How fast can you sell a house after buying it: Pros & Cons
Can you sell a house soon after buying it?
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Have you ever found yourself in the position where you’ve just bought a house, but almost immediately, you’re contemplating selling it?
Life has a knack for presenting unforeseen opportunities or challenges at the least expected ties.
Perhaps an unbeatable job offer in another city has come your way, or the house you’ve always fantasised about suddenly hits the market. Whatever the reason, you might now be looking at your new home, wondering “how fast can you sell a house after buying it?”
Navigating the sale of a house soon after purchasing it can seem daunting, and it is indeed daily complex. However, you are not without options.
This article will help guide you through the process of selling a house shortly after buying it, the six month of ownership rule and why cash buyers are your golden ticket to sale.
How fast can you sell a house after buying it?
You could sell a house immediately after buying it as there are no restrictions mandating a minimum period of ownership before a property can be resold. However, practical challenges arise, primarily due to the lending policies of banks, building societies, and mortgage companies.
These entities often hesitate to finance buyers interested in properties sold by someone who has owned them for less than six months.
What is the Six Month Rule of Ownership?
Financial institutions like mortgage lenders & building societies, instituted a de facto waiting period to prevent losses associated with rapid, back-to-back transactions, which can be indicative of money laundering or other financial irregularities.
The critical time frame starts not from the completion of the sale but from when the transaction is recorded at the Land Registry. This policy can significantly impact sellers’ ability to quickly offload a property or for potential buyers to secure mortgage financing.
The six month rule is not universally known, which can lead to unexpected complications for those looking to sell or remortgage a property soon after purchasing it.
Are there any Six Month Rule of Ownership concessions?
Despite the general reluctance to lend against properties that have changed hands recently, some lenders may offer concessions under specific circumstances. For example, transactions involving property developers or sales necessitated by the death of the owner might be exempt from the usual restrictions.
Mortgage lending lenders like Nationwide require detailed information about the property’s sales history and any improvements made to it between sales. This scrutiny aims to ensure the legitimacy of the transaction and the value of the property as collateral.
How to avoid Six Month Rule of Ownership?
Although most lenders are reluctant to finance new purchases of properties that have been owned by the current seller for less than six months. This is because such transactions raise red flags about the property’s value and the legitimacy of the transaction.
The countdown usually begins from the date the property’s details are filed with the Land Registry, not the completion date of the sale contract.
If significant improvements or renovations have been made to the property, some lenders may be willing to reconsider the six-month rule. This is especially true if the enhancements substantially increase the property’s value. Providing detailed documentation of the work and its cost can support your case.
Obtaining a provisional agreement from a lender before listing the property can also be a wise move. This involves checking with the lender about their policies on early sales and securing a tentative approval based on the property and your financial situation.
But, the most straightforward way to sidestep lender restrictions is to sell to a cash buyer, like us! We aren’t not dependent on mortgage financing as we have our own cash reserves to purchase your property.
Cash buyers are not bound by the six-month rule, making them ideal candidates for early property sales.
Why would someone sell a house after buying it?
Homeowners may consider selling a house soon after buying it for various reasons, which can be categorised into two main reasons: personal circumstances and property issues.
It’s important to note that selling a house soon after buying it is usually not advised due to the potential financial losses associated with completion costs, estate agent fees and potentially selling below market value.
However, in certain circumstances, the reasons mentioned below might outweigh the potential costs, making a fast sale the only viable option.
Here are some reasons why people sell a house after buying it:
Personal circumstances
Job relocation: A sudden job change requiring relocation to a different city or state might necessitate selling the recently purchased house.
Life changes: Unexpected life events like illness, death in the family, or relationship changes can lead to a need to move closer to loved ones or downsize.
Financial difficulties: Unforeseen financial hardships might force individuals to sell their newly acquired property to generate cash.
Buyer’s remorse: While less common, some individuals might experience regret after purchasing a house and decide to sell quickly to find a more suitable option.
Property issues
Hidden problems: Undiscovered issues like structural damage, pest infestations, or environmental concerns discovered after purchase can prompt a quick sale.
Neighbourhood concerns: Unforeseen problems with the surrounding neighbourhood, like noisy neighbours or undesirable developments, might make the property undesirable.
Misrepresentation: If the seller misrepresented the property’s condition, the buyer might have legal grounds to rescind the purchase and sell the house again.
We know our service isn’t right for everyone, making it important you decide whether or not it’s right for you. If you don’t have the luxury of time, then you will be looking at other alternatives to the open market.
What could stop you from selling your house swiftly?
Selling a house swiftly is often a priority for homeowners looking to move on for various reasons, whether upgrading, relocating for work, or downsizing.
However, several factors can impede the speed of sale, from the structural elements of mortgage agreements to the practical timelines involved in completing a sale.
One of the primary hurdles in selling a house swiftly involves the specifics of the mortgage agreement tied to the property and the time frame for completion, here are some factors that could stop your house selling swiftly:
Tie in periods:
Many mortgage products come with tie-in periods, during which the borrower is obligated to stick with the lender under agreed terms. Attempting to sell the house and pay off the mortgage during this period can result in substantial penalties.
These penalties are meant to recoup some of the interest the mortgage lender would lose. Sellers need to review their mortgage agreement carefully to understand any tie-in periods and the financial implications of selling during them.
Early Repayment Fees (ERFs):
Apart from tie-in periods, mortgages often include clauses for early repayment fees. These fees are charged if the mortgage is paid off before a certain period, usually aligning with fixed-rate or tracker mortgage deals.
ERFs can be a significant financial burden and deter sellers from completing a sale until the fee no longer applies. It’s important for homeowners to calculate these costs as part of their decision-making process when considering selling their property early.
Property listing to offer acceptance:
The initial phase of listing the property and receiving an acceptable offer can vary greatly in duration, influenced by market conditions, the property’s desirability and pricing strategy. In a buyer’s market, this phase can be prolonged delaying the entire sale process.
Conveyancing and legal work:
Once an offer is accepted, the conveyancing process begins, involving legal work to transfer ownership of the property. This stage includes searches, surveys and the exchange of contracts, which can be time consuming.
Delays can occur due to incomplete documentation, issues identified in searches, or slow communication between parties involved.
Property chains:
The sale is often part of a chain of transactions, where the ability to complete depends on the completion of other sales and purchases. A break or delay in the chain can significantly stall the process, making it difficult to predict the sale’s completion date.
Mortgage approval for buyers:
If the buyer requires mortgage financing, the approval process can also introduce delays. Any issues with the buyer’s mortgage application, such as discrepancies in valuation or affordability concerns, can extend the timeframe for completion.
How could selling to a cash buyer help with a swift sale?
Selling to a cash buyer can significantly mitigate many of the challenges associated with selling a house swiftly. This approach offers a streamlined process that can circumvent the typical hurdles of mortgage agreements, conveyancing delays, and property chains, among others.
Here’s how selling to us could help address these issues:
Bypass mortgage related delays:
Selling to a cash buyer eliminates the concerns related to mortgage tie-in periods and ERFs. Since there’s no need to settle a mortgage early in a cash transaction, sellers can avoid the penalties associated with breaking mortgage terms prematurely.
This is particularly beneficial for sellers who might otherwise face substantial financial penalties for selling their property before a certain period due to the specifics of their mortgage agreements.
Streamlining the process:
Cash buyers usually make decisions faster than buyers relying on mortgage financing, as they are not subject to the approval timelines of financial institutions. This can drastically reduce the time from listing to offer acceptance, making the process more predictable and often much quicker.
The conveyancing process can be speeded up in a cash sale because it eliminates the need for mortgage applications and approvals, which are often the source of significant delays. Without the need for a lender’s valuation and the associated paperwork, the legal transfer of the property can proceed more smoothly and swiftly.
One of the most significant advantages of selling to a cash buyer is the elimination of dependency on property chains. Cash transactions are not contingent on the buyer selling their current property or securing financing, which often causes delays or breaks in property chains.
This independence from chains significantly reduces the risk of delays and makes the completion date more predictable.
Eliminating mortgage approval for buyers:
Since cash buyers do not require mortgage approval, sellers can bypass all the uncertainties and time-consuming processes associated with a buyer’s mortgage application. Issues like discrepancies in valuation, affordability concerns or lender’s condition that can extend the timeframe for completion are entirely irrelevant in a cash sale.
Additional benefits:
Deals involving cash buyers are less likely to fall through compared to those reliant on mortgage financing. The absence of a lending institution means there are fewer hurdles that could lead to the cancellation of the sale, offering a more secure path to completion.
Cash buyers often offer more flexibility in terms and conditions of the sale, including completion dates. This can be particularly advantageous for sellers looking for a quick and hassle-free sale.
Property chains:
The sale is often part of a chain of transactions, where the ability to complete depends on the completion of other sales and purchases. A break or delay in the chain can significantly stall the process, making it difficult to predict the sale’s completion date.
Mortgage approval for buyers:
If the buyer requires mortgage financing, the approval process can also introduce delays. Any issues with the buyer’s mortgage application, such as discrepancies in valuation or affordability concerns, can extend the timeframe for completion.
Benefits of selling your house fast
Selling your house fast extends beyond just avoiding the complexities and delays associated with mortgage agreements and property chains. There are several additional benefits that can significantly impact the seller’s financial situation, stress levels and future planning.
What are the financial benefits of selling your house fast?
Selling a house quickly minimises the ongoing expenses associated with owning a home. These costs include mortgage payments, property taxes, utilities, insurance and maintenance. The longer a property remains unsold, the more these expenses accumulate, impacting the seller’s finances.
For sellers facing financial difficulties, a quick sale can provide immediate relief from mortgage payments and other financial obligations tied to the property. This is particularly important for those trying to avoid repossession, manage a divorce settlement or settle estate issues.
In a fluctuating housing market, selling quickly can allow sellers to lock in a favourable market before potential downturns. This is important in regions where property values are volatile or declining.
What are the practical benefits of selling your house fast?
Fast sales can be essential for sellers undergoing significant life transitions, such as relocation for a job, downsizing for retirement, or dealing with the aftermath of a family member’s death. Quick sales reduce the emotional and logistical burden of juggling multiple properties or living situations.
The process of selling a home can be stressful, involving constant upkeep for viewings, negotiations, and uncertainty over the sale’s outcome. A fast sale diminishes these stresses by quickly resolving the situation, allowing sellers to move forwards with their lives.
Selling quickly, particularly to cash buyers or property investors, often means the property can be sold as-is, without the need for costly and time-consuming repairs or upgrades. This is beneficial for sellers who may not have the resources or desire to invest further in the property.
What are the market advantages of selling fast?
In a sellers market, where demand outstrips supply, a quick sale can take advantage of high buyer interest, potentially leading to better offers and a more straightforward selling process.
For investors and individuals looking to free up equity in their property for other investments and purchases, a fast sale accelerates access to capital. This allows for timely reinvestment or the purchase of a more desirable property.
Selling a house quickly can also align with favourable market conditions. For example, selling in spring, often considered the best time to sell due to higher buyer activity, can result in a quicker sale and possibly a better price.
What are the benefits of using our sell house swiftly service?
Our sell house swiftly service is the quickest way to sell your house for guaranteed cash in your bank. It’s a fast, simple and stress free alternative to what is normally a stressful and tedious process.
What our sell house fast service means for you is the ability to sell your house in as little as 7 days, with no cost to you, with there being no estate agent or legal fees involved.
Our service is completely tailored to you, meaning you choose the timescale, so we will complete on a date that is completely suited to you and your needs.
Steps to selling your home swiftly
We’ve worked hard to make sell house swiftly process as quick and hassle-free as possible, meaning we can get you moved as soon as possible! The whole service can be broken down into five easy steps:
How does the ‘sell a house after buying it’ service actually work?
If you;ve been through the process of selling your house on the open market, you might be wondering how it’s possible that we can buy your house in 7 days. Well, we assure you that it’s no lie – it’s something we are very capable of doing.
We are able to buy your house in as little as 7 days due to our internal process, our relationships and our skill as cash buyers.
We’ve been buying houses fast for a little over 12 years now, so we like to think that over this time we have perfected the process. Each of our property consultants and progressions department deals with multiple properties each week, so they know exactly what to do to speed the process up.
We’ve also built relationships with solicitors and RICS surveyors meaning we get priority and a ‘streamlined’ service, that will still tick all the boxes but will ensure a far quicker service compared to their dealings with a typical client.
Finally, we have cash facilities to buy any property, anywhere in England and Wales, no matter the condition! Being a cash buyer significantly speeds up the process, as we don’t need any approval from a mortgage lender.
What are the pros & cons of selling a house soon after buying it?
Remember, the decision to sell your house quickly with a cash buyer is personal and depends on your unique circumstances and priorities. Weigh the pros and cons carefully, compare options and consult with a trained financial advisor if needed before making a decision.
If time is of the essence, a cash sale can be invaluable even with a lower price, but it may be worth exploring other options like traditional estate agents, investors or auctions before making a decision.
Luckily, within our network of companies, we have an online estate agency, online auction and property investment branch so if these are more to your liking, then please navigate to their websites.
What are the pros of selling fast after buying?
Speed:
Sell your house significantly faster than traditional methods, sometimes, even in as little as 7 days. This can be important for the house selling situations like relocation, avoiding repossession and inheritance settlements which are time sensitive.
Convenience:
Minimise hassle and stress by letting the cash buyer handle the entire process, including marketing, paperwork, and negotiations.
Guaranteed sale:
No risk of the sale falling through due to financing issues or buyer contingencies.
Cash offer:
Receive the full amount quickly and securely, without waiting for mortgage approvals.
No fees:
Avoid traditional estate agent commissions, closing costs, and other associated fees.
Transparency:
Reputable cash buyers should clearly communicate their offer and any potential drawbacks.
What are the cons of selling fast after buying?
Lower sale price:
Expect to receive a less than market value offer usually between 15% to 20% below market value, which is traded off for speed and convenience.
It’s not for everyone:
Not all situations benefit from a quick sale. Consider your financial situation and long-term goals carefully.
Limited negotiation power:
There is less room for negotiation compared to traditional sales, as the offer is usually based on market conditions, and how much profit they can generate.
Potential for scams:
Be cautious of disreputable cash buyers with unfair practices or hidden fees. In order to find a genuine cash buyer, you will want to make sure that they are members of The Property Ombudsman and National Association of Property Buyers.
Why use a selling fast after buying service like us?
While every situation is unique, there are potential benefits to using a sell fast after buying service like ours, The Property Buying Company. However, it’s important to understand both the advantages and potential drawbacks before making a decision.
With our sell fast after buying service, you can sell your house within a short timeframe, usually weeks or even days, compared to months on the open market. This might be ideal for requiring a quick sale due to relocation, job changes, or financial strain.
We handle the entire process including dealing with solicitors, the paperwork, cover the fees and ensure that the process is as hassle-free as possible for you. Unlike traditional sales, you avoid the risk of the sale falling through due to financing issues as we have the cash reserves ourselves.
We will always strive to be honest with you about our offering, potential challenges and how we address them throughout the process. As members of The Property Ombudsman and the National Association of Property Buyers, we adhere to professional standards.
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