It was only a matter of time, wasn’t it.
The war in Iran has affected more than oil prices, it has also hit the housing market.
Here is the proof.
Less than two months ago the average two-year fixed rate mortgage was around 4.83%. It is now 5.83%.
One of the more unusual changes is that two-year fixed rates at 95% LTV are now more expensive than five-year fixed rates! The average being 6.1% versus 5.93%. Given that you usually expect to pay a higher rate for a longer ‘mindful financial planning’, this to me says one thing – this is a temporary measure and I expect it to reverse back once things have settled in Iran.
Something else has happened.
There are more sellers than buyers, which means property is starting to stick. What happens with this becomes the case? Prices become more competitive to attract a sale.
This is where the correct marketing comes into play.
If buyers have choice they will use that to their advantage, which includes negotiating the best purchase price.
They will not:
- Pay buyer fees.
- Pay to release a sales memorandum.
With monthly payments increasing their deposit money will be exactly that, used to bring the mortgage sum down rather than spent on costs they do not need to incur.
Where does that leave property sales for probate, trust, and Court of Protection where buyers must be found?
Again, it all comes down to marketing and best practice.
I am not saying there is a magic wand, there isn’t. However, there are processes to avoid and there are processes that will remarkably increase your clients chances of securing a sale at the highest price.
Look at your choices, ask the uncomfortable questions, keep putting the client first.
The private client sector should not be about who pays the best kickback, it should be about who is doing the best job for the service users.
Your clients need to be given honest advice, the market has shifted, and false promises from service providers who do not know what they are doing, and estate agents who are simply looking at instruction numbers will run the risk of costing estates much more in the long term.
This article was submitted by The PL Group as part of an advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
