Falling property markets is grim news for house sellers and estate agents. If you are thinking of selling your house in a falling property market, perhaps for job relocation, or simply for affordibility then here is a look at some of your options.
1. You could sell now even though it is a falling property market, you will be protected from further falls in the market. If you are buying another property then the price of the property you are buying is likely to have fallen too so you would not have made a loss.
2. You could sell now and put your money in a high interest savings account. Instead of buying, rent in the area that you are moving to and closely follow the property market. Once the property market has bottomed out then you will be in a strong position to buy a bargain.
3. If you put your house on the market then finding a buyer may be tricky. In a falling market buyers are waiting to see if prices are going to go down, and interest rates may rise and then be cut, making mortgages unpredictable. If you have not sold your house by the time you need to move you could rent out your house and rent in the area you are relocating to. For this option, be sure to have money put aside to cover any costs when your property is not tenanted, charges for repairs and remember, the rent income you receive is taxable.
4. If you sell your house when the market has reached rock bottom, then buy, buy, buy in this scenario you need to buy at rock bottom prices. Watch the market very closely, read the latest property reports and know what s happening in the market. You need to buy before prices rise too much. At this point interest rates will be lower and mortgages therefore will be cheaper. At this point for a real bargain you may want to consider a property that requires renovation.
5. Stay put. Buying and selling a house is expensive in itself. Be sure you know why you doing it and check your figures that it is the right action to take. If you are selling because you are struggling to pay a mortgage, contact your mortgage broker and you may be able to renegotiate a lower monthly repayment.
If you decide to sell, be sure to prepare your house to look it s best. You want to create a fresh, cared for look. Paint the walls in a neutral, but warm colour, get rid of clutter, make sure all the lights work, fresh smells and fresh flowers. With a small amount of effort and cost, you will achieve the best price. Consider too buying property that requires updating and renovation. Whilst the market is slow take the time to renovate it and then as the market rises you could sell it and hopefully make good gains.
Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.
Susy Copus is a property commentator and has written for the UK Property Search Engine, http://www.wheresmyproperty.com and http://www.renovatealerts.com who specialise in finding property to renovate.
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