Over the past year, the housing market has become a seller’s market, meaning that there were far more people looking to buy a house than there were houses available, which had a major effect on property prices that were already rising as a result of stamp duty reductions.
Whilst Hackney estate agents have since reported a relative reduction in average prices due to the seasonal slowdown of the market, prices remain strong and demand is high whilst mortgage rates remain low.
With the new year has come a renewed interest in the property market, and more people are starting to take the first steps towards selling their homes.
Here is the process for getting a property on the market.
Sorting Out The Mortgage
The first important issue a seller needs to consider is their own mortgage and the terms they are currently on, which could have an impact on their ability to sell and whether there are additional hidden charges in place.
If the seller is on their lender’s standard variable rate (SVR) after the initial fixed-rate or tracker period, then typically there are no penalty fees for selling, paying the rest of the mortgage and moving on.
In the case of portable mortgages, so long as the lender is happy with the new property, its price and any extra affordability tests, they will allow the seller to move their existing mortgage across, regardless of the type of mortgage.
If the seller is still in their mortgage term, they may need to pay an early repayment charge to get out of the deal, which may make selling not worth it until the deal ends.
Getting The House Ready
Redecoration typically only has a small effect on house prices, but it can affect how quickly the house sells, and improve first impressions.
Keeping the exterior clean, depersonalising the décor, using mirrors and neutral shades to add an extra perception of space and highlighting any major attractive features are key.
Avoid major renovations unless there are structural issues that may stop buyers in their tracks.
Getting A Valuation
Sorting out a realistic price is the final major step to getting the property on the market and the best way to do it is to use a two-step process.
First, look at recent sales in your area for homes of your size and type, as well as homes currently on sale, which allows for accurate and competitive pricing.
Next bring in at least three different estate agents to value the home, ideally of different kinds to provide an impression of the likely price of the property.
The more valuations you can get, the better your final price will be, as valuations can vary by as much as £100,000 in some cases.