Why Does it Take 186 Days to Sell a Home in Southampton?

 

The average time to sell a house in the UK from start to finish is 170 days, equivalent to 24.3 weeks or 5.6 months from the first day of marketing to legal completion, whilst in Southampton it’s 186 days.

The actual time can vary depending on market conditions, location, property type, and pricing strategy, so in this article I delve deeper. Here is a breakdown of that 186 days.

 

Step 1 - Time to Accept an Offer:

On average, nationally, it takes 50 days (up from 43 days in 2022) to accept an offer on a property. This time starts with placing the property on the market, viewings, negotiating an offer and reaching an agreement with a potential buyer.

 

In Southampton, it is taking 47 days on average to agree a sale on a property.

 

Again, the type of Southampton property makes a huge difference as well.

The best-performing type of property is a Southampton semi-detached house, which takes an average of 41 days to agree a sale, to the poorest-performing type of property, which is a Southampton detached house, which take an average of 55 days.

 

Step 2 - Time from Offer Acceptance to Completion:

Once an offer is accepted, over the last 12 months, it has taken an average of 120 days nationally for the sale to be completed. This period involves finalising the legal and financial aspects of the sale to the legal exchange of contracts, with legal completion a week or a fortnight later.

 

In Southampton, it is currently taking on average 139 days from the sale agreed to the sale being completed.

It's important to note that these figures are based on averages and can vary depending on individual circumstances.

 

If you need to sell your Southampton house quickly, there are a few steps you can take to expedite the process.

 

There are many factors that can affect how long it takes to sell a house. The three major factors are:

a.      Your Asking Price: The price you ask in relation to similar Southampton properties on the market has the most significant impact. Overpricing can result in fewer viewers, meaning fewer buyers, while competitive pricing generates immediate interest. Look at properties that are similar to yours on the market at the moment. When searching the property portals, not only search for them in price order, search for them in how long they have been on the market. That will give you a fascinating insight into the current state of the property market for Southampton homes like yours.

b.      Buyers' Market, Balanced Market or Sellers' Market: The market condition, whether hot or cold, plays a significant role. In a hot market (sellers’ market), homes sell fast and pricing is not as sensitive, while in a cold market (buyers’ market), competitive pricing is crucial to avoid a prolonged time on the market with no chance of a sale.

c.      Quality of Solicitors: Agreeing a price/sale is only half the battle to getting you moved. Your solicitor's efficiency can impact your sale's progress. Choosing a responsive solicitor who cooperates with estate agents can help prevent delays. Again, we can suggest some excellent Southampton and regional solicitors that are experts in their field.

If you are considering a move in the next 6 to 12 months, now is the perfect time to start planning. Selling your Southampton home can be a complex process, but with the proper guidance, you can navigate it smoothly and efficiently. As experienced estate agents in Southampton, we understand the local market dynamics and have a track record of success.

Our team is well-versed in the factors that impact selling time, including the price asked and market conditions. We work with responsive solicitors who prioritise efficiency and collaboration regarding legal matters. Their cooperation with us as estate agents helps prevent delays, ensuring a smooth progression from offer acceptance to completion.

 

By pricing your property competitively, we attract immediate interest from potential buyers. Our knowledge of the local Southampton market enables us to navigate buyer and seller markets effectively.

 

If you want to sell your Southampton home, we offer a no-obligation free appraisal to discuss your selling timescales. Our personalised advice and guidance are tailored to your situation, giving you the information you need to make informed decisions. Together, we can make your move a reality.

Is Southampton a Buyers’ or Sellers’ Property Market?

 

A Comprehensive Guide for Southampton Homeowners

In the ever-changing world of Southampton property, the terms ‘buyers’ market’ and ‘sellers’ market’ are phrases bandied about.

These property market conditions can significantly impact your ability to buy or sell a Southampton property, regardless of which side of the fence you find yourself on.

As a Southampton estate agent, I will provide you with a detailed analysis of the Southampton property market to find out if we are in a buyers’ or sellers’ market and offer valuable tips to navigate through them successfully.

Additionally, I will shed light on a lesser-known market condition called a ‘balanced market’. So, let's delve into the nuances of these markets and equip you with the knowledge to make informed decisions on buying and selling in Southampton.

What is a Southampton Buyers’ Market?

A ‘buyers’ market’ occurs when the number of Southampton homes available for sale exceeds the number of potential buyers. In this scenario, buyers hold the advantage, as they have more choices and can take their time to make decisions. They may even negotiate with sellers to secure more favourable prices. This is an ideal market for Southampton buyers as attractive deals are plentiful, while sellers face the challenge of standing out in a sea of properties for sale.

 

What is a Southampton Sellers’ Market?

Conversely, a sellers’ market arises when there is a higher demand for homes than available inventory. This creates a power shift in favour of sellers, who can benefit from increased competition among buyers. In a seller's market, Southampton properties tend to sell quickly and sellers often receive multiple offers, driving up property prices. This market can be challenging for Southampton buyers, as they may face bidding wars and have limited negotiating power.

 

Introducing a Balanced Market.

Apart from the buyers’ and sellers’ markets, a balanced property market exists where the number of people looking to sell property matches the number of potential buyers. In a balanced market, equilibrium is achieved, leading to stable prices and a reasonable timeframe for property sales. This market condition offers a fair playing field for both buyers and sellers, creating a more harmonious real estate environment.

 

Understanding the Dynamics: Supply and Demand of Southampton Property.

At the core of these property market conditions lies the principle of supply and demand.

Southampton home buyers have the upper hand when the supply of Southampton homes surpasses the demand. Conversely, when demand outpaces supply, Southampton house sellers hold the advantage. Recognising which property market you are in is crucial for making informed decisions, regardless of whether you are a buyer or a seller.

 

What Kind of Property Market is Southampton in?

The best way anyone can judge the market is to analyse the percentage of properties marked as "Sold STC" (Sold Subject to Contract) and "Under Offer" in relation to the total stock of properties on the market.

E.g. if there are 500 properties on the market (both available and sold stc/under offer) and 200 are sold stc/under offer … 200 as a percentage of 500 is 40%.

Everyone can do this by searching the property portals (e.g. Rightmove, Zoopla and OnTheMarket) by searching for Southampton and calculating it by asking for the results with sold stc/under offer and without sold stc/under offer.

The designated property market states are as follows:

 

·         0% to 20%: Extreme Buyers' Market

·         21% to 29%: Buyers' Market

·         30% to 40%: Balanced Market

·         41% to 49%: Sellers' Market

·         50% to 59%: Hot Sellers' Market

·         60%+: Extreme Sellers' Market

 

This methodology is widely used by many professional property traders, corporate asset managers and developer part exchange providers to quickly assess the temperature of any local market. It offers a reliable and efficient measurement of market heat, enabling informed individuals to select the right strategies and stay ahead of the market to achieve superior results.

The statistics have been sourced from website ‘The Advisory’, which have calculated the market state stats for many years. I wanted to share them back to the summer of 2018, so you can see for yourself.

What are the Statistics for Southampton for the Last 5 Years?

 

	Jun-18	Jun-19	Jun-20	Jun-21	Jun-22	Dec-22	Mar-23	May-23	Jun-23
SO14	44%	32%	24%	45%	56%	47%	41%	38%	37%
SO15	55%	46%	35%	64%	68%	60%	59%	61%	59%
SO16	47%	47%	41%	70%	74%	66%	55%	55%	56%
SO17	54%	43%	37%	63%	65%	63%	58%	53%	56%
SO18	60%	52%	46%	75%	77%	66%	65%	61%	60%

 

 

You can quite clearly see Southampton went into an extreme sellers’ market during 2021 and 2022 and is still at a level higher than pre pandemic.

 

Now of course this could all change, so let me explain both extremes for either market.

Tips for Southampton Home Sellers in a Buyers’ Market

Selling a Southampton property in a buyers’ market can be daunting, but you can improve your chances of success with the right approach. Here are some valuable tips for Southampton home sellers:

1. Be realistic with your asking price: If the Southampton property market becomes a buyers’ market, home sellers will need to understand the challenging market conditions and set a competitive price from the beginning. Overpricing will deter potential Southampton buyers from even viewing and lead to your home being on the market for months. People will start to think there will be something wrong with your home and dismiss it even more.
2. Present your Southampton home at its best: In a competitive buyers’ market, making your property stand out is vital. Consider staging your home and completing any necessary repairs to make it more appealing to home buyers.
3. Maximise your exposure: Effective marketing is crucial, particularly in a buyers’ market. Collaborate closely with a reputable local Southampton agent with extensive area knowledge and a strong marketing team to ensure maximum visibility for your property. Gone are the days of just putting the property on Rightmove and hoping.
4. Be prepared to negotiate on more than the pound notes: Price is not the only factor in negotiations. Buyers may also be open to discussing terms and conditions like what you are leaving regarding fixtures and fittings, so be flexible and willing to find common ground.

 

Tips for Buyers in a Southampton Seller's Market

If you find yourself navigating a sellers’ market as a Southampton buyer, these tips will help you improve your chances of securing the right property:

1. Define your necessities: Clearly understand your property needs and prioritise them. Be prepared to compromise on certain aspects to increase your chances of finding a suitable property.
2. Be friendly: Build a positive rapport and relationship with the home sellers on the viewing. This can really work in your favour. First impressions can make a difference.
3. Act quickly: In a seller's market, hesitation can lead to missed opportunities. If you come across a Southampton property that meets your criteria, schedule a viewing promptly and be prepared to make an offer if it resonates with you.
4. Make fair offers: While everyone wants a great deal, offering a reasonable price shows respect to sellers and increases the likelihood of your offer being considered. Silly low offers are often dismissed in competitive markets and can sometimes offend.
5. Practice patience: Although speed is essential, exercising patience is equally vital. Rushing into a decision can result in regret. The right property will come along, so balancing acting swiftly and making informed choices is critical.

 

Understanding the dynamics of buyers’ and sellers’ markets is essential for both buyers and sellers in the Southampton property market.

By grasping the nuances of each market condition and applying the appropriate strategies, you can maximise your chances of achieving your Southampton property goals. Whether you find yourself in a buyer's market, seller's market, or a balanced market, adapting your approach and working closely with an experienced local agent will significantly enhance your chances of success in the ever-changing world of real estate.

But let me leave you with this one last thought. Regardless of whether it's a buyer's or seller's market, it's important to recognise the interconnected nature of these market conditions.

 

A significant statistic to consider is that 81% of sellers are also buyers.

 

This means that as you gain an advantage as a seller in a hot market, you may face challenges when transitioning to the buyer's side. 

Conversely, in a buyers’ market where you have the upper hand as a buyer, you might encounter difficulties when selling your own property.

It's crucial to understand this dynamic and plan accordingly, as the dynamics of the Southampton property market are often a delicate balance between gaining and losing, and this holds true for both buyers and sellers.

These are my thoughts, do share yours in the comments or by reply.

I have £210,000 to invest — is a Southampton rental property still worth the risk?

 

"We have recently inherited £210,000. We have contemplated purchasing a Southampton buy-to-let property to support our early retirement. Considering that the Skipton Building Society offers a 4.25% return on their 18-month bond and the stagnant Southampton property market, we are uncertain whether investing in a rental property is worth the trouble. 

Kind regards. Mr & Mrs A from Southampton”.

 

Dear Mr & Mrs A from Southampton, if your primary objective is to generate income and reduce your workload, buying a buy-to-let property is likely not the favourable option unless you leverage the purchase. Let me explain …

The Skipton Building Society, 4.25% Bond, would provide you with an income of £9,450 annually.

Excluding the initial set up costs of solicitors and Stamp Duty, for £210,000, you can buy a 2-bed terraced house, which would rent for around £1,100 per month (or £13,200 per annum) meaning a return of 6.29%!

Yet, when you rent a property, you need to allow for management fees and maintenance, so the return would reduce to £11,220 per annum or yield an equivalent rate of return of 5.34% … it hardly seems worth all the hassle for an extra £147.50 per month with the buy-to-let property (compared to the bond).

However, by using a 75% interest-only mortgage on a 2-year fixed deal at 3.94% (with Mortgage Works) on the same Southampton home, i.e. leveraging (even at today's higher interest rates), the return on the 25% cash invested (£52,500) increases to 9.55%.

If you bought three properties, you would use three-quarters of your inheritance to buy the three properties with 75% mortgages. The monetary return after the mortgage payments would be £15,044 per annum, leaving you £52,500 to more than cover the stamp duty and legal costs.

If you had the cash to cover the stamp duty and legal costs, your return would rise to £20,058 annually if you bought four homes.

Is this return sufficiently higher than your 4.25% threshold to make it worthwhile?

However, most Southampton landlords are primarily motivated by the potential for long-term capital growth rather than rental income. You mentioned the current Southampton market is stagnant, yet as I stated several times in my Southampton property blog, Southampton house prices have upturned recently, and rents are risen like a rocket in the last couple of years.

Of course, there is a risk of Southampton house prices declining significantly since interest rates are rising and we have world events that could change things. However, historically, Southampton property prices have generally outpaced inflation on average by 2.4% per annum since 1975, something a savings bond can never do.

That means that 2.4% needs to be added to the yield for the rent to give you the true return on your rental investment.

Therefore, with an asset that retains its value in real terms, a rental income stream that does the same, and a depreciating debt, the long-term potential of the Southampton buy-to-let properties appears more enticing.

(However, it is essential to note that property values can experience sudden and significant short-term declines – but if you aren’t selling, that doesn’t matter).

If your aim is to contribute to early retirement, you will need to invest your £210,000.

Cash is suitable as a short-term option, but it won’t preserve your purchasing power as time passes.

To generate a real return, you must invest that cash, whether in property, a carefully selected portfolio of stocks, crypto, gold or another investment avenue. There is no definitive answer and seeking advice may be beneficial, but ultimately, the best investment aligns with your comfort level.

The simple fact is that the country is not building enough homes for the people who live here, the people who are living longer and the 600,000+ net immigration we are experiencing. If you are playing the long game, with great advice from an agent and doing your homework - it could be for you.

If you would like any thoughts on this, do not hesitate to reach out and have a chat.

Kind regards

 

Southampton Agent

 

P.S. As with all investments, all income will attract taxation. It would be best to chat with an accountant about that.

𝐖𝐡𝐚𝐭 𝐒𝐨𝐮𝐭𝐡𝐚𝐦𝐩𝐭𝐨𝐧 𝐋𝐚𝐧𝐝𝐥𝐨𝐫𝐝𝐬 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰 𝐚𝐛𝐨𝐮𝐭 𝐂𝐨𝐧𝐝𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐌𝐨𝐮𝐥𝐝

How can landlords and tenants combat condensation and mould? Read on to find out.

𝐂𝐨𝐧𝐝𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐦𝐨𝐮𝐥𝐝

The two are often bundled together because if you’ve got condensation, there’s a good chance it won’t be long before you’re battling mould.

Condensation can be caused by warm air hitting cold surfaces or by lots of humidity in the air. The air cools and droplets form, creating a damp environment – and a perfect breeding ground for mould.

Mould grows in black, green or brown spots. It’s most commonly found in bathrooms and kitchens but can thrive in any damp or humid location.

𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬

Both landlords and tenants have roles to play in preventing and tackling mould.

The landlord must ensure there are no structural or maintenance issues that could cause mould and remove mould impacting a tenant’s health and safety.

Tenants should keep the property clean and adequately ventilated and report signs of mould to the landlord.

If the cause of mould isn’t structural, it could be down to tenant behaviour (more on this further down).

It’s important to look for constructive solutions to resolve the issue rather than getting involved in a finger-pointing exercise.

𝐒𝐭𝐞𝐩𝐬 𝐚 𝐥𝐚𝐧𝐝𝐥𝐨𝐫𝐝 𝐜𝐚𝐧 𝐭𝐚𝐤𝐞

A dry home with lots of fresh air is the best weapon against mould. To achieve this, you should:

• Ensure the property is well-ventilated.

• Check the heating is working well.

• Insulate the property.

• Look for signs of mould during regular inspections and ensure extractor fans are working.

• Promptly repair issues such as leaky plumbing and guttering, missing roof tiles and damage to the damp-proof course.

• Regularly clear out gutters and drains.

• Act quickly if mould appears. Remove it and apply anti-mould paint.

• Discuss the issue with tenants to raise awareness.

𝐇𝐨𝐰 𝐭𝐞𝐧𝐚𝐧𝐭𝐬 𝐜𝐚𝐧 𝐡𝐞𝐥𝐩

Ask tenants to:

• Avoid hanging clothes to dry indoors with the windows closed.

• Leave a gap between furniture and walls of at least 10cm so the air can circulate.

• Open windows regularly.

• Use the extractor fan when cooking and showering.

• Wipe down wet surfaces such as shower screens and curtains.

• Close the kitchen door when cooking to stop moist air moving to other parts of the property.

• Report signs of mould and any necessary repairs to the landlord or letting agent.

For more advice about managing your rental property, contact us today on 02380018222 or email southampton@belvoir.co.uk