As the deadline for the Stamp Duty Holiday approached, industry experts were predicting that interest in people buying homes was to slow down. We asked the question ‘Is now the right time to sell your home’ and the answer was that with demand being so high, striking while the iron was hot was the way to go.
The summer months are often slower for the market, though. With the kids off from school and holidays around the corner, the summer is less about new starts and new homes as it is about simply winding down, relaxing and getting ready for the next chapter.
As a result of the pandemic and the mini-boom experienced by the Stamp Duty Holiday, the UK has seen house prices increase by 13.2%.If your property has seen this sort of growth over the last few months, cashing in on it might be the most appealing option for you. The other side of the coin, though, is simply biding your time and using this opportunity to renovate your home, getting it ready for when the property market has levelled out.
There are many reasons for and against both. For example, although we are in a seller’s market, the options for property to buy may be limited. Equally, a large scale renovation could end up costing you more money than you would have made had you chosen to sell sooner. For both sides of the argument, which is why we are here to help you weigh them up.
Is now a good time to sell your house?
There is no set barometer that tells you whether or not now is a good time to sell your home; it is instead down entirely to the individual situation. Given the past two years, people’s needs have changed and lifestyles are different - the home you were in in 2019 may no longer be right for you. For many, the ability to work from home is now a requisite so people need more space for an office. For others, a well kept garden area can provide a chance to reflect and take a moment to escape.
For downsizers, this inflated market is ripe to capitalise on. The excess money earned from a sale can be put back into their new property via renovations which, in turn, acts as a long term investment.
But for those who are looking to upsize or perhaps move to more populous areas like London, you may run into issues in the long term. The increased prices are there now but there is no guarantee that they will be there in the future. Values can depreciate quickly and investing in a home in these circumstances can be incredibly risky. Ultimately, the thing to remember is that while it may be a great time to sell, it also needs to be a good time to buy. If you can guarantee that your move is achievable and will work for you in the long term as well, selling may be the right option.
Is now a good time to renovate?
Simply put, there is never a bad time to renovate. If your goal is to increase the value of your property in a shorter period of time, there are jobs you can do to make this happen.
We have mentioned before about how things such as redecorating or improving your kerb appeal can be quick wins in and around the house to boost your property value but when it comes to the more large scale renovations such as a kitchen remodelling or a loft conversion, you should deliberate about the decision before jumping into it.
When the average cost of a kitchen renovation can cost anywhere between £5,000 and £14,000, you must be sure that you will recoup this investment when it comes time to sell.
Pros & Cons
For both options, there are of course pros and cons.
In renovating your house, the biggest pro is the potential increase in value that your property may receive. Living in a recently renovated property is always exciting but knowing you are making a good investment for the future can be even better. But with this in mind, the investment may not always yield positive results. There is no guarantee that the money you put into doing up your home will be recouped when it is sold. It is always recommended to talk to a property professional before making any decisions like this.
As for selling your home, you must keep in mind that the average cost of moving home can vary between £8,000 and £9,000. If you are considering downsizing then the expenses here could be made back in due time but, as with any situation with the open market, selling your house can take time. There are a number of concessions you have to make, letting people into your home for viewings, paying stamp duty on top of any other additional costs as well as the very real risk that your buyer will pull out and you have to go back to the beginning again.
Both options have their merits but it is important to weigh up both to determine which is right for your particular situation.
Getting an accurate valuation of your property can help you to make the right decision which is where Spring come in. We offer a free, no obligation home valuation based on multiple sources, appraisals and a survey from the RICS (Royal Institution of Chartered Surveyors). From here, you can discuss your property plans with a member of our team and see how we can help you. To find out more, get in touch at [email protected].