Should I Sell My Property in Scotland in Spite of Coronavirus COVID-19 Outbreak?

Should I Sell My Property in Scotland in Spite of Coronavirus COVID-19 Outbreak?

In Spite of Coronavirus, It’s a Good Time to be Buying and Selling Property in Scotland

In response to the current outbreak of coronavirus (COVID-19), a lot of people are asking whether it is still a good time to be buying and selling or whether they should wait until the coronavirus (COVID-19) outbreak has passed. 

It would be ridiculous to say that the outbreak won’t have an effect on the property market. Of course it will: anything that negatively affects the overall economy will have a negative effect on the property market. People’s movement will be restricted in coming weeks and viewing numbers should be down if people are acting responsibly (see ‘Be Safe’ below).

MOV8 opened in September 2007. We have therefore been through a property market crash, a banking crash and a global financial depression and survived. We have also learned a lot of valuable lessons that we can pass on.

Our view is that the impact on the property market in most parts of Scotland need not be as bad as many people fear. Here’s why.

Buyer Demand is Starting from an All-Time High

We are starting from a position of extremely high buyer demand and low supply to the market. We don’t see that position changing. Even if half of the buyers in the marketplace at the time of writing dropped-out, the market would still be buoyant.

At the moment, most properties are going to a Closing Date where multiple parties bid, blindly against each other. Often, the property receives 10, 20 or more offers at these Closing Dates. If demand halves, that’s still 5, 10 or more offers at the Closing Date. 

Of course, high demand and lots of offers at Closing Dates makes for some spectacular selling prices: as much as 30% above the Home Report valuation. Less demand might soften that a bit. Nevertheless, you should still get a good price. And, as for whether you will sell at all: it only takes one person to buy a house.

Supply of Properties for Sale is Likely to Drop, Reducing Competition

The supply of properties coming to the market is likely to reduce. 

In the past decade, in times of uncertainty such as IndyRef or Brexit, seller behaviour has been more affected than buyer behaviour. When less sellers put their properties on the market, there is less competition against your property. So, even if there is a reduction in buyers in the marketplace, most likely that’s matched by the reduction in properties for sale.

You Are Buying and Selling in the Same Market

If you’re a seller, very often you are a buyer. If you are buying, you are buying and selling in the same market. So, if you get a little bit less for the property you are selling, the chances are that you are also going to purchase your next property for slightly less money too. 

Cooler Market Conditions Might be Good News for Frustrated Buyers

For buyers, anything that slightly ‘cools’ the market from its current, overheated state is going to be welcome. 

We submit dozens of offers on behalf of property buyers every week. Most of those properties are going to a Closing Date where there are several Notes of Interest (interested parties who are given an opportunity to make an Offer at a specific time and date). In early 2020, our clients have been successful on approximately 1 in 3 occasions. Some of our buyers offer unsuccessfully on several properties before securing their home, in spite of the quality of advice that our dedicated Purchasing Team provides.

After several years of property price growth and a shortage of properties coming to the market, the property market is likely to become a bit kinder to property buyers in Scotland.

Be Safe and Be Considerate

We have put in place a number of measures to protect the business, our staff and contractors, our clients and our customers during the coronavirus outbreak. For now, however, we are not advising anyone that the should not conduct or attend property viewings. 

We do, however, recommend that everyone exercises the same common sense that they do in other aspects of their daily lives during the outbreak and that they make themselves fully aware of how to minimise risk not just to themselves but to everyone else.

For more information and guidance about how to reduce the risk of contracting and spreading Coronavirus, please check the following link to the NHS website.

If any of the following applies to you, please do not go ahead with a viewing, whether you are a viewer or a seller.

  • You have been diagnosed with coronavirus;
  • You have returned from any of the following Category 1 or Category 2 countries in the past 14 days;
  • You are currently self-isolating;
  • You are currently exhibiting any of the following symptoms: a high temperature or a new continuous cough.

We’re Here to Help

If you are thinking of buyer or selling your property, our expert team is here to talk you through the best approach to getting the best value in the current circumstances.

Call 0345 646 0208 (Option 1) today, email [email protected] or book a call back at a time that suits you by following this link

 

I'm Robert Carroll, Managing Director of MOV8 Real Estate, Estate Agents and Solicitors. MOV8 is an innovative and forward-thinking, all-in-one estate agency and solicitor firm with its Head Office in Edinburgh and a City Centre office in Glasgow. We buy and sell literally thousands of properties for property buyers and sellers in Scotland every year, so I see first-hand every day what is actually happening in the property market. This blog aims to give an honest, fresh and sometimes light-hearted take on what is happening in the Scottish property market.

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The Prime Minister at 8.30pm on Monday, 23 March 2020 announced unprecedented measures restricting movement of the UK population in order to combat the spread of the Coronavirus Covid-19 pandemic.

We are experiencing a huge surge of calls and email requests following this announcement, at a time when our capacity is more restricted than normal by sickness absence. Our capacity to answer calls will be restricted and more calls than normal will end in voicemail. Those voicemails will then be emailed to our central, team email accounts and allocated appropriately to the relevant staff members.

Viewing Requests

Anyone hoping to view a property will be unable to arrange a viewing in the coming three weeks. Reassuring our clients through this particularly difficult time has to be our top priority.

We will have to take the unprecedented step of not responding to viewing requests in the meantime. When restrictions are lifted on movement we would ask that, if you remain interested, you submit a fresh request.

Please Remain Patient - We Are in This Together

We respectfully ask that anyone first makes contact with us by email in the coming days.

We are all in this together. We ask that everyone tries to be kind to each other and to our staff throughout what are already the most stressful and anxious of times for everyone, let alone someone who is supposed to be moving home.

Best wishes and be safe,
MOV8 Real Estate