Appearance is everything
As building costs have escalated since the pandemic, buyers have become less enthusiastic about buying places that require work. If you have a fixer upper to sell, think carefully – and get professional advice – about how much the work will cost to carry out yourself and how much you will recoup if you sell.
A home that is simply a bit careworn is cheap and easy to fix, especially if – like Ms Parsons-Reid and family – you are prepared to put the effort in.
“10 years ago, a scuff on the wall or a slightly tired finish wasn’t a problem – buyers could see past it – but that’s no longer the case,” said Jonathan Webb, sales director at JLL Residential.
“With so much choice, and with new-build show homes and social media setting the benchmark for what home looks like, presentation has never mattered more. Particularly for first-time buyers, where the decision is an emotional one, walking in and being able to picture yourself there is what sells a property.”
At the top end, some owners invest in a home stager to really make their property look Instagram-ready. If that is too expensive, Mr Webb said you could try out one of the many AI-powered apps – such as Virtual Staging Ai or Stager AI – to create inspiring images showing how good the property could look.
Consider covering extra costs
For a whole variety of reasons, flats are a really hard sell right now.
Buyers often want more space, inside and out, than an apartment can provide, while high transaction costs mean many are skipping the whole starter-flat rung of the property ladder and moving straight to a house.
A lack of demand for one-level living means house prices are growing faster than flat prices – the gap between the two is the widest in 30 years as a result.
According to Zoopla, house prices in the UK have increased 43pc since 2016, while flats are only up 10pc.
One massive stumbling block for buyers is the extortionate service charges levied in some developments. But there is something you can do about it. “Reducing the asking price doesn’t solve the problem, as those with a lower budget will still struggle to pay the service charge,” said Mr Webb.
“What we’re seeing work well is sellers leaving behind a retention to cover three years of service charges. It keeps the headline price intact, and buyers respond well because it’s tangible money in their pocket rather than an abstract discount off the mortgage.”
Resolve problems before you sell
The buying process is painfully slow at the best of times, and all that waiting time gives buyers plenty of time to get cold feet. According to TwentyCi, almost 24pc of agreed sales fall through before completion.
“The best thing sellers can do is be prepared,” said Guy Meacock, director of buying agency Prime Purchase. “If you are selling a leasehold flat, get in touch with the management company – have three years of service charges and accounts lined up.
“Consider having your own survey done. Yes, it will cost money, but it needn’t be much and if any warning lights flash up, you can deal with them. Far too often a survey identifies something which could have been sorted by the seller; it’s extraordinary that sellers of high-value homes think buyers won’t have a survey or will ignore potentially deal-threatening issues that come up.”
Sweeten the deal where you can
If you do find an interested buyer, it will pay to be charming and generous – don’t expect to play hardball in the current market.
Last year, a client hired Katherine Watters, a partner at The Buying Solution, to help them find a family house in the Home Counties.
Ms Watters duly took them to view a farmhouse in Sussex. Their daughters quickly fell in love with the owners’ ponies which, by coincidence, their own children had outgrown. Since the owners were moving abroad, they couldn’t bring the ponies with them and therefore offered to leave them behind for the children to enjoy. They even threw in their horsebox.
The buyers were thrilled and the £4m sale went through. “While this is a unicorn example, being flexible when it comes to incentives and considering what might make the process smoother can be the difference between a healthy sale and something that falls flat,” said Ms Watters.
“The market is such that ‘good will’ goes a long way.”
