The Property Market is a Buyer's Market, So What Can Sellers Do About It?
- By Howard Ogollegos
- Published 10/10/2011
- Buying
- Unrated
Surveyors in the UK have been reporting that more people are now putting their homes back on the market for sale, even though the housing market in general is still moving very slowly. But this has done little for the extremely slow increase in house prices in the UK.
The number of buyers viewing property has also increased - helped in part by some excellent weather at Easter - but continued problems in obtaining mortgage finance is hampering many potential purchasers. Unless buyers have a good sized deposit, it is tough to obtain the mortgage they need to buy property.
Royal Institute of Chartered Surveyors' Housing Spokesperson, Michael Newey, said: "The return of sellers to the market is positive," he added that a lack of activity in the market was still a problem, and there was little likelihood of this changing in the near future.
One of the UK's leading property websites did a poll recently and found that almost three quarters of people believe that property prices in the UK will either remain the same, or be slightly higher in twelve months from now.
This shows that more people are optimistic about house prices going forward. But the problem is if you don't have the cash to put down a deposit and buy now, you'll more than likely be paying higher prices for your property i
n the future.
It is vital to bear in mind that those buyers who have the capability to place a larger deposit, typically one of more than 10%, are likely to get access to a better mortgage rate. Others might find it hard to access finance in the current wintery economic climate.
Those who are unable to put down a decent size deposit are likely to find it very difficult to obtain finance to buy a home since the market crash, and although lenders are loosening up a little, they are still reluctant to lend more than an 80% loan to value.
Rightmove also discovered that the 45% of people who planned to purchase property hoped that properties were currently overvalued. RightMoves House Price Index showed that unsold stock in the hands of estate agents took its "highest jump in four years". No doubt the asking price of the houses is probably the reason for the surplus stock, which tends to suggest that whilst prices might not continue to fall, sales are unlikely to revive.
By obtaining a remortgage, you can lower your monthly repayments while you wait out the storm, and then perhaps look to sell again in the future when your property value has recovered and you can get a more attractive price.
With forecasts indicating that the current rock bottom prices are unlikely to fall again in that time, you should be in a far stronger position to sell than you currently are in at the moment.
The number of buyers viewing property has also increased - helped in part by some excellent weather at Easter - but continued problems in obtaining mortgage finance is hampering many potential purchasers. Unless buyers have a good sized deposit, it is tough to obtain the mortgage they need to buy property.
Royal Institute of Chartered Surveyors' Housing Spokesperson, Michael Newey, said: "The return of sellers to the market is positive," he added that a lack of activity in the market was still a problem, and there was little likelihood of this changing in the near future.
One of the UK's leading property websites did a poll recently and found that almost three quarters of people believe that property prices in the UK will either remain the same, or be slightly higher in twelve months from now.
This shows that more people are optimistic about house prices going forward. But the problem is if you don't have the cash to put down a deposit and buy now, you'll more than likely be paying higher prices for your property i
It is vital to bear in mind that those buyers who have the capability to place a larger deposit, typically one of more than 10%, are likely to get access to a better mortgage rate. Others might find it hard to access finance in the current wintery economic climate.
Those who are unable to put down a decent size deposit are likely to find it very difficult to obtain finance to buy a home since the market crash, and although lenders are loosening up a little, they are still reluctant to lend more than an 80% loan to value.
Rightmove also discovered that the 45% of people who planned to purchase property hoped that properties were currently overvalued. RightMoves House Price Index showed that unsold stock in the hands of estate agents took its "highest jump in four years". No doubt the asking price of the houses is probably the reason for the surplus stock, which tends to suggest that whilst prices might not continue to fall, sales are unlikely to revive.
By obtaining a remortgage, you can lower your monthly repayments while you wait out the storm, and then perhaps look to sell again in the future when your property value has recovered and you can get a more attractive price.
With forecasts indicating that the current rock bottom prices are unlikely to fall again in that time, you should be in a far stronger position to sell than you currently are in at the moment.
Howard Ogollegos
Howard O'Gollegos writes for Just Commercial Mortgages.com the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news.
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