Want to Move, Can’t Sell The House Though…
House prices remain volatile at present, but what are property owners thoughts on selling if they’re unable to get buyers who can finance a purchase? A leading UK building society has recently confirmed that property values have decreased by almost half a percent, and over 1 percent in the past year. Another lender reported a reduction in property prices of almost one and half percent in April compared with the previous month.
With mortgage lending becoming more sluggish than in the early part of the year, buyers are finding it increasingly difficult to obtain finance to buy a property, and so sellers are seeing less feet through their doors for viewings.
Ensure Your Property is Competitively Priced: If you are struggling to get potential buyers through the door, it may be that your property is overpriced. It’s unlikely you’ll be successful in selling your property if the price is higher than comparable houses in your area and you will face the prospect of receiving offers lower than your expectations.
It is important to remember that the price must reflect what the buyer is willing to pay to own it, and if your property really cannot be priced any lower then you may need to rethink your options.
One option is to remortgage 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.
You can then let out your existing home and use the rental income to cover your mortgage repayments. You get to move home as planned and you also retain your property as an investment which you can sell in the future when property prices have risen.
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.
Beware however; as the price paid is generally very low, and you will probably get a poor price for your property compared to what it is worth.
Property auctions are also a way of getting a quick sale, although there may still be a chain involved, so the purchase may not go through for a few weeks. But remember, most who go to property auctions are business people and so they’ll be looking to get the best price, which may mean a very low price.
The advice is that if you can hold onto your property for a while longer, then do so. With remortgage rates remaining low, and a sluggish recovery of property values it is far better to wait out the storm and sell your property when you can get a better price for it. Try contacting a few lenders for an agreement in principal, and this will give you an idea of whether you are eligible to apply for a remortgage.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.