Failed sale - how to still get a price you want or higher
There two times when you are very excited - at the time of purchase and sale of the property.
It is not nice. You were so excited to have your property sold and then at the late stage buyer pulled out...
Apart from losing the whole excitement of selling the property you actually lose quite a lot of more financially. So let's see what you are paying for and how much it costs:
Sale price. Ok it is bad. Because your property is already on the market for a number of months and you have failed sale most people will either don't even look at your property or make lower offers. It is due to the fact that buyers will assume that the previous buyer pulled out because of some serious reason. And it might be as trivial as not getting a mortgage because of personal circumstances and not the property, no one will accept it as an explanation. So realistically you are losing around 5% of the value of the property.
You are still paying for your mortgage, utilities and council tax while it is empty and awaiting a sale. It might not be a lot in a month but because it is likely to be a number of months and the bill is already in thousands of £.
Last but not least you are likely to occasionally check the property as the empty property is at times the target of criminals and because of lack of heating etc their condition gets worse. Lets say your time and petrol is likely to be in hundreds as well.
So, let's assume the £200k property you are losing is around £10000 in sale price and £3-5k in other regular fees. Total £15000. It is a lot.
However by selling the property you may ask yourself why do you have to sell the property now and more importantly do you need all money from sale now? If you don't need a full amount today and there is no actual need to sell the property now there is an attractive option for you!
Why dont you sell the property as a Rent to Buy. It simply works that the buyer pays a large deposit and signed a contract today with the actual completion taking place in a few years time. And during that time the buyers pay you rent as well.
Let's assume your property is worth £200k and you have £100k mortgage on it. You only need £50k and not £100k. You simply remortgage and/or collect a deposit from the buyer to get £50k. And the rest of the money will come to you in a few years time.
Not only that you will hugely benefit from following:
You will not only get a full market value but actually slightly more. Realistically £205k. That's £15k more!
Buyer signs the contract and starts paying you rent from day one and it doesn't take more than a few weeks to complete. You likely save at least a few months worth of monthly payments. Let's assume it is £2k
You get monthly rent which is likely to give you a monthly surplus of around £200. That's £8k in 3 years time.
You don't even pay estate agent fees which is likely to be around £3k.
So in total you save £28k! The huge difference for anyone.