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Most experts are predicting that house prices in the UK will fall over the next few months, with the trend looking to continue over the course of 2020.
Not all sellers will be impacted equally, however, with location playing a big part in the significance of price decline.
The most recent data shows a rise in property prices as the property market has reopened. However, experts warn that this is due to deals that were put on hold before the lockdown had begun. Whilst the rise is welcome, it is not expected to last throughout the year.
Mortgage lenders have been the first to react to the coronavirus lockdown, the wounds of the 2008 financial crisis still evident with lenders taking a risk-averse approach to mortgages. First-time buyers are the most affected here, with the removal of 95 percent of mortgages that many were aiming towards.
The level of furloughed and unemployed staff in the UK is substantial, with 8 million furloughed and unemployment rising by roughly 2 million since the lockdown began. Not only are people less likely to continue a property search and purchase property, but the effect on the wider economy will also be significant.
The Government is doing its part to ensure the property market remains as healthy as possible, all things considered. Interest rates dropped to 0.1 percent, their lowest rate ever. Government support for the property market should ensure the market shouldn’t collapse as we have seen in the past.
Buyers are going to be aware that property is cheaper to purchase, so what can sellers do to ensure they get the best price for their property in the current economic climate?
1. Check the job market in the area
Sellers should pay close attention to the level of employment in the area where they are selling property.
If the area is reliant on entertainment, catering and airport workers prominently, naturally the area will have suffered more from the lockdown. Sellers should consider holding until these sectors have a boost. You can get top tips to sell your flat from the job market.
2. Identify local demand
As mentioned previously, some areas will suffer more than others. Certain areas, such as central London have seen slow house price growth for a long time now, and this will likely continue regardless of the lockdown due to the continued high demand the UK capital receives.
Careful here though, certain boroughs in London are still susceptible to house price falls, and greater than average asking prices can prove a costly mistake.
3. Use a good agent
Identify agents that have begun selling again, these agents will have a good idea of current buyers’ situations and what they will be willing to pay. The overwhelming advice is to not price too high and hope for the best as we have seen in the past.
Choosing the right agent will also help you find the right buyers. Agents often have buyers lined up waiting for the right property to come up. This will help you in securing a good price for your property, knowing they have been waiting for a property like yours.
4. Over-offers
An alternative approach that could work if you are not having much success in attracting offers is to ask for ‘offers over’.
List the property at the minimum price you would be willing to sell and ask for an offer over the asking price. This is a good way to encourage offers and you may be surprised at the increase people are willing to make to secure the property once they have an express interest.
5. Ready the house
Many people make the mistake of forgetting to make the house look like ‘liveable’ as possible. You want your house to look like a home, somewhere buyers can imagine living in.
To get some support here, it may be worth having an interior designer having a quick look at your home to offer some support in making your house more attractive to buyers. The increase in selling price will very likely offset the expense of bringing your property up to scratch, and if. New furnishings are purchased, you can simply take them with you.
6. Ask for your own discount
Chances are if you are selling a home, you will be moving into a new home yourself unless of course, you are selling as a second home. Assuming the former, If the deal has not currently gone through, you should negotiate a reduced purchase price considering the property market seeing an overall fall in value.
Local transport links
Under normal circumstances, living near a train station or easy transport links to an airport will inflate the selling price. Whilst this is very likely still the case, the extent of this inflation is very likely to be dampened.
Agents have seen a surge in demand for property that has a big garden, with demand for property in the countryside at their highest rates on record as a percentage increase. If your home offers lots of outdoor space, this is a fantastic selling point to focus on in current times.