The latest data release from quick sale specialists, Open Property Group, has revealed that, the archaic, protracted and often unstable property selling process is the number one reason that home sellers are turning to the quick sale route, as they look to avoid months on end of intrusive viewings, paperwork and, all to often, misery.
Open Property Group looked at over 1,400 quick sale transactions to have completed via its platform and the key reason given as to why the seller chose to bypass the traditional selling process in favour of selling their home quickly.
Quick sale platforms, such as Open Property Group, allow sellers to sell their home quickly, choosing the completion date that suits their individual situation, giving them the ability to complete in less than a week should they need to.
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While this does mean accepting a slightly lower offer, usually in the region of 80% of market value, it bypasses the rigmarole of showing people around your property, negotiating, and waiting months for the deal to be finally closed.
It also allows them to avoid the potential delays and costs incurred should their sale fall through, which currently averages £3,433, while also allowing them to maintain their chain for their onward purchase.
One common misconception is that the quick sale route is only utilised by distressed sellers – those who need to offload their home to deal with financial debts or to avoid repossession. However, the data from Open Property Group shows that this is rarely the case. In fact, selling quickly to pay debts was the reason cited by just 0.1% of Open Property Group’s quick sale sellers.
Out of 1,409 sellers analysed by Open Property Group, 65% stated they were doing so for a more simplified, streamlined selling process. In other words, to avoid the traditional home selling process, the lengthy transaction timelines, viewing requirements and uncertainty of seeing their sale through to completion – a process that has become all the longer as the market has slowed over the last year.
The second most popular reason was to release equity, at 17%. This likely comes as a result of the difficult economic backdrop facing the UK, where higher mortgage rates and rising living costs make raising funds an increased priority.
With the Government having implemented numerous legislative changes aimed at denting the profitability of the buy-to-let sector, it’s perhaps no surprise that landlords looking to off-load their rental properties accounted for the third highest number of sellers at 7%.
Relocation (4%) and retirement planning (3%) were also some of the most frequent reasons cited for a quick sale.
CEO of Open Property Group, Jason Harris-Cohen, said, “The quick sale route isn’t for everyone and particularly for those looking to initially climb the ladder, achieving the highest percentage of asking price possible is often the key motivation.
However, for those who have been through the rigmarole of selling a home before and who have established a strong level of equity, the idea of spending months on end trying to sell their home again is often the last thing they want to do.
So while the general perception is that quick sale platforms are a last resort for those facing financial hardship, this couldn’t be further from the truth. The majority of quick sale sellers simply favour it for its simplicity, using it to bypass the dreary process of instructing an agent, arranging viewings and negotiating with buyers.”
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