Selling a house can be a taxing task, especially if you’ve only recently bought it. With all the stress that comes with buying a home, selling one is an equally demanding job.
While surprising to some, there are a great number of reasons why someone would want to sell their newly purchased property. Nuisance neighbours, ill health or financial troubles - the list goes on.
The question remains however - can you actually sell a house you’ve just bought?
Yes! You can in fact sell a house you’ve just moved into. There are no legal stipulations in the UK that prevent someone from selling the home they just purchased. However, there are some rules you’ll need to follow for a smooth sail.
Yes, your mortgage lender has a charge on your property, which means they should be the first to know if you’re planning to sell. You will, of course, need to cover the outstanding mortgage balance. That means selling your home for however much you bought it for - if not more.
It’s always useful to consult with your mortgage lender and a solicitor before putting your property up for sale to warrant that you understand the process and any potential impacts on your mortgage.
There are no laws in the UK that require you to own your house for a certain period before selling it. However, if you have a mortgage, there may be clauses in your agreement that prohibit you from selling the property immediately.
Check with your mortgage provider to clarify any agreements in place. This could include any clauses that state you must keep the home for a certain period, which should be explicitly outlined.
A significant number of mortgage companies are not willing to grant loans for six months on the same property. This is known as the ‘six month’ rule, and it implies that you must wait to sell your home until six months after purchasing it. However, other mortgage lenders stipulate additional conditions and would require more details.
If there is a six-month clause in your contract, selling your property might not be as straightforward as you’d like. Due to these lending clauses, banks and other lenders typically have a rule that they won’t approve a new loan on a property if Land Registry records show it has been with the current owner for less than six months.
You might be met with a lot of queries from both prospective buyers and estate agents asking why you’re putting your house back on the market so quickly. To prevent any negative assumptions, it’s vital to clarify that your property is in a good condition. Reassuring buyers and agents about your property will ensure your sale is not problematic.
It’s even more crucial that the home you’re selling is up to standard with no major structural defects. As any negative reason associated with your property can cause serious delays in the selling process.
As a result of their wariness, buyers may try to negotiate a lower property price, pointing out minor faults in your home. You might have to accept a small discount from the market value of your property. Dropping the price, however, does not guarantee a sale.
If you’re selling your home due to a problem you weren’t aware of previously, such as structural damage or the area and neighbourhood - the property will be more difficult to sell. These problems could put off potential buyers, dragging out the selling process.
Selling to a cash buyer will have different rules. For example, you’ll be able to sell your property immediately after you purchase it. You won’t need to go through a mortgage lender and the process is more in your control.
When selling your property for cash, no rule states you need to own your property for a certain amount of time before selling. Though, if you plan on selling the property as an investment opportunity, make the buyer aware of this. They may find your haste to sell suspicious.
If you're looking to sell your house fast, a cash buying company might be a good option. These companies buy properties for cash, so there's no need to wait for a mortgage approval. Because they pay with cash, the sale process is faster than a traditional sale.
Unfortunately, cash buying companies are notorious for paying much less than the market value of properties. Many home sellers only receive 60 to 70% of their property’s true value, with the cash buying companies going on to sell their homes for much, much more.
Another option includes selling at an auction. These buyers will also most likely be cash buyers and so you won't need the approval of a mortgage to sell your property. Auctions are a popular, simple and straightforward option for homeowners looking for a quick sale. The process is fast and also legally binding once the auction ends, so your buyer cannot drop out.
One downside of selling at an auction is that you have less control over the sale price. You will likely be unable to make back the money you spent on the property in the first place. If you took a loan from a mortgage provider, this could leave you in arrears.
Several factors slow down a sale of a property, here are some of the most common.
When you sell a house on the open market, the price you first advertise it for matters. Too high an asking price will put off potential buyers, and make your listing stagnate.
To ensure that your house price is not too high, research house prices in your area. This will allow you to evaluate the value of your house, finding a competitive rate that suits you.
Better still, choose a reliable estate agent. Picking the right agent is crucial, especially when you want to sell your house quickly. They will take care of everything, from marketing your home, both online and offline, to picking a good asking price that garners interest.
There are lots of online resources you can use to compare local agents. GetAgent’s free Agent Comparison Tool takes just a few minutes to compare the top-performing agents in your area, based on experience, how likely they are to achieve your asking price, and fastest to sell.
Being in a chain can bring risk to your house sale, especially if that chain is long. A break in that chain could therefore negatively affect your sale. For those wanting to sell their home quickly, cash buyers ensure a low-risk and simple transaction.
A lack of effective marketing and advertising can also slow down the selling process. Always choose a local high street agent with a comprehensive marketing plan that includes online advertising and professional photography.
Properties that are in poor condition can take longer to sell, as buyers might be deterred by the need for repairs and renovations. It’s vital to ensure that the property is clean and tidy, and to make any necessary repairs or renovations.
Legal issues with the property, such as outstanding mortgages or unpaid taxes can slow down the selling process. Resolve any legal issues before listing the property for sale.
Lengthy negotiations on price, conditions and legal matters can prolong the sale process. Make sure that your agent can effectively negotiate on your behalf.
The legal transfer of the ownership of a property, also known as the conveyancing process can take longer than expected. Making sure you’re aware of such setbacks and potential obstacles will ensure a swift transaction, minimising any potential delays.
If you’re in a chain and things are taking longer than expected, keep communication clear and frequent to reassure the other parties relying on the sale.
Address any issues rather than waiting for anything to be revealed in a house survey later down the line. You want to be trusted as a reliable seller. If you're hiding information from the buyer, your sale may become unsuccessful.
Even if the buyer decides to continue with the transaction, they will likely lower the offer to factor in any cost of repairs.
To guarantee the house is clean, uncluttered, and well-maintained, consider hiring a professional stager to help you make the most of your space.
For your home’s exterior, you can:
1. Trim the bushes
2. Paint your front door
3. Ensure the lawn is well-manicured
For the interior of your home, it’s key to declutter and remove any personal items to make the space feel more open. You can also:
1. Paint and update: fresh paint can make a room feel brand new, consider neutral colours that will appeal to a wide range of buyers.
2. Light: allow for natural light to enter each room, as well as updating any light fixtures for a more modern look.
3. Update the kitchen and bathrooms: these areas are often major selling points for buyers, so it may be beneficial to update countertops, cabinets, and appliances.
4. Repair and maintenance: make sure to fix any visible issues or repairs that need attention, such as leaks, cracks, and holes.
5. Clean and tidy: ensure the house is spotless and that the odours are neutral and pleasant.
6. Show off the property’s best features: highlight the unique characteristics and selling points, such as hardwood floors, high ceilings and fireplaces.
Ensuring you find a reliable and efficient agent will likely lead you to a successful sale. An agent will be responsible for handling your marketing, showings and price.
It takes 2 minutes.
Your agent should be able to:
1. Market your home effectively:
By using a variety of marketing channels to find potential buyers, including online listings, open houses, and professional photography.
2. Lead your viewings and showcase your house to the best light:
Making it easy for buyers to view the house, and accommodating all of the viewing requests they receive.
3. Be willing to negotiate:
Be open to reasonable offers and be prepared to negotiate on price, closing dates, and other terms on your behalf.
To find out more about an estate agent, use our GetAgent comparison tool, where we compare agents across your area to find one that fits your needs.
You only need to pay Capital Gains Tax (CGT) if you're selling a house that isn't your primary residence.
In general, if you sell a property that you have owned for less than a year, any profit you make from the sale is considered a short- term capital gain, and may be subject to your regular income tax rate.
Picking the right estate agent is vital for a successful sale. GetAgent makes choosing simple. Discover the best performing agents in your area.
Picking the right estate agent is vital for a successful sale. GetAgent makes choosing simple. Discover the best performing agents in your area.
It takes 2 minutes.
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