Selling your house
Selling your house? Then go to your NVM broker!
Selling your house
Sell privately or use a broker?
Selling a house is a complicated business.
What price should I ask? Am I asking too much or too little?
What risks am I running? How can I sell my house as quickly as possible?
How do I draw up a sale agreement? Which notary should I choose?
You can look into this and deal with this all by yourself.
Would you prefer to be advised by someone experienced who knows about the property market and who can take these worries off your hands?
Then go and see an NVM broker. Most houses are sold through a broker and his efforts can save you a lot of time and trouble.
An NVM broker knows what is going on in the marketplace and will approach the right channels to ensure a perfect match between your house and the buyer. He can also help if you are looking for a new home.
NVM means quality
NVM stands or the Dutch Association of Real Estate Brokers and Real Estate Experts NVM. The NVM is the largest association of real estate brokers and has been in existence for more than 110 years. When you sell your home you want to be certain that everything is being done properly. If you go for an NVM broker, you will get expertise and quality. As it happens, it isn't easy to become an NVM broker:
• Every NVM broker has completed an all-round training as a broker. Every year, NVM brokers have to take compulsory training courses to keep their knowledge up-to-date.
• NVM brokers are experts in the local market and familiar with all aspects of the purchasing and selling process as well as the finer legal points.
• They know exactly which marketing and communication methods they need to and can use to sell your home, ranging from advertising particulars to the use of social media.
• NVM brokers know about buildings, can assess the value of your home and adhere to the NVM Code of Practice. The NVM Code of Practice contains rules of conduct which every NVM broker must observe.
Purchasing or sales broker?
If you use the services of your own broker to buy your new home then this is a purchasing broker.
If you have your home sold by a broker then this is a sales broker.
Of course an NVM broker can act as a purchasing broker on one occasion and a sales broker on another, but he can never act as both the purchase and sales broker for the same house. The NVM Code of Practice does not allow this, in order to prevent conflicts of interest. NVM brokers look after the interests of their client.
Candidate and assistant broker
In addition to certified NVM brokers the NVM also has two other levels of brokers:
• A Candidate Broker is a commercial staff field worker with a SVMNIVO broker-valuer diploma. A Candidate Broker performs all field staff activities required within a broker's office, except for valuations, and is registered in the K-RMT register.
• An Assistant Broker is a commercial staff member who is also able to carry out viewings when selling houses and carries out negotiations for that purpose in addition to the usual office activities. The legal formalities are always carried out under the final responsibility of a Registered Broker Valuer or a Candidate Broker.
What can your NVM broker do for you?
If you decide to sell your home, then you can have a chat with your NVM broker without any obligation.
You can have the entire selling process arranged from start to finish or opt for certain part-services. The package of activities you agree on determines the scale of the payment – the commission – which the NVM broker will receive for his efforts. Commission is often charged afterwards. It is also possible that your broker will make other arrangements with you for this.
The selling process
Once the arrangements about the services your NVM broker is to provide are complete, you can start the selling process.
Step 1: Decide the asking price
Step 2: Draw up a marketing plan
Step 3: Get your home ready to sell
Step 4: Arrange viewings
Step 5: Carry out negotiations
Step 6: Sign the sale agreement
Step 7: Go to the notary
STEP 1: Deciding the asking price
You want a good price for your home. But what is a good price? Your NVM broker will advise you on the asking price and will carry out a thorough investigation first:
• He will take into account the state of maintenance and the technical condition of your home.
• He will assess the location and living environment.
• He will list the financial charges, special provisions and environmental aspects.
• In the case of apartments he will ask about how the Owners' Association works and the level of the building management fund, among other things.
• He will assess the competitive aspects of your home in the market. Is it in a desirable neighbourhood? How much demand is there for your kind of house?
• He will investigate the prices that similar dwellings fetch in the vicinity of your home.
• He will assess the energy efficiency of your home by means of the energy label.
The result is the most optimal asking price:
a realistic asking price.
Special charges and restrictions
The law requires you as the seller to inform a potential buyer of all special charges and restrictions affecting your property. This could mean a right of way or a rental contract. In short all the obligations that could be important for the future occupant. You are also required to notify defects, such as a broken central heating boiler, in advance.
STEP 2: Drawing up a marketing plan
The broker won't just put a notice in your garden. He will do a lot more than that. He will decide the selling strategy in consultation with you, based among other things on the market situation and the time frame within which you want to sell your home. There is wide range of marketing media:
• Social media
• Newspapers, circulars, brokers' newspapers, special magazines, etc.
• Regional TV stations
The broker can also make use of traditional promotional methods:
• A notice in your garden or on the front of the house.
• An information and photo brochure of your home.
• A photo presentation in his office or his shop window.
Your NVM broker will use the correct methods according to your wishes and your budget on the basis of his knowledge and experience. When you put your home up for sale, it will be included in the NVM database. The dwellings offered by all NVM brokers are stored in this database. As a result all NVM brokers immediately know that your home is for sale. It is quite likely that your home meets the requirements of one of their clients.
Prominent spot on www.funda.nl
Your home has to be on here! www.funda.nl is one of the most popular home sites in the Netherlands, clear and easy to navigate with a large range of homes.
Many house buyers find their home through Funda.
STEP 3: Getting your home ready to sell
First impressions are very important. Make sure that your home looks tidy. Clean up the hallway and the rooms and invest in some maintenance. Repair minor defects such as a dripping tap or a sticking door. If necessary apply a lick of paint here and there. Tidy up the garden and make sure the entrance looks neat. Put out a nice box of flowers and keep the rubbish bins out of sight. Make sure that your home smells fresh and that the temperature is pleasant during a viewing.
An interior decorator can do wonders and make a home look light and roomy. Ask your NVM broker for advice.
STEP 4: Viewings
Your NVM broker coordinates and accompanies viewings.
He is the contact person for potential buyers and they can go to him with all their questions and for the brochure for your home. If a buyer is interested in a viewing, the NVM broker will arrange an appointment after consulting with you and the potential buyer.
You do not need to present at a viewing. Viewers will often put more questions to the NVM broker who is showing them around if the seller is not there. If a potential buyer approaches you directly, then you should always pass them on to your NVM broker.
Your broker will report on the viewing, depending on the arrangements you have made.
Using a broker during the viewing is an important contact moment with the potential buyer. The broker can learn more about the buyer's housing needs at that time. This information can be useful during any negotiations.
STEP 5: Negotiations
Not everyone is a born seller. That is why it's good that you don't have to do this yourself, but instead can leave it to your NVM broker. He knows all the ins and outs and will support you with advice. You will never lose control of the negotiation process, because at the end of the day you decide the price you sell your home for.
If a buyer submits an offer, your NVM broker will discuss this with you and advise you on what steps to take. The date of the transfer and the resolutive conditions are important during negotiations as well as the price. Examples of resolutive conditions are: not being able to obtain financing, not obtaining a housing permit or a receiving an adverse building survey.
It is also possible that the buyer will want to take over certain movable contents.
As long as an offer has not been accepted, the offer can be replaced by a lower or higher offer. An exception is an offer that is made which is valid until a certain time on a certain day. This cannot be revoked. Accepting an offer does not mean that an agreement is created. This only happens at the following stage.
The NVM No-Risk clause: an additional sales incentive
When a buyer buys your home before he has sold his own home, he will temporarily own two properties.
If this period lasts too long, this can become a big financial burden on the buyer. If this is an obstacle for a potential buyer of your home, then you can offer to include an NVM No-Risk clause in the sale agreement.
This means that the buyer can cancel the purchase if it takes too long for him to sell his former home.
STEP 6: Signing the sale agreement
You will agree a sale price with the buyer. In addition, you will make arrangements about other important aspects of the sale agreement, such as the date of the transfer, the resolutive conditions or a list of movable contents – curtains, floor coverings, lighting – which can be taken over for a certain payment, or not, as the case may be.
These arrangements are laid down in writing in a sale agreement. This is usually drawn up by the NVM broker. First you and your NVM broker will sign the agreement after which it will be signed by the buyer and his broker.
Read the sale agreement carefully before you sign. Only sign if you believe that everything has been stated correctly.
Any more questions? Then ask your NVM broker.
If the buyer and his broker have also signed then the sale agreement will have been finalised. The buyer will receive a copy of the sale agreement. There is then a tense time, because the sale agreement can still be cancelled at this time:
• The legal three-day cooling-off period will start once the buyer receives the copy of the sale agreement signed by both parties. The buyer can still decide to cancel the purchase during this period.
• The purchase can also be cancelled on the basis of resolutive conditions. This is possible at the latest on the date that is stated in the sale agreement.
• The inclusion of a No-Risk clause in the sale agreement can also result in the agreement being cancelled. This is possible at the latest on the day that is agreed.
Cancel your existing mortgage in good time!
Make sure you cancel your mortgage in good time.
Some lenders impose a penalty if you redeem your mortgage late. Ask your mortgage adviser whether it is better to deal with the cancellation yourself or have it done by a notary. If you do this yourself, then only take action after the buyer's resolutive conditions have expired.
STEP 7: Visiting the notary
The selling process is almost complete. The final stage is the signing of the deed of transfer at the notary and concluding the financial section.
The signed sale agreement and other necessary documents will go to the notary accompanied by a copy of your driving licence or your passport. As soon as the notary has received the documents the notary will make an appointment on the agreed date to sign the deed of transfer.
You will receive a draft of the deed of transfer and a final statement in advance. Check that all the information is correct. Your broker will usually check the deed of transfer as well. Pay close attention to the handover date and the items that will remain in the house. The buyer can inspect the dwelling before the transfer to see that everything has been left behind as agreed. Your NVM broker can supervise this inspection.
You will go to the notary with the buyer after the inspection.
You can do this without the supervision of the NVM broker, but he usually comes with you. Once you have signed the deed of transfer and this has been entered in the public registers at the Land Registry, you are officially no longer the owner of the dwelling.
The new owner will receive the keys after signature of the deed of transfer.
The buyer will pay the purchase price and any additional costs for movable contents that are left behind. The notary will then deal with the further processing, such as:
• Calculating the property charges, such as property tax and water board charges.
• Dealing with the repayment of any current mortgage.
• Ensuring that the agreed commission is paid to your NVM broker.
• Ensuring that any remaining balance will be transferred into your account. You will receive this balance after the deed of transfer is registered with the Land Registry. This is usually one working day after the transfer.
The sale process is complete
The sale process is finished. Congratulations! You have sold your house!
Of course your NVM broker will be there for you if you still have questions or if you need other services.