Selling your home in the credit crunch is clearly a daunting prospect, if the lack of properties for sale is anything to go buy. But it is possible to beat the credit crunch, especially if you are upsizing. Although there is a dearth of property for sale, there are some very attractive properties out there at prices you wouldn’t have dreamed of two years ago. The trick to being able to take advantage of the “bargains” is approaching your sale the correct way. Put another way, you may have to sell relatively low to buy low.
Chances are the savings you make on your next purchase will out-weigh the lower price on your current home. And if you are moving up the property ladder you will most almost certainly be quids in. There are however some rules to follow when selling your home in the credit crunch, or you could find yourself in deep water, epecially if you hope to cash in on incentives offered by a cash-strapped house builder.
First, be hard-headed. Don’t even think about looking for something to buy until you have an offer on your current home. We’re sometimes contacted by sellers who’ve got themselves in a jam, putting a deposit down on a new build property before they have a buyer for their existing home. This is NOT a good strategy in the current market unless you can carry two mortgages with ease – and few of us can. Also, by not starting your search until you have sold your home, you won’t fall victim to the “I’ve fallen in love” scenario. Realistically most houses are taking longer to sell, and everyone’s having to be more realistic, so don’t put yourself though the grinder!
Rule two for selling your home in the credit crunch – regard your current sale as a means to an end. Focus on your strategy for buying in the credit crunch. This will help to lesson the blow if you have to sell for less than your ideal price. By being future focused, you’re less likely to get caught up in the emotion. Just focus on the numbers and whether any offer is sufficient for your plans.
Rule three, future proof your purchase, by being picky about buyer finance. These days, with a slower market, solicitors are taking offers subject to finance. Only when your solicitor has verified your buyer has finance in place are you really good-to-go. Ideally of course you’d wait until you conclude missives but this isn’t realistic for most chains. Every we week we hear stories of “we lost our buyer because they couldn’t get finance”. Well I am sorry. A buyer without finance, isn’t a buyer.
And finally, don’t nitpick over the odd thousand pounds or minor details. Instead focus on other aspects of the sale that have a non monetary value. For example, finding a chain free buyer is worth quite a bit in itself. So if a chain free buyer offers slightly less than you were expecting don’t dismiss it out of hand.