When you're attempting to sell your home, before you even consider placing it on the market, you need to decide what your goals are. Do you want a quick sale? Or do you want a big return on investment? There are several ways you can sell your home, and they all come with different benefits, but which property sale suits you?

Different ways to sell your property

There are two main methods for placing your property on the market: selling it through an estate agent or at auction. 

Selling it through an estate agent gives you a higher chance of achieving a sale at a well-reflected price, as selling it at auction can result in a quick and simple sale, but it may also undervalue the property. The fees are slightly higher for selling your property through an auction compared to enlisting the help of an estate agent.

What are the benefits of selling by auction?

The buyer is required to pay a 10% deposit almost immediately, and the majority of properties at auction are 'chain-free', reducing the likelihood of the sale falling through.

Auctions can be a quick selling method: your home is marketed for 3–4 weeks to gain attention, and then the auction takes place, hopefully leading to a successful sale.

What are the benefits of selling with an estate agent?

Selling your home through an estate agent comes at a lower fee and a higher asking price for your home. This allows you to achieve the maximum amount of profit on your property, as they are able to pin down buyers who are willing to pay a well-reflected, reasonable price against the market.

Selling through an estate agent broadens the buyer pool, as many buyers tend to overlook auctions due to their perception of potential fixer-uppers or problematic properties.

So, which property sale suits you?

The key takeaway is that selling your property at an auction could give you a faster sale, while estate agents tend to deliver a higher selling price for a lower fee.

If you're not concerned about the time it will take for your property to sell and you're looking for the highest possible price, an estate agent is your best option. Overall, you are more likely to achieve a higher price when you sell through an estate agent.

As summer concludes and autumn approaches, homeowners have a final opportunity to finalise their move before the year ends. While each season brings its own set of advantages and challenges, there are compelling reasons why now might be the perfect moment to make your move. Let’s look at why now is a great time to sell your home and maximise your profits.

Sales agreed is high

All the evidence shows that the market has been very active in recent months, with Zoopla’s House Price Index showing that the number of new sales agreed increased by 8% between June 2023 and June 2024.*

This indicates a robust market, in which movers have plenty of confidence and are prepared to move quickly. When buyers are pro-active and already have the necessary finances in place, chains move faster and are less likely to break, reducing the likelihood of your move falling through.

Demand has also increased

As you may expect, with sales agreed being so high, demand also increased over the course of 12 months, with Zoopla showing an increase of 6%*. As confident buyers look to secure their dream move, sellers are able to find a buyer without having to wait for too long, speeding up the whole process.

A major benefit of high demand is that it often leads to competitive bidding, which can drive up the price of your property and increase the amount you receive. Additionally, having multiple potential buyers gives you the freedom to negotiate a completion date that suits you, allowing you to move quickly and take advantage of the busy market.

More homes are for sale

The number of homes for sale is a further indication of consumer confidence in the market, with an astonishing increase of 19%.* This gives the market a lot of variety in the types of properties available, allowing more people to find their dream home with less hassle.

With more properties on the market, you have greater scope to narrow down your search and find a property that perfectly matches your needs and preferences. Whether you're looking for a particular style, size, or location, the increased inventory makes it easier to find your dream home instead of settling for something that isn’t quite right for you.

House price overvalued

Zoopla estimates an 8% overvaluation in house prices,* indicating that properties are currently selling for more than their true value. While this may initially sound like a negative, it actually makes now a great time to move, as it gives sellers the perfect opportunity to sell at a higher price and release a larger amount of equity.

Selling in an overvalued market can provide you with the capital needed to move up the property ladder to a more desirable home or a better location. However, it's crucial to move quickly, as Zoopla anticipates the 8% overvalue to vanish by the year's end as house prices return to their true value by the end of 2024.*

While interest rates are becoming more competitive, they are still not at the ultra-low levels of the past. If you are a property investor, there is no doubt that this will increase your costs. However, the good news is that despite the higher cost of borrowing, rental yields are higher.

More rental homes are needed 

According to an analysis conducted by Rightmove, 120,000 rental properties are needed, helping to increase average rents in the UK by 7% on average compared to last year outside of London.* There are no quick fixes to this level of demand, and even if there were, there would still be a demand growth level of 2%.*      

What are rental yields?

Rental yields help you calculate your return on investment (ROI) by giving you the percentage annual return your property generates against its purchase price.

Gross rental yield 

To calculate gross rental yield, simply divide annual rental income by the purchase price of the property and multiply by 100.  

Net rental yield 

To calculate this, simply subtract expenses such as mortgage payments or maintenance costs from your annual rental income and divide by the purchase price of the property, then multiply by 100.

Increasing rental yields 

According to Zoopla, the average rental yield in the UK sat at 5.60% based on the average purchase price of a buy-to-let property of £261,897, with an average monthly rent of £1223.** According to Fleet Mortgages, average rental yields for 2024 Q2 stood at 7.6%, which is an increase of 1% compared with the same time last year.***  

More competitive interest rates and the ‘new normal’ 

With a new government helping to breathe more certainty into the UK property market and inflationary targets being met, there are expectations of more competitive buy-to-let mortgages appearing. There is also a sentiment that interest rates are now at a ‘new normal’. Perhaps they were too low for too long, and because of this, buyers and investors became accustomed to unsustainably low interest rates. If you go further back in time, interest rates could reach double figures, so in the grand scheme of things todays rates represent good value. However, existing landlords may benefit from greater levels of equity, reducing their mortgage costs. 

Take the long-term view

Taking a long-term approach to investing in the buy-to-let market throws up a lot of potential advantages. As you gain equity in your property as your buy-to-let mortgage balance reduces, while your property’s value potentially increases, you could enjoy the benefits of a solid investment. Investing in fixer-upper properties and making savvy investments in up-and-coming areas are ways of potentially increasing your ROI more rapidly.

If you're considering upgrading a potential property through a home renovation, it can be an exciting process, but it can also present challenges. Instead of buying a move-in-ready property, you have the option of renovating a character-filled, fixer-upper. We have compiled 10 steps to follow to guarantee success throughout a home renovation.

Step one: Find a property and make a renovation plan

With our 10 steps to successful renovations, you can easily lay out a plan and begin your renovation journey. But to begin your renovation adventure, you need to find the right property. Study potential properties and uncover their hidden value.

Make sure to have a survey completed. The most detailed survey you can receive for a property is a level 3 survey, which is the most thorough analysis of the entire property’s building structure and condition. The overall report provides extensive details, including recommendations, estimated costs, and a timeline for any necessary work. This can help you produce a solid plan and give you an idea of where to start.

Step two: Understand your legalities

When you decide to complete renovations on a property, you need to understand the legalities. This will include ensuring you have planning permission in place (if needed). Even though plenty of home alterations don’t need planning permission, it’s always beneficial to check before diving straight in. You can apply for planning permission before you purchase a property.

Once you exchange contracts and have secured your property, it will be your responsibility to have the right insurance in place. Home insurance during renovations can come at a higher expense, but it is worth every penny as it provides you with peace of mind throughout the entire process.

Although a house warranty is not a requirement when renovating your property, it protects you from any flaws in the potential design, materials, or overall build quality, and will also cover any problems that occur for 10 years as a result of these factors.

Step three: Calculate your costs

Correct cost alignment is crucial for delivering a successful renovation project. You're looking to get the best value for money. Being vigilant about potential hidden costs is crucial to staying within the right budget. Always overbudget by 10% to provide yourself with flexibility, and you can utilise any remaining funds for enhancing your home's interior design or landscaping your ideal garden.

Step four: Understand EPC and ways you could improve it

If you’re renovating your home, consider the future and its resale value. Energy Performance Certificates (EPC) are now more important than ever in terms of increasing value; the future may create difficulties for homes without a good EPC score, so the quicker you take this into account, the better.

You can enhance your EPC rating by installing insulation in your home and surrounding pipes, replacing light bulbs with energy-efficient ones, upgrading your boiler and heating system, installing solar panels, a smart meter, and installing double or triple-glazed windows.

Step five: Discover a trustworthy contractor

This is a crucial step because this individual will bring your ideas to life. Become your own project manager and oversee the entire project, and if you’re a seasoned pro, get stuck in and knock a few walls down. Shop arounFd, gather ideas from different contractors, and take into account positive references and reviews.

Step six: Organise the removal of materials

A renovation project always leads to plenty of waste, especially if the demolition of walls is part of the plan. By organising a skip hire for the property, you can create less hassle for everyone involved, and the skip hire company will be able to dispose of the materials. You could potentially sell certain elements of the property to generate additional revenue.

Step seven: Protect the property’s original features

The main attraction when you buy a fixer-upper is the original character features. These can easily be rediscovered and highlighted throughout the home renovation, adding a timeless charm to the property. By utilising these original features, you have a chance to save some money on new materials. Particular attention should be paid to certain features such as:

While renovating, remain careful around these areas to avoid potential damage to the original features.

Step eight: Update your plumbing and electrics

Even though rewiring and plumbing are expensive renovations, they're definitely worth it. This allows you to add certain light features or bathroom looks that suit your lifestyle. By completing this, you could also add characteristics that cut down your energy bill and increase your EPC rating, improving the property’s end value.

Step nine: Turn structural problems into upgrades

While the property is stripped back, this gives you the perfect opportunity to fix or improve any structural issues in the home. This allows you to match the home to modern-day living, potentially creating an open-plan living space or inserting large bi-fold doors leading to the garden.

Take a look at the floor plan, external and internal features, and identify the potential characteristics it could offer. Is there conversion potential for the loft, basement, or garage?  Identifying these key potentials can present a substantial increase in your property’s value.

Step ten: Create a snagging list

As you finalise the property by adding all your interior and décor, you finally see the light at the end of the tunnel.

What is a snagging list?

A snagging list typically indicates that the home renovation is complete. This is an inspection completed at the end of building work to identify any minor defects and meet the standards you expect, potentially achieving perfection.

Examine your completed project and pinpoint any minor issues you wish to address or monitor to allow issues to be flagged up in a timely manner. The contractor can assist in resolving these issues, ensuring a flawless completion of the project.