A third of homeowners find upgrading the home ladder harder than buying their first home, based on new information from Lloyds Bank.
So-called second-steppers – those who have bought their first home and today wish to upgrade – cited the difficulty of promoting their current homes and finding suitable new properties as the most common challenges.
Here, we take a look at how to make a successful property sale and employ equity to purchase a brand new home.
Why it's hard to move home?
In today’s market, most homeowners anticipate that they will have to hold back 18 months before being able to sell their house.
Currently, greater than a third (35%) of home movers believe that it’s harder to market their property now compared with 12 months ago, and a further 29% think it will likely be more difficult to sell in a year’s time, Lloyds Bank found.
The overwhelming majority (71%) anticipate that their home will be bought by a first-time buyer assuming it will finally sell.
The average second-stepper is 33 years of age, which is down from 35 in the previous year, based on Lloyds Bank.
On average, second-steppers earn an annual of lb57,291, up slightly from lb57,137 this past year. The vast majority (82%) will also be married, that is up from 78% in the last year.
Selling your home in today’s market
If you’re while selling real estate, the following tips could increase your likelihood of creating a successful sale.
1) Get the finances in order
Before deciding to market, you’ll have to exercise whether you can afford to maneuver.
If you’re likely to purchase a more expensive property, then you should learn how much you can borrow and which lender will offer you a better deal.
You might be able to port your mortgage if you’re still inside the terms of your overall fixed-term deal, but make sure to check whether you’ll need to pay early repayment charges.
It’s also important to think about the price of selling real estate, as you’ll need to budget for the price of estate agent fees and conveyancing fees.
Keep in mind that you’ll need to pay stamp duty in your new home, which bill is going to be due Thirty days from the time the sale completes.
2) Keep the home in shape
It’s important that you provide the best impression of your home to increase the likelihood of someone making a deal.
Make sure your home is clean, tidy and free from clutter to allow prospective buyers to imagine how they’d like to make use of the space.
The first thing a buyer sees would be the exterior , so be sure to keep the garden tidy, windows clean and repair any broken gates or fences.
If your home is just a little run-down, it might be worth taking into consideration some small remodels. A brand new coat of paint in a neutral colour can instantly enhance your property’s appeal.
3) Get your property valued
Setting the right selling price for your house is essential, but it’s not necessarily easy. A price that’s excessive could put people off from making an offer, while one that’s lacking could lose you money.
Spend a bit of time researching how your house is worth according to recent local market activity and enable a minimum of three different estate agents round to value your home.
Make sure you use auctions with a proven track record of selling properties similar to yours in your town. Our estate agent comparison tool, together with GetAgent, can help you search through and get quotes.
Finding the right home for you
Finding the right place to buy can also present challenges for aspiring home movers.
More than a quarter (26%) of prospective home movers see a lack of suitable properties because the key delaying them from moving, Lloyds Bank found. Another quarter worried the homes they desired to buy could be unaffordable.
Before you embark on the search for a new home, exercise where you’d prefer to live. You should use our area comparison tool for more information about local authorities, including Ofsted ratings and property prices.
When you want to notice a property, keep an eye out for something that could indicate long-term issues – you are able to download our house-moving checklist to make sure you don’t miss anything.
Before you exchange contracts, it’s often worth obtaining a house survey, especially if the house is older or perhaps a fixer-upper. While you’ll need to pay with this yourself, it can highlight any structural damage or potential repairs.
And finally, think about how long the home is likely to fit your family’s needs – including if you have more children, change jobs or retire.
Porting your mortgage
Porting your mortgage means you transfer your overall loan out of your current property to your brand-new home.
The majority of mortgages are portable, although it’s worth checking whenever you help make your application.
Keep in your mind that lenders uses their current lending criteria to determine whether you can port your mortgage, and this might be not the same as the criteria used once they originally decided if you should provide you with a loan.
Your circumstances could also have changed in the mean time – if, for instance, you’ve left work or had more children – which could influence the lender’s affordability assessment.
Before deciding whether or not to port your mortgage, you need to take fees and rates of interest into account. A home loan with a rate plan compared to one you’re on will finish up being more expensive whenever you element in exit fees for the current mortgage and arrangement fees for the brand new one.