Quick Sale of House in the UK

By November 28, 2008Quick Sale

If you need to sell your house quickly, do not panic. Fill in this quick house sale form and an expert in will be in contact with you. There is no charge for this service.

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…

Join the discussion 2 Comments

  • Maurice Marke says:

    However, if you do not choose a reliable and experiences property lawyer then you may come unstuck later on in the transaction. For example, some property solicitors mat not communicate enough with their clients and poor communication can lead to confusion and unwanted stress.

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