To sell or not to sell

[spokette]

This was the year when we were planning to sell our house and buy another one where would stay for about 30 years. Then the credit crunch, interest rate rises etc happened and it appears that the property market is flattening out.

That is not the problem. What we are concerned about is if we buy now, will we be at risk to negative equity? We (DH and I) are planning to wait until March to see how the market is faring but any advice you may have will be most welcome.

TIA

Well if you are going to stay there for 30 years then it doesn't really matter whether you go into negative equity

think the answer is:

• can you sell your house for a good enough price
• can you afford the house you want to buy
• can you afford the mortgage repayments

We sold and bought during a slump three years ago - we got less for our flat but then we got our current house for less so it is all swings and roundabouts.

The danger is to sell think that the market is going to crash, rent and then the market continues to rise as many people did three years ago

Negative equity is only a danger if the rise in interest rates / fall in the market means you lose your jobs and can't keep up with the repayments.
Otherwise, as kaz says, you just sit tight.

Good points about the negative equity!

I think our house will sell for a good price because it is 5 minutes from train station so good for commuters travelling to London plus it is in the catchment area for 5 excellent state primary schools, 1 grammar school and 2 good comprehensive schools. Plus we have about 4 parks within 5-10 minutes walk from our house.

When the DTS start school we will have no more nursery fees so that helps the mortgage affordability.

Sounds as if I am convincing myself.

investigate the market thoroughly too though - look at what houses near you are selling for, (bigger, smaller, prettier, uglier, better/worse location etc)
and remember it costs nothing to have it valued...

We have not had it valued because we thought it meant committing ourselves to the estate agent. Thanks for the tip.

Any advice on what one would consider a fair fee that estate agents should charge would be greatly appreciated.

If you are in such a good area then you might be able to sell it privately - one up my road has just been sold off the market.

Otherwise you are looking at 1.5%/2% depending on area.

definitely get more than one agent in to vaue it. in this market they will be desperate for your business. we managed to negotiate 1% including a free HIP. bargain hard and i am confident they will agree to pretty much anything - definitely dont pay for your HIP. valuations are free. dont agree to anything there and then- send them away and think about it before you commit to anything. just be aware if you go on the market then pull off you might be liable to pay for the cost of your HIP after all (about £350 plus VAT usually). is there a house out there you are interested in? of course it makes sense to sell yours before finding one but useful to know if there is going to be anything that ntaes your fancy- dont move just for the sake of it....

I hadn't even remembered about the HIPS. We are really going to have to do our homework before we embark on this process.

Thanks for the advice and please keep them coming.