Frequent misconceptions in the property sector
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Our newsWhat Essex vendors need to know before selling their property
Sellers should be armed with key facts about the property industry before putting their homes on the market.
With the UK poised to leave the EU later this year, there’s a great deal of speculation about the state of the British property market. Experts differ on the impact that Brexit will have, with Bank of England governor Mark Carney suggesting that house prices could crash by a third, whilst other market professionals have pointed out that so far it’s simply the house price growth that has been affected, rather than the actual property values. One thing we do know is that Brexit is causing a decent amount of uncertainty in the industry, so it’s important that vendors and buyers stay knowledgeable about the sector as a whole, and avoid various misconceptions that could affect their sale.
Hefty deposits
Frequently in the media, you’ll read that it can take first time buyers several decades to save enough for their first property. But vendors looking to attract newcomers to the market will be pleased to know that with flexible mortgage products returning to the market, alongside generous government initiatives such as Help To Buy, this is not the case. Local estate agents in Brentwood explain that there are a number of 95% mortgage products available for first time buyers, which means that they only need to save up 5% of the price of the property to be considered by the lender. If that still seems unrealistic, then there’s also the possibility of taking out a 100% mortgage which requires no deposit at all. It’s worth knowing that these are seen as a much larger risk by lenders though, so in most circumstances, such a product would need to be taken out as a family offset arrangement or with the backing of a guarantor.
Asking prices
Vendors are often under the impression that if they set the asking price of their property at the higher end of the market, then they’ll protect themselves against low offers. Unfortunately, this doesn’t always work in their favour. It’s essential that vendors are realistic about the market price of their property to avoid it sitting on the market for too long. Local buyers always do their research into properties and will simply disregard any that don’t appear to match the value of similar housing stock in the area. Additionally, buyers have an upper limit of affordability, and if your property is priced too high, then you could be missing out on a chunk of potential buyers from the bracket below where your property is placed.
Online agents vs high street agents
Perhaps one of the biggest misconceptions out there, particularly in the digital age, is that online agents can replace the work of a traditional estate agent at a lower cost. The truth is that the online agents you see advertised online or on the TV aren’t a match for the level of service that a high street agent can provide. In terms of negotiating with the buyer, offering expert local information, liaising with solicitors and crucially, ensuring a better sales price for the vendor, estate agency is not an industry that is meant to be faceless.
If you have a property to sell, then always take the advice of your sales agent to help you determine the best asking price.