Tuesday, October 09, 2012
Second-time househunters looking to make the move to a larger
home are finding it increasingly difficult to secure a suitable
property, according to estate agents.
The National Association of Estate Agents (NAEA) found that
properties for sale in its members' branches decreased slightly in
August, from 61 to 60, and this is only part of the challenge for
those looking to upgrade to a larger property. A recent Lloyds TSB
report found that would-be second-steppers now have just over
£9,000 in equity on average*, meaning the struggle to raise a
sufficient deposit is no longer confined to first time buyers.
Mark Hayward, President of the NAEA, said: "Many would-be
'second-steppers' are finding they are still hamstrung by high
deposits and prohibitive lending conditions.
"Across the board, house prices are fairly flat, and this means
that many owner-occupiers are unable to withdraw additional equity
from their property when they decide to move."
The NAEA has the following advice for those looking to move into
their second property:
Setting a realistic price, based on current market conditions,
gives your home the best chance of being sold within a reasonable
time frame. Once a figure is agreed with your agent, this price
will give you an idea of what you will have to spend on your next
property. If you haven't been in the property market for some time,
be sure to talk to your bank to find out how much you can borrow to
further guide your property search.
Be aware of house price micro-markets
Although there are broad national housing market trends, there
is always a lot of local variation, which can help you find a
bargain. A good local NAEA agent can help you identify trends in
certain areas and offer advice on how much you should expect to
Factor in 'hidden' costs
Remember to consider the cost of moving, agent fees and the
additional stamp duty before you start the process of looking for
your next property. Stamp duty is not usually factored in to the
mortgage, so it is important for these costs to be taken into
account before settling on your target price range.
Know where you are prepared to compromise
Agree a short list of 'must haves' and supplement this with
'desirables'. This process should help bring out what is essential
for your new home and can help guide the selection process.
Maximise the sale value of your home
At a cosmetic level, applying a fresh coat of paint to rooms and
lounge space can really help to spruce up the property. Clearing
the approach can also give a better initial impression and boost
'kerb appeal'. Finally, emptying rooms and storage spaces of
unnecessary clutter can help to create a better sense of space
throughout any property
*Lloyds TSB home mover's review -