Buying a new home can seem intimidating. Whether you’re a first-time buyer or move frequently, this important transaction can feel anxiety inducing, particularly given the global pandemic. With the UK experiencing months of lockdown, the impact on the economy has been monumental. This, understandably, has seeped down into various markets – including the property market.
Whilst the market stagnation has lifted -having come out the other end of a national lockdown – buying or selling a property is still something many people are unsure of. If you want to sell your home now, the decision is in your hands. Our blog details key points for consideration before putting your home up for sale.
1) Get to grips with mortgages
Likely the biggest financial transaction of your life to date, being clued up on mortgages is a must for any savvy seller. Whether buying or selling a home, being completely comfortable discussing mortgages is paramount for not only your success but your sanity. Knowledge is power!
Through doing extensive research into mortgages, what they entail and, most importantly, how much you can afford, it should provide you with a clear picture of how much you can borrow when it comes to buying a home. This is not something you have to do on your own, there are mortgage advisors available to guide you through the entire process.
If you are unsure about how this process get free mortgage advice from our very own mortgage advisors today. You can utilise Doorsteps Financial regardless of whether you are selling your home or buying a property from us.
1) Understanding the stamp duty holiday
The government has imposed a stamp duty holiday that will run until 31st March 2021. In short, if you’re buying a property before this date that costs under £500,000 you will not pay a penny in stamp duty.
Rishi Sunak revealed the government plans on the 8th July 2020. Before this, stamp duty had to be paid on all homes over £125,000 (or £300,00 for first-time buyers). If you chose to sell up and buy a new property you could save up to £15,000 in stamp duty.
However, it is important to remember that you will have to pay stamp duty on any amount exceeding the £500,000 limit. Therefore, the temporary stamp duty fees are now as follows:
- Up to £500,000, stamp duty is zero
- £500,0001 to £925,000, stamp duty Is 5%
- £925,0001 to £1.5 million, stamp duty is 10%
- £1.5 million and over, stamp duty is 12%
3) Avoid a bidding war
Due to the current climate and stamp duty holiday don’t settle for a low valuation when selling your home. Equally, when buying, don’t put in an unrealistic or low offer. Whilst these may seem like beneficial options if they pay off, other buyers and sellers will be going through the same process.
Although competition on buying a home is natural and should be expected, the current marketplace has the potential to start a never-ending bidding war on properties that will naturally drive the prices up. On the other side of that, creating a bidding war on a property you’re selling could cause potential buyers to drop out and have you back at square one.
4) Realistic property valuations
Before you sell your house, it is recommended you have an estimate how much your home is worth. Knowing how much your home is worth will allow you to calculate how much money you will be left with after you have paid off your mortgage (if you have one). Furthermore, understanding your finances – especially if you have a property lined up to buy – will provide you with a clear idea of what you can afford moving forward.
You can secure valuations from as many different agents as you wish; just be aware there may or may not be a fee attached. You can also take a look at how much similar properties in your area are valued at or have sold for recently to give you a vague idea of what you could be financially expecting.
5) Realistic asking price
The price of your home is often the number one factor that can draw in potential buyers. Deciding how much you sell your home for is one of the most agonising decisions you can make. Do we aim high? Do we start at a realistic figure? Do we price lower for a quick sale? There are so many considerations when settling on a market price for your home and, due to everyone’s individual circumstances, these values could all be different.
It is worth getting an accurate online valuation from a reputable estate agent if you are considering selling your home.