In This Article
- Why Does A Slow Market Affect House Sales?
- How Does A Slow Market Affect House Prices?
- How Does A Slow Property Market Affect The Economy?
- How Long Will A Slow Property Market Last?
- What Can You Do To Sell Your House In A Slow Market?
So, you want to sell your house in a slow market. Are you looking to downsize to a more appropriate home? There are many things to consider when you want to sell your house, such as location, legal fees, chains, valuations, worth, and so on. These factors can all be exacerbated by selling your house in a slow market, restricting your chances of a hassle-free transition to your next home.
There has been an inevitable slowdown due to Coronavirus, and however quickly we might see a recovery, it may not be advisable to sell your house during lockdown, as data suggests that a fall in house prices is likely to result from the newest measures needed to protect sellers and buyers from COVID-19.
This article explores how to sell your house in a slow market, how a slow market affects house sales, the economy, how long it will last, and tips to sell within 7 days, such as being able to have your house purchased for cash. Hopefully we can save you the time you would have spent trawling reviews of the economic market to decide whether or not to sell your home.
Why Does A Slow Market Affect House Sales?
It is well known in real estate that housing markets are affected by the broader economy. When the economy is good, certain parts of the housing market usually see healthy growth. When economic times aren’t so good, those same parts don’t tend to do too well, and growth slows.
A slow market means that potential buyers are more quickly lured by low priced houses. This is critical in the house selling process as it ensures a large audience of responsive buyers. High prices mean a slow sell as many buyers restrict their search on price range. A slow market means that cash offers on more expensive and valuable homes are less likely, and people are less likely to be able to sell houses quickly.
When you are trying to sell your house in a slow market, there may be more likelihood of long-lasting property chains’. This begins with someone who is only buying, not selling, and ends with a vendor who is only selling their house, not buying. The ‘links’ in the chain are the people in between who need to both sell and buy a property. These can fail in a slow market as a buyer can’t get a mortgage loan to match the offer they made, or their own sale has fallen through, or unable to make an offer for cash, meaning there is no chance of your sale being in completion.
How Does A Slow Market Affect House Prices?
A slowdown in the property market affects the value of houses, and can be brought on by many factors, such as additional tax on landlords, the impact of Coronavirus, heightened legal fees, new stamp duty, rise of interest rates, Brexit uncertainty, new holiday home tax, and much more. An estate agent giving a valuation of your property will take all of these factors into consideration when eventually trying to sell your house, ideally for cash.
Furthermore, prices will tend to be higher if fewer houses are built, reducing the supply of housing. The fewer houses that are built, the more people will need to compete by increasing the amount of money they are willing to spend to buy a house.
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How Does A Slow Property Market Affect The Economy?
Quite simply, house prices affect how much money people spend. The property market is closely linked to consumer spending. When house prices go down, homeowners risk that their house will be worth less than their outstanding mortgage. People are therefore more likely to cut down on spending and hold off from making any personal investments. This perpetuates a slowdown in the housing market. You are therefore less likely to sell your house quickly.
How Long Will A Slow Property Market Last?
It depends. With the advent of Covid-19, the slow property market will likely last until restrictions are eased once more, which is more likely due to the vaccine rollout, when growth will be more likely. There is more chance of an acceptance from buyers when the vaccine has been administered to most of the population.
However, in non-pandemic times, a slow property market is seasonal. If you are looking to sell and downsize, it is very unlikely that you will be able to sell your property in the 6 weeks before Christmas, in early January, or between July and August. Holiday seasons are not usually a time that people are buying houses. Buyers don’t want to purchase and move into a new property before Christmas or around the time of that family holiday in Spain. It also depends on location, as a slow property market is less likely to last in London, where it is desirable to live.
What Can You Do To Sell Your House In A Slow Market?
If you want to sell your house in completion in 7 days, it may require a little more effort and compromise to complete the transaction. By carefully considering your priorities and setting realistic expectations, you’ll be prepared for a successful house sale, and an acceptance at the right value will be most likely.
Cash Buying Service
If your principal concern is to sell your house quickly. A cash buying service is the fastest way to sell any condition of a house. A homeowner can obtain a cash offer almost immediately. Once the property is valued and a firm offer made, the sale can be complete in as little as 7 days. Most house buying services buy all types of property in any condition or location, even in a slow market. There are no valuation, legal fees or estate agency fees to pay, however it is important to check for reviews so that you are getting the best amount for your home. Cash buying services will take homes in any condition, ideal for hassle-free selling of your house in a slow market.
Pick a competent estate agent. For instance, you should ask your estate agent if they have Professional Indemnity Cover before you decide to put the selling of your home in their hands to secure the downsize of your dreams. As always, be sure to check reviews online of the best estate agents in your local area.
Set a realistic price for your property. Having the right valuation is important to make your home desirable to purchase, and ensures a hassle-free sale. Sell during the seasons when buyers are most likely to want your property and put a cash offer in at the right worth. Even in a slow market, the best time is when the weather is good, Spring and Summer. Putting your house on the market in November or December is pointless unless you are in an area of particularly high demand.
Finally, take your property off the market during the winter period and put it back up for sale in January. If your property appears to be ‘stuck’ on the market, you may attract lower offers and may think you have to be in acceptance of those offers. Properties that have been on the market for a year or longer may attract rather cheeky, low offers. Buyers are able to find out how long your property has been on the market for and may try to take advantage of the fact you have been struggling to sell.
According to Experian, what happens when you pay off your mortgage is you’ll receive a number of documents from your lender that show your loan has been paid in full and that the bank no longer has a lien on your house. These papers are often called a mortgage release, or mortgage satisfaction.
You’ll likely receive a statement indicating that the loan’s balance has been paid in full and a canceled promissory note. This is all part of the official process of what happens when you pay off your mortgage. In many cases, your lender will file a certificate of satisfaction with your county government, which releases the home’s deed to you and indicates that you are now the sole owner. Ask your lender if they will do this for you. If they will, be aware that it can take a few weeks or months for it to be filed. Once your lender has told you they’ve filed the documents, contact your local records office to confirm that their records show your mortgage has been cancelled.
If your lender says they don’t file it for you, you can file it yourself—just check with your local county clerk or registrar to find out what the process involves with what happens when you pay off your mortgage.
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* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.
* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents.
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