When you think about selling your home you’ve got to ask yourself a lot of hard questions, and this would be true in any financial climate. In the current environment where there is a cost of living crisis, it’s amazing just how much demand there is for homes. So if you are considering selling up, you’ve got to walk into it with your eyes open. What are some of the things that you need to bear in mind?
Is the Market Going To Cool Down?
When you sell your house for above market value, you are naturally taking advantage of what is going on right now. But you’ve got to have an eye towards the future if the market is going to cool down at some point. It has been ever so slightly slowing down for some time, and there will be greater impacts, especially when the price caps are announced at the end of August. If the market is going to cool down, that means that you will be selling your home for less than the average on the market. But if the market is going to cool down, are you going to be selling a home that is well below market value anyway?
What Is the Home’s Real Value?
Many people are selling their properties now, thinking that it’s the perfect time to profit because there is unprecedented demand and the costs have shot up. However, there can be problems when you sell your home to the highest bidder. If you are selling your property and it sparks a bidding war, you will have to not just choose the highest bidder but if somebody bids tens of thousands over what it’s on the market for, but the mortgage lenders come back to the buyer and say that the house is not worth that amount you are going to be back to square one. You have got to ensure your home is of the right value, not just based on inflation, but in terms of the market now and a few months down the line when everybody is going to struggle to pay their bills.
Will You Find Many Takers?
The cost of living crisis means that everybody’s going to think twice about moving out. The reality is that the people that would be looking to purchase a property during the cost of living crisis are either going to be budding landlords, property flippers, or people who are without an abode. But when the cost of living increases at the end of October based on the price cap announcement at the end of August, you are going to find people start to drop like flies. There is demand right now, however, this is very likely to taper off.
Selling your home is a challenge at any point, and there will be more hurdles to consider in financial hardship. The cost of living crisis is just the modern version of what occurred in 2008 and 1990, as well as decades prior. When it comes to selling your home, think about these three components.