subject: Advice for Buyers and Sellers for the rest of 2010! [print this page] After a year of relatively "good news" for the property market, properties are now taking longer to sell while choice for buyers is starting to increase as more properties come onto the market for sale, the result being, recent property price movements suggests property prices are likely to slip in the second half of 2010.
Kate's latest property market reportsshow the number of properties for sale are on the rise and the number of buyers interested in making offers falling. Kate comments "This can be a really confusing time for buyers and sellers. On the one hand many buyers need to move for personal reasons, while on the other, many are frightened off by headlines forecasting property price falls and double dips'. In the meantime poor sellers just sit waiting desperately for that one buyer to make an offer that will allow them to get on with their lives."
What do to if you are a Seller
If you don't really need to sell your home, you might as well sit tight until the market recovers, but if you are desperate to move as your family is contracting or expanding, or you won't be able to afford your mortgage when interest rates rise to their 5-7% norms, follow these top tips to help you sell your home fast:-
Price your Property Fairly
Make sure you don't price yourself out of the market. If you charge too much, no-one will visit, if on the other hand you market your property at more of a bargain' price, you often get buyers competing so the price moves up.
Wreck or Beauty?
Due to the credit crunch requiring buyers to find big deposits, many buyers are looking to find a property that needs no work ie a new or nearly new home or they are cash rich and desperate to do a property up from scratch. If your home is partly done up, partly a wreck it's unlikely to appeal to either.
Choose the Right Agent
Many agents have an expertise' in what they sell. For some it might be three bed semis, others 500,000 plus homes and some flats. Find out which agents have been selling properties similar to yours, so know about the buyers, have them on their lists and know how much they are willing to pay.
What to do if you are a Buyer
There's no doubt that some property prices will fall in areas where the economy goes into a double dip' following government cut backs. Typically these will be areas highly reliant on local government for employment or support. In other areas though, they have probably bottomed out unless interest rates rise unexpectedly for any reason. As such if you want to buy, think about your own personal circumstances, working through some worst case scenarios' before you go ahead with your purchase.
Work out what you can Afford
Make sure you know how much you have for a deposit and then check to see how much you can afford on a monthly basis, checking what would happen if you lost your job, were sick or are a couple who unexpectedly split up. Check what would happen if interest rates rose to 5-7% and if you could still afford the mortgage.
Work out the Worst Case Scenario
What if you lost your job, were sick or sadly are a couple that split up unexpectedly. Of course hopefully these WON'T happen, but they do and rather than be repossessed or sell at a loss because you can't afford mortgage payments, it's better to make sure you have a backup plan, such as renting the property and moving back home or staying with friends.
How Long will you Stay in the Property?
If you are planning to buy now and sell again within a few years, no one can predict at the moment with much confidence whether the market will go up or down. So, it's best to hold off buying if you are not sure you are going to be staying in the property for five or more years to give prices and the economy a chance to recover.
Advice for Buyers and Sellers for the rest of 2010!
