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The best way of Marketing and Selling Property continued
By arlene | April 3, 2009
Methods of selling Property
As mentioned earlier, in the case of conversion into flats it is sometimes possible to finish one flat in advance of the others and sell it, even though the rest of the flats are far from finished. A prospective buyer may exchange contracts subject to completion, which will normally entitle you to a 10 per cent deposit. An inflow of cash at this stage of the renovation is not to be sneezed at, and if buyers are that anxious for your flats it proves that you have chosen your area and layout well.
Once your property is finished you will want to sell it as quickly as possible. A property sitting on the market for any length of time will cost you money in the form of bank interest and deterioration. So before the work is completely finished you must decide how to sell— or market— your property.
There are various choices open to you, and these are:
- Selling to friends
This is a satisfactory way to sell as you avoid advertising and estate agents‘ fees.
National newspapers, local papers and property magazines are relatively cheap forms of advertising and it is well worth trying this form of advertising before any other. The big Sunday papers bring in the best response.
- Computer selling
For a fixed fee (based on the selling price) they will circulate details of your property to people interested in that type of dwelling, for as long as necessary.
- Property shops
You put a card in their window with property details. Good value for money, but reaches fewer people.
‘For sale‘ board As well as advertising elsewhere, you can erect your own ‘for sale‘ board outside the property. You can put on it as much detail as youlike about the accommodation, and you can also include the price— something that estate agents‘ boards don’t often do.
It’s worth mentioning here that, due to public outcry about the environmental mess caused by the proliferation of estate agents‘ boards, new legislation is due to come into force to reduce the size of the boards from the present 2 square metres down to 0.5 square metres (approx 700 mm x 700 mm).
Current legislation already restricts the number of boards to one per unit, and in some areas boards are not allowed at all. Any local authority wishing to implement this legislation can apply to the Department of the Environment for permission.
These are not the best places to sell renovated property. Auctions are better for selling cheap unmortgageable properties.
Last but not least. Definitely the best way to tap the largest possible market in the shortest possible time is to put your property with several estate agents (not just one). They are obviously very experienced in selling property quickly.
The drawback with using estate agents is, of course, the large fee that they require to sell your property. You can pay as much as 3 per cent of the selling price. This means that on the sale of three flats at £60,000 each you would pay £5400 in agents‘ fees, and that is a large slice out of your profits, so if you can sell by other means—do so.
Freeholds/Leaseholds
When putting your property up for sale, you will have to decide whether or not to sell the freehold.
If you wish to keep the freehold yourself it means selling your property on a lease; the length of the lease then has to be decided. It ought not to be less than 99 years. By keeping the freehold yourself the value of the property will be reduced, and you will be responsible for collecting ground rent and possibly liable for some of the general upkeep of the property. It is generally better, therefore, to include the freehold in the sale of the property.
In the case of a single property, renovation of a house for example, this is easily done.
In a flats conversion it is not quite so straightforward. Leases are normally granted on each flat and then someone has to own the freehold. This someone could be yourself, or one of the leaseholders, or all leaseholders could jointly own the freehold. Your solicitor will advise when drawing up the leases, and in consultation with the buyers and yourself.
In our opinion it is better for you that the freehold is sold with the property.
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