Act Now If You are Wanting to Move Home in 2022
It may seem strange to say as we are not even out of February yet but if you are looking to move home then you should seriously consider starting the process now or as soon as you can and, in this article, I am going to give some reasons why for you to consider.
Property prices are continuing to increase and whilst it can be hard for a lot of first-time buyers, most people tend to upsize when moving home. Property prices are continuing to increase so on that basis the longer you leave it the larger the gap will be between what you sell for and what you buy for. For example, if you sell today at £250,000 and your new home is £350,000 then the difference is £100,000. However, if we apply a 5% increase (predicted for 2022) for later this year then your sale price becomes £262,500 yet your new home costs £367,500 so has straight away cost you an additional £5000 just by delaying the process. For first time buyers the jump in price obviously has an even bigger effect.
Interest rates increased in December and then again earlier this month with the base rate changing from 0.1% to 0.5%. Whilst the mortgage rates are still historically low it is accepted throughout the industry that they will increase several more times throughout the year so the longer you leave it the more your repayments will be, costing you more money in addition to the increase in house prices already discussed. If you can’t move home yet for whatever reason, then it is certainly worth speaking to your bank or financial advisor about a re-mortgage at one of the current deals which you can then port later in the year.
Supply and Demand
It has been well publicized across many channels and throughout the property industry how hard it is to find a property to buy. Demand has been running over 30% higher than historic levels and supply over 20% down and there have been plenty of people who have offered on multiple properties only to be outbid and find their search continuing. I am aware of plenty of people who have been looking for a home for more than 6 months! This is historically almost unheard of and should certainly be factored into your thinking as to when you start the process of looking to buy. Down the years a lot of people who have thought about moving before Christmas would have waited until the end of the summer to start but doing that now leaves you at serious risk of running out of time.
It is often said this happens when you are having fun and moving home has rarely been described as that. However, at the end of this month, we will already be 1/6th of the way through the year and in another month, we will be a quarter of the way through 2022. With the average house sale from offer acceptance to completion taking between 110 and 115 days even if you agreed a sale today you would not be moving until the beginning of June. Whilst the property market has seen properties seemingly fly off the shelves it should be noted that the average time to find a buyer in the South-West is 32 days so if you are not one of the lucky ones to sell straight away then you need to consider that as well even before you start the conveyancing process.
Is Your House Sale Ready
A lot of people have a list of jobs to do before they consider their house ready to sell. Creating the best first impression is really important so whether that be tidying the front garden or painting the front door and getting the windows and gutters cleaned then it all takes time to do. There may be other things you think you should do that may not be necessary so get your estate agent round and let them advise you on what is and isn’t important.
Unexpected Delays and Setbacks
Across the UK one in four sales fall through for one reason or another so this unfortunate event could see you going back to square one at some point. Whilst plenty can be done both before and at the time a sale is agreed to minimize this risk you can’t protect against it happening completely so making sure you have allowed plenty of time to get where you want by the time you want is certainly a good idea.
What Comes First – The Chicken or The Egg?
It has long been debated whether you should try and find a property first or find a buyer for your current property first. With the market having been as crazy as it is those people trying to do the former have inevitably suffered disappointment again and again and in a lot of cases not even been allowed to view the property they like. The simple answer is you need to be what I call a ‘Power Buyer’. You must be able to proceed. Do not worry about having nowhere to live. If your buyer is aware the situation then they will be prepared to wait for you find something. Buyers are more patient now than at any time in living memory, they have been through the process of trying to find a home and get an offer accepted and having achieved that they really don’t want to go through it all again.
Ultimately if you want to move this year then the earlier you start the greater the window of opportunity for you to achieve all that you want. Whatever you decide good luck and try to enjoy the ride.
Thanks for reading and as always, I love to hear your comments and views as well as answer any questions you may have by telephone on 01452 260993 or email email@example.com
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