Across the country, every day sees 193 repossession claims and 153 repossession orders issued. CEO of Credit Action, Michelle Highman, believes these statistics serve to highlight the depth of the financial difficulties facing the population and serve to underline the vulnerability of ordinary people in the current downturn. Ms Highman, who previously worked at the Financial Services Authority and the Personal Investment Authority, recommends the charity’s Spendometer tool, which has already helped over 40,000 to:

• Set budget limits
• See their ‘spending speed’ – how much, money has been spent so far in a given week or month
• Log spending in under 10 seconds;
• Set a special “going out” function to help to limit overspending on a night out.

If you find yourself struggling with mortgage arrears, of course, there’s not much comfort to be found in these statistics – the fact that you are not alone in your difficulties doesn’t make those difficulties go away!  However, there are lots of companies in the UK – online as well as on the high street – that have been set up specifically to help.  There are also plenty of buyers around looking for quick property sales, for redevelopment or to rent back to the current house owner – even if you eventually decide not to go down this route, it’s certainly worth investigating.  However, before you begin your investigations, you need to find out the correct market value of your home – not an estate agent’s inflated opinion but the true value according to the Royal Institution of Chartered Surveyors (RICS).

There is no point in sugar coating the depth of the current economic gloom – times are tough and likely to get tougher – but if you arm yourself with good information and investigate the tools available to help you will be prepared for whatever 2012 might bring.

Every 14 minutes a property is repossessed

However, an even more sobering fact is that this figure, dramatic as it is, does not paint the true picture.

Currently record low interest rates of 0.5% are keeping mortgage payments down; even so, many homeowners are having to ‘cook the books’ in order to keep up with their repayments. Some people are only managing to keep the roof over their heads by using redundancy payments or even credit cards to make their monthly mortgage repayments – what will happen to these folk if interest rates rise or their partner is made redundant?

Property repossession statistics are compiled by the Council of Mortgage Lenders (CML), but there are some home losses that are not recorded:

Sale and Rent Back Schemes

These are the schemes that effectively allow the homeowner to avoid repossession by becoming a tenant. Their house is purchased by an investor, who then rents it back to the previous mortgagee. These properties don’t appear in the figures, yet they have been ‘possessed’ by somebody other than the original owner.

The Office of Fair Trading (OFT) estimate that over the past few years around 50,000 homes have been sold for rent back and they also estimate that over 25,000 of these were in 2008 alone.

Second and Third Charge Holders

When a borrower defaults on a mortgage, there is a hierarchy of people who must be paid back from the proceeds; the CML collects statistics relating to first charge holders only (i.e. those who must be paid back first). They do not collect data relating to second charges. If a homeowner has taken out a secured loan using his property as the security, the loan company would have second charge on the property – or even third if more than one secured loan has been taken out. So, if somebody has paid off their mortgage but then defaults on a secured loan and has their home repossessed as a result of defaulting on loan payments, that repossession will not appear in the statistics.

Time Lapse

Published figures are, of necessity, historical as it takes around a year after first missed mortgage payments for repossession to happen.

If you are struggling with meeting your mortgage repayments and want to avoid repossession you could consider a fast house sale.

Avoid Repossesion

There are some reputable professional cash house buyers around who can complete a purchase on your property within a month or so. To achieve this they will sell your home at below market value – usually they get around 70% of the current value of your home. It’s not ideal, but it is a solution to a very worrying problem. You could also consider a sale and rent back scheme, as outlined above.

Make the first move in selling your home fast or sale and rent back by following the link and filling out the form.

Let’s just take a quick look at those issues raised by personal debt – you might be surprised at how far reaching these can be; unless, of course, you find yourself in this very situation.

Stress

Well, this one won’t surprise you at all – being in debt weighs heavy on the mind. You daren’t go sick from work, despite how ill you might feel. The problems follow you to bed so you don’t sleep, which makes you feel even rougher. Stress is recognised as an illness of our fast and furious 21^st century, being in debt just makes that stress worse.

Money Taken at Source

Even though being in debt is now a common problem, most people still see talking about it as a taboo. If you owe a large amount of money the person you owe it too might order a court order to get debt instalments paid from your wages before you get them yourself. This is known as wage garnishment. Point number one – if you’re struggling for money you can ill afford to lose any of your wages and, point number two, having your employer know about your financial situation can feel hugely humiliating. And, although your employer can’t legally fire you for having one garnishment, he can fire you if you have multiple garnishments

Divorce

Debt is one of the major driving forces behind the divorce statistics. Almost half of all UK marriages end in divorce, with 132,361 divorce petitions in England & Wales in 2009

Inability to Purchase a Home

A poor credit rating will negatively affect your ability to get a mortgage.

Eviction

When debts mount up it can be tempting to shift the money around, paying off some expenses at the cost of others. An eviction on your credit report will do little to help you get yourself back on your feet again.

Emotional Breakdown

Some people cannot handle the relentless pressure put on them by demanding creditors.

Murder

Did you know that debt and the accompanying emotional stress is one of the major causes of murder in the UK? accompanying

This does not make for comfortable reading does it?  However, you’ll feel a whole lot better if you take control of the situation.  As the very minimum we would suggest the following:

1. Acknowledge the problem
2. Do not be intimidated
3. Pay debts that secure the roof over your head first
4. Get free impartial debt advice
5. Treat commercial debt relief companies with caution
6. Do not rule out bankruptcy
7. If you are thinking of taking on something like an IVA make sure you understand all the costs and charges up front
8. Stop all unnecessary spending now
9. Check out the Consumer Credit Counselling Service
10. Find a form of therapy other than shopping

Whatever your reason for needing to make a fast sale – whether you need to relocate with work, are in the throes of a divorce, or have seemingly insurmountable debt problems – there are many solutions around, some of which may never have occurred to you.

Whichever solution you eventually choose, your number one priority is to make sure you are asking a realistic price for your property – no matter what you might have heard from estate agents or neighbours, your home is only worth what somebody is willing to pay for it. Estate agents are currently desperate for business and if he thinks giving you an inflated price guide will get your business, which is exactly what he will do. The result will be even more frustration, heartache, and false hope about what you can realistically achieve. The result certainly won’t be that quick sale you need.

Selling a house fast is never easy, selling a house fast in a recession can seem nigh on impossible; the typical experience is lots of viewings but no offers. We can probably help you to achieve a fast house sale, however, there are some things that you can do to help yourself. Simple common-sense things, such as:

• Disassociate Yourself from Your Home – tell yourself that you are leaving that you won’t look back and that the house is no longer yours. In other words, think of it as a commodity that must be sold rather than the place where you’ve lived, laughed and loved.
  
• Remove personal effects such as photographs and family heirlooms, which will make it easier for potential buyers to imagine their own pieces in the home. While your stuff is there, the viewers will be intrigued by your life and won’t be able to seem themselves living there.
  
• Get rid of clutter – it just makes the house look smaller.
  
• Tidy the cupboards – potential buyers will look inside cupboards and drawers!
  
• You’ve probably got too much furniture – most of us do. Hire a storage unit for large pieces of furniture.
  
• If those curtains aren’t included in the buying price – take them down! Same applies to fixtures and fittings. Remove them and replace them with something else to save any future wrangling.
  
• Ensure your home is in a good state of repair – fix leaking taps, patch holes in the wall, make sure the doors close properly.
  
• Clean!
  
• Do a walk through – would you buy it?
  
• Curb appeal – if your house looks scruffy from the car, the buyer won’t even bother getting out. Make sure the garden and paths are neat and tidy and that the house number is clearly visible. Oh, and apparently yellow inspires people to spend – so plant yellow flowers!
  

There could be many reasons for needing to sell your home quickly, the most obvious, of course, is money problems; being in debt now sadly seems to be the norm rather than the exception. That’s hardly surprising, given the redundancies and income drops associated with the recent recession. Even though we are supposedly now coming out of the recession, it will take time before the effects on the ‘man-in-the-street’ are overcome.

Whatever drives your need to sell your house fast, whether it’s bereavement, divorce, health problems or impending house repossession, there is a solution. However, typing words like quick houses sale or sell my house fast into Google simply throws up pages and pages of links, and there is no real way of knowing whether these companies are kosher or not. As we’ve already pointed out – and as you already know – making a quick home sale is not an easy task and the last thing you need right now is to be stung in the pocket by a ‘quick sale home buyer’ company.

There are reputable professional cash house buyers out there and by using one of these you can:

Sell your house within one to four weeks. Take any claims of making this happen within 24 hours with a huge pinch of salt, although one, maybe two, specialist homebuyers can do this, most home buyers do not have the huge resources required.

Achieve up to 75% of the market value. Do not believe claims of 90%, they are untrue, most quick house sales achieve between 70 and 75% of market value.

If you need to Sell your House Quickly beware:

Your situation makes you vulnerable and there are a lot of disreputable professional house buying services out there just waiting to take advantage of that vulnerability. Research well before you sign up with anybody. However, you might find that our Sell Your House Fast facility a good place to start.  Take that first step in reclaiming control of the situation and get good night’s sleep.

The credit crunch has had a significant effect on buy-to-let landlords over the past 12 months: the number of landlords accruing more than 3 months of arrears doubled in the second half of 2008, hitting an incredible 27000 – this figure was almost 4 times higher than the 7,500 landlords with more than 3 months’ arrears towards the end of 2007.

The Council of Mortgage Lenders has also disclosed that 4000 homes on buy-to-let mortgages were repossessed in 2008, compared to 2000 in 2007; an increase of 50%. Although these figures sound alarming, it is important to bear in mind that these repossession figures represent around 0.4% of all active buy-to-let mortgages – there are 1.15 million such mortgages within the UK. In fact, around half of the buy-to-let mortgages in 2008 were take out by soundly-established landlords who took advantage of competitive interest rates to remortgage their properties.

However, it is impossible to deny that the number of buy-to-let landlords with mortgage arrears has risen sharply, and this is due to several factors. Like many private homeowners, landlords have been adversely affected by the rise in unemployment and the slump in house prices – many have found it hard to find tenants for their properties in order to repay the mortgage, or tenants in properties may fail to pay their rent as a result of losing their jobs.

Also, due to the current economic climate, rents have been driven down and both a fall in rent and a loss of tenants will undoubtedly affect a landlord’s ability to pay the mortgage (make sure you rent your property for the maximum possible rent). This leads to properties being repossessed, in turn meaning many tenants are evicted. Properites are also taking much longer to rent in the current economic climate – 70 days on average – and this means no rental income for landlords for several weeks.

Unfortunately, when credit was easily available and property prices exceedingly high, many people with no adequate experience thought entering the property market on a buy-to-let mortgage was a failproof way to make money in the form of a long-term investment – it is these inexperienced landlords that are struggling now.

They cannot sustain an empty property or properties and, in the current climate, may struggle to sell these properties quickly enough. Evicting tenants who are not paying their rent also takes time, again meaning no rental income for the property – this leads to arrears and subsequent repossession for some inexperienced landlords.

If you have a buy-to-let mortgage and are struggling with repayments, do not ignore it – seek help right away. Contact your lender to explain the situation (before the first missed payment, if possible) and they will be much more likely to offer help. They may offer you a payment holiday until your finances are in better order, or they may allow you to make reduced payments for a set period.

If you have a repayment mortgage, consider saving money by transferring to an interest only mortgage (most landlords have these). If you can prove your cashflow problems are only temporary, your lender is much more likely to agree to an amicable solution.

If you feel too nervous about approaching your lender yourself, seek the help of specialist debt agencies such as the Citizens’ Advice Bureau or the Credit Consumer Counselling Service (CCCS) – they can provide you with free invaluable advice and liase with your lender on your behalf, in order to try and reach a solution to your problem.

If you are coming to the end of your mortgage deal, you may be able to save money by taking advantage of the current extremely low base rate through remortgaging; even if your credit history prevents you from doing so, you may be able to save money by simply switching from a fixed rate to your lender’s SVR, taking into account the low interest rates at present.

Ellie Irwin of the National Landlords Association says;

“Undoubtedly, these are challenging times for landlords. However, professional landlords are better equipped to deal with rental arrears than smaller, ‘buy-to-let’ landlords.

Ensuring a property is competitively priced, marketing a property before tenants leave to avoid a void period, and keeping in regular contact with their tenants are all ways in which a landlord can avoid falling victim to the recession.”

Experienced landlords always have a contingency fund to cover lean periods, and this is a very sensible thing to have; when you do have tenants and are yielding good rent, save some of this in order to cope when your property is unlet or to pay for essential maintenance works.

It is natural when times are hard to look for ways to save money, but do not pennypinch in the wrong areas: for example, a letting agent may cost money but can help you find a tenant quickly in the event if your property being vacant and they also oversee the tenancy of your property. If you were to get rid of this service, you would be responsible for all this, adding more stress to an already stressful situation.

The Government has introduced a number of measures to help homeowners during the recession, yet these do not apply to those with buy-to-let mortgages (for example, the State Mortgage Rescue Scheme does not apply to second homes). Thus, the Government really needs to do more to help protect landlords from repossession.

In the meantime, if you get into trouble with your buy-to-let mortgage remember to contact a free debt advice charity and your lender as soon as possible.

How To Value Your Own House with Accuracy

Your house or flat is only worth what someone is willing to pay for it. The market definition used by the Royal Institute of Chartered Surveyors (RICS) which all RICS qualified property valuers are a member of quote the definition of market value as:

• The estimated amount for which a property should exchange:
• On the date of valuation (or sale date);
• Between a willing buyer and willing seller;
• In an arms length transaction;
• After proper marketing (note this would not include sale by owner or limited marketing due to a quick sale);
• When both parties had each acted knowledgeably, prudently and without compulsion (it could be argued that a quick sale is “compulsion”)

If you are looking for a ‘quick sale’ to avoid house repossession there needs to be a suitable discount to the open market value of the property as a ‘quick sale’ breaks two of the rules above, (a) proper marketing (b) without compulsion.

1) Direct Comparison Method of Valuation – Comparing apples with apples.

Make sure you understand the RICS definition outlined above, it is tried and true and the foundation to all loan security (mortgage) valuations.

You can value your own property just as well as any other qualified valuer or real estate expert. It’s quite simple, you just need ‘comparable sales evidence’ to complete the direct comparison method of valuation.

Comparable sales evidence consists of actual sales price evidence of houses or flats which are directly comparable to your own property. The best comparable sales evidence is of property close to your own house or flat, similar in features and sold within the last month.

Clearly if you live in a development of 20 flats and 3 flats just like yours sold this month for £200,000, £205,000 and £203,000 you can quickly assume that your flat will be worth close to these figures, unless they are all on the top floor and you are on the ground floor whereby yours would normally sell at a discount to these figures, or vica versa.

For example, if you own a 3 bedroom house with a separate lounge, kitchen and one bathroom situated on 800 sq m block then look for houses situated close to yours that have recently sold with those features.

Where to find comparable sales evidence?

One of the best methods to find comparable sales evidence is to ask local real estate agents for a list of ‘comparable sales evidence’ you may have to hound them for these details but trust us, they have the details, so beg if you need to! Ask the agents for a PDF of the property to be emailed over, or check their websites and ask them what it sold for. If they don’t want to tell you or say it’s confidential, ask; was it over £200,000? Was it less than £230,000… so it was £220,000 then was it? This method works… you will get a ballpark figure. Keep humor in the game, be friendly and always thank them for their time.

You should also ask the local agents to inspect your property and get their opinion of value. Ask them for two figures, what they would market it for and what they honestly think it would sell for in the current market within a month. At this point ask them for comparable sales evidence.

Another way to find evidence is to use websites like http://www.mouseprice.com/ which show actual sale prices but quite often these websites do not have information hot off the press and usually never include a PDF outlining full details of the property.

Once you have say 10 of these comparable sales details of property in and around your area which is similar to your own property then you need to see where your house fits into the puzzle. But first query any very low or vary high sale prices as there is a usually a reason for it. Sometimes high prices are because the owner next door or the flat downstairs purchased it at a higher than market value, these are called ‘special purchaser’. Similarly very low prices could mean that the sale was between family members or maybe the lease is coming to an end.

Once you have your set of good comparable sales try and place your property between them. Ask yourself, is my place better than this one and worse than this one? This one has an extra bathroom but it’s on a main road. This house is really big but has a small backyard etc etc until you are happy that you know where your house fits and therefore what it should sell for on the open market.

2) Capital Value Per Square Foot Valuation Method

Professional builders, valuers and estate agents (well the good ones) will be able to talk to you in terms of capital value per sq ft NIA (per square foot net internal area). Sometimes builders talk about gross internal area (GIA), but usually in reference to commercial space. Area definitions: http://www.voa.gov.uk/business_rates/comp/

Now take another look at your core comparable sales and if they have floor areas written up work out how much the properties sold for on a £ per sq ft basis. So a 1,000 sq ft NIA house which sells for £250,000 is worth £250 per sq ft NIA capital value.

Sale Price /  Sq Ft  = Capital Value Per Square Foot

What is the average sale price per sq ft of your comparable sales evidence? Maybe £250 per sq ft? Be careful not to include garage and cellar space unless it’s in the same livable condition, specification and with similar access to natural light as the rest of the property. You may however assume some value to this space, 35% to 20% of the true livable spaces value on a per sq ft basis should work. For example:

Sale Price:                     £250,000

House area:                  1,000 sq ft

Cellar area:                   300 sq ft (35% of 300 sq ft is approximately 100 sq ft)

So using the above example you could assume total livable area is 1,100 sq ft. Therefore the house is worth £250,000 / 1,100 sq ft = £227.27 per sq ft capital value.

Measurement of Your Own House or Flat

Now measure your own house up with a long tape measure or use a laser measuring tool such as a Disto like the professionally do. However a normal tape measure will suffice.

Measure internal wall to internal wall making sure you include hallways. It’s easier to measure in square meters first so for example a room measuring 5.28m x 3.84m = 20.28 sq m. Then convert the square meters (sq m) to square feet (sq ft), by multiplying 20.28 sq m x 10.764 = 218.29 sq ft NIA. Add up all your rooms to arrive at a total. Note: 10.764 is the multiplier to use when converting sq m to sq ft.

Lets assume your house measures 800 sq ft NIA and you have worked out that the average house like yours, in the same area recently sold for £250 per sq ft NIA then yours should be worth approximately £200,000.   Calculation = 800 sq ft x £250 per sq ft = £200,000.

Capital Value Per Square Foot valuation method is an excellent sanity check to see if you have valued your house or flat correctly using the Direct Comparison method.

Does this value fit in with the other comparable sales? If so you can be quite confident that your house is worth approximately £200,000 if marketed correctly on the open market.

** Remember that cellars, garages and conservatories are sometimes included in sq ft area figures of sales particulars. You need to make a judgment as to the value of these features as they are cheaper to build and finish when compared to a house on a per sq ft basis. Also note that brand new houses will be worth more per sq ft than one that is dilapidated and equally a brand new built property sitting next to a newly refurbished Victorian or Edwardian building will usually be less valuable on a per sq ft basis. People usually pay more for old features, solid walls and high ceilings.

Conclusion

Once you have arrived at a value using the direct comparison method and the capital value per square foot method you should have a good idea what your property is worth in today’s market if marketed correctly.

If you need to complete a sale quickly you would have to apply a suitable discount for this situation. The quicker you need to sell the larger the discount. Think about using 20% off as a base level but offers of closer to 50% have been known to occur. Given this example your house should be worth at least £160,000 (£200,000 less 20%) to a company looking to organize a quick sale agreement.

If this value would cover your mortgage and debts and you do not have time to market the property correctly then you should consider contacting quick sale companies to see what they would offer. We also suggest contacting your local real estate agents as many have what they call ‘friends of the agency’, in reality they are local developers and investors that may be able to step in and offer a better price.

It would be great to hear from anyone who has any experience valuing their own home.

A quick online search will return a whole load of companies offering to buy your house for cash. By filling in a simple online form, they promise you a free valuation and cash offer on your home within twenty-four or forty-eight hours. As little as two weeks later, your home will be sold and shortly afterwards the cash will be in your hands. So, cash for homes offers can seem very attractive.

At a glance, cash for homes looks like the ideal solution. You avoid the delays you always get with a traditional estate agency. You get rid of all the problems that normal buyers bring; changing their minds, dropping out and gazumping each other. The process, from your side, is very simple. And it’s fast, at a time when you’re probably feeling fairly desperate for a solution.

But is it too good to be true? As you’d expect there are positive and negative points.

Who offers cash for houses?

Most professional buyers offering this type of deal claim to be well connected within the property industry. They have cash buyers ready and waiting, urgently looking for properties just like yours. You don’t pay a thing when selling your home for cash. And there are no estate agency or any other fees, which is another big advantage when you’re on the brink of repossession.

At the end of the day the buyers are looking to make a profit and so they should if they are to purchase a house or flat usually with no building surveys completed and they pay in cash, on time without pulling out of the deal. But what discount is this worth to the vendor? That is what you need to weigh up.

Cash for homes – what’s in it for the buyer?

Professional property buyers either purchase the property themselves or make their money by charging your buyer a finder’s fee for your property when arranging cash for homes.

Not only that. The biggest financial advantage to the cash for homes company is that they’ll only offer you a percentage of your home’s fair market value. Sometimes they’ll offer as little as 45% of the market value, sometimes as much as 85% but rarely more.

So although you benefit from a more or less immediate sale with no hassle, you face losing an enormous amount of profit. Unless you have a tiny mortgage and a massive amount of positive equity in your home, you are bound to lose.

Liaison with your lender

A professional buying company will take on all communications with your lender. While this is good because it reduces your stress levels and gives you time to breathe, it also takes all control completely out of your hands, leaving you with no say.
Cash for homes – the benefits and disadvantages

No Home Information Plan (HIP) required

When you sell your property via a cash for homes provider, you avoid having to pay for an Home Information Pack. But the saving comes nowhere near the loss of profit you suffer because of selling way under the market value. The only real benefit of a HIP-free sale is that you save time and a bit of hassle.

Total confidentiality

Some people are embarrassed about being repossessed, preferring to keep it quiet. Cash for homes companies always promise a confidential sale, but confidentiality comes at a high price.

Fast completion

Most suppliers offering to buy your home for cash promise amazingly fast completion, usually within 28 days or to a date that suits you.

Cash for homes – How does it work?

•    You request a free survey. Always confirm that there’s no obligation to go ahead.

•    A company representative will come to your home, when it is convenient for you, and undertake a valuation survey. Always ask to see your survey in writing and make sure it has been completed by a Royal Institute of Chartered Surveyors (RICS) qualified valuer. If it is not undertaken by a RICS qualified valuer then it is simply someone’s opinion of value and the report can not be called a valuation report. Also ask to see what comparable and recent sales evidence the report uses to calculate the value of your own home. Make sure that this is a qualified valuation indicating fair open market value and not the cash for homes companies’ idea of value.

•    Visit the Royal Institute of Chartered Surveyors RICS.org and see a good explanation on how to value your own house in this post here.

•    The company will then contact you to make an offer. Get this in writing and check all the small print before you decide. It is very important that you do check the small print and if you are considering taking the offer we strongly suggest that you employee a solicitor to read through the contract and highlight any important sections. You should be able to find a good high street solicitor which might be an hour or two work for them but well worth doing.

•    The cash for homes provider only offers the trade value, not the market value. This can be anywhere between a worst case 45% and best case 85%. Think of it as a wholesale or fire sale value.

•    If you accept this trade offer, the cash for homes supplier guarantees to sell your home following the contract you have signed or at this point it might be on a spec basis.

•    The company will discuss and agree timescales with you, then they’ll attempt to find a buyer for your home.

•    The potential buyer gets in touch with you to arrange a viewing and/or a survey, which they pay for.

•    You agree the sale or negotiate until you reach agreement.

•    You choose a completion date.

•    If you decide to go ahead, the solicitors will exchange contracts, making them contractually obliged to buy your house.

•    Completion will happen and soon afterwards you’ll get the cash for your house in your hand.
Cash for homes providers include:

•    The smarter choice: thesmarterchoice.co.uk
•    UKPB: ukpb.co.uk
•    National Home Buyers: nationalhomebuyers.co.uk
•    I Buy Homes: ibuyhomes.co.uk
•    Cash For Homes UK: cash4homesuk.com

Please read our disclaimer on the front page of this website. We do not endorse any of these companies above and suggest you take legal advice and make sure you understand exactly what they offer. Search the internet and look in papers for the best cash for homes deals, as there’s an enormous variety available.

Have you used the companies list above or other companies like them? Please comment below outlining your experiences.

You can avoid repossession by making a quick sale and if you sell for a figure that enables you to pay off the arrears you owe from the profit, then you are debt free. This can be one of the best ways to avoid repossession, because it leaves your credit record relatively intact. You’ll then be free to buy again when you’re in a position to.

Sell quickly but be cautious

Whatever you are selling, the need for a quick sale immediately puts you in a vulnerable position. You leave yourself open to fraudsters, and to people trying to turn a fast profit or get your home for a rock bottom price. So be careful about who you do business with, no matter how tight things get. Everyone has heard about people who have accepted, in desperation, offers less than half of their property’s value just for a quick sale.

Valuation – Understand what your home is worth

Your house or flat is only worth what someone is willing to pay for it. The market definition used by the Royal Institute of Chartered Surveyors (RICS) which all property valuers are a member of quote the definition of market value as:

The estimated amount for which a property should exchange:
- on the date of valuation (or sale)
- between a willing buyer and willing seller
- in an arms length transaction
- after proper marketing (note this would not include sale by owner or limited marketing due to a quick sale)
- when both parties had each acted knowledgeably, prudently and without compulsion (it could be argued that a quick sale is “compulsion”)

Remembering that you are looking for a quick sale and therefore a discount will usually be required as you have broken two of the rules above, (a) proper marketing and (b) without compulsion.

Value your own house with accuracy

Make sure you understand the RICS definition, it is tried and true. You can value your house just as well as any other valuer or real estate expert. Its quite simple, you just need ‘comparable sales’. Sales of houses or flats that are comparable to yours which have sold within the last 1 or 2 months. These will give you a perfect idea of what your place would actually sell for given the points above.

For example, if you own a 3 bedroom house with a separate lounge, kitchen and one bathroom then look for houses that have sold exactly like that. You are trying to compare apples with apples. The best method is to ask local real estate agents for a list of ‘comparable sales evidence’ that they know of, you may have to hound them for these details but trust us, they have the details, so beg if you need to! Ask the agents for a PDF of the property to be emailed over, or check their websites and ask them what it sold for. If they don’t want to tell you, ask; was it over £200,000? Was it less than £230,000… so it was £220,000 then was it? This method works… you will get a ballpark figure. Keep humor in the game.

Once you have say 10 of these comparable sales details of houses in and around your area similar to your place then need to see where your house fits into the puzzle. Ask yourself, is my place better than this one and worse than this one? This one has an extra bathroom but its on a main road. This one is really big but has a small backyard etc etc until you are happy that you know where your house fits and therefore what it is worth on the open market.

Price per square foot net internal area?  (Per sq ft NIA)

Professional builders, valuers and estate agents (well the good ones) will be able to talk to you in terms of capital value per sq ft NIA (per square foot net internal area)

Take another look at your 10 comparable sales and if they have floor areas written up work out how much the properties sold for per sq ft NIA. That means a 1,000 sq ft NIA house which sells for £250,000 is worth £250 per sq ft NIA capital value.

Sale Price /  Sq Ft NIA = Capital Value Per Sq Ft NIA.

What is the average sale price per sq ft NIA of your 10 comparable sales? Maybe £250 per sq ft NIA?

Now measure your own house up with a tape measure, internal wall to internal wall making sure you include hallways. Its easier to measure in square meters first so for example a room measuring 5.28m x 3.84m = 20.28 sq m. Then convert the sq m to sq ft, by multiplying 20.28 x 10.764 = 218.29 sq ft NIA. Add up all your rooms to arrive at a total.

So you have calculated that your house measures 800 sq ft NIA, therefore if the average house like yours, in the same area sold for £250 per sq ft NIA then yours should be worth approximately £200,000.   (800 sq ft x £250 per sq ft NIA = £200,000)

This is an excellent sanity check to see if you have valued your house correctly. Does it fit in with the other 10 comparable sales? If so then you can be quite confident that your house is worth approximately £200,000 if marketed correctly on the open market.

Remember that cellars and garages are sometimes included in sq ft area figures of sale particulars and maybe this area is worth 50% of the total capital value per sq ft… or less as they are cheaper to build.  Also note that brand new houses will be worth more per sq ft NIA than one that is dilapidated.

So now you should have a good idea what your house is worth in today’s market and given that you need to sell fast a good rule of thumb is to deduct at least 10% if not 20% off this value. Think about using 20% off as a base level. So given this example your house should be worth at least £160,000 (£200,000 less 20%.)

If this value would cover your mortgage and debts then you should consider contacting quick sale companies to see what they would offer you or if your real estate agent could sell it for this amount or more straight away. Otherwise, you will invariably end up receiving less money through repossession after bank fees and the fact it’s sold at auction.  Plus you will have black marks against your credit history.

How to sell your home fast

Ask yourself these four simple questions:

• How will I sell my house?
• Who can best help me make the quick sale I need?
• How long will it take to sell?
• Will I get enough profit to get me out of trouble if I sell my house quickly?

Who are the best people to help me?

You can sell your house through an estate agent, online, or both. You can sell your home yourself, avoiding estate agency charges and keeping tight control. Or you can take the plunge and handle the whole process, including conveyancing, yourself for a quick sale. However, please note all that has been mentioned in this article as selling your home yourself is not for the fait hearted.

How long will it take to sell?

To a certain extent, this is up to you. It depends on the choices you make. There are a few key things to think about.

Be realistic about your quick sale selling price

Following the self valuation example above you should have a good idea of what your house is worth on the open market and less 20% if offered as a quick sale / fire sale. There’s no point trying to get more than your home is worth, unless you have all the time in the world to wait for the person willing to pay your price. If you want a quick house sale, set a realistic price based on the average figure calculated from at least three estate agent estimates. Make sure these estimates are based on a sale within a certain time period… not asking prices! Ask them to back their prices up with comparable sales evidence then check all this against what you think it is worth.

Avoid panic decisions by deciding beforehand the lowest price you’re prepared to go to, and don’t budge from it. The whole point of a fast property sale is to make the money you need quickly.

Visit dspropertyconsultants.co.uk for a variety of useful information, note their very low fast sale price versus value… as low as 60%. This is simply an example of what is out there and we do not endorse this website. In fact be very careful at these percentages… Your local rich plumber would pay you more! Go and ask him!

Hints and tips for making a quick sale

Aim for perfection with DIY!

A quick sale can depend on how good your home looks. It doesn’t always cost a lot to fix things yourself and a lick of paint makes a huge difference. It just takes time and effort and it is very worthwhile. Make repairs and clean up tatty areas like scuffed skirting boards and stained kitchen surfaces.  It is remarkable what a difference simple things like this make to the selling price. And because most people prefer to buy somewhere they can move into straight away than a fixer-upper, you’re much more likely to sell fast. Make the very best of your interior and garden. Painting is proven to be the cheapest method of increasing your houses value.

Make the most of your home and garden and net a quick sale

You’ve probably seen the TV programmes. So you’ll understand how important it is to make the most of your home and garden if you want a quick sale. Just like DIY, a clear, attractive interior and an attractive, functioning garden can make thousands of pounds’ difference to your asking price. And, if someone falls in love with your home, it can result in a super-fast sale.

Apply common sense and de-clutter it!

Hide or throw away your clutter, throw open the windows for fresh air and keep everything squeaky clean and fresh. If you have a spare room full of clutter, turn it into a spare bedroom so people can see how it’d look without having to use their imaginations! Then mow the lawn, weed your gardenbeds and trim back the wilderness. Perhaps one of your family or a friend loves gardening? If so, ask them to help you out.

There’s plenty of great advice online. Try housedoctor.co.uk, the official UK website of Channel 5’s Anne Maurice, presenter of ‘House Doctor’. Or visit the Channel 4 website: Click Here.

Will I get enough profit if I sell quickly?

This is something to calculate carefully before you start. If you’re unlikely to get the profit you need from a quick sale, it might be better to take another option. But if you can get your property into top condition, looking its best, and the average estimated asking price matches your own valuation then selling quickly can be a very effective way out.

Add your thoughts on a quick house sale…

Sell and rent back – everything handled by one company
Both the purchase and rental back to you are handled by the same company, so the process is kept very simple. Most sell to rent back companies promise to keep you informed at every stage, which has to be a good thing. And the process is completely discreet with no estate agents’ boards. While the details can vary from provider to provider, these steps are standard:

Step 1 Initial valuation

A sell and rent back valuation consultant will visit you at home. He or she will explain the ins and outs of the process, answer your questions and value your property. The valuation will be calculated based on comparisons with similar properties in your local area. The offer, when it is made, comes without obligation so unless you are completely happy with the offer and everything it involves, you can still say no.

Step 2 A free independent Valuation & Survey

Once you’ve agreed terms for selling and renting back with the sell and rent back company’s valuation consultant, you appoint a solicitor. The company will arrange and pay for an independent valuation and survey, and they’ll also pay for your solicitor.
The company have an independent valuation carried out to check that their valuation is accurate and on track. The independent valuation should be carried out by a RICS member (Royal Institute of Chartered Surveyors): rics.org

Step 3 Sell to rent back paperwork

As soon as everyone’s in agreement and ready to go, and all surveys are in and satisfactory, the company will instruct their solicitors to buy your property. At this stage, you’ll need to provide any documentation needed to smooth the process. It is your solicitor’s job to explain what paperwork’s required.

Step 4 Completing the contract of sale

Once all the paperwork has been gathered and signed by everyone involved, the contract is completed. Legally, this is just the same as completion on a private sale.

Step 5 The profits are paid to you

After subtracting your outstanding mortgage and any other money owed on your home, your solicitor will release a percentage of the remaining the funds – the profit – to you. With sell and rent back schemes the sale is usually completed within twenty eight days and you should be kept in the picture throughout the process.

Step 6 – Assured Shorthold Tenancy

Your sell and rent back company provides you with an assured shorthold tenancy contact, or agreement, which gives you the legal right to stay in your home and rent it, usually for at least a decade.

HomeOwnersAdviceCentre.co.uk great site on “Sell and Rent back”.