The latest Rightmove House Price Index has revealed that the current time to sell a property in the UK is just 50 days. However, with buyers flooding the market to secure a stamp duty saving before the March deadline, many are facing long delays as the industry struggles to cope.
In addition, recent research has found that one in four property sales have collapsed this month, leaving buyers with little choice but to return to square one of their property purchase proceedings.
But what other options are there? Yes Homebuyers, takes a look.
Auctions
Property auctions have increased in popularity amongst sellers looking for a quick sale. Figures from Yes Homebuyers shows that on average in Britain, properties sold at auction go for £204,912; 85% of the current average house price.
The transaction usually completes 28 after the auction so you will receive your money pretty promptly, with the buyer paying a 10% deposit as soon as the hammer comes down.
While often seen as a last resort, they can be a great avenue to sell for those with a property in need of some TLC, or one that has seen a sale fall through due to legal complications.
With buyers also required to pay stamp duty as normal, it provides a far quicker route for current buyers to secure a stamp duty holiday discount. This can also be to the benefit of a seller, as the money saved may well cause buyers to up their bids beyond their original budget.
There are a number of downsides when selling at an auction, the first being the fees charged. There is an entry fee that must be paid even if your property doesn’t sell and you’ll also pay a lot more in fees. If you do sell at auction, you’ll be required to pay commission as high as 2.5% plus VAT. This equates a total of £6,147 on the average auction sale price; £2,710 more than the average fee charged by estate agents.
You also need to move quickly, leaving your home pretty much once the deal is done. So if you’re stuck in the middle of a lengthy onward purchase with nowhere else to go, selling at auction won’t be the best route for you.
Selling at auction always carries the additional risk that you might not sell for the price you want. For those desperate to sell, this can mean accepting a sum way below market value. Most auction houses also charge the buyer as much as £5,000 plus VAT to purchase at auction. While this isn’t a direct cost incurred by the seller, most buyers will consider this when setting their maximum bid and so it ultimately costs the seller on the price they achieve for their property.
Homebuying Platforms
One popular alternative to auctions is selling via a homebuying platform such as Yes Homebuyers.
Platforms such as Yes Homebuyers can provide a much faster selling process and one that is tailored to a sellers requirements and time frames. So if you are waiting on an onward purchase, there’s no need to panic about when you need to move out.
As well as providing a concrete timeframe in which to complete, homebuying platforms can also guarantee a sale. So they provide a far greater level of certainty than going to auction.
Another benefit to most homebuying platforms is that there are no agent fees or hidden charges, no contract or tie-ins, no property listings to create and list, and no laborious viewings to take care of.
Most homebuying platforms will also take care of all legal fees involved in your sale, making it far more cost-efficient than selling via auction or in the traditional market.
So far this year, Yes Homebuyers has seen the average sale take just 30 days to complete from the point they are instructed by a seller to make an offer on their property; some 20 days quicker than the current time quoted by Rightmove. However, they can complete in a matter of days should a seller require it.
A homebuying platform isn’t for everyone, particularly if money is your main motivation. Yes Homebuyers will purchase your home for a similar price to the average auction sold price, around 80% to 85% of market value. This means the average UK home seller will achieve between £193,633 to £204,912 compared to the national average of £242,041.
However, for those who want to sell quickly, they offer a far quicker route to completion without the uncertainty of regular market delays or auction price drops.
As with all things, it’s important to know where you stand. Some homebuying platforms will quote a price only to lower it days before completion. With bonafide platforms such as Yes Homebuyers, the initial price is the price you will receive if you choose to go ahead so always check the small print before instructing one.
Founder & Managing Director of Yes Homebuyers, Matthew Cooper, commented:
“There’s no doubt that dark clouds are starting to form over the property market as an overwhelming level of activity is seeing sales drag on for months on end. We’re already starting to see indicators of a potential market decline with down valuations on the up, sales falling through and a huge backlog resulting in many left in market limbo.
The good news for home sellers is that there are alternatives available for those that need to complete quickly. Property auctions can be a great method of selling for those with unique circumstances although, as with all auctions, they carry a greater risk where price is concerned.
Homebuying platforms offer far more certainty in this instance and can provide a tailored service to meet individual requirements. For those that need to move quick, utilising a homebuying platform can be a far better option than gambling at an auction or tackling the traditional market and the potential delays it can bring.”
