After what felt like a very trying end to last year, news for the property market in 2024 is now looking more positive. At its last meeting, the Bank of England (BoE) held interest rates at 5.25%. There is now widespread speculation that in the next few months, the BoE will start to lower rates.
What does this mean for the property market? Despite the recent report that the UK was technically in recession following the last two quarters of 2023, we have been seeing signs of market movement.
In January some mortgage lenders started to bring down their rates for first-time buyers, and it seems to be bearing fruit, with estate agents reporting more interest.
So, with first-time buyers once again returning to the market, many who have been keen to sell their property will now be encouraged to do so.
Much advice is offered to first-time buyers, but little for first-time sellers, or those who sold many years ago and are now looking to sell again.
So, here’s a guide on what steps you need to take:
Valuation
First of all you will need to contact estate agents in your area to value your property. They will take into account the repair of the property, any outstanding works and any potential and current property prices in the area.
When the agent values your property they should also advise you on what services they offer. They should explain how much marketing they will do both online and with their own materials and whether they will email their database of contacts. You will also need to find out how long they anticipate the property taking to sell and their fees.
Find a conveyancer
You will need to appoint a specialist property lawyer, often called a conveyancer, who will work on your behalf throughout the process handling all the legal aspects of the transaction. To minimise stress and delays, look for a conveyancer you have confidence in, rather than the cheapest option.
Word of mouth, through recommendations by friends and family is a great way to find someone. Alternatively, look up local firms on comparison sites such as Trustpilot and Feefo to see what experiences others have had.
When instructing your conveyancer, you should ensure you feel comfortable with the service they offer and the fees they charge.
Conveyancers are required to display key information about price and service on their website and their roles to help guide you through the legal process. Make sure that, at any stage, if you don’t feel clear on what’s being asked, or what you’re signing up to, then ask.
It’s also worth thinking about whether the way the firm works with clients suits your needs and what experience they have in dealing with transactions like yours. Think about how you want the service delivered whether that be face-to-face, online, or the option of both.
Timing
Sometimes circumstance will dictate when you need to sell your property, but if time isn’t a pressing factor then Spring has traditionally been the British property market’s busiest time. Between February and June, the housing market flourishes as buyers start looking for somewhere new.
Failing that, September and October, are equally popular as people hope to get settled into a new home before Christmas. Traditionally quiet times for the market are the summer months of July and August, when many people are on holiday, or just before Christmas.
Documents
As with most things in life, documentation is key. When selling your home you will need the following documents, so it makes sense to collect them beforehand and make sure everything is present and correct.
- An Energy Performance Certificate (EPC). A legal requirement for sellers since 2008, an EPC will tell buyers how well your home uses energy
- FENSA certificates for windows and doors
- A Boiler Safety Certificate
- Gas Safety Certificate
- Electrical Installation Certificate
- Planning approval for any major works
Your conveyancer will also need information from you about the property itself and what you’re planning to include from it in the sale, such as curtains and appliances.
Offers
If all goes well, you will hopefully start to receive offers that are close to the asking price for your property. It will be up to you to decide if the offers are fair and you’re willing to accept. Your estate agent will be able to advise on this as well, but the decision is ultimately yours.
Remember a successful sale isn’t just about receiving the highest price. You should try and find out if the buyer has a mortgage offer in place and whether they have a property to sell and if so, how quickly they will be able to complete the purchase.
You can always negotiate with your buyers to agree a deal that strikes the right balance for both parties between price and speed of deal.
Under offer!
Once you have accepted an offer, you will then find out if you are part of a property chain, and if so, how long it is and where you sit in it.
Your conveyancer will also be busy liaising with the buyer’s conveyancer on documentation, searches and surveys pertaining to your property. The process can last anywhere between a few weeks to months depending on the complexity of the chain and the properties involved.
Paying off your mortgage
Once contracts are exchanged, the buyer’s deposit will be paid into your conveyancer’s bank account.
A date for completion is then agreed and written into your contract. In England ‘exchange’ is when the process becomes legally binding, and the buyer will lose their deposit if they back out at this stage.
Upon completion your conveyancer will also request the balance of the buyer’s payment. If you are also buying a home as part of this process, they will request any mortgage amount you’re borrowing towards your new home from your bank or building society.
Once the money has been received by your conveyancer they will authorise the estate agent to release the keys to your buyer and you will have successfully sold your property.
It’s also worth noting that Stamp Duty Land Tax or ‘Stamp Duty’ payments are due within 14 days of the completion date, this will be paid by your buyer and handled by their conveyancer.
For more information, please visit: https://www.clc-uk.org/consumers/ To find a CLC registered conveyancer in your area you can search here.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers
