Chain-free properties are proving to be very popular amongst homebuyers. That is according to estate agent comparison website GetAgent.
Property chains involve a sequence of transactions connected to a property purchase. Since many people and transactions form part of these chains, considerable delays are likely to occur, and one unsuccessful sale could cause the entire chain can collapse.
New research put forward by GetAgent.co.uk has revealed that homebuyers are keen to pay more money for chain-free property purchases.
By analysing the property price premiums paid for chain-free properties across 19 major UK cities the comparison website found that on average homebuyers are prepared to spend 10.8% more. This is the equivalent of roughly £25,049.
Chain-free house price premiums
According to the research, homebuyers located in Edinburgh are willing to pay £75,6060 for a chain-free home. While homebuyers located in Nottingham had the second-highest premium paid at around £50,654.
Liverpool came in third place with homebuyers happy to pay £39,829, Sunderland homebuyers were prepared to pay £39,180, and in Portsmouth homebuyers were willing to pay an additional £38,008.
In contrast, the research also shows that a chain-free property does not guarantee a high house price. For example, in Cardiff a 0.2% chain-free premium is only £548 more in the current market.
Founder and chief executive officer of GetAgent.co.uk, Colby Short concludes: “We may have enjoyed a property market boom of late, but this high level of activity has also led to sizable delays during the transaction process and if this has taught us anything, it’s the added value of a quick and painless property purchase.”
“A chain-free property can be a rare and converted creature in some areas of the property market and so when one does go up for sale, it’s not unusual for it to command a far higher price. This premium has no doubt been further boosted due to the long delays endured by those buying and selling over the last 18 months or so.”
“Of course, this isn’t guaranteed and if you do come to sell without a chain, a good estate agent should be able to advise just how much more you could make. This will be very dependent on where and what you’re trying to sell and you shouldn’t assume you can make more just because you’re selling without a chain.”
“Overpricing in any market is a sure fire way to deter buyer interest and watch your home stagnate with little to no interest for months on end.”