Things to think about before Buying and Selling Property

From a property market perspective, we live in strangely contradictory times. While the level of growth in the market has risen at an exponential rate over the course of the last 18 months, for example, it remains extremely difficult for buyers (particularly first-timers) to invest in real estate while achieving value for money. The market also seems to be undermined by fragility, despite its continued growth and pivotal role as an economic engine in Great Britain.

3 Financial things to consider when buying or selling Property

This myriad of factors provides challenges to both buyers and sellers, especially in terms of optimising value and making the most of their money. With this in mind, here are three factors that potential buyer and sellers must consider when looking benefiting their finances: –

The Misleading Nature of Value

The surge is UK housing prices has been well-documented, but a rise in the nationwide average is encouraging some home-owners to inflate prices beyond what the market can bear. While the average cost of a UK home now stands at £224,242, for example, it is important to note that inflated prices in London continue to distort the national figures. Additionally, a lack of housing supply is enabling vendors to drive bidding wars, artificially increasing house prices and forcing buyers to pay over the odds. Both buyers and sellers need to be wary of this, especially if they hope to complete a quick and mutually beneficial deal.

The Importance of Location

Location is also an important consideration, especially for home-owners or buyers who wish to resell their property for a profit in the near-term. The region in which your home resides will have a huge impact on its initial value, while it will also influence its resale value both in the short and long-term future. It is therefore crucial that vendors establish a fair and well-researched price point that strikes the balance between profitability and incentive, for example, while buyers with an investment mind-set must look to purchase homes in areas that are likely to increase in value over a specified period of time. To understand this further, take a look at this article on detailing the worst places to live in the UK.


The Cost of Buying and Selling Property

Whether buying or selling a home, you will have to consider a number of financial costs and charges before completing a transaction. From surveying fees to conveyancing charges, these costs can quickly accumulate alongside the fee that is being paid to an individual estate agent. This is why those keen on improving their financial circumstances continue to partner with online estate agents and quick house sale firms, as these entities usually charge a one-off fee and maintain a simplified and transparent operation.

source: 20smoney.com

The Unexpected Downsides of Selling Without an Agent

With the internet playing such a huge role in selling a house these days, going it alone—no real estate agent in sight—can look like a pretty simple decision. There are a few big reasons you’re probably considering this route, like being able to skip the 6% commission fee and having complete control over everything from asking price to showing times.

These are worthwhile pluses, and they shouldn’t be ignored. But before you decide to take the plunge all on your own, you should also take a look at some of the potential downfalls.


Pricing.  A large part of a real estate agent’s upfront work is research. How much have similar homes sold for? What are prices in the neighborhood like? What developments are down the road for this area?

Unless you live and breathe real estate, those questions may take a lot of time to answer. Even then, pricing your own home can be difficult for sentimentality’s sake. Many homeowners set their initial asking price too high and scare off would-be buyers.  Others make the mistake of setting it too low and lose money they might have gained.

You may still have to pay commission. Just because you’re forgoing an agent doesn’t mean your potential buyers will. When a seller pays that 6% commission, his or her agent typically splits it with the buyer’s agent—meaning you’re still responsible for that 3% unless you can convince the buyers to pay for it on their own. 3% may be a lot better than 6%, but it’s still more than most expect when deciding against an agent.

It may take longer. Selling a house with a realtor isn’t often a speedy process, but doing it yourself could take even longer. There are several reasons for this. First, without a realtor you won’t have access to the Multiple Listing Service, which agents use to advertise to other agents. That means less visibility, leaving you to put more time and energy into marketing on your own.

Also, unless you or a spouse can make selling your house a full-time job, you’re going to have to work around your current schedule, limiting your opportunities to show the house. When you do show it, expect to still have to wade through the usual amount of window-shoppers and nosy neighbors.

The bargaining and paperwork. Even after you’ve found a buyer, the difficulties aren’t necessarily over. Without a real estate agent to act as buffer between you and the buyer, negotiations can get dicey. Often, for sale by owner homes attract bargain hunters who expect a lower price. The key is to not get emotional, and also know what you’re willing to compromise on from the start.

Closings also come with a lot of legal paperwork, and without an agent to handle it for you, you’re going to need to do a lot of research or else risk your biggest investment. There are buyer’s contingencies, disclosure laws, and title and deed requirements to get up to speed on, and if it ends up being too overwhelming, you may have to involve a real estate attorney anyway.

The bottom line?

Selling a home on your own can be great if you have the right experience and already know what you’re doing. If not, sticking with an agent can actually save you hassle and money.

source: totalmortgage.com

What to Do If Your House Isn’t Selling

So you haven’t had a showing in weeks and you’ve forgotten what your realtor looks like and you may or may not have started to wonder if you’ll be moving after all.

You’re not alone. With the housing market recovering so unevenly, many sellers are finding that they’re not able to move on as quickly as they’d like. That being said, if your home has been sitting on the market for months, it’s probably time to reevaluate your strategy.

Before you do something drastic, try giving these 5 tips a chance.

1. De-clutter and read up on home staging. Many sellers assume buyers won’t mind the clutter—it doesn’t come with the house, after all. But though buyers know this, it doesn’t keep them from focusing on the knick-knacks when they should be admiring the hardwood. A messy house can also make buyers wonder what else you haven’t kept on top of, or even signal a lack of storage space

If you’re wondering where to start, home staging could be your answer. Staged houses typically sell faster and for more money than vacant or as-is homes. The basic idea? Aim for the hotel look. That means clear surfaces, neutral colors, no personal photos, and minimal furniture.

2. Be willing to compromise. When you’re selling something as big as a house, flexibility is your best friend. For instance, if you’re only showing your home on certain days or during certain hours, you may not be reaching the right buyers, lowering your chances for a sale. Refusing to entertain a lower offer, or to compromise in other ways can also be an issue. Don’t let a deal fall through because of something as small as closing fees or a broken toilet.

3. Fix the little things. Speaking of broken toilets, fixing yours (or your dingy paint job, or that loose tile in the kitchen, etc.) may make a big difference in the eyes of a buyer. No matter how small the fix, it’s still one more thing for a buyer to worry about in the middle of an already stressful move. Try taking a few weeks to get your house as close to move-in ready as possible, and it could just pay off.

4. Make a bigger (or a better) marketing push. Sometimes, selling a house is just a numbers game. If no one sees your listing, or if it’s not appealing when they do see it, you’re not going to be getting the traffic you need to make a sale.

Often, this just means uploading better pictures to your internet listing. These days, most buyers want to get a good feel for a property before they visit in person, and if you only have a handful of fuzzy cell phone photos taken pre-decluttering, you’re not showing your home at its best. Make sure your photos are well-lit, clutter-free, and plentiful.

5. Take a second look at your asking price. Nothing can kill a sale faster than an unrealistic asking price. Many sellers make the mistake of letting their attachment to the house get in the way of their subjectivity. This is why it’s important to listen to your realtor or appraiser, or else know the prices comparable houses in your neighborhood are selling at. It may just be time to lower your expectations.

source: totalmortgage.com