No Matter What You've Tried, You Want to Move But Can't Sell? Here's Why
- By Howard Ogollegos
- Published 10/14/2011
- Real Estate
- Unrated
Homeowners trying to sell their properties have faced a tough time over recent years. A lack of buyers has made it tough to generate any interest in property for sale, whilst house prices continue to stagnate. Halifax recently reported a 1.4 per cent fall in house prices in April 2011 whilst Nationwide figures showed a 0.2 per cent fall, meaning prices have fallen by 1.3 per cent over the last year.
Indicating that 2011 is going to be one of the toughest years on record for the property market, the Bank of England has revealed that 60% fewer home loans were agreed in March than February. The market is stagnant, so are the vital tips that any home owner looking to sell needs to know?
The first thing to remember is that you need to ensure your property is priced in line with the area. If the buyer can get the property cheaper nearby, the likelihood is that they will opt for the cheaper property. If you feel that the property may have been valued at a higher amount than it's actually worse, there is no harm in getting a second valuation done to confirm.
Bear in mind that the real and only value of any property is based upon what a buyer is prepared to pay for it, at the height of the boom when properties were increasing in value by GBP 50,000 to GBP 100,000, this was all theoretical money. Now the bubble has burst you must accept what the market is willing to pay, not what you paid for it five or ten years ago. If you have tried competing on price, and the asking price is absolutely as low as you can take it, perhaps it is time to take an alternate strategy.
One option is to remort
gage and let your property out. Remortgage deals today are cheaper than fixed rate mortgages that were taken out some years ago when interest rates were far higher than they are today. Equity in your property also acts as part of your 'deposit', which can really help in times like these when healthy deposits are so important.
Letting out your existing property, with the additional rental income paying the mortgage instalments, will give you the opportunity to make your move. Holding on to your precious investment will in addition give you the chance to sell up when the market makes a recovery.
One option if you are extremely desperate to sell your home, and are unable to find a buyer is to use a home buy scheme. They will buy your home in cash and there is no need to put the property on the market.
You do need to remember though, that home buy schemes often se owners selling for very low prices on their property, and so it is important not to use this unless you are in serious trouble.
If you struggle to find a buyer for your home, you may also wish to consider property auctions. Most people who attend will be business people or landlords, and so they will only attend if they have the finance or the ability obtain finance. The price paid will probably be quite low, however it is the better option compared with home buy schemes.
In Summary: It is a tough market for people looking to sell their home. A lack of buyers and downward pressure on prices mean that it's difficult to achieve your asking price and so you may find you have to accept a lower offer than you wanted. An alternative is to release equity from your home through a remortgage, and let out your existing property until the market recovers.
Indicating that 2011 is going to be one of the toughest years on record for the property market, the Bank of England has revealed that 60% fewer home loans were agreed in March than February. The market is stagnant, so are the vital tips that any home owner looking to sell needs to know?
The first thing to remember is that you need to ensure your property is priced in line with the area. If the buyer can get the property cheaper nearby, the likelihood is that they will opt for the cheaper property. If you feel that the property may have been valued at a higher amount than it's actually worse, there is no harm in getting a second valuation done to confirm.
Bear in mind that the real and only value of any property is based upon what a buyer is prepared to pay for it, at the height of the boom when properties were increasing in value by GBP 50,000 to GBP 100,000, this was all theoretical money. Now the bubble has burst you must accept what the market is willing to pay, not what you paid for it five or ten years ago. If you have tried competing on price, and the asking price is absolutely as low as you can take it, perhaps it is time to take an alternate strategy.
One option is to remort
Letting out your existing property, with the additional rental income paying the mortgage instalments, will give you the opportunity to make your move. Holding on to your precious investment will in addition give you the chance to sell up when the market makes a recovery.
One option if you are extremely desperate to sell your home, and are unable to find a buyer is to use a home buy scheme. They will buy your home in cash and there is no need to put the property on the market.
You do need to remember though, that home buy schemes often se owners selling for very low prices on their property, and so it is important not to use this unless you are in serious trouble.
If you struggle to find a buyer for your home, you may also wish to consider property auctions. Most people who attend will be business people or landlords, and so they will only attend if they have the finance or the ability obtain finance. The price paid will probably be quite low, however it is the better option compared with home buy schemes.
In Summary: It is a tough market for people looking to sell their home. A lack of buyers and downward pressure on prices mean that it's difficult to achieve your asking price and so you may find you have to accept a lower offer than you wanted. An alternative is to release equity from your home through a remortgage, and let out your existing property until the market recovers.
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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