With the headlines persistent in the proclamation that house prices are seeing double-digit rises and there’s even more to come (irrespective of our current political climate), and with estate agents encouraging far more interest through open days and sealed bids, it’s not surprising that some buyers – the would-be ones – are in a bit of a panic.
Agents frequently report that properties attract over a hundred viewings, and that doesn’t just happen in London.
So, you do really need to ask yourself, if you already own your home, or you have a mortgage on that home, do you truly want to sell up and go through the entire process over again?
Let’s focus on a number of potential concerns about selling and uprooting a bit too quickly. Once these concerns have been addressed, you’ll be in a more comfortable position to take the plunge.
What about your future plans?
Before you take the leap and invest in a new property, as you’ll likely be aware, you really do need to consider for how long you’ll reside in that new property.
If you’re intent on starting a family or growing your current family, you don’t want to be investing in a one-bedroom flat. Even a two-bedroom flat would likely be far from ideal.
Similarly, if there’s any instability surrounding your job or your finances, you should be asking whether it’s a good time to tie yourself into taking on a larger mortgage than you have now.
If you find that the place you buy is not quite the fit you thought it was going to be, you’ll have the added expense of moving once more.
So, it’s best to think about yours and your family’s circumstances before you decide to uproot.
Making a bid – how does it work with your current finances?
Before you make a decision to overstretch your finances by placing a winning bid on the property you like the most, it’s vital to assess what the long-term impact is going to be in terms of the sacrifices you’re going to have to make.
Are you, in fact, ready for committing to a larger mortgage? Let’s say the house prices fall. You’re going to have to handle negative equity. Are you going to be stuck in your new place because you’re not able to sell? And, if these circumstances did arise, or something similar, are you going to regret selling and uprooting in the first place?
If you’re committed to selling and uprooting, it’s possibly better to move to an area that is cheaper and less popular than investing in a property that’s a bit too financially hot to viably handle.
Try to establish a backup plan beforehand. Could you let out your new property if the worst-case scenario occurs? If yes, you could cover all of your costs with the rental income and possibly have quite a bit extra left over to successfully handle many of your other costs.
As you’ll no doubt know if you’re intent on selling your current home, there’s a cost involved with homeownership that has nothing to do with your mortgage.
While to many, the concept of homeownership is a dream come true, it doesn’t necessarily pan out that way for everyone.
What happens when the boiler breaks down in the middle of winter and the cost of a replacement is more than you can currently afford?
What about if the roof begins to leak and the cost of repairs is more than substantial?
What about if at your new place your neighbours love to party on a regular basis until 3 am?
Suddenly, that dream of owning your own home, or that desire to upgrade on your previous home is no longer so much of a dream come true as it is a nightmare.
Of course, to avoid such scenarios, it’s always an extremely good policy to do your homework in advance. By all means, check the status of your targeted new home’s boiler to see that it’s in excellent working order. Have the roof looked over if you have any doubts about it. Ask the seller about noisy neighbours. In the U.K. every home seller has a duty to disclose such information to potential buyers prior to making a sale.
The long-term tenancy – is it a more viable option?
Longer-term renting is considered a far more attractive option in mainland Europe than it does in the U.K. And it’s true that in mainland Europe, in general, tenants have more rights.
Nevertheless, if you only want security of tenure and you only need a home that, to some extent, you can call your own (and make your own – again, to some extent), then it is a mistake to make the assumption that this is not possible to achieve in the U.K.
There are many thousands of landlords throughout the U.K. that are very keen to have the stability and the security that comes with a long-term, reliable tenant. And, if they find one, as often as not, they are more than agreeable to you as the new tenant decorating the property to your own preferences.
What’s more is that it can be, and often is, possible to negotiate with the landlord about the rent. If you’re a long-term, reliable tenant, many landlords would be comfortable in lowering the rent to accommodate you.
Get in Touch With Open House Estate Agents in Leicester
You’re set on selling your property and relocating. You’ve done your homework and it’s the right move for you.
Did you know that on average in the U.K., if you advertise your house privately, it can take as long as two to three months to sell?
Of course, that doesn’t always ring true. Many U.K. properties stubbornly remain on the market for a whole lot longer than this.
Nevertheless, at Open House, we frequently help home sellers to pump up the volume in terms of the number of property viewers. That’s because we have the experience and we have the resources.
If you’ve decided to sell up, and you want to sell up relatively soon, we’re here to help. Ask for a high quality, free property valuation, or download our FREE e-book that gives all the latest tips on selling your home.
Get in touch with our friendly team at Open House. We’ll provide you with reliable, honest advice – the sort of advice that you need to make a successful property sale.