So you've bought somewhere and done it up - and now you want to sell it on? We look at the costs involved when you sell a property development and how you can maximise profit.
By Sarah Jagger
Your first step is to have the property valued for sale. Ask three local agents to value the property. Be realistic about the valuations: you shouldn’t necessarily opt for the highest value – remember the longer the property is on the market, the worse for you – and the greater the feeling among potential buyers that there’s something wrong with it.
Estate agents’ fees vary between agencies and different parts of the country but typically they will be between 1% and 3% plus VAT of the selling price of the property. You do not have to use just one agent. You can place your property with multiple agents, who would then be competing with each other for the sale. But bear in mind it is normal for each agent’s fee to be higher than they would have been if the agency had been appointed as a sole agency – so the cost to you of selling your development will be greater. Remember to negotiate commission rates and why not mention you plan to develop more properties to secure a lower percentage charge. You should also ask how the Home Information pack will be paid for, as this will vary from agent to agent.
Reputable estate agents will be members of one of the national trade associations, either the National Association of Estate Agents (NAEA) or the Royal Institution of Chartered Surveyors (RICS).
If you are successful with your sale, then selling privately will save you profit-eating estate agent’s fees. However, you could find yourself selling at a lower price than an agent could have achieved. If you plan to sell your home privately, then use an estate agent to give you a valuation. Have the details for your property typed up and scan in photos of the property to show it off. Consider putting a for sale board outside the property although this must comply with planning regulations so seek advice from your local planning authority.
Be prepared to allow time for viewings and consider an open house day. You will also have to prepare an advertisement and place it in the local paper. Remember to be honest and realistic about your property whilst at the same time presenting it in the best possible light.
You could also sell your property via the internet. Always find out how much you need to pay to advertise on property portals, checking whether it’s a one-off fee and/or final charges when the property is sold. Sites to research include www.homesonsale.co.uk, www.mypropertyforsale.co.uk and www.sellthatproperty.co.uk. If you plan to go into property developing professionally, then it’s worth putting together your own website.
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