we need to sell... what would you do?

julybride

Okay here is our situation. We have some money in the bank from the sell of a BTL property.

I have a 6 month old baby an am due to have our second child in May 08. We need more room!!

I currently work 2 days a week and will be returning full time in March... (work are not going to be happy i am going to be on Mat leave again!!!) but does mean for the next 3 months we have the ability to raise a mortgage and we can afford the repayments. But our current 1 bed flat just doesn't seem to be selling!!!

Our current seafront bedroom flat has:
- been on the market for 10 weeks
-is not moving even after being reduced (it was overpriced by the estate agent
But it appears that FTB are no longer looking and i'm starting to panic. If we don't sell soon I am not going to be able to apply for the level of mortgage we need...ughhhhhhhhhhhhh

any suggestions we are currently considering the following...

- reducing the flat price to undercut everything (there is enough equity in it)
- wait it out and risk having to drop the price with everyone else
-put money into a new kitchen and bathroom and hope it sells
-auction it

what would you do? or any other suggestions (turning it to a BTL is not an option now)

firsttimetom

I'm no expert and being an FTB myself am not even thinking of buying at the moment, however some people still are.

I would probably drop the price and hope for a quick sale. You may have to undercut everyone else, but if house prices continue to fall, you may find it impossible to sell and won't be able to get your new Mortgage.

In the last crash my boss left it too late to sell, it was originally on the market for £60,000 and he had to sell at £30,000.

Like I say, I'm no expert though.

A_Nice_Englishman

First of all, the fact that prices seem to be falling is to your advantage as you will have less extra money to find to buy a bigger place.

However, is it wise to take out a larger mortgage knowing your income is going to drop and outgoiings increase?

Can you post a link to your property details on Rightmove or the estate agent's website?

Have you had no viewers at all or has nobody made an (acceptable) offer)?

Kez100

If you have sold a BTL don't forget to keep back any tax you need to pay on the sale.

pamaris

julybride wrote: »

- reducing the flat price to undercut everything (there is enough equity in it)

This is what you need to do. You REALLY need to move. For a very short term period (but much longer than expected, 3 months), my OH and I rented a 1 BR flat during a relocation. My DS was 9 months old and my DD was 3. You do not want to be in this situation, trust me!

What is ironic is that if the market really is falling, you stand to make more by undercutting the competition. You will cut your losses and get on with your life while everyone else chases the market down.

Since your income is going to go up and down in the next year or so, if I were you I would sell as fast as possible and rent something modest but adequate such as a 2 BR terrace. I wouldn't jump into a house purchase in a very uncertain market, with two infants and a (temporarily) volatile income.

Once baby is born, prices will probably be the same or lower than they currently are and you can take your time and get something that will really work for you. I think that in most places, the frenzy is over. In any case, the interest rate you can get on any equity/ profit you make from this sale, will probably raise more money for you than jumping back on the ladder again.

julybride

http://www.rightmove.co.uk/viewdetails-17116124.rsp?pa_n=1&tr_t=buy

Link to our flat - sensible offers considered! :-)

We have had lots of viewings but people aren't really committing - our property is a bit of a premium one and I get the feeling people aren't really up for it in the current climate. We've had no offers yet

Think we will reduce the price tbh. Its a shame cos we actually sold the property nine months ago but had to pull out when our circumstances changed - looks like we will have to accept an offer for a lower amount this time around. On the plus side looks like everything is coming down - the prices in the agents windows aren't changing but the prices people are paying sure are...

Sammy85_2

Hi, although your flat looks lovely, i think your best option may be to undercut the other flats in area if you really need to sell right now.

You only have to do a search on rightmove for your postcode, to return a dozen flats (some with 2 beds aswell) for the same money as you're asking at the moment. Any serious buyer is going to do his research and pick up on this too.

Your market is also restricted because you are only 1 bed and only have a shower room (i personally wouldnt consider something without a bath, or at least room to put one in, and im sure others out there feel the same).

I would also imagine that £150k is way out of most FTB's price range, especially when there are other 1 bed flats available for £100k in that postcode (they may not be in the nicest of areas or as nice as your flat, but you dont usually have that luxury of choice as a ftb at todays prices.)

I would probably hang onto it but i guess with the prospect of 2 kids looming a 1 bed flat isnt ideal for you!

Good luck

poppy10_2

Rightmove has zillions of 1-bed flats in your post code for £125-£129k. You'll struggle to sell yours for 20k more.

guppy

Remember this one has private gardens and direct sea views, I'm also assuming its on the ground floor. That should attract a premium. Its also in a small block, does it come with a share of the freehold?

For what its worth, during the last property crash (and I'm not saying we're in one now), flats generally held their value for longer as people lowered their budgets. There weren't quite so many crap new build flats in every provincial town at that time though.

Ginene_2

I would also lower the price for a quick sale.

gizmo111

Is it not possible to use the study/conservatory as a bedroom, until you are sorted with work etc.

Alternatively what are rents like in your area? Have you considered let to buy?