Homeowners looking to trade their way up the property ladder may find it very difficult right now. The UK housing market is slumping, to say the least. In fact, the Office for Budget Responsibility has downgraded its forecasts of UK house price growth for both this year and the next. How can homeowners maximize their profits when looking to sell their property? Current sellers: read on or miss out!
What is the market really like?
An analysis of the UK housing market has uncovered four periods – 1974, 1980, 1989, and 2004 – when the average homeowner had the potential to double their money within five years of ownership. If you have ever sold a home, you know that there are costs associated to make it happen. These costs include everything from major remodels down to EPC (Energy Performance Certificate) costs, and they can run to thousands of pounds.
This week, England experienced the first fall of home prices since 2012. The chaos of Brexit is beginning to take its toll, as buyers are being put off investing in real estate for the first time in seven years. Even the housing-hungry southwest London area has stagnated, putting the average price of a home in England down to £255,683. With such uncertainty in the market, consumers are choosing to stay put rather than seek out greener pastures in a new home.
Supply and demand
It is a buyer’s market, with most holding out for a price decrease as far down as the market will go. Unfortunately, because demand is down and the economy is uncertain, the supply side is down as well, with many sellers hanging on until they know what is going to happen with the economy and the government.
In short, today’s housing market in the UK, like so many other things, is at a standstill until the Brexit situation unravels. As it stands today, nothing is clear, cut and dried, so sellers should consider non-traditional sales methods such as online home buying professionals.
What does it take to sell your home?
In addition to finding a good estate agent and paying them a cut of the final sale price, as the seller, you are responsible for fees, certifications, and other legal documents that are mandatory when making a property sale. Additionally, the condition of the property makes a huge difference, so even a fresh coat of paint can help entice a buyer. Unfortunately, even small improvements cost money.
Selling your home and actually making a profit on the transaction takes a lot of time, planning, and money in terms of costs and fees. There is also a level of risk that the location or other economic factors beyond your control can work against you and lower your price or take more time to attract a qualified buyer.
Non-traditional home sales, the facts
There are two options to sell your property through non-traditional methods. The first option is selling at auction and the second is to use a property buying company. Both are fast methods of selling property, which appeal to many buyers, but each has its pitfalls.
Property buying companies purchase properties sight-unseen, offering cash for your property in as little as five to seven business days. Companies like Speed Property Buyers pride themselves in saying “we can buy your house” even if you are finding it tough to sell.
There are low to no fees, no viewings, and the sale is fast but you may be able to get more for your property through an open-market sale. If speed, low cost, and low hassle are your goals to get your property sold, this may be the perfect method for you.
When selling at auction, expect to pay the auctioneer a fee of around 2.5% of the sale price. This is lower than what you would pay an estate agent, but even if your home does not sell at the auction, you still have to pay the fee. You may be liable for advertising and legal fees or other costs up front, so be sure to read the fine print.