The chicken or the egg? A question that has passed down from generation to generation without a perfect answer. So how does this question translate to the current housing market?
So many of you are asking us at this time “do I find a place to buy first or do I put mine on the market?” Then the quick fire questions we hear are as follows.
If I put mine on the market and I do not find a property what then? If I wait for a property I like, how do I buy it before somebody else does without selling my own? What if I sell my property and go into rented accommodation?
Hold on! Take a breath, I have not answered the first question yet!
So, there is never a perfect balance. There are seller markets and there are buyer markets.
Currently the majority of the country has been in a sellers market during the pandemic. A sellers market really tilts the balance of the market place and it does not take too long for the supply of homes to dry up. And it always seems to be the case that homes in your price range, with the number of bedrooms required, in the right location seem to be in short supply.
Also when this happens many people freeze. This stops the movement in the market. I can tell you now that there are many people just waiting for you to put your property on the market and as soon as you do they will too! We have got to a point where someone has to move first. When you do, as you can see from the stats in the graphic the house goes under offer in weeks, sometimes days.
So here are some options
Sell, rent then buy.
Upside: This gives you some flexibility. You have deposits in the bank, agreement in principles ready and Rightmove alerts pinging daily. You can test the market with your marketing price and go for the highest price available without missing out on a purchase.
Downside: A lot of rentals require a 12 month tenancy agreement meaning that you can miss many opportunities while your tenancy runs down.
Market your property for sale.
Upside: This is a positive move. The majority of people moving will choose this option and have faith that the right property will be available when they want it. In most cases a home will be found that meets their requirements. You can test the market at a high price range.
Downside: You can not start to place offers on properties until your property is under offer. You have to negotiate a reasonable timeframe with your buyer to help you find the right property.
Prepare your marketing and launch within minutes of finding the right home.
Upside: You’re ready to go! But you’re not just relying on faith. You make a provisional offer for the home you like (Go BIG or Go HOME), you show your agreement in principle, you explain you can launch your property to the market immediately and agree a timeframe with a vendor allowing you to launch and sell your property quickly. In a buyers market the wind is in your sails however you have to price your property for sale at the perfect price.
Downside: Someone who has sold is in a slightly stronger position so make sure your offer to purchase is reasonable. This will not work if you are trying to purchase your next home at a discount. This will not work with an Estate Agent who just lists properties, your property needs to be launched into the market.
So the chicken or the egg? You choose which one you want to start with, we can help with them all.
If you would like to know more about how we can prepare our ‘launch marketing’ for you call us here at Tortoise Property on 01733 592020
Mike Matthews
Tortoise Property
- Newly listed properties are flying off the shelves. The majority (78%) of agents in the latest Dataloft subscriber poll said that homes, once listed, are selling in less than 28 days.
- 22% of agents state the majority of homes are selling in less than a week, Zoopla reporting the number of homes selling within the first week of marketing is currently at its highest ever level.
- At 45 days, the average time taken to sell a property across the UK in April is a record low (Rightmove) and is 16 days quicker than the April average of 62 days (2015–2019).
Source: Dataloft Inform poll of agents, refers to time taken from property listing to under offer.