When Buyers Don't Mean It When They Say 'I Need To Sell My House Quickly'

In todays economic climate (beginning of 2009) there are many people who are saying "I need to sell my house quickly" but many of these house sellers are not being realistic about the price they want for their property. They profess to being desperate to sell but they are still expecting to achieve similar prices to what they would have received in 2007. Most know what their property was worth in 2007 or early in 2008 and this figure acts as an anchor for which they find it very hard to move from. It is a psychological barrier that stops them putting their property on at a realistic price and finding a buyer.

Most property is selling at 2005 prices and set to fall further and without sellers biting the bullet and pricing their properties what they are worth today rather than yesterday then the property market will continue to stagnate.

Of course there is still the serious problem of lack of mortgages which is restricting the volume of sales but the downward stickiness in asking prices is a large factor why estate agents have seen a massive fall in transactions. They report a large majority of sellers are deluded in what they expect to get for their properties. So, when these people say they need to sell property quickly they actually mean they want to.

For those who really need to sell property quickly in todays market or at any time then auctions or specialist home buyers are often the best options. Pricing a property realistically with an estate agent will help attract buyers but the lack of funding available and expectation that prices may fall further is likely to mean a sale will takes months to complete and maybe not at the original price agreed. Even in a stable or rising market is takes about 6 months on average to sell a property on the open market.

Selling via auction is likely to take 8 to 12 in total due to the 4 to 8 weeks it takes to get the property in the catalogue and market it. Once the hammers falls then the sale should be wrapped up in 4 weeks (or else the seller keeps the buyers deposit). There is a greater than 50% chance properties will sell at auction first time round but this is not guaranteed. It is also worth noting that sellers can expect to receive 70 to 80% of the value of their property selling via this method on average and pay 2 to 3% commission to the auction house if the property sells. There is also a catalogue listing fee of approx GBP350 + Vat whether the property sells or not.

For the sellers who are desperate to sell even quicker and need a guaranteed sale then specialist homebuyers are often the best choice. The amount they will offer will normally be similar to what you would expect to receive in an auction (70 to 80% of market value) but the sale can normally be completed in 4 weeks. There is also the added advantage of the price being agreed beforehand unlike an auction and no fees being due. Home buying companies do not charge agent fees, no Hips are required as it is a private sale and no agent fees will be due. The good ones will also pay up to GBP500 of the sellers legal costs which normally cover them. So the seller will have no upfront fees, a guaranteed sale at an agreed price and a quick sale. Of course, they have not received full market value for their property but for those who really mean it when they say "I need to sell my house quickly" this may be the best option.

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