Market overview
Wales has a kind of beauty you cannot fully appreciate until you have actually seen it first-hand. From the picturesque valleys to the rugged coastline and the busy streets of the city of Cardiff, Wales has at long last entered the radar of the savvy investor. In terms of property values, house prices on average across Wales grew a solid 4.3 per cent in 2013 and home sales spiked by up to 8 per cent. Its popularity as a holiday resort over recent years has exploded, which, given the rather short supply of accommodation in key areas, represents a serious opportunity for investors. Wales is blessed with so many stunning beaches and protected nature reserves that large-scale development is simply out of the question – the result being one of enormous demand for existing properties.
Covered by the same international investment laws as the rest of the UK, there are no restrictions whatsoever on buying into Wales as a foreigner and buying costs are no worse than those for nationals. Tenby Harbor to the west has been repeatedly singled out as an investment region of huge potential, though demand from young professionals in the less-travelled cities of north and south Wales is also on the up.
The Selling Process
Marketing your property
The normal means of marketing a property is via an estate agent who can also value your property, although you can also list it privately online through a number of FSBO companies.
Legal Representation
You will need a solicitor to carry through the selling process. Unlike in Scotland and Ireland, sellers in wales can also opt to use a licences conveyancer. Either can vary in costs and expertise, with conveyancers unable to help with more specific legal disputes or complex situations (e.g. if you are going through a divorce) and many solicitors often hiring their own in-house conveyancers.
Preparing for viewings
Ensure that your home is as tidy and presentable as possible for viewings. The sooner this is done, the sooner you are prepared to deal with potential buyers, who could come knocking within days of your listing going live.
Provisional offer
After viewing, a buyer may make a provisional offer on your home. If accepted, you may be asked to take your home off the market while a provisional contract is drawn up, but you are not obligated to do so.
Legal checks
Your legal representative will carry out a range of checks on the property, including a survey. Your buyer will do the same thing with their own team, who will need access to the property. Once both checks are completed, any new information that comes to light will inform the ensuing negotiations between parties.
Negotiate
After legal checks are complete, you may need to renegotiate the original offer that was made to account for any unforesoon maintenance or repair work. If buyers ask to reduce the price significantly, ask for multiple quotes from contractors to ensure that any costs are as accurate as possible. You can always cancel the deal at this stage, if it proves impossible to negotiate a compromise.
Deposit and contract exchange
Once you have signed and exchanged the finalised contracts, you are legally obliged to complete the transaction. You will receive a deposit from your buyer, while your legal representative will arrange the registration of the sale with the land registry and the transfer of title deeds.
Completion/strong
All you have to do now is agree on a completion date – then make sure you’ve got everything packed in time to move!
Average selling prices
1 Bed Apartments
£105,033
2 Bed Apartments
£141,100
3 Bed Apartments
£204,597
2 Bed Homes
£129,249
3 Bed Homes
£170,200
4 Bed Homes
£303,215
Welsh Selling Costs Checklist
Once you have met these costs, you have paid to sell your home
Estate agent fee – usually 1% to 3% of the sales price Legal fees – anything from £200+ Solicitor’s fees – usually £500 to £1,500 CGT – Applicable if you have more than one home or it is a buy-to-let property. (From 6th April 2015, foreign owners will have to pay CGT, most likely 18% or 28%, depending on their tax bracket.)
Photos: Martie1Swart, AJC1, Geraint Rowland
