After years of increasing frenzy in the housing market, we are now seeing this trend stagnate. Where properties were sold in the same month or even week not too long ago, it now takes a bit longer on average. Fortunately, there are various options available if selling your house is not successful.
To boost the sale
When your property has been on the market for a while, it receives less attention and becomes less attractive. By choosing to lower the asking price and relisting the property, it re-enters the market as a ‘fresh’ listing for potential buyers. This can reignite interest in the property. However, there can also be disadvantages to lowering the asking price. Prospective buyers may think that there is something wrong with the property. Additionally, it can weaken your negotiating position, as buyers know that you are having difficulty selling the property.
Another way to boost the sale is by creating a new presentation. Consider having the property styled and then have new photos, a video, or 360-degree photos taken. The impact of a well-styled property is tremendous, even during a viewing.
Temporary letting instead of selling
Another option is to temporarily rent out the property while keeping it on the market for sale. This is referred to as temporary rental under the Empty Housing Act (Leegstandwet). For this, you will need a special permit, which can be obtained from the municipality. The municipality sets certain conditions for granting this permit. The main ones are that the property must be vacant and that the owner demonstrates that the rented living space will be occupied. The municipality can issue the permit for a maximum of 5 years.
The advantage of this rental method is that the lease agreement can be terminated in the interim when the property is sold. For the landlord/property owner, a notice period of 3 calendar months applies. For the tenant, a notice period of 1 calendar month applies. Therefore, the tenant does not have rental protection.
Keeping the property as an investment
Then there is the option to take the property off the market and keep it as an investment. It is important to carefully assess whether this is profitable and financially feasible in your situation. If you purchased the property a while ago and/or your monthly expenses are low, it may be interesting to hold onto the property and rent it out. However, keep in mind that in many cases, the existing mortgage (if any) may need to be refinanced. There are various mortgage lenders that offer a “rental mortgage,” but rental is typically prohibited in regular mortgage agreements.
Keeping the property as an investment can also have a temporary nature; for example, the property can be rented out with a lease agreement of up to two years. Furthermore, in the private rental sector, rental periods typically last an average of two to three years. For many tenants, renting in the private sector is inherently a temporary solution. For instance, it could be a temporary arrangement during a transition period or for tenants who are cohabiting for the first time and are not yet ready or able to purchase a property.
Curious about what Interhouse can do for you?
The housing market has changed significantly in recent times. Fortunately, there are alternatives available when selling your house proves to be difficult. Weigh all the options carefully and seek advice from a specialist to make the right choice. One of our letting agents, for example, can assist you in exploring the possibilities.
Are you looking for more information? Please contact us.