How to Deal With the UK Housing Price Drop
Housing prices in the UK dropped by 0.5% last month - as a result, the value of the average house in the UK is approximately £179,358 at present.
However, according to the TimesOnline blog, these falling prices are not inherently bad.
The author points out that these prices can allow people who previously could not afford to buy real estate, a chance to own property. Further, the lower prices can also be counter-intuitively beneficial in the situation where individuals wish to upgrade to a more upscale property.
As an example, the author states: “Say your flat is on the market for £250,000 and you are trading up to a £400,000 house. Prices in your area fall 10 per cent meaning you take a £25,000 hit on your flat but the price of the house drops by £40,000 to £360,000. That’s a net gain of £15,000.”
That said, he goes on to say that you should not expect “rock bottom” prices especially in London, the South East, and in Scotland.
He also recommends taking a look at, propertyforecasts.co.uk, a site that predicts what future property prices will be like in the next five years - full reports from this website sell for 15 pounds.
Advice for Sellers
For sellers, he advises that individuals post realistic asking prices. For instance, he suggests that sellers ask for only approximately 5 percent more than what he or she may expect to get on a sale.
He goes on to say that a seller’s flexibility with regard to move-in dates and the like can make a home purchase more appealing.
In addition, he states that sellers can build onto their properties if they want a larger living area, and increase the value of their homes in turn. He specifically states, “By adding 300 square feet of floor space made up of an extra bedroom and bathroom you can add over 20 per cent to the value of your property. Turn a two-bedroom house into a three-bed and you can increase its value by 12 per cent.”
Of course, if individuals do not need to sell right away, he advises that it is best to hold onto a property, as the value will probably go back up in time once again.
Read the whole article here.
