Home › News › Sell home quick to make the most of downsizing
Anyone thinking of downsizing – selling their home to buy a smaller one and pocketing the difference in cash – could find that now is a great time to do it. But to make the most of the move, you’ve got to sell home quick.
There are many reasons for choosing to downsize. "Empty nesters", couples whose children have grown up and moved away, find they don't need as much space any more. Some people find a smaller property more attractive, for maintenance or "cosiness" reasons. For others, downsizing is just a great way to free up some of the equity they've built up in their properties.
Good time to sell
Home experts are widely predicting that the housing market will fall over the next one to two years – making now a great time to downsize. Assuming you will sell home first before buying another property, you should receive a higher price on the house you sell, and be able to buy your new home at a lower price than it is at now.
Or, to put it another way: you will be selling at the top of the market, and buying on the way down. It's difficult to predict exactly how much extra cash this could benefit you buy, but a rough example may give a simple idea.
Let's say you sell home for £300,000. The smaller property you've got your eye on is £200,000. In a level housing market – one that's neither rising nor falling – you could therefore bank £100,000, give or take a bit for legal fees, stamp duty and the like.
Sell home quick or lose out
However, in a falling market you might be able to buy the £200,000 property for significantly less. If predictions of a 10 per cent fall in property prices are correct you'd be able to snap it up for £180,000 – meaning you would pocket an extra £20K, taking £120,000 to the bank in total.
However, the key is to sell your first home quick. If you delay, you might only get £290,000 for the property – or less. Every lower sale in your area will bring other prices down with them and eat into your potential profit. If you're undecided as to whether to move now or in six months, you could lose up to £50,000 when you eventually sell.
Home owners find new lease of life by selling
Falling property prices shouldn't be the only reason for downsizing now though. Saga's website recommends: "Don't leave it too late. It is easier to adjust to new surroundings – and to manage the move – while you are younger."
The Saga site is full of examples of people who have found new leases of life through selling up. One couple downsized, then decide to sell home again – and moved onto a houseboat. They've now moved into a barn conversion, done to their own specifications, in Croatia – all paid for by making the most of their downsizing.
Sell home quick with The Smarter Choice
The Smarter Choice is a company that's dedicated to helping you to sell your house. We're available 24 hours a day, seven days a week, and we try to ensure that you get a written valuation for your property within 48 hours of your enquiry. We offer a guaranteed, stress-free sale for a fair cash price. Call us FREE on 01632 960543 now or use our online enquiry form and we will get in touch with you as soon as possible.