How to sell your home before the budget

Compared to previous years, the speculation around what this year’s budget on 26 November will bring for the property market is off the scale. There has been talk of capital gains tax on residential homes, new property taxes and reform to stamp duty, with the latter being touted to increase, reduce or be demolished completely. Whatever happens, the general feeling is that it could be better to sell before any announcements are made.

“We expect bad news of some form when it comes to property taxation — most likely around stamp duty land tax or capital gains tax,” says Polly Ogden Duffy, managing director at John D Wood & Co.

“My advice would be to secure your purchase or sale ahead of the budget, so you know where you are financially. If you wait, it could become considerably more expensive,” says Marc Schneiderman, director of Arlington Residential.

“Typically, any fiscal announcements take effect from midnight that day, so best to be well placed to react swiftly as there may well be a few hours when you can exchange a contract, or complete a sale between the time of the announcement and the end of that day.”

Read more: What the budget could mean for stamp duty and council tax

Schneiderman even suggests having your solicitor on standby.

Whether you’re already “under offer” or still to launch your property, there are things you can do now to speed up the process and “beat the budget”.

You can set up your property for success (or failure) even before you’ve launched it. While it’s tempting to opt for the agent who prices your property the highest, this is the oldest trick in the book. Rather than being an achievable figure, this may, in fact, signal a red flag — are they desperate for stock because they’re not very good at their job?

“The best agent is one who knows your local market inside out, has a clear strategy for attracting serious buyers that is more than photos, a fancy floorplan and a listing on a third-party portal,” says Liam Gretton, bespoke estate agent.

“Most importantly, you want an agent who keeps you in the loop every step of the way. The best way to review this [is to] check out their Google Reviews.”

All our experts agreed that many sellers fall at this, the first hurdle. “The supply of homes in London is up over 30% year-on-year, which means buyers have far more choice and far less urgency. If you want to sell, now is the time to price competitively so your property stands out from the crowd,” says Ogden Duffy.

“Buyers are wary of potential tax changes and nervous about committing, so pricing sensibly and acting decisively will help secure an offer before the budget.”

Read more: 12 taxes you may not hear about in the budget – and what you can do about them

The right agent can advise you about this but, even then, make sure they back up their figure.

“Don’t just accept your agent’s figure at face value, ask for evidence,” says Gretton. “The first two weeks after launching are the most important. This is when your home gets the most engagement so pricing it too high can stall momentum before it even begins. A well-positioned property at the right price will create urgency and competition, which often drives stronger offers.”

You want to show off your home at its best so be sure to do the obvious, decluttering and fixing any minor snags.

But autumn can present a challenge when it comes to property viewings. “As the days get shorter and colder, make sure your home is well lit, warm, welcoming….and tidy,” says Schneiderman.

“Fresh autumn flowers throughout and well-maintained gardens and pathways [are a must]. You don’t want anyone slipping on the leaves when they visit… [Also], a lovely autumnal scented candle will always be preferable to the aroma of last night’s fish supper!”

If you’ve been on the market over the summer and nothing’s been biting, it might be time to switch things round a bit and add some momentum.

“Listings can go stale quickly, especially when old summer photos no longer reflect the season,” says Sarah Walker, owner of Walker Hall Estate Agents. “A refresh with autumnal styling, twilight images and warm lifestyle shots can completely change buyer perception.”

Read more: How to avoid the stamp duty tax on a holiday home

Alternatively, it might be time to change agents and get some fresh faces on the case. “A new team brings enthusiasm, new contacts and a clean start. That renewed energy can often achieve in a few weeks what hasn’t happened in months,” adds Walker.

Before you’ve gone under offer, ensure you have all the paperwork a potential buyer might ask for. “[This] can be the difference between a speedy sale or creating unnecessary delays that may lead to chain breaking and an abortive transaction,” says Schneiderman.

“Obtaining Local Authority Searches, copies of planning consents, licence for alterations, leases, service charge accounts and completing Property Information Forms are all steps that should be taken in advance.”

Just like choosing the right estate agent, who you engage as your conveyancer can make or break a sale.

“A lot of transactions stall simply because everyone’s waiting for someone else to act,” says Jonathan Potter, CEO of HomeNow. “With rumours of tax changes, completions before the budget might suddenly spike so those who stay proactive now could avoid weeks of delay.”

When choosing a conveyancer, it’s important to make sure you have someone of the required seniority as often tasks are outsourced to those more junior. “[Have] a good lawyer who is respectful of the required timescales, is proactive, not reactive and has the commercial experience and confidence to deal pragmatically with any problem that may surface during the transaction,” says James Moran of Middleton Advisors. “Often a junior solicitor can shy away from making a decision for fear of getting it wrong.”

What’s harder to control, but still relevant, is the competency of the buyer’s solicitor. “For example, a family solicitor based in Shaftesbury isn’t necessarily going to be best suited to dealing with a leasehold property on the Grosvenor Estate. You don’t want a square peg for a round hole.”

With the budget on the horizon, time should be at the forefront of everyone’s minds.

“Discussing timeframes early helps focus the mind and keeps the process on track. Sellers should also insist that buyers book their survey and submit their searches within seven days of the offer being accepted, as any delay here will impact everyone in the chain,” says Ogden Duffy.

Read more: Why taxes will rise after the budget, and how to protect yourself

“If you’re in a chain, make sure everyone has the same goal and timeline. Right now, completing before the budget is a strong motivator, as no one wants to be mid-transaction if new tax changes are announced,” adds Walker.

“Keep the momentum. Most sales don’t collapse over money; they stall because of delays or lack of communication.”

In the UK, the “exchange of contracts” is usually the point when both buyer and seller enter into a legally binding agreement that is difficult to back out of. However, this point can come earlier in the conveyancing process and is known as a committed transaction agreement.

While not common practice, there is talk that they may be introduced to create a fairer environment for buyers and sellers, reducing fall-throughs, wasted time and money and gazumping — when a seller accepts a verbal offer on the property but then accepts a higher offer from someone else.

If all parties are in favour, a committed transaction agreement can be signed earlier than exchange. “Gazeal, as a prime example, will guide all parties through each step of the process and the agreement provides commitment and transparency from the outset, ensuring that, once an offer is accepted, both buyer and seller are fully invested in completing the transaction,” says Gretton.

“Importantly, this process also protects buyers from gazumping, giving them confidence that the property will not be sold to another party once their offer has been accepted, offering peace of mind and fairness for everyone involved.”

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