Are you contemplating whether it is a good time to sell your house in 2023? Fluctuating property markets and various factors to consider, making a decision can be daunting. In this comprehensive guide, we will delve into the most important aspects you need to know before putting your home on the market. From analysing the current state of the property market, understanding if you can afford to sell, to determining the best time to sell and how long it may take, we have you covered. We’ll also discuss the readiness of the home market, and factors like equity to ensure you are well-informed and confident in your decision-making. Join us as we navigate the complexities of the 2023 property market, providing valuable insights and expert advice for prospective home sellers.
Property market
If you’re considering selling your home, it’s crucial to analyse the current state of the property market, as it significantly influences the optimal time for selling. Evaluating factors such as rising or falling prices and whether it’s a buyer’s or seller’s market will equip you with the knowledge to determine the ideal moment to sell.
In 2023, UK house prices saw a 6.3% rise in the 12 months to January 2023. This was a slight decrease from December 2022’s 9.3% growth. However, the average UK house price hit £310,159 in January 2023. This marked a significant £18,599 increase from the previous year. This consistent growth in house prices underscores the continual demand and the robust nature of the UK’s property market
A period of rising prices may be an ideal time to sell. You could potentially profit from your home’s increased value. Conversely, falling prices might signal that it’s wiser to postpone selling to avoid financial loss. Remember, a home isn’t just a trading instrument, it’s a valuable asset. It provides shelter and stability. The stress and risks of moving to time the market could outweigh potential gains. Furthermore, incorrect timing can be costly and leave you worse off than before.
In addition to monitoring national market trends, it’s essential to pay attention to local market conditions. A thriving national property market does not guarantee similar success in your area. For detailed local market insights, consider consulting an estate agent. They can provide current, relevant, location-specific information. You can use homemove to find the best local agent in your area, we will give you great advice and a free valuation!
What is the property market influenced by?
The UK property market is usually influenced by factors such as:
Economic conditions: The overall state of the economy, including GDP growth, inflation, and unemployment rates, can have a significant impact on the property market.
Interest rates: The Bank of England’s base interest rate can affect mortgage rates, which in turn influence buyer demand and property prices. Lower interest rates generally make it more affordable for people to buy homes, leading to higher demand and rising property prices.
Government policies: Such as stamp duty rates, Help to Buy schemes, or changes in regulations, can influence the property market by either encouraging or discouraging home buyers and sellers.
Housing supply and demand: The balance between the number of available properties and the number of people looking to buy can greatly impact property prices. When demand outpaces supply, prices tend to rise, and when supply outpaces demand, prices may fall.
Regional factors: Local factors, such as job opportunities, infrastructure developments, and population growth, can affect property prices in specific regions. Additionally, the UK property market can vary significantly between London, major cities, and rural areas.
Can you afford to sell your home?
Selling your home involves various expenses, and ensuring you have adequate funds to cover these costs is essential. On average, the cost of selling a home in the UK ranges between £5,000 and £8,000. To prepare for the financial aspects of selling your home, consider the following expenses:
Estate agent fees: Generally between 1% to 3% of the property’s selling price, plus VAT. These fees cover services such as property valuation, marketing, and negotiating with potential buyers.
Conveyancing fees: Approximately £800 to £1,500, depending on the complexity of the transaction. These fees cover the legal aspects of transferring property ownership, including searches, land registry fees, and solicitor charges.
Energy Performance Certificate (EPC) fees: An EPC is a legal requirement when selling a home and assesses the property’s energy efficiency. Costs for an EPC can vary, but generally range between £60 and £120.
Removal costs: Highly variable, but can range from £400 to £1,200 or more, depending on the distance, volume of items, and moving company rates.
Potential mortgage exit fees: If you’re paying off your mortgage early or transferring it to another property, you might incur early repayment charges or exit fees. This could be around 1% to 5% of the outstanding mortgage balance.
Preparing your home for sale: This may involve repairs, cleaning, or staging to make your property more attractive to potential buyers, which can add to the overall cost of selling.
Potential RICS survey: A Royal Institution of Chartered Surveyors (RICS) survey might be required to identify any structural issues or maintenance needs. Prices range from £250 to over £600, depending on the type of survey.
Stamp Duty Land Tax (SDLT): Although recent changes in 2022 have benefited many home sellers, it’s crucial to consider the potential SDLT costs when purchasing a new property.
If you would like to read more about the costs involved in selling your home you can read our blog post about it here.
How long does it take to sell a home?
Before putting your home on the market, it’s essential to evaluate whether you have the time to commit to the selling process.
On average it takes around 150 days to sell a home. Which translates to about five months from listing to completion of the sale. However, this timeframe can vary based on several factors. Such as the current state of the housing market, buyer willingness to meet your asking price, and the accuracy of your property valuation.
Housing market conditions: The overall state of the market can impact the time it takes to sell a property. In a seller’s market, with high demand and low supply, homes may sell more quickly. In contrast, a buyer’s market with a surplus of properties might lead to longer selling times.
Buyer willingness to meet your asking price: The attractiveness of your asking price to potential buyers plays a crucial role in how quickly your home sells. If your price is competitive and in line with current market trends, you’re more likely to attract interested buyers and sell your home faster.
Property valuation: Overpricing your home can result in a longer time on the market, as potential buyers may be deterred by the high asking price. It’s crucial to obtain an accurate valuation from a professional to ensure your home is priced appropriately, making it more appealing to buyers and increasing the likelihood of a quicker sale.
When is the best time to sell?
The timing of your home sale can significantly impact the outcome. Certain times of the year and specific days prove more advantageous. In general, experts agree that spring and summer are the optimal seasons for selling a home.
During spring and summer, active buyers are more numerous. This leads to quicker sales and potentially higher prices. On the other hand, winter months see slower market activity. Fewer buyers searching for homes can lead to longer listing periods.
When planning to sell your home, it’s also essential to consider the day of the week you list your property. Listing on a Friday or Saturday can attract more buyers. These days often align with people’s time off, allowing more home browsing time.
Another tip to bear in mind for later in the selling process is that weekdays are often the best days for moving. With fewer people relocating during the week, there’s less traffic and fewer potential delays when settling into your new home. Moreover, moving services may offer more attractive rates on weekdays, as weekends are often in higher demand. If your schedule permits, aim to schedule your move for mid-week to take advantage of these benefits.
Is your home market ready?
Before listing your property, it’s crucial to ensure it’s in optimal condition to attract potential buyers. If your home requires significant repairs, consider addressing these issues before putting your home on the market. Additionally, take the time to declutter and thoroughly clean your home in preparation for photographs and viewings.
Consider updating fixtures, repainting walls, and renovating any rooms that need attention. These improvements can enhance your home’s appeal and create a lasting first impression on potential buyers. A clean, well-maintained, and cared-for property will stand out to buyers and increase the likelihood of a successful sale.
Consider equity you have built up
Equity is the difference between your home’s current market value and the outstanding balance on your mortgage. If you own your home outright, you possess 100% equity in the property. However, if you still have a mortgage, your equity will correspond to the portion of your home’s value that you’ve paid off. For instance, if your home is worth £200,000 and you have £150,000 remaining on your mortgage, you hold £50,000 in equity.
Equity can be utilised as a down payment on your next property, which can facilitate a smoother sale process. Additionally, you have the option to borrow money against your home’s value by leveraging your equity, though caution is advised. Borrowing against your equity can jeopardise your home if you’re unable to meet the repayment obligations.
Understanding your equity helps determine the ideal selling time. It also informs future financial planning, ensuring a secure transition to your next property.
Summary
In summary, when considering selling your home in 2023, it’s essential to evaluate various factors to make an informed decision. Analyse the current state of the property market, both nationally and locally, to understand pricing trends and market conditions. Ensure you have the funds to cover the costs associated with selling a home. These typically range between £5,000 and £8,000 in the UK.
Take into account the time it takes to sell a home and recognise that this duration can vary based on factors like market conditions and property valuation. Consider the optimal time of year to sell, with spring and summer generally offering more favourable conditions, and the best day of the week to list and move to maximise buyer interest and convenience.
Prepare your home for sale by completing any necessary repairs, decluttering, and updating fixtures or renovating rooms to enhance its appeal. Lastly, consider the equity you have in your home, as it can be used as a down payment for your next property or to borrow against your home’s value, though caution is advised for the latter.
By carefully examining these factors, you can determine the most advantageous time to sell your home and ensure a successful transition to your next property.
