Is there a good time to sell your property?
Moving house is one of the biggest events any of us will go through in our lifetime. It is usually the largest single purchase we will ever make and of course, our home is the place where we spend most of our time, certainly lately! But with a global pandemic still in the air, financial insecurity for some and a general sense of the magnitude of selling your home, you might question if there is a good time to sell your home.
As experts in both buying and selling property, at Barton Kendal estate agents Rochdale, we are able to tell you that any time at all is usually a good time to sell your property. But right now, in spite of all the issues in the world, a boom has occurred, meaning it’s a brilliant time to sell your property. But why?
The stamp duty holiday
If you’ve bought a home of a certain value before, you know you will have had to pay a certain amount of tax, known as Stamp Duty Land Tax. It is payable on a percentage basis on house prices within certain categories.
Last year, the government was aware that the effects of the pandemic were stretching far and wide and there was a likely impact to be felt within the housing market. That’s why they introduced the ‘stamp duty holiday’, which started on 8th July, 2020. This effectively removed any stamp duty payable on houses up to the value of £500,000, with a potential maximum saving of £15,000.
This was very well-received and since then, the housing market has boomed completely. Houses are selling faster than ever and buyers are securing their dream homes without having to pay an excess amount of tax. The holiday was due to end on 31st March, 2021, but due to the sheer volume of interest that few could have predicted, it has been extended until 30th June, 2021. After this date, there will be a phased return to the previous stamp duty amounts and they won’t revert fully to normal until 30th September, 2021. That means there is still time to sell y6our home and benefit from a potentially sizeable saving.
The market simply hasn’t been this buoyant for years and as such, the answer to the question, “is there a good time to sell your property?” is a resounding yes; right now.
Favourable mortgage rates
Unless you are in a very fortunate position, the chances are you will need to take out a mortgage on your home. There have been periods where rates have been low as a result of broader economic circumstances such as recessions, and periods of prosperity when rates have been higher. After the sub-prime crash, mortgage lenders became much stricter and the 95% and 100% loans were largely off the market.
In this March’s Budget, the Chancellor announced the return of the 95% mortgage to facilitate house purchases. The move is mostly aimed towards first-time buyers aged 18 to 35 in order to convert ‘generation rent’ into ‘generation buy’ but they are in fact available for others too. This positive change is yet another reason why ‘now’ is a good time to sell your property – more people could be in a position to buy it, putting you as the seller in a strong position.
When are other ‘good times’ to sell your property?
There are plenty of naysayers who will pronounce doom and gloom at certain times, declaring that ‘now’ is a terrible time to sell your property, regardless of the issue. Prices have crashed, interest rates have gone up, a recession is looming, it’s winter…the reasons can be seemingly serious and endless. But if you want or need to move, we are not convinced there is ever a truly ‘bad’ time to sell your property, therefore meaning it’s always a good time to sell.
For example, if house prices have ‘crashed’, how low have they gone? If you’re in negative equity then yes, that would not be ideal. But if it’s simply that they have stopped increasing rapidly, plateaued or even fallen a small amount, that isn’t necessarily negative – if you are selling your home to buy another, the same will have happened to the next property so you will be paying less for that one. With regards interest rates, if they are higher than previously, this might change the market able to purchase your home but won’t make it disappear. You would hopefully be benefitting in other ways such as helping savings, etc.
There might appear to be times when it is more favourable to sell, such as right now, but the reality is that most circumstances can be appropriate. If you need to move, even if it’s a need driven by your desire to in order to make you happier, that can be reason enough for it to be a ‘good’ time to sell. As long as you have realistic expectations, you will find the right situation to suit your needs and we at Barton Kendal Home can help with that.
So, if you need any advice regarding selling your home, give us a call on 01706 653 214 (Rochdale) or contact us via our website. We are able to help set realistic expectations and talk you through the current climate, and all that will implicate your house sale or purchase.