Stamp duty thresholds have a significant impact on attracting buyers to your property but it needn’t be too much of a barrier.
The introduction of stamp duty to be paid by the house buyer sent shock waves through the property market. If you are selling a property you need to be aware of the thresholds when agreeing a price for your home. Your agent should tell you anyway. At Zevizo Properties, the online estate agent, we make sure our customers are aware of all legal and financial implications in the house selling process.
Stamp Duty Thresholds:
£0 – 125,000 = 0%
£125,001 – 250,000 = 1%
£250,001 – 500,000 = 3%
£500,001 – 1 million = 4%
£1 million to 2 million = 5%
Over £2 million = 7%
Stamp duty can become a significant additional expense to buyers and means you have to be very careful about the price you sell your property for. For example, If you sell at £125,000 your buyers will pay nothing. However an extra pound will mean an addition of a £1250 fee for them.
You may think that people buying more expensive properties are able to afford higher stamp duty. Yes they may be wealthier overall but everyone has a budget. If you buy a property at £501,000 as opposed to £500,000 your stamp duty will increase by £5000. That sort of money has an impact on anyone regardless of their budget.
The other market effect that stamp duty has is the way it guides buyer’s property searches. 8 out of 10 buyers start their search online and often use financial parameters rather than just location. If a buyer searches for properties £250, 000 and under to avoid a stamp duty increase they may miss your property valued at £260,000.
However, stamp duty thresholds needn’t be a barrier to a sale. Here are some tips on how to deal with the issue.
1. Firstly work out the numbers. There may be an increase in stamp duty at a certain price but it might not be enough to put buyers off. It could easily be offset with a small reduction in asking price.
2. Understand the way buyers search. Yes many buyers do use stamp duty thresholds as search parameters. However many buyers will look at just over the threshold with a view to negotiating the price just under.
3. Be aware that many buyers are looking at properties below their maximum budget. A property valued at £570,000 may be worth paying the additional stamp duty if their budget is £600,000.
4. Understand the power of the right property to the right buyer. Stamp duty or not, buyers are willing to make financial sacrifices if it is the house they want.
5. Make sure your house is valued correctly. If you wish to sell your property at a value in or around a stamp duty threshold, be sure that the value is correct and fairly priced. You may have a very high opinion of your home. However the only person whose opinion matters is a potential buyers’. Make sure that your house is perfectly presented both at the time of listing and for each and every viewing. If a buyer is desperate to secure the house, stamp duty issues can fade away.
6. Most importantly, use an online estate agent like Zevizo Properties. If you are selling your home you will save thousands of pounds in fees. Most agents charge between 1 and 3% of the sale price. We charge fees as little as £445 plus VAT. This means that you will have saved so much money you can afford to pay a little more in stamp duty on the home you want to buy or reduce the sale price of your home.
Stamp duty can be an issue when selling a property. However it is often not be the barrier that seller’s envisage. If your house is valued correctly, advertised to the widest possible market and presented for sale perfectly, the right buyer will be found. An online estate agent like Zevizo Properties can make that choice even easier by charging you thousands less in fees.
Zevizo Properties is a national online estate agent marketing properties on all the major property portals. Our fees start at just £445 plus VAT.
Zevizo Properties is a national, online estate agent, marketing properties on all the major property portals. We can list your property for a fixed fee of just £445 plus VAT.