How to sell a home: your step-by-step guide

The storm clouds have been gathering over Britain’s property market for months and while the much-prophesied house price crash has not yet materialised, all the signs point to a significant downturn on the horizon.

Unfortunately, judging the best time to buy and sell is not straightforward and often circumstances mean a house move must happen whether or not you like it.

While prices remain resilient for now, around half of the properties on the market are selling for below their asking price as higher mortgage rates continue to stretch buyer affordability.

Telegraph Money has put together the definitive guide to selling your home, including the steps you need to take and the choices to consider. 

• Step 1: Find out how much you owe on your existing mortgage
• Step 2: Ensure you’ve paid off any outstanding debts on the property
• Step 3: Find an estate agent and/or legal representation
• Step 4: ID checks
• Step 5: Spruce the place up and get it sale-ready
• Step 6: Get a valuation
• Step 7: Have the property surveyed 
• Step 8: Host viewings
• Step 9: Choose the right buyer
• Step 10: Accept an offer and exchange
• Step 11: Completion and moving
• What to know before (and after) you sell

Step 1: Find out how much you owe on your existing mortgage

Finding out how much you owe on your existing mortgage is an important starting point for setting your expectations on the property you will be able to buy. Even if you are not planning to use the proceeds to fund your next home, it is good to be aware of how much you are likely to gain from the sale after the loan is paid off. 

If you bank online or with an app you should be able to log on and find your outstanding balance.

Otherwise, your lender will likely have a mortgage helpline you can use to get in touch and find the details of your loan. 

At the same time it is also a good idea to check whether your mortgage can be “ported”, meaning moved to another property. In this scenario you essentially pay off the debt by selling your current home and take out a new mortgage on the same terms as your old one. 

However, lenders will often require you to go through another mortgage application in order to move the loan as you are still being granted new funds; it is only the terms of the previous deal that you take with you. 

If you are not able to port your mortgage you will need to pay off the loan and apply for a new one. 

This could mean you can secure a better rate than would otherwise have been on offer from your existing lender, though you will have to go through another “affordability check” which, if your circumstances have changed, might mean you can’t borrow as much as previously.

Also beware that you may have to pay early repayment charges if you are moving part-way through your mortgage term and need to be released early. 

Step 2: Ensure you’ve paid off any outstanding debts on the property

Mortgages are not the only debts you may have on your property. In leasehold properties, there may be outstanding management charges that you need to pay before leaving.

Charges for repairs or maintenance to common areas or the building structure owed during your time will need to be paid off before you leave. 

If you have equity release loans against your home, you should be able to take it with you to the new property. 

Equity Release Council standards mandate that products should be portable as long as the new property is suitable for your product. 

Finally, if you are unsure you need to check that there are not any “charging orders” against your property. These occur when there is a county court judgement against you for an outstanding payment, for example unpaid utility bills. 

Step 3: Find an estate agent and/or legal representation

Current market volatility is making it hard for buyers and sellers to judge the market. High interest rates are pushing up mortgage costs and dampening house prices as buyers’ budgets take a hit. 

In these conditions finding the right estate agent to help sell your property is crucial. There are some initial factors to consider such as whether you opt for a high street or online agent, if there is anyone your friends or family can recommend working in the same area, or the fees you are willing to pay.  

Most agents will want an exclusivity agreement on your home to ensure they are the only ones selling it.

The typical fee for this contract is between 1.2pc and 1.8pc including VAT, according to the HomeOwners Alliance.

Here, Telegraph Money explains how to choose the best estate agent for you, and how much you can expect to pay for their service.

Step 4: ID checks

Throughout the selling process you will be asked to show ID to multiple people, including your lender, lawyer and estate agent. 

This is because these parties are required by law to make sure you are who you say you are and run money laundering and fraud checks.

Official identification usually means a passport or UK driving licence as well as proof of current address. You may also be able to use an EEA member state identity card.

You will also need to ensure you have all the right paperwork ready to prove you own the property, such as title deeds,  freehold or leasehold documentation and the property’s energy performance certificate, or EPC. 

Step 5: Spruce the place up and get it sale-ready

Once your paperwork is in order it is time to get your property ready to sell. Small and relatively inexpensive changes such as a fresh coat of paint, tidying the garden or even a hanging mirror can make your property more attractive to buyers, pushing up the value. 

If you have a list of maintenance jobs you have been meaning to do on the property, such as sanding wooden floors, that could be a good place to start.

If you have a longer time frame and capital to invest you may want to look at bigger improvements, such as refitting a bathroom or kitchen. 

Zoopla estimates a full kitchen redesign, at an estimated cost of £45,000 (though obviously this figure can vary depending on location, size and type of finish) might add 15pc to the value of the property. A new bathroom, meanwhile, could add 3pc to 5pc to the home.

Step 6: Get a valuation 

Most estate agents will give you a free valuation of what your house is worth, without the obligation to sell with them afterwards. 

Getting a valuation will not only help set your expectations but also inform your own financial planning if you are hoping to move to a bigger house. 

Half of all property sellers in England and Wales were forced to cut their asking prices to get deals over this summer, so you may have to be prepared to accept a lower offer than you had hoped for.  As well as speaking to an estate agent it may be worth researching the sale prices of any similar properties in your area. 

This may give you a good indication of the discount to the asking price you may have to accept in the current environment. 

It is also worth remembering that valuations can be useful even when you are not thinking of selling. A local estate agent will likely be able to give you an idea of how much work on the house, such as a loft conversion, will add to the property value. It can also be a useful way to take the temperature of the property market in your area. 

Step 7: Have the property surveyed 

While it is common knowledge that house buyers rely on professional surveys to ensure the property is as expected, it is also a good idea for sellers to get a survey completed on their home. 

Getting a survey before putting your house on the market will give you an opportunity to fix any issues it identifies, saving you hassle further into the process and potentially increasing its value. 

Or, if you aren’t able to fix the issue you can adjust your asking price accordingly to avoid disappointment later on. 

Buyers are also likely to be grateful if you are informed and honest about any defects with the property upfront, rather than waiting for them to discover issues themselves. 

Surveys need to be carried out by a professional and the type of property you are selling may determine what level of survey you need. A surveyor will be able to advise you on the right one for the house.

Step 8: Host viewings

While your estate agent will most likely be in charge of scheduling and managing viewings there are ways you can ensure the first impression potential buyers have of your property is a positive one. 

If the weather allows it, keep the windows open and turn the lights on so the property feels airy and fresh for viewings. 

Do not be afraid to share your experiences of living in the area. If there are elements buyers can relate to or look forward to it may improve their perception of the property.

It may also be worthwhile finding out any additional details on the viewers from your estate agent before they arrive. For example, do they have children and if so can you recommend local schools or playgroups?  

Chris Husson-Martin, director and head of sales at Hamptons in Salisbury, says: “The best advice we can give is to take a step back and think about their own home with fresh eyes. 

“Kerb appeal is very important, we encourage sellers to present the front of their home well, tidying up front gardens and the approach to the house is essential as this will be the first thing a viewer will see. 

“The majority of buying decisions are made within the first few minutes, or even seconds of a viewing.” 

Step 9: Choose the right buyer

In the current climate, buyers may be keen to put in an offer as soon as possible in order to help facilitate the sale of their own home, or not lose out on a more beneficial mortgage rate.

However, it is important not to feel pressured into accepting an offer straight away. Ultimately the process is a negotiation and if you have more viewings lined up, your home may even be the subject of a beneficial bidding war.

Sophie Archidiacono, head of sales at Hamptons Balham, says: “The more information we can share with a seller, the better we can help them to make a decision. 

“I would always advise a seller to pick the buyer that suits their requirements best. Some sellers value matching timelines over an extra £5,000 on the offer, whereas some want a buyer in the most secure financial situation possible.”

Sellers may also be concerned about “gazundering”, where a buyer lowers their offer just before contracts are exchanged, essentially trapping the seller into accepting. 

Ms Archidiacono advises sellers to be wary of buyers who are reluctant to disclose financial information. 

Meeting the buyers face to face, will hopefully build a relationship between the parties and help you gauge mutual commitment.  

Steve Brown, of Winkworth’s Blackheath office in south-east London, says: “The vendor and buyers are not just names on a piece of paper and if things come up through the sales progression in terms of any slight issues, if the two parties have met and provided they have got on, it’s easier to manage and work through any issues or problems. 

“You can gauge how emotionally committed they are to the sale from the initial meeting too, which will help.”

Step 10: Accept an offer and exchange

Accepting an offer for your property is the most crucial decision of all, particularly if you are using the proceeds of the sale to fund the majority of your next home purchase. 

Baulking at a lower-than-expected offer is understandable but there are good reasons it could be worth considering. For example, if it is an offer from a first-time buyer they will not be trapped in a chain and be able to move quickly with the sale. 

Similarly, accepting a cash buyer is likely to speed up the process as they are free of mortgage lender requirements for surveys and valuations. 

However, do not be afraid to go back to the buyer if you still feel the offer is inadequate. The process is a negotiation and buyers will likely be expecting some push back and a good agent will be able to advise you on the best approach. Though bear in mind that agents may want a quick sale to hit their sales targets rather than getting the best deal for you.

If you are happy with the buyer, and the offer they have made, then it is time to let your lawyer or estate agent know you wish to accept. 

The buyer may have conditions such as the house being pulled off the market, and you can make your own – for example fixing a date for the exchange of contracts. 

Exchanging happens once the conveyancing has been done and the buyer is happy with the results of the survey and has finalised their mortgage. Once you have exchanged the contract, it is legally binding. 

Step 11: Completion and moving

Completion is the final legal step in selling your home and usually takes place a few weeks after the contracts have been exchanged. After this the property will no longer legally be yours. Make sure you have let the utility companies know you are vacating the property and provide meter readings if necessary.

This means you need to move out and the buyers are able to begin any work they want to do on the property before moving in or set their moving in day. 

Ideally you will be able to move into your new property before or on the same day as ownership of your old home transfers, but if not you will need to sort accommodation in the short term. 

What to know before (and after) you sell

How long does it take to sell a home?

The timescale for selling a home depends on different factors including the type of property, area and market conditions. 

Guidance from the HomeOwners Alliance suggests it takes 10 weeks from a property being listed to accepting an offer. From there, the process of getting to completion including surveys and exchanging contracts is around two or three months. 

In total from listing to completing and moving out is estimated to be around six months.

Winkworth’s Mr Brown says that is roughly in line with what he is seeing: “From instruction to completion,  the quickest we have seen recently is two months, the average is four months, with many six months-plus.”

When do you pay capital gains tax?

If you are selling your main home there is no capital gains tax to pay. A second home or rental property, however, will attract CGT. 

The annual allowance was recently halved and the rate you pay is either 18pc or 28pc depending on your income tax bracket.