Residential Property Sales

Residential Sales: Pros and Cons

Sometimes homeowners sell their property through necessity rather than choice. There could be a number of reasons for the sale, including no longer being able to make the mortgage repayments, or needing the sale profit to deal with other financial problems. And even those of us who choose to sell our house in order to buy a bigger and more expensive property know that it’s a process that can leave one fraught and frustrated.

The upside of selling property, especially if it’s in central London, is that nine times out of ten a homeowner is likely to make a profit. When we purchase property we generally make a sound investment. For those of us climbing the property ladder the profit made when selling our home is generally used to buy a bigger, more expensive property. As our family grows so does our need for more space, and unless we move out of the area to somewhere we can buy more space for less than we could if we stayed put, we need all the profit the sale of our house achieves in order to make our next move.

Sometimes a homeowner will be faced with the choice of either selling or letting their property. Anyone for whom retaining a foothold on the property ladder is important probably won’t have to think twice about the decision. However, selling can have some advantages over letting if the homeowner does not see him- or herself wanting to return to live in the property at some stage in the future.

One obvious advantage in selling a property is the quick profit that can be made. While letting property means your name remains on the Title Deeds and you receive a monthly income in rent, sometimes a homeowner will need the money raised from the sale of a property. Although that decision may be not so much a choice as a necessity, there are still some advantages to selling.

If market conditions are suitable, a residential property sale can generate a large profit very quickly. However, some people aren’t so much concerned with making a huge profit from the sale of a property as they are in just seeing the back of it! Some buyers are seduced into buying property which the rest of us would never go anywhere near, and once they realise they have a real ‘dud’ on their hands, they just want to have shot of it and start over again. Letting such a property probably wouldn’t be an option if it was in very poor condition, and, if it were, then the owner would continue to spend money on repairs and maintenance. Selling is a simpler and more cost-effective option in the long run.

While the state of the property market can be a positive factor when selling residential property, it can also work against the seller. While a quick sale can be achieved and a big healthy profit made in a buoyant market, anyone selling at the wrong time can have his or her house sitting on the market for as long as a year with very little interest. And even once the house is sold, the profit made can make a seller wonder if it was worth it.

Although some expenses involved in selling a property apply to all sellers, the vendor who’s moving on up the property ladder has to consider additional costs. For instance, he or she will also have to pay the conveyancing costs involved in the purchase of his or her new property, including Stamp Duty Land Tax.

Before placing a property on the market, a homeowner should be absolutely certain that they want to sell. Selling residential property can be a long and tiresome process and anyone not committed to it could end up paying with their health as well as their money. Decide if you want to instruct an agent to manage the sale for you or if you’re going to sell privately. The vast majority of vendors instruct an agent: the advantages include advice about local market conditions, help with obtaining a Home Information Pack (which all properties entering the market for sale now require), marketing your property, dealing with all enquiries, and showing all prospective buyers round your home.

That doesn’t mean that your part in the sale process ends once you’ve instructed an agent. You will have to keep the property looking its best at all times, just in case your agent decides to show a prospective buyer round when you’re out. You will also have to get used to having people traipse through your home, some of whom will do little to hide what they really think about your taste in interior design! These are just two of the disadvantages of selling your property and while they may not sound too bothersome, if your property is on the market for, say, six months, you may take a different view after then.

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