Sellers not keen to spruce up their homes before putting them on the market
|Friday, 11 January 2013|
Competition among sellers for mortgage ready or cash buyers looks set to remain fierce in many markets in 2013, it is claimed.
One option for sellers is to prepare their property for sale by spending a few thousand pounds, offering prospective buyers a ‘ready to move into, little to do’ experience as many buyers having to put their cash towards raising a deposit means that they have little to spend on improvements when they move in.
However, research from property giant Rightmove has found that only 17% of sellers would be willing to spend money on a make over even if they stood to gain financially by achieving a considerably higher price.
Rightmove questioned sellers on what their reaction would be if they knew spending around £5,000 on a house make over would mean gaining around £10,000 more on the sale price. Whereas 17% stated they would definitely do it, 18% stated that they would prefer to leave it for the buyer to make any alterations to the house after the sale.
‘As well as the hassle factor of home improvements, this also reflects many sellers’ lack of access to funds to carry out what would be financially astute improvements. It also highlights one of the legacies of the downturn with many sellers suffering from shrinking equity pots, limiting their ability to raise relatively small lump sums,’ said Rightmove director and housing market analyst Miles Shipside.
‘Diminished or negative equity is a Catch-22 for sellers, as it potentially deters them from making the investment to increase the value and sale ability of their property and maximise their gains or cut their losses,’ he explained.
‘Agents report that properties that are closest to show home condition and ready to move into are selling more easily and achieving the highest prices, as buyers have little spare cash for improvements. Those sellers that can attempt a mini makeover as a tactic in 2013 should consider doing so,’ he added.
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