Why selling your house in 2020 is not a good idea!

The property market has been uncertain in the UK for some time mainly thanks to BREXIT which dominated the news for what seemed like forever. There were warnings of a stock market crash and this general economic uncertainty led to potential buyers and sellers holding off investing or moving until some type of concrete decision was reached.

Then in January we appeared to be entering a time of greater stability and optimism. Boris Johnson won the election with a landslide victory and this caused house sales to rise by 12%. It seemed as if buyers and sellers were finally awakened from the Brexit nightmare and all seemed set for a return to normality.  As we all know this was a short lived respite. Now the Coronavirus has wreaked worldwide chaos, estate agents have shut their doors, and most property deals are off!

The Coronavirus, Covid-19, will not last forever, and surely there will be light at the end of the tunnel one day, but so far the true implications of the economic crisis remain unknown.

According to estate agents and forecasters, it is predicted that the number of house sales will plummet in the UK.  Zoopla states that they are expecting 60% reduction in house sales over the second quarter of the year, when compared to 2019 figures.

The effect upon house prices remains unknown. There are no figures available and although house prices did rise at the beginning of the year, according to Nationwide and Halifax, this was curtailed once we all went into lockdown.

Once we all emerge from lockdown, the future looks very uncertain. It is highly likely that that many people will be facing evictions and repossessions thanks to insolvency and job losses. This could lead to a rise in the rental market so this area may be one that is worth investing in.

According to Zoopla, this outlook largely depends on how the government’s package of support for businesses and households reduces the scale of the economic impact.

That said if you are in a position to buy it might be a good time. Mortgage rates are currently low and it seems very likely that house prices will take a down turn so it is possible that the Coronavirus may have some financial advantages for buyers.

For sellers the future may not be quite as rosy.  You may be in a position of owning a house and wanting to sell but you may do better hanging on and renting it out until the economic market becomes more stable.

The financial experts are predicting an economic crash that will be worse than the crash of 2008 and possibly as bad as the 1929 depression. The Office for Budget Responsibility warns that the UK economy could shrink by 35% and cause 2 million job losses.

Overall, selling your house in 2020 may not be a good move unless you cannot avoid it. The housing market will recover and of course, nobody knows the future but for now the sensible option may be to hold tight and keep your options open.

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5 Different methods of selling your house

We will here discuss the different methods available to home owners for selling your home.

Traditional
This is the tried and tested method that is centuries old, although modern technology has brought it into the 21st century. Previously an estate agent would just stick a poster of your house in their shop window, now however advertising your property on Zoopla & Rightmove is needed to find a buyer, or rather let the buyer find your house.
An estate agent will also take professional photos, arrange for an EPC, write a compelling description and be ready to take any interest. With each inquiry the estate agent will make sure to vet the potential buyer, making sure they have the funds or the ability to gain a mortgage to purchase your home, they will also help you with the negotiation process and then finally liaise with your solicitor until the monies in the bank and the keys are handed over.

This is by far the most stress free way of selling your home but it comes with a price tag as estate agents generally work on a percentage and charge a commission upon sale of your home.

Auction
Again a very old method, allowing for a quick sale but only to a limited market who are ready to purchase at that particular time or within a short time frame, typically 28 days.

Auctions are not suited for majority of sellers, they are best to ensure a quick sale as your house will be advertised in the auction catalog and even online just few weeks before the auction date. On auction day, if the seller has fixed the minimum price then the auctioneer will not sell below this price. The winning bidder must complete the purchase within a set period as stipulated by the contract signed on auction day. If the buyer fails to do this then there are heavy financial penalties involved so it’s in their best interest to avoid this.

Online Estate Agents
Online estate agents offer a very similar service to the traditional estate agent, its a complete home sale package, with professional pictures, floor plan, epc etc. The two major differences are that in most cases you pay upfront and you can save a lot of money as online estate agents charge a fraction of what it can cost with the traditional approach of paying a commission.

Online Auction
This is a very new yet an emerging way of selling your home, where you open your home up to large online audience of bidders, at the moment it is still quite new, but it is expected to be one of the leading ways of selling your home quick in the very near future.

It’s basically just like selling your house at an auction but there might not be a physical location for the auction, it will just be an online eBay style!

Do it yourself
The good old method of getting your hands dirty and doing all the work, saving huge sums of money but taking on a lot of headache and it can cost literally a few pounds depending on exactly how you choose to market your property.

For example, just sticking a for sale sign in the window will most likely not sell your house, if you seriously then you will indeed market your property online. You take some nice photos, write up a description then list your property on a free classified website such as Gumtree or advertise on Rightmove and Zoopla. There are websites out there who charge just £99 for listing your house online portals such as Zoopla and Rightmove, but you have to do everything else which can consist of: Taking nice photos, arranging for an EPC if you haven’t got one, doing the viewings, negotiating the price with and potential buyer and finally instructing a solicitor to take over the sale process, which is the easy bit as long as you keep checking with your solicitor for anything that might be holding up the sale.

 

So now you now the 5 most common ways of selling your home, pick the best for you and enjoy selling your home.

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Compare online estate agents

We compare Insurance companies, Utility suppliers, Supermarkets, bank accounts and a lot more so why not estate agents?

Comparing traditional high street agents is difficult, as the level of service and type of marketing can vary significantly. Also certain estate agents might already have a list of interested buyers for a particular area.

With online estate agents its quite different, you are simply paying for your house to be listed on the two biggest property portals Rightmove and Zoopla and many others which are actually insignificant.

Where online estate might agents differ is how they
manage the sale progression. Once an offer on your property has been accepted, it is mainly the job of the solicitors to sort the rest out but the estate agent can speed things up slightly by liaising with everyone involved and making sure anything holding up the sale is dealt with.

Bearing this in mind it is fairly straightforward to compare online estate agents, they are not that different to each other in how they operate.

If you instruct an Online estate agent to market your home, you can expect them to do the following:

  • Take professional photographs
  • Take measurements and draw a floorplan
  • Arrange for an EPC certificate
  • Write up a comprehensive house summary
  • Upload your property to Rightmove and Zoopla
  • Take enquiries and arrange viewings for you
  • Negotiate offers
  • Instruct and pass details to your solicitor
  • Track the sale until completion

Depending on the type of online package you go for, you may have to pay extra for some of the above services unless you go for a complete package.

Use our online comparison table to compare online estate agents.

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