“Like so many of the First-Time Sellers we surveyed, we believe there should be greater transparency around the costs associated with selling a property, as well as an onus on all involved to ensure the process is as smooth and surprise-free as possible”
– Frederick Jones – Upstix
New research from Upstix has highlighted the challenges facing an underrepresented and under-protected group in the housing market – the first-time seller.
46% of first-time seller (FTSs) say the process of selling their first home had an adverse effect on their mental or physical well-being, as they faced a raft of high-stress issues including unexpected costs, last-minute buyer withdrawals, and a protracted selling process.
31% say they experienced hold-ups in selling their homes, from the time it took to attract a buyer through to completion. 27% had to contend with unexpected financial challenges, including being forced to lower their asking price (15%) or stomach higher-than-expected selling costs (12%).
Traditionally, a property in the UK takes around seven months to sell with an offer received after about two months. First-time sellers must contend with multiple estate agent negotiations, and multiple buyer viewings – and then on average will only receive 97% of the asking price.
Even when an offer has been made, buyers can lower their offer at the last minute or drop out completely with one in three UK property sales falling through before completion.
The process can overwhelm anyone, but particularly those who are selling their first home. In fact, 33% of the respondents suggested that if they were selling a home again in the future, they’d be prepared to accept a 5% reduction on its list price if it meant they could remove the selling stress.
Yet despite the clear challenges facing First-Time Sellers, they point to a lack of support from those who are there to guide them through the process. 10% felt their estate agent over-promised and under-delivered, while 12% experienced a ‘communications black hole’ during the selling process where they felt they didn’t know what was going on.
Upstix’ research reveals that first-time sellers want to see major changes with the current selling process: 41% would like greater transparency around the costs associated with selling; 40% believe sellers should be better protected from buyers pulling out during the process; and 39% think sellers should have greater recourse to legal action against buyers and estate agents that create undue expense.
Frederick Jones, CEO of Upstix, said: “First-time sellers are vital to a healthy housing market. They’re often in flats or starter homes and when they decide to sell up, are making way for those getting on that first rung of the housing ladder.
“Yet, while we readily recognise how important it is to support First-Time Buyers, First-Time Sellers find themselves the forgotten many. They’re under-valued and under-protected by a system that simply isn’t on the seller’s side, which has serious implications for their well-being and finances, as well as for the wider market.
“Like so many of the First-Time Sellers we surveyed, we believe there should be greater transparency around the costs associated with selling a property, as well as an onus on all involved to ensure the process is as smooth and surprise-free as possible. We try to play our part at Upstix by offering sellers an instant valuation range for their property through our online portal, as well as guaranteeing them a fast and fuss-free sale.”
