Timing Your Sale For The Market
16 Aug 2019
We know that property values have risen in Sunderland over recent years, and there are mixed indications about future property inflation. Even if the market slows, it is more likely to be an easing of the rate of increase, rather than an actual reduction in property prices.
The implications of a continued increase in house prices for homebuyers are significant. Many people think that it is all relative – you may have to pay more for your purchase, but on the other hand you get more for your sale.
The problem for those who are upgrading is that whilst both their sale and purchase may have risen by say 15%, 15% on the higher (purchase) figure is, in cash terms, a greater rise than the 15% increase in the lower (sale) figure, meaning a disproportionate rise in their borrowing requirement.
Example: Sale at £ 200,000 x 15% inflation = £30,000 increase
Purchase at £ 270,000 X 15% inflation = £40,500 increase
Shortfall, or excess borrowing requirement, of £10,500
It is therefore critical that if you are upgrading during a rising market (or downgrading in a falling one), you sell your own property as quickly as possible in order to minimise this effect. We recognise the need for speed and are happy to provide marketing advice to those who wish to sell at the highest possible price, with the minimum of delay. Please feel free to call us on 0191 5103323 for a more informed approach to helping you move.