Sellers drop asking price

A smaller amount of buyers in the housing market has forced sellers to drop the prices of their homes in order to become more competitive. It seems that they days when people would battle it out to buy a house are behind us, as figures suggest a drop in prices to try and lure buyers to their property.

First signs show a drop of over 2% and almost 4% in London. Although these percentages seem small on a property of £200,000 you are looking at a large loss.

As there are even fewer buyers out in the market then it seems that they have a little more control over the property market. More choice means sellers will have to make their process competitive and appealing if they want to sell. Holding on to an unrealistic price will not only put buyers but could also mean that a property will make a much larger loss in the future of may even become repossessed.

Yet it is not only the house prices that are making buyers be more careful but also mortgages. It seems that buyers are being a lot more selective about what they opt for and are considering a much great choice of deals. With a vast amount of banks offering mortgages these too are having to become more competitive with their lending and ‘deals’ that they offer.

Even the slightest rise in interest rates could force people to sell up which would mean that the market could be saturated with houses that people just can’t afford to keep, which means even better deals for the buyers and a greater loss for people who are desperate to sell. This just re-enforces that importance of selling before the debt gets too much.

It is believed that a few of the potential house sellers are waiting for the interest rates to be announced in September, but for some this could be too late and would mean the loss of their property and any investment that they have in their property.

It still looks like sellers can be burned especially if they leave it too late or bury their heads in the sand. If you are finding yourself in a similar situation and want to get out before the going get too tough then why not look at a Quick Property Sale or the option to Sell your Property and Rent Back which would mean you wouldn’t have to leave your home.

How the Credit Crunch aids the Sell and Rent back market

The unfortunate effects of personal debt and an increase in interest rates has seen a large number of people needing help from a rising number of companies that will allow you toSell your Property and Rent Back . These companies will agree a sale price with the homeowner to enable them to pay off debts, existing mortgage or for other financial needs.

Once the house is bought the cash for property companies will rent the property back to the ex owner at a fair market rate. If you work with the right company some will even allow you to repurchase your home again when you have the funds to do so.

Because of the speed of the transaction (sometimes a deal can be struck in a week!) and the imminent crash of the property market most home owners are getting approximately 75% of the market value for their home. Despite this loss it appears that most customers are happy with the transaction as they will be getting the money that they need and will probably be selling their home for not much less than they would get in today’s market. Another benefit is that neighbours or even family can be kept out of the loop in case you wish to conduct your business privately.