If you are thinking of selling a property this could be the best of times and coincidently the worst of times in which to do so!
You will need to make your mind up quickly as transacting a sale has become ever more truncated through a mixture of additional requirements and an antiquated system, a real-life board game of snakes and ladders!
The stamp duty holiday has created something of a double-edged sword for the would-be seller. On the one side it has certainly increased buyer demand, the tax saving acting as a big incentive and placing a time limit on buyers getting the deal done. A further benefit being the general lack of housing stock available on the market and the reduced amount now coming to market, so, there is less choice for buyers to be picky about. All good news if you are looking to sell in normal times and especially if you don’t need to purchase another property. Some great ‘ladders’ towards a successful sale.
The other side of that sword, the downside, the potential ‘snakes’ for those sellers who don’t complete their sale by April outnumber the ‘ladders’.
These are not normal times. Local or national lockdown restrictions could become more severe and hamper already over-stretched ancillary service providers being able to timely complete the necessary steps. Delay on one step suddenly leads to delays on the others and before you know it the April deadline will have come and gone. This may not defeat your sale, but it is likely to result in an effort by the buyers to claim extreme poverty and announce they can no longer afford the purchase unless you can fund that stamp duty they will now have to pay! Gazundered!
The window of opportunity is closing quickly to agree a sale that can be achieved by the April deadline and the buyer requires a hefty reduction otherwise they can’t afford your dez rez.
Your original buyer, found in good time, has suddenly found themselves being made redundant and pulls out leaving you no hope of finding another buyer, as suddenly, most of those available eager buyers will have disappeared.
The push to complete a sale Pre-Christmas is in most circumstances already considered a pipe dream.
Your property languishes on the market, Christmas draws close with no chance of a Pre-Christmas sale and next to no chance of achieving a Pre-April sale and suddenly you find yourself back at the ‘start’ of the game!
If you need a home to buy and complete before the April deadline and haven’t found one, this may also bring you back to the beginning, potentially deflating the value of your home in the process as the green shoots of Spring emerge may not emerge until early June in 2021.
My advice to the would-be seller: Be decisive – Yes or No, be prepared to risk some costs, getting searches ordered and instructing a conveyancer as soon as you instruct the sale will help reduce delays. Consider which agent to use carefully, be clear about your objectives and expectations and be guided by their advice. You will now be positioned and priced. This is your double-six throw of the dice, it will get you to the first ‘ladder’, viewings, finding a mortgage ready buyer, another ‘ladder’ , not in a chain, a further ‘ladder’ etc.
For the bold and the brave and the hopeful I wish you good luck. For those who are not yet ready to risk the game there is a new way of testing buyer interest in your home ahead of committing to sell.
www.mutualoffmarket.com The Pre-Portal Property Platform
Max Fuller is Creator and Founder of The Mutual Pre-Portal Property Platform