Why the Current UK Housing Crisis Isn’t a Guarantee to Sell Your House Fast
No matter how many times you read “sell house fast” ads, somehow you are wondering if there is any truth to closing a sale as quickly as they claim. The truth is, if you want to learn how to sell your house quickly, the first thing you need to understand is that these offers just may be your fastest option. Just because there is a housing crisis in the UK doesn’t mean that you will be able to sell your home as fast as you need to sell it and it doesn’t mean that buyers interested in your home will qualify for a mortgage loan. Here is some of what you need to know if you want to complete a quick sale on your home or you can Ask Susan, whatever your reasons for speed may be.
Some Startling Figures Just Released by Parliament
Oddly, there is a great deal of news surrounding new builds in the UK. According to the most recent publication on the housing shortage in England, the fiscal year 2016/17 saw approximately 217,000 new homes being built which was higher than the previous year but still short of the projected need by 15 percent. The government has estimated that England alone needs between 240,000 and 250,000 new homes each year to meet the housing shortage and when the entirety of the UK is taken into consideration, that number climbs to well over 300,000 at a bare minimum. Even so, the government recognises the fact that the number of new homes must also take into consideration the problem of affordability.
Is It Really All About Supply and Demand?
Now consider for a moment the number of older homes still sitting vacant with such a shortage of housing rampant throughout the UK. It would seem that it could be a matter of financing that prevents these homes from moving. That may be the case some of the time but there are other factors at play here too. If it were just a matter of supply and demand, it would seem as though this seller’s market would see homes move much quicker, but that is not happening. With government initiatives for first time homebuyers and so many new properties being built, it would seem that homes would be moving much faster. Therefore, it isn’t exactly a case of supply being insufficient to meet demands. Bear in mind that even those 240k new builds are not moving as quickly as they should!
Could Brexit Be a Factor?
Next on the list is the concern many market analysts have over how Brexit will impact the housing market. It is forecast that the industry will lose tens of thousands of workers from the continent when all is said and done and the new home market will then take a nosedive. With fewer homes being built due to labour issues, the housing shortage already in crisis will be exacerbated. However, were this the case, those homes newly built already would be selling at a much greater pace. This is the logical assumption. It leaves one to conclude that while Brexit may impact the number of homes being built, that really wouldn’t have much of an impact on the sale of new homes. So then, it isn’t supply and demand and it isn’t Brexit, so what is it?
Weighing in on What Homebuyers Are Looking For
It appears as though there has been a shift in what homebuyers are looking for in today’s market. While location and price are still leading drivers in the market, they aren’t the bottom line as they had once been. Today’s homebuyer, according to statistics and information released by Zoopla, is looking for something altogether different than their parents or grandparents. Based on statistical data gathered from search engines, price and location are only parameters but the real meat of the search is in the terms they use to find homes for sale. Some of the terms which rank among the top ten include:
Then there are the terms garage, annex, bungalow, freehold and cottage added to the mix of the top ten search terms used by prospective homebuyers. Could it be that there is something lacking in the homes being backed by government in this push to build a substantial number of new homes?
How the Economy Factors In
According to the latest news released by CNN Money, the economy in Britain is beginning to stall. This may result in lenders fearing to back high mortgages required for a new build. If you take a step back a decade in time, a huge precursor to the Great Recession was an overly ambitious mortgage lending market and when that crashed, the house of cards came tumbling down. Lenders seem to be a bit more reluctant to lend huge sums in the days leading up to Brexit and with the economy still in the mid-stages of being repaired. Therefore, it could be that the lack of financing could be a key player in the lack of movement in the new housing market.
Balancing the Old Against the New
Unfortunately, it is just news like this which may be impacting potential homebuyers from taking a step towards homeownership. What many don’t consider is the fact that older homes may be an affordable alternative to new builds and often can be financed much easier based on lower asking prices. What first time homebuyers should be asking themselves is whether buying an older home might be a step towards building the credit they need to qualify for a new home mortgage. Rather than overreaching and living beyond their means, it may be a better choice to move up the housing ladder slowly so as to avoid a potential problem in the unlikely event that the market could crash again. At the moment it seems unlikely, but who saw 2008 coming?
The Sell House Fast Conundrum
Even with all of the above being said, this does little for today’s homeowner seeking to sell their home quickly. While some of it may be marketing and not using the right key terms when posting a home for sale, some large part may be due to uncertainty in the economy. This leaves property buyers that offer approximately 80 percent of the home’s value for a quick sale. These investment companies can afford to sit on vacant properties longer than you can as a homeowner, but what they are willing to pay may be insufficient for your needs. Here is where a few tips and tricks for raising your home’s appraised value can be a major benefit.
Improvements to Improve Your Asking Price
If you need to sell your home quickly, perhaps a few improvements could help raise the price you can ask when contacting property investment firms. For example, living space is huge at the moment and homebuyers are looking for homes built as 2 or 3 bedroom units to function as 4 or 5 bedroom domiciles. This is easily accomplished with such things as loft conversions or the addition of home extensions or garden buildings. Just remember to do your research first before making any major improvements. Always keep ROI in mind prior to putting any money into home improvements. If you won’t realise at least double your investment, it probably isn’t going to be worthwhile.
A Final Thought
There are often reasons why you may need to sell your home quickly which are out of your control. Perhaps you can no longer carry such a large mortgage payment or perhaps your job requires you to move within a set amount of time, quicker than the average sale could take place. Some people have their homes on the market for more than 12 to 18 months before they see any real movement. In the end, it is imperative that you consider what you could lose if you don’t move it quickly. Losing a few percentage points is going to be more advantageous than losing the entire property. Let this be your final thought when seeking to sell your house quickly given all the factors in today’s housing market.