Selling your home in uncertain times - Heres what you need to know now
15th of May, 2020
Are you buying or selling a home right now? Or planning to? Feeling concerned and anxious about what’s going to happen with the housing market over the coming months?
Maybe you’re feeling uncertain about what you should be doing and wondering what you can do to mitigate any risk to your financial security.
We are living in unreal times. In this article, I’ll explore what this uncertainty means for you and your family and explain exactly what you can do to best position yourselves when the housing market returns to normal. Whether you’re selling, buying, or just want some guidance on what the next few months might mean for the property market in our area, this article will help.
“What should I do if I am selling?”
Viewings on hold – now that property viewings have been suspended, you may be worried about what this means for your moving plans. When people are uncertain of their immediate future, they are reluctant to make decisions and do anything to change their current status quo. Don’t worry – the buyers who are really keen, will contact your agent and leave their details, so when this situation ends, you may have viewings straight away. Just check with your estate agent that interested parties’ contact details are being recorded.
Online interest – with everyone at home right now, you may get a spike of browsers looking at your property online. Most browsers turn into buyers eventually, and this should mean the property market gets a bounce in a few months, so you need to be ready. Now that the Government have slashed the borrowing rate to the lowest in its 325-year history, some buyers may feel there’s never been a better time to buy a house.
Cheeky offers – it’s certain there will be some very low offers on some homes from buyers wanting to cash in on this uncertainty. If you really need to move now, and just can’t wait, you may be tempted to take a low offer, but if you can wait, you’ll undoubtedly get a better price for your home down the line.
Withdrawing from the market – in my opinion, there is currently no real benefit to taking your home off the market right now, so stick with it, but review the situation frequently with your estate agent. I’m currently talking to my clients often to make sure they feel supported in whatever decision they make, and also to ensure they are ready for a potential influx of viewers when the situation returns to normal, and I can start conducting viewings again.
“What should I do if I am buying?”
Lower competition – now there are less homes on the market, and fewer buyers around to buy them – could this be the perfect time to buy your dream home?
Potentially lower house prices – those sellers who can afford to wait to sell their homes, will do so, relaunching once things are back to normal. However, there are some homeowners who have no choice but to sell and move in the next couple of months, and these properties could well be discounted to attract a buyer quickly. You could find yourself buying at a reduced price if you are able to move fast, despite the current situation. This could especially be of interest to investors right now, and also cash buyers.
Record low interest rates – great news for buyers using a mortgage to buy a home, now could be your best chance to secure a great deal on a mortgage, potentially saving yourself tens of thousands of pounds over the duration of the mortgage. Beware though, with staffing levels low at the moment, some banks are favouring buyers with larger deposits.
“What will happen to the property market over the coming months?”
We have 25 million homes in the UK, and each year on average, 1.2 million of them sell.
In other words, just under 5% of homes in the UK sell every year.
In an area the size of East Dunbartonshire, that means there are 2,407 property sales each year – 46 per week.
This means that when this crazy time is over, and things are getting back to normal, there will potentially be hundreds of homes that come onto the market, that would otherwise have launched during this ‘pause’ period.
This will help you to move on. More homes on the market, means more choice for you and your family and more potential buyers for your home.
If I look into my crystal ball, by June we will have some sense of normality, with the economy running at 30-40%. By July and into August, I expect the country to bounce back and begin to spend. As certainty improves, so does market momentum. I think there will be a big resurgence of demand, and buyers wanting to move by Christmas, at the latest.
“What if I have already agreed to buy a house?”
If you are in the middle of buying a house, congratulations! I’d recommend you proceed as planned, but maybe check to see if you can get better mortgage terms than perhaps you were previously offered. Your Solicitor will advise you on a move in date, this has the potential to be renegotiated due to our current circumstances. Remember that house prices rise and fall periodically, which means that if you’re planning to stay in the property for more than say, a year or two, any risk is limited.
“We’re thinking about moving soon – what should we do?”
Timing is always important when it comes to selling your home for the best price, but over the coming months, it’s going to be crucial. If you put your home on the market too soon, before the situation has been resolved, any uncertainty and practical problems with conducting viewings will mean you are unlikely to get the price you need for your home.
But if you wait too long to put your home up for sale, you may find that the housing market is full of competing properties. This means you could miss out on the inevitable bounce-back in the housing market. This is something we experienced in the early months of this year, once Brexit was passed – there were more buyers than houses, and some of my sellers were delighted with the prices they achieved and the timeframe in which they sold in.
The right time is difficult to predict. But having a plan is vital if you want to hit the market at precisely the right time to benefit from the bounce-back, when it happens.
In a few weeks, when the situation is safe again, Mr Johnson and Co will allow me to continue doing what I do best – selling homes. It may only be a few days’ notice, so we all need to be able to react quickly and decisively. I’ll be ready, and I can help you to be ready too.
Can I help you?
Perhaps you have a burning question about your moving plans, or you need more clarity on any of the above points – whatever it is, I’m here to help at any time.
Email me personally on fiona@fionawrightproperty.com or call me on 0141 266 0126 f you’d like a confidential chat. Whilst I’m working from home over the coming weeks, you can reach me on my mobile – 07342 729 329 Just send a text if it’s easier for you and we’ll arrange a time to chat. If you’re home schooling right now, evenings might be better for you, so just ask!
I’ll give you clear, actionable advice on what to do in your specific situation – whether waiting or taking action is the best option for you. Please ask – I’d really like to help you, if I can.