Are You Planning To Sell A Property Soon?
Are You Planning To Sell A Property Soon?
We know that some people will be planning to sell a property soon, and unfortunately some people may be forced to sell.
The problem with the market is that during the COVID-19 lock-down it is very difficult to list or sell your property.
While we can do a lot of things online, selling property and achieving a good price typically needs the potential buyers to view and get a feel for the property so they get some emotional attachment to it.
Obviously the real estate agents would also want to have a good look at the property to assess it properly, and decide on the recommended method for selling.
If you or someone that you know is planning to sell a property then you should read this.
Waiting For The Lock-Down To End
Talking to people that are considering selling and also to real estate agents it is obvious that most people are “on hold” at the moment and waiting until the lock-down is over.
That seems like the obvious thing to do, but maybe you should also consider the consequences of waiting too long.
Now I am not suggesting that you need to be listing your property now, but I am suggesting that you get your planning underway.
Our expectation is that once the lock-down is over, there will be a flood of people wanting to sell their properties.
As mentioned already, some people may have been planning to sell anyway but there will also be a lot of people that have either spent too much time at home and realise that they want to upgrade and then there are those that may need to sell or at least feel they need to sell.
If we are right and there is a flood of property to be listed then you would want to get planning underway very soon.
Here are some things you should think about if you are planning to sell a property soon;
- What agent do you want to be selling your house? The good real estate agents will no doubt get flooded with calls from people that want to sell. Many will know that they can only manage a small number of listings at any one time and therefore you may not be able to get the agents that you want to sell your property. If you are thinking of selling then you want to get in touch with an agent now and ensure that they can allocate the time to dedicate to your sale.
- Photography will need to be booked in advance. With so many people first seeing a property online the importance of good photography is more important as it makes your listing stand out. You therefore need a good photographer which the real estate agent can arrange, but again this is something that needs to be booked in early so you are at the top of their list.
- Marketing needs to be booked too. If the market is flooded with new listings then you will need a good marketing plan (along with the photography) so your property stands out from the crowd.
- Access an agents database. Some of the better real estate agents may have a database of potential buyers that have been looking for a property just like yours. They may have sold a similar property recently and have a few people that were interested but missed out, or they may have someone that has just sold and is ready to buy. Good real estate agents are good at staying in touch with potential buyers so they may have a buyer for your house even before the first open home.
I have talked to a few real estate agents this week and they agree that things are going to get a bit crazy when people are released from this lock down.
Some of the agents that I have spoken to also have said they are starting the listing process with people now and are able to do quite a bit remotely. This means that they will be in a position to get properties onto the market almost immediately the lock-down is lifted.
Getting the best results may mean getting on the market early!
Consider Your Finances Too
Often people go ahead and sell a property without thinking about how they are going to manage the proceeds from the sale, or without checking with the bank to ensure that they can do what they want.
- This is critical if you have more than one property. Generally the banks will link all properties as security for the mortgage. You may have a home and a rental and think that you can use the proceeds from the sale; however the bank may dictate that the money is used to reduce debt rather than allow you to use it as you had planned. Good mortgage brokers should recommend that you get agreement from your bank prior to putting one of the properties on the market, or refinancing one property with a different bank or lender so you have control.
- Its also critical if you have any business debt. Often people will have their business banking with the same bank that they have their mortgage with. The banks prefer this as it gives them access to your home and/or other property to secure business debt; however it also means that if you then sell a property the bank will often insist on the business debt is repaid. As mortgage brokers we see this cause issues quite often when people sell their home and “think” they will have the proceeds to buy another home, only to have the bank then insist that the business loan is repaid. People often do not know that the bank have provided the business loan using the house as security, and especially when they have been paying business interest rates not home loan rates. Business lending will often include any loans, the business overdraft and can include credit cards – all which need to be repaid when the house is sold. In the current economic environment the banks will be looking at the exposure they have more carefully than they may have previously.
- Thinks of the “big picture” with your finances. Selling a property may be the best thing to be doing right now, but you need to also ensure that you can use the proceeds in the most suitable way. Ask yourself if you should be selling now or question what you will use the money from the sale for, or if there is another better option. You want to ensure that you are basing your decisions on a well considered approach not an impulse or panic. Sometimes it is worth taking some time to discuss things like this with a friend before making a final decision.
Selling a property is a big decision and you want to make sure that things go smoothly through the process.
If you are in lock-down and have some time its the perfect opportunity to consider your options, find the right real estate agent and plan the sale well so you get the best result.
It’s also a good time to speak with a mortgage adviser and make sure your finances are reviewed too.
I hope that you have found this article useful and encourage you to share it with anyone that you know whom may be planning to sell a property soon.
Source: North West Mortgages