You might need to downsize as all the kids have flown the nest, upsize as kids are on the way, sell a loved one’s home or just fancy a move to the country.
There is a lot to think about. There is the ongoing war in Ukraine, the cost of living crisis and a stagnant economy. You might think it’s not a good time to sell a property or move, but there is still an active housing market and there is some more positive news out there.
First to some of the better news. Inflation has been dropping consistently over the past 12 months after peaking at 11.1% in October 2022. Data issued by the Office for National Statistics shows the rate of price growth has dropped sharply to 4.8% in October from 6.7% the previous month.
The drop in inflation is watched closely by economists and has a big influence on the Bank of England base rate, which in turn affects mortgage rates. With inflation getting towards the 2% target many think interest rates have peaked and there might be rate cuts earlier than initially forecast in 2024.
The improving economic data has reduced mortgage rates for 11 consecutive weeks. The average two year fixed rate is now below 6% for the first time since June and the average five year fixed rate is 5.4%, dropping from above 6% 11 weeks ago. This helps increase activity in the housing market as buyers are more confident about taking on mortgages.
So, you’ve decided to take the plunge and sell a property. We have three top tips to make it successful.
Choose the Right Estate Agent
- Speak to friends and family to see if they can recommend a good estate agent.
- Look on Trustpilot for agents with the best reviews.
- Speak to a number of estate agents and ask them to justify the price they are suggesting, with written comparable evidence of specific properties within a ¼ mile that have sold or are under offer in the past 6 months.
All good reputable estate agents should be able to provide this information. If an estate agent gives you vague, unsubstantiated responses, think twice about using them.
Get the Right Price
Once you have a good estate agent in place, make sure you market the property at the right price.
- The number of home sales in 2023 is approximately 30% down on last year’s figures. This lower activity has put pressure on prices.
- New seller asking prices in October increased by 0.5%. This might sound good, but it’s below the historic norm of 1.4% for October and at its lowest level since 2008.
Rightmove data tells us that sales agreed are 17% below this time last year, as sellers who started too high struggle to secure a buyer. Agents advise that if sellers start with an unrealistically high price, they often struggle to sell. The importance of immediate buyer interest is borne out in the data. If a property gets an enquiry on the first day of marketing rather than after two weeks, it is 60% more likely to sell.
The percentage of homes finding a buyer has dropped from 80% in the post lockdown boom to 60% currently – further highlighting the need to price competitively.
Property Condition
You’ve ticked the first two boxes. Now what?
A cluttered, dated and tired looking home can make buyers think they are buying a major refurbishment project, when in fact the property is in good structural condition and simply requires a refresh.
Before putting the property on the market, you can undertake a few quick repairs, clean ups, and clear ups that can mean the difference between buyers offering below the asking price and them queuing up to offer above the guide price.
It’s a good opportunity when moving house to rid yourselves of all the clutter and old items you’ve been holding onto for years. Before putting the property on the market, have a good clear out and get rid of all the furniture, household items and clothes you don’t need and aren’t intending to take with you. This will make the house look bigger and more attractive to buyers.
Once the house is cleared of unwanted items, why not spend a few days cleaning down the walls, woodwork and built in fittings? It’s amazing what a deep clean will do to a home. If you have a little more time and budget, give the walls and woodwork a lick of paint. This can literally add £1,000’s to a buyer’s offer.
Outside, there are quick wins to improve first impressions. Spend a weekend cutting back the garden and mowing the lawn. Get rid of the moss on your roof and clear the gutters of debris and plant growth. Often the brickwork close to the ground will be stained and have missing mortar, and this can be cleaned and repointed relatively easily. Also, clean the outside of the windows and use a jet wash to clean other outside areas.
Repairing chipped or blown render, or repainting external walls might be a little bit more expensive, but they again give the impression of a well looked-after home and give a buyer fewer reasons to offer below the asking price.
We hope our top tips help when thinking about selling your home!
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