How to trade up in the current buyer’s market

22 November 2017

Adam Day, Head of Operations at easyProperty, provides advice to those planning to upsize their homes:

“The 2008 financial crash saw property prices drop dramatically overnight which meant the gap got smaller for upsizers, which was great news for making the jump. However, because the gap reduced, it actually became more difficult for downsizers to find somewhere which gave them enough equity to live off. Conversely, in a rising market, the gap becomes bigger, so it is more difficult to trade up, but more enticing to trade down. However, with fewer properties available to buy, the downsizers haven’t come into the market currently. There really is no right or wrong time to move – just whenever it suits you and your circumstances.

“Typically, in a buyer’s market, you see sellers achieve less for the sale of their house, so as a home mover, you could try to offer a lower amount for the property than the asking price. Of course, this could get you in trouble by upsetting the seller if you pitch that too low, but it’s certainly something you can do to try and help the large jump – as part of your offer, perhaps you could suggest that the seller makes a lower offer on the one they would like to buy, so the immediate seller is no worse off if the person at the top of the chain decides to accept a lower offer. Remember though, if you’re selling in a buyer’s market, you’re likely end up with a lower offer on your property.

“It’s really important that you should shop around for a good mortgage. Lenders offer different rates and some will allow a lower deposit compared to the loan value, which could help you to make the jump.

“Finally, if you’re looking to move, then using an online estate agent, such as easyProperty to sell your house, could see you reduce your estate agency fees by between £3,000 – £10,000, depending on the value of your house.”

 

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