Selling Your Home? Have a back-up plan.
Selling Your Home? Have a back-up plan.
There is plenty that a homeowner can do when selling their home. Partnering with the right property consultant or local estate agent, marketing and maintaining the property well, ensuring you have a conveyancer or solicitor ready to help the transaction go as smooth as possible. However, there are plenty of factors beyond your control, too.
There are setbacks -like a potential buyer suddenly pulling out or problems found during a survey- that need to be addressed. Then there are issues with the market when it just seems like no one is willing to look, never mind buy. For that reason, it’s important you have a back-up plan rather than simply having to accept the brunt of the costs that come with a house that isn’t selling.
Remortgage to help bridge the gap
If you’re looking to buy another property or you simply want to make your property for sale less expensive to help hold of while you wait for an offer, remortgaging it might be the right option for you. It’s essential that you get a good idea of the market, what interest and fees you can expect to see whether this makes financial sense or not.
Finding out how much equity you have in the house is as important as calculating the affordability, as a high equity (how much of the house you have already paid for) can result in much more favourable loan conditions.
Be aware that remortgaging your house can also result in having to have your home valuated once more, which can not only cost you some money but can also affect the value of your home, for better or for worse. Otherwise, rethinking your existing mortgage could be an option.
Finding other revenue streams with your property when it’s not a quick sale
If the costs of trying to sell the home are becoming too much, then it might be wiser to find other ways to make money off it until the market improves. It is not uncommon, at all, for people to sell their home while they are also renting it out.
However, you should be aware that taking on long-term tenants while trying to sell a house can result in one more delay or roadblock if you find a buyer while you’re also managing a long-term tenancy contract.
The better solution might be looking at short-term letting. The market for short-term tenants is smaller than those looking for long-term accommodation, but it can still help you continue to cover the costs of the home you’re trying to sell.
One market that is growing is Airbnb-type rentals: making your property available as holiday/travel accommodation for extremely short periods of time. However, to make the most of either kind of revenue stream, it’s a good idea to have an estate agent who can help you get it on the market and ensure it’s marketed well.
The role of a versatile estate agent when selling your home isn’t fast enough
When selling a home, you might be tempted to partner up only with those who specialise in selling. However, an agent with a little more flexibility in what they offer can make that backup plan all the easier to put into place.
Consider working with estate agents that not only help sell but also have services for arranging short-term lets and rental arrangements while you’re waiting for that sale to come through. It can ensure that you always options without having to pay the costs of finding another agent to switch to.
The right agent can also help you perform the necessary valuation at a reduced cost ( at HUNT we do a FREE valuation, find more information here) if you’re planning on remortgaging it, too.
Budget for the wait
Your best backup is to ensure that you can cover the costs of the waiting period if your home isn’t selling. Putting together when budgeting a home is a must, and it shouldn’t only cover fees for the agents/the solicitor or licensed conveyancer/ the consultants. It should also cover the running costs of the home while you’re waiting for it to sell.
Can you afford to let your home sit on the market for months, if not over a year? If you’re not moving to another property in the meantime, then coping with those costs might be easier. If you are, then it’s wise to save up plenty in advance so you can cover those costs while you put together a backup plan.
It’s important to be optimistic about your chances of selling your property so that you can invest the time and effort needed to help your home on the market. However, that doesn’t mean you shouldn’t be pragmatic. A back-up plan can ensure that you’re not left without options, so start thinking about yours.