Mortgage calculator: is it better to rent or buy?

Property sellers are still facing difficult times. Homeowners who need to sell now may have to work hard to attract buyers in such a stagnant market. They need to maximise the selling power of their property and be prepared to price realistically. Here are ten tips on how to sell in a downturn.

1. Choose the right estate agent

It is more important than ever to have an agent that will work for its money. Ask about three agents to visit your property to provide a valuation and a clear breakdown of fees. However, do not make the mistake of simply choosing the agent that gives the highest valuation.

Check that it has sold similar properties and has good knowledge of the local area. Investigate how it will market the property - will it be advertised on websites such as rightmove.co.uk and in the local press?

2. Think twice before selling without an agent

Estate agents' fees range from 1 per cent to 2.5 per cent of the property's selling price, which may seem a hefty expense at a difficult time financially. The plethora of do-it-yourself property sale websites that have emerged in recent years may seem an attractive option, but remember that selling is becoming increasingly difficult. Now, more than ever, traditional estate agents are likely to pull out all the stops in an effort to earn their commission.

3. Know your market

Colin McAllister, property expert and television presenter, says: “Quiz your local estate agent about what is selling, and then follow its advice. Could it be, perhaps, that your three-bedroom house is in an area where young professionals without families are buying? If so, your third bedroom might appear more valuable dressed as an office.”

4. Set a realistic price

Nicholas Leeming, of the website propertyfinder.com, says: “Every vendor has high expectations of what his or her house will fetch, but sellers need to be realistic in a falling market. If you really need to sell fast, set an asking price that is slightly lower than your ideal - it looks better than desperately slashing the price at a later date.”

5. Be flexible

Mr Leeming says: “If you find a strong buyer with funding, then you should bend over backwards in an effort to keep him or her happy during the sales process and negotiations. Remember that you will make yourself more attractive to potential buyers if you are able to move out quickly, so consider moving into rented accommodation if you are offered a good price but have not yet found a new home.”

6. Clean and paint

Phil Spencer, of Garrington, the property search company, says: “Make sure that the outside of your house is neat, tidy and well presented. If the exterior is looking a little tatty, I would recommend that you pay for a professional paint job if you can afford it. A freshly painted façade, railings and front door really can make all the difference to achieving a sale and obtaining the best price possible.

“It is also important to make sure that surfaces such as mantelpieces, windowsills, dressers and tables are kept clear. Removing household clutter and even painting interior walls in neutral colours can make rooms appear bigger.”

7. Know your strengths

Your property will have certain assets that are worth emphasising to viewers, such as being in the catchment area of a good school or having good transport links.

Kate Faulkner, author of Buy, Sell and Move House, one of the Which? Essential Guides, says: “Think of things you like about each part of your home - for example, the view from the kitchen window where you can watch the children playing in the garden. It is worth trying to work these things into conversation when showing viewers round the house.”

8. Beware of the gazunder

Estate agents have reported that gazundering - when homebuyers slash the price they are willing to pay just before contracts are exchanged - has increased in recent months. Buyers will try to knock down the price by as much as 10 per cent and many sellers, being so close to completion, feel forced to accept.

Cluttons, the estate agent, has cut its timeframe for sales to reduce the risk of gazundering. It is worth discussing with your agent how it will minimise the risk.

9. Do not be afraid to pull out

Some homeowners need to sell now, but others may be able to wait a little longer. Estate agents may try to persuade you that there are hordes of buyers waiting in the wings, but if you are not seeing the interest or offers that you had hoped for, consider taking the house off the market. Perhaps you could rent out the property and try selling again when the market starts to recover.

10. Stay put and extend

If you are moving because you need more space, extending your existing home could be cheaper and less hassle. The loft conversion business is booming, and this is the most valuable alteration that you can make to your home, according to Nationwide. Adding a third bedroom can increase a property's value by 12 per cent.

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Five websites

Rightmove

Primelocation

Propertyfinder

Upmystreet

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