There are many reasons people sell their homes, from avoiding costly repairs to relocating for a new job.
A full list of selling reasons could be endless, but our property experts have broken down the most common reasons why homeowners decide to sell as well as considering why 2021 could be a great time to make your move.
1. To Release Equity
Homeowners may want to release equity out of desire or necessity. While some owners are eager to make a profit, others may be more interested in selling quickly to get cash in the bank. Those eager to turn a profit might want to liquidate a second home for the spending money or to earn a profit on home renovations.
Recent research suggests that one in four homebuyers relied on the “bank of mum and dad” to purchase a property in 2020 due to the economic impact of COVID-19. And four in five parents contribute to their child’s living costs while they attend university — to the tune of £360 or more per month. This money has to come from somewhere, and selling the family home to downsize is a popular way to free up the necessary capital.
Selling to release the equity in a property is a necessity rather than a choice for some homeowners. Those in need of fast cash may need a quick house sale to pay off debts or stop repossession. Once the house is sold, the proceeds can be used to clear the debt and give the homeowner a fresh start, either renting accommodation or buying a more affordable property. When the furlough scheme comes to an end in April and unemployment levels begin to rise, there is likely to be a sharp increase in the number of homeowners facing such decisions.
2. Favourable Housing Market Conditions
Whether it’s low mortgage rates or a change in country leadership, housing market conditions is a key consideration when deciding whether to sell or not.
Sometimes the market is ripe for a sell, and the temptation is irresistible. Other conditions that may indicate a good selling market include strong buyer demand, rising home prices, a strong job market, an increase in interest rates or an increase in rent. However, sellers will likely buy another home meaning any favourable selling conditions will work against them as buyers.
The number of house sales and property prices soared after the first lockdown ended in May last year. The combination of a lifestyle change — more time spent in the home for work and leisure — and the incentive of a temporary reduction in stamp duty land tax (SDLT), resulted in a sharp rise in buyer demand. However, with the end of the stamp duty holiday and the government’s job retention (furlough) scheme in sight, the market has begun to slow — a trend that looks set to continue as the country plunges further into recession.
If you don’t want to wait or leave your house sale to chance, get in touch with us to sell your property fast.
3. Size Requirements Change
Whether it’s upgrading or downsizing, as families change, so do their property requirements. Most first-time buyers outgrow their homes when they plan to start a family and need more space. On the other hand, as children flee the nest, space requirements reduce, and the desire to downsize comes into play. These changes in size requirements can be a pressing matter that requires an urgent sell.
In the past year, record numbers of people began working from home. Businesses had to adapt how they operate to accommodate remote working, and many leaders are realising the benefits of adopting a more flexible approach to work long term. The rise in home working has led to a sharp rise in the demand for larger homes that can provide the space for a home office, exercise and time outdoors. Space has become more relevant than the previously all-important location.
If you’re struggling to work at the kitchen table surrounded by children and noise or perhaps your health is suffering because the gym is out of bounds, upsizing could be an urgent and pressing need. Selling to a cash buyer could allow you to move into a more spacious home fast.
4. Change in Relationship Status
Relationships change for better or worse, and a marriage or divorce can call for a need to sell fairly quickly. If both partners own homes but want to move in together, one or both might need to sell their home. On the breakup side of the equation, partners may separate and need to sell their shared home if the mortgage cannot be covered by a single salary. Therefore, a divorce may require a more urgent sell than a new partnership.
The pandemic has led to a rise in break-ups. One British law firm recorded a 122% increase in enquiries regarding divorce between July and October 2020. The stress of financial pressures and long periods of spending 24/7 together without any social interaction with other people may be responsible for the surge in relationship breakdowns. A separation may force a quick house sale as both parties seek to move on quickly from the emotional turmoil of living with an ex.
5. Changes in the Neighbourhood
The neighbourhood you once fell in love with years ago may no longer be the idyllic location it once was. An increase in the crime rate, changes in school catchment areas, a plan for construction of a new motorway or even a change in the neighbours can be as good a reason as any to sell and move on. As unfortunate as it may be, these changes may prompt an urgent sell.
The pandemic has shifted house buyers’ priorities and led to previously quiet, rural locations seeing an influx of new homeowners. Many residents will see their neighbourhood change dramatically in the coming months. If you no longer recognise your town or village as the location you bought in to, it could be time to sell your house and move on.
6. You’ve Inherited a Property
Many people who inherit a property already own their home and don’t want the hassle of maintaining a second one or renting it out. Even those who don’t already own a house may be keen to sell an inherited property fast because the location, size or style doesn’t suit their lifestyle.
The probate process can be time-consuming and frustrating, especially if the deceased did not leave a will. You cannot sell the property until probate is granted. If you need to sell fast, waiting for a buyer on the open market can make the whole process extremely lengthy and stressful. Selling your home to a quick house sale company could take as little as 7 days once probate is granted.
Further benefits of selling in 2021 include:
- Grab a bargain — if house prices continue to fall, you could grab a bargain when you buy your next home. Of course, this could mean that you receive less for your current home, but if your property has some of the current in-demand features such as a home office, it could be a win-win situation.
- Less competition — as the market slows and some people face job losses and financial difficulties that push them out of the market, there will be less competition when you find a new home to buy.
- Fewer time wasters — people are less likely to book a viewing just to be nosy during a pandemic, so you know that anyone who makes an enquiry is probably a serious buyer.
If you don’t want to second-guess the market and the thought of a lengthy wait to find a buyer followed by a slow sales process is stressful and frustrating, why not get a guaranteed sale for cash from House Buyer Bureau?
You could sell your home to us in as little as 7 days. There are no legal or estate agent fees to pay. If you need a swift sale, contact us for an instant cash offer on your home.
Updated Feb 2021