There are several reasons why you may be thinking of selling property from a deceased estate. You could be an executor acting on instructions, or cashing in the value, to share it among their heirs.
You could also be an heir who does not need the property, or even the current owner hoping to simplify things after you die. Whatever caused you to click through to this blog post, there are a number of things you ought to know.
Should I Use an Agent to Sell the Property?
You don’t need to use an estate agent when selling property from a deceased estate. However, you do need to be the owner, or have written authority to complete the transaction. There are several pros and cons to using an estate agent. The right option, is the one that suits you best:
- If you are in a rush to sell, then an estate agent already has leads.
- But these agents charge commission. It could be cheaper to sell direct.
You need a basic understanding of UK property law in either event, and a solicitor to register the transaction after you find a buyer. Other than that, the UK property market is largely unregulated, with the exception of needing a property energy performance certificate.
Getting Best Value from a Deceased Estate
The return you get from a property sale should be the selling price, less the cost of the transaction. Your starting point should be to decide a selling price that secures a reasonably quick sale. You may like to consider several factors in this regard.
SHOULD YOU MAKE IMPROVEMENTS?
First impressions count, especially in the Greater London area. A view from the street outside, creates a ‘no or perhaps’ response in a purchaser’s mind. A dripping tap can suggest a property in need of repair. Old water stains on the ceiling can cause buyers to walk away from what is otherwise a desirable property.
A UK property seller has a legal obligation to share everything they know about it to a buyer. This should include legal and planning restrictions in the title, and any major structural defects. Consider arranging a property survey before deciding the selling price.
You might also like to spend a few hundred, maybe even a few thousand pounds to tidy up the first impression your property makes. Buyers look carefully at the exterior view including the roof and gutters. If they are planning to spend every pound they have on a new home, they will certainlt not be looking for a repair bill!
IF YOU USE AN ESTATE AGENT …
If you use an estate agent, then your selling costs could be limited to their commission and legal expenses. Estate agents are two-a-penny in Greater London. Investigate the local ones carefully, as this can pay dividends:
- Find a specialist estate agent in your area who works with your type of property.
- Try your best to evaluate that agent’s reputation. Even ask neighbours and friends.
- Agree on the agent’s sales strategy. Negotiate a commission on that basis.
- Make sure this commission includes research, advertising, VAT and a ‘for sale’ sign.
- Create a signed, written mandate, detailing your agreement with the estate agent.
- Estate agent’s work with multiple properties. Supply written details about your own.
- Include room sizes, community charge, council tax, and fixtures and fittings.
Estate agents in the UK fall under the ambit of the Estate Agents Act 1979, and the Consumer Protection From Unfair Trading Regulations 2008. Agents have a duty to share information with buyers, and act honestly, promptly and fairly.
They must also be members of an approved remedy scheme, either The Property Ombudsman or the Property Redress Scheme. Dissatisfied consumers, whether sellers or buyers may complain to one of these if they are unhappy with an estate agent’s service.
Get a Fair Price for the Deceased’s Property
Many buyers expect to land a bargain when purchasing from deceased estates. From your side of the table though, you are entitled to a fair, market-related price unless you are in a hurry to sell.
A Realistic Property Value Protects Your Price
You may therefore like to consider strengthening your position with a property valuation from an independent specialist. You could then use this information to negotiate with the estate agent and buyer, and get a better price that more than pays the cost of the valuation!
A valuation by the Royal Institution Property Surveyors, is the gold standard in the property industry, with 100% acceptance by His Majesty’s Revenue collection services. Why accept anything less, if you can have confidence you know the true value of the property?
More Information
Managing Property in a Deceased Estate
Residential Property Valuations By RICS Surveyors
I cannot thank Mr Avery enough, the valuation was prompt, accurate and excepted easily by HMRC. I would thoroughly recommend this company if you are in need of inheritance tax valuations … Jamie
