Sell now or wait?

[arinya]

We have been in our current home for 18 months. We bought during the crazy times where there was a lot of competition and houses were selling on day 1. We like our house but we could do with more space long term. This was a “get on the ladder house”. We were thinking a move would be a few years away but have been advised we can port our mortgage and increase our borrowing quite comfortably. Our house hasn’t increased very much in value but it’s a sellable house in a popular postcode. There is a magic but realistic number we need to get to in order to sell. If we can’t get it we would stay put for now. Do we put it on the market now or wait until new year? I keep hearing the market is dead but our neighbour sold in 2 weeks this summer. Can’t compare the two though as theirs is bigger.

From personal experience you are likely to lose out financially despite what estate agents and Zoopla will tell you. There are exceptions and it only takes one person, but the market is pretty stagnant at the moment. You can always try to negotiate hard on properties you are interested in buying but a lot of people are in denial about the current market and holding out for a certain figure. We recently sold after a couple of years but have had to take a hit even though properties in our area usually sell before they go on Rightmove.

Only you can know what's right for you. Based purely on those timescales, you are likely to have to sell at a loss if you sell now. That's painful but doesn't necessarily mean now is the wrong time - you'd also be more likely to buy at a good price and with less competition. Wait until your property is worth more and you'll sell more quickly, then the same applies to what you are buying, with the gap between the two getting bigger and the chances of being outbid, gazumped, beated to the post etc increasing.

You've been there such a short amount of time. With no particular need to sell right now, I would leave it until next Spring at the earliest.

Mortgage rates are likely to be a bit lower by then and that might help you at least get back the money you spent on the property & hopefully a bit more. Though you acknowledge yourself you bought at a crazy time (and will be selling in what will probably still be quite a stagnant market even by next Spring).

If you try to sell now, or even soon, it is likely that you would take a loss. Selling so quickly might also make people suspicious that something is wrong with the house/ neighbours/ area.