Selling a home in the current market presents considerable difficulties, with estate agents reporting a scarcity of buyers for properties ranging from apartments to country houses. According to property listing website Zoopla, three out of every five homes listed for sale since January have yet to find a buyer. Hamptons, an estate agent, notes that the average time a property takes to go under offer is at its highest point since 2012, underscoring the need for sellers to be proactive and inventive.
While basic selling practices such as decluttering, cleaning, tidying the exterior, and maintaining neutral decor are widely known, experts suggest several less obvious strategies can significantly improve a seller's chances.
Strategic Pricing
Sellers are often tempted to set an ambitious asking price with the intention of lowering it later. However, this approach can be counterproductive. Properties that linger on the market for extended periods tend to attract less interest, as potential buyers may interpret prolonged marketing or multiple price reductions as indicators of underlying issues. Real estate analytics firm Rightmove suggests that discounted properties are twice as likely to experience failed sales, take longer to sell, and may ultimately not sell at all.
Instead, pricing a home below comparable properties in the area can stimulate buyer interest and potentially lead to more offers and a better final price. This strategy can generate a sense of urgency and the fear of missing out (FOMO), a crucial element currently lacking in the market. A lower initial price can spark a bidding war, driving the sale price higher than an ambitious initial asking price might achieve.
It is also advisable to approach estate agents' valuations with caution. Some agents may overvalue a property to secure a listing, only to recommend significant price reductions later. Sellers are encouraged to conduct their own research using resources like Rightmove, Zoopla, and the Land Registry to understand local sales data for similar properties. Inquiring about the final sale price of properties that have gone under offer can also provide valuable insight.
Off-Market Sales and Agent Selection
For sellers considering a more speculative price point, an off-market sale might be an option. This involves instructing an estate agent not to list the property online but to directly approach potential buyers who may be a good fit. James Nightingall, founder of property search service HomeFinder AI, notes that some of the most successful sales occur off-market, before a property becomes widely exposed or price-anchored online.
Choosing the right estate agent is crucial, and sellers should look beyond the initial valuer. It is important to identify and vet the negotiators who will be directly interacting with potential buyers. Approximately a quarter of sales fall through after being agreed, according to property analytics firm TwentyCi, highlighting the need for experienced professionals to manage the process. A 'mystery shopping' exercise, where a potential seller contacts the agency posing as a buyer, can reveal how effectively the agents handle inquiries and follow-ups.
While some sellers opt for multiple agency agreements, this can sometimes signal desperation to buyers. Furthermore, it can lead to higher fees due to the reduced chance of sale for each agent. Sellers should also ensure they negotiate short tie-in periods with agents, ideally between four to 12 weeks, to allow flexibility if the property does not sell.
Incentivizing Negotiators
An additional strategy involves offering a bonus to the negotiator who successfully sells the property. This incentive, separate from the agency's main fee and agreed upon transparently with the branch manager, can motivate agents. For example, a bonus could be offered for sales at or above a certain price or within a specific timeframe. This extra payment, made after contract exchange or completion, can encourage negotiators to exert more effort. Without such incentives, a negotiator's individual commission on a slightly higher sale price might be minimal, as their earnings are typically a small percentage of the overall agency fee.
Estate agent Nick Austin suggests this is an effective way to focus agents on a specific property, as they are driven by financial rewards. He advises ensuring compliance with the Bribery Act 2010 and declaring any bonuses to HMRC. Property lawyer David Smith emphasizes the importance of transparency with the agency, stating that such incentives should not be a form of backhander to an individual. However, he notes that most estate agents are motivated to achieve the best possible sales price.