Advice Topics
House Selling - A Step by Step Guide
Selling houses can be a difficult process but with a little advance information, a lot of the pit falls can be avoided!
Step one:
Once you have accepted an offer on your property, the purchaser will then apply for their mortgage. If they are cash purchasers, the process is the same other than the mortgage application.
Step two:
Your purchaser’s lender will instruct a surveyor to carry out a valuation of your property for lending purposes. Different types of survey are available. The first is a mortgage valuation where the surveyor will check your property is as described in the sales particulars, that there are no issues which would affect its valuation and where he recommends to the lender whether or not it is suitable security for a loan.
The second type of survey is a Homebuyers Report. This is a more in depth survey carried out for both the lender AND the purchaser, where all aspects of the property are considered. The surveyor reports on all visible parts of the property, such as the condition of the roof, pointing out particularly any areas that will need work straight away or at a later date. Further specialist surveys will be recommended if required.
The third type of survey is a full structural report which, as the name suggests, surveys the entire physical structure and checks for the soundness of the structure.
If your purchaser is paying cash, they don’t have to instruct a survey but most will do so.
Step three:
nce the surveyor has submitted his report, the purchaser will then notify us of any special reports that have been recommended. For example, in older properties, a damp proof inspection may be requested. Generally speaking it is the responsibility of the purchaser to organise the additional reports though this is always a matter for negotiation.
Step four:
Once the purchaser’s lender is satisfied with all reports obtained, they will then issue a mortgage offer to the purchaser.
Step five:
Both your own solicitor and the purchaser’s solicitor will be in communication and gathering relevant information such as Title Deeds, guarantees, local authority searches etc. Your own solicitor will have sent various forms for you to complete, such as a Property Information Form, where you indicate what is to be included in the sale and answer other questions such as responsibility for boundary fences etc.
Step six:
Once the relevant paperwork has been organised by the solicitors, they will then be in a position to ‘exchange contracts’. It is usual to have a gap of about a week after exchange of contracts before the sale is complete.
Step seven:
Completion takes place whereupon the monies for the purchase of your property are deposited by your buyer’s lender into the bank account of your solicitor. All accounts such as redemption of your mortgage (if applicable), settlement of your estate agent’s account, and transfer of a deposit for your own purchase (again if applicable) are made.
If you are also purchasing a property, you will undergo exactly the same process as will any other purchasers in the chain!
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