. a date and time for those parties to submit a formal written offer through their solicitor.
The timing of a Closing Date is crucial. Leave it too long and you may lose some of the early notes - they may have found something else in the meantime or simply lost interest if they feel it has dragged on too long. Set it too quickly and you may be denying people the chance to see your property. That is where our experience will be of crucial importance. Our negotiators are used to dealing with this situation day in and day out and will be happy to provide advice.
Remember that at the Closing Date you are not obliged to accept the highest or indeed any offer. We are however governed by the Law Society of Scotland and they have issued Guidelines that we have to adhere to. These apply to all offers received whether at a Closing Date or not. If you instruct us to proceed with acceptance of an offer then we cannot afterwards negotiate or conclude a deal with another party unless and until the negotiations with the first party have fallen through.
If you instruct us to set a Closing Date we cannot then cancel that Closing Date and accept another offer in advance of that Date unless we bring that Date forward and offer all interested parties a reasonable opportunity to offer. If either of these situations do arise then we would, in accordance with the Law Society Guidelines, be required to withdraw from acting on your behalf.
Accepting an Offer
At the Closing Date we will ask that you make yourself available so that we can advise you of offers received and then take your instructions on which, if any, of the offers you are inclined to accept. We will, on your behalf, go back to the solicitors acting on behalf of the successful purchaser to negotiate better terms if you so wish e.g. a longer date of entry and once those negotiations have been concluded we will ensure that the file with all relevant documentation is passed quickly to our conveyancing team or to the solicitor of your choice.
The Conveyancing Process - Missives
Within 24-48 hours of receiving a written letter of acceptance to an offer for your property we shall contact you to take your instructions and prepare the formal letter of acceptance and take your further instructions. We shall then respond to the letter of acceptance, either (but unusually) accepting all of the conditions in the offer or sending including some qualifications of the conditions contained in it. These letters between us and the Seller's Purchaser's solicitor constitute the contract and are called "missives" and they normally comprise:
- the offer issued received by us on your behalf
- an acceptance or a qualified acceptance issued by the Seller's solicitor on your behalf (a qualified acceptance is a letter accepting our offer but subject to certain amendments or qualifications being made to it); and
- usually, one or more additional letters until both sides are in agreement.
When an offer (or an acceptance that is subject to qualifications) is accepted without qualification, a binding contract is in place.
This is often referred to as a "concluded contract" or "concluded missives" and only once this stage has been reached is there a binding contract. Prior to that point either party can pull out of the deal without penalty.
Repaying your mortgage(s)
As soon as missives are concluded we will ask your Lender(s) to
confirm the exact amount required to clear your mortgage
account(s). We will send you a copy of their response. You should
check the figure stated against your own records to make sure it is
correct. Let us know if you think it is incorrect. If necessary, we
will obtain an updated statement just before the entry date.
We will pay the amount required to clear the mortgage direct to
your lender from the sale price.
You should continue to make your monthly payments to your lender and also the payments for any related life assurance policies until we have confirmed to you that the mortgage has been repaid.
Do not cancel any life assurance policies without taking
professional advice.
We will also prepare the document discharging the security over the
property and have this signed by your lender and registered.
All contract letters are signed by us but are binding on you
In Scotland, solicitors sign the contract letters or missives on behalf of their clients but only after taking instructions, normally verbally, from their clients. Please remember this when you tell us to make an offer or to accept any of the subsequent contract letters. We sign the offer and acceptance letters as agents on your behalf and they are then binding on you even although you have not.
Settlement Day
We shall require to obtain at least one set of keys from you prior to the date of entry, which is known as the 'settlement date'. We shall send the keys, the signed Disposition and other relevant papers to the purchasers' solicitors, in exchange for payment of price, which is usually made by a cheque drawn on the account of the purchasing solicitor.
The cheque is made out in our favour and we pay it into our account. We have to wait until the cheque has cleared, which takes three working days, before we can repay your mortgage or send the balance of the price after the repayment of the loan and deduction of the fees and outlays (payments to others in connection with the sale e.g. the reports to the Registrars) to your bank account. We shall prepare our Cash Account and fee note and send these to you to show how the net balance of the sale price is worked out.
To arrange a free market appraisal click here, or call us 0131-447-4747.
