Welcome to this week's Finance Fridays. Last week we asked the question, "What would you save in a fire?" It seems most us are more concerned about getting our families and pets out of the house than saving possessions. I think though a few of us would dive back in to grab some precious photographs. For this week we are looking at the quick house sale market.
I have only sold one house and that was in the first week it went on the market. It was to the only viewer and he offered cash for the asking price (his daughter was coming back from the US.). We know we were lucky to sell so quickly but not everyone can achieve such a quick sale. Another consideration is that even when you do accept an offer the potential buyer can pull out at any time and it can take months to go through all the surveys and financial paperwork.
There are many reasons why you may need to sell your house quickly. Traditionally the quick house sale was only popular with people trying to stave off repossession. Now the market has expanded and has become a convenient method of achieving a house sale in a short period of time. If you are moving across or out of the country for work you probably won't have time to hang around to sell your house through an estate agent. You may have also seen your dream home locally but know the only way you are going to secure it is by selling yours quickly. If you're looking into selling your home quickly take some tips from this week's guest post
“While you have probably heard of the quick house sale market, if you are like the majority of UK residents you will probably misunderstand the nature and scope of this sector. Much of this is to do with stereotypical misconceptions, which taint our view of the market as a whole and force us to evaluate it from a narrow and restrictive perspective.
Historically, the quick house sale market and trailblazing firms such as propertyrescue.co.uk were only considered as a last resort for home-owners. Having risen from the ashes of the great recession to offer a cash buying service to stricken home-owners, these outlets helped individuals to avoid repossession and recoup as much of their initial investment as possible.
The market has evolved considerably since this time, however, helping it to thrive and grow even as the economy has recovered.
Two significant things have happened during this time to empower the quick house sale sector. Firstly, it is has benefitted from more stringent regulatory measures, as reputable firms have been certified and bound-over to follow a specific code of conduct while rogue traders have been forced out of the market. Secondary to this we have seen the market reach out to a wider demographic of vendors, as the economy has improved and the amount of repossessions has declined.
So which type of customer is the most likely to use this service in the modern age? Home-owners who are required to relocate for work provide a relevant example, as they often have to complete a quick sale in order to free their capital and invest in a new property further afield. The quick house sale market has also appealed to small-scale house-flippers and investors in the UK, as it provides something a buffer and enables individuals to conclude a high volume of sales over a prolonged period of time.
There is another compelling argument that has underpinned the popularity of the quick house sale market in recent times, and this is the inflated level of value that exists in UK real estate. With prices having grown exponentially during 2015, there is a window of opportunity to partner with quick house sale services without compromising on profitability.
This is an interesting consideration, as while quick house sale firms offer huge advantages to home-owners they also tend to pay below market value in order to optimise their property. This is usually around 75% to 80% of the properties total value, however, and given that some regions saw annual growth in the regions of 20% last year this means that you can still sell your home quickly and for a profit in 2016.”
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