Mortgage calculator: is it better to rent or buy?

In the last year desperate homesellers have sought ever more creative ways to attract potential buyers, such as prize draws, with tickets costing £25 for entry into a competition to win a home worth £250,000. Others have simply stuck a hand-made sign outside their property with a mobile telephone number.

But how do you increase your chances of selling your home succesfully. Here is the Times Money guide.

Estate agents

You can find a list of estate agents in your area by visiting the website of the National Association of Estate Agents (NAEA), the industry trade body. This will ensure that the agent you choose is regulated and adheres to NAEA's code of practice. You should also check whether the agent is a member of the Ombudsman for Estate Agents.

Choosing the right agent will ensure your property is shown to customers who will be genuinely interested in buying it. Do your research first. Look in the window to see if houses like yours are advertised there. Do not necessarily opt for the agent with the lowest charges, which can range from 0.5 per cent to 2.5 per cent.

Once you have found an agent, negiotiate the right price for your property. Your agent will do a valuation and place your home on the market at a price he or she deems correct. If you think that the price suggested is too high, or low, tell the agent.

For example, look at the prices of other similar sized houses on websites such as rightmove.com or propertyfinder.com, and check out the price that other houses in your area have sold for at zoopla.com.

Property websites

Cut out the middlemen by listing your property for sale on listings websites which charge a nominal fee. Sellmyownhome.co.uk charges £399 and will give you a listing on its website, which it says has 250,000 hits a month. Homesforsale.co.uk is offering a free listing for anyone selling a property in the next few months. You could pay £79.99 to be listed on other sites, including Fish4Homes, Home.co.uk and Properties Direct.

Potential buyers browse the various websites and get in touch with you directly if they’re interested.

Or you could swap homes with another seller. For £34.99, users can register on www.swap-homes.com and list where they would like to move. The site searches for potential swaps.

Remember, if you are selling your property it is likely that you will need to show potential buyers a home information pack.

Newspapers and listings magazines

If you are wary of listing your property online, you could opt for a national or local newspaper or local listing magazines.

An advertisement (two columns wide by 5cm) in Bricks and Mortar, the property supplement which appears in the Times every Friday, costs £150 plus VAT.

If you are selling your home yourself, ensure you get good quality legal advice from a solicitor.

Auction

Selling your house at auction can be quicker and simplier than going through a traditional agent. Auction houses will take photographs to put together details for a catalogue, which will appear three weeks before a sale, giving prospective buyers time to look round and arrange surveys. It will also value the house, giving a non binding guide price. Once the hammer has gone down, the sale is binding on both sides. The buyer pays a 10 per cent deposit and the sale continues as it would through an agent.

Auctioneers’ fees are usually about 1.5 per cent of the property’s value, and there is a catalogue entry fee of around £375-£700. You will also need to pay a solicitor to complete the sale.

Home Improvements

Clearing out clutter, painting walls and tidying up the garden can dramatically improve your chances of a securing that elusive sale. You can also boost your sale price. A recent survey found that spending £1,330 on painting and decorating can add £3,557 to the price buyers will pay for your home. However, major works can be a false economy. On average, a home extension costs £33,800 but adds only £13,568.

However, there are some essential items that every home needs for a quick sell, such as a shower.

Five news stories

House prices fell 2.2% in December

House prices set to slide 10% in 2009

Mortgage lending drops 61% in wary market

Lenders drop house price forecasts

Mortgage lending slumps to new low in December

Five features

Should you buy property near new transport links?

Buying a property at auction

The future for housing is bright if you don't mind staying in for a year or two

House price bargains loom, but will potential buyers find funds?

House price predictions for 2009

Five websites

Upmystreet

Primelocation

Citizen's Advice

Home.co.uk

Direct.gov.uk