Are studio apartments hard to sell?
Looking at what a studio flat is, the advantages and disadvantages of a studio flat as well as whether or not studio apartments are harder to sell.
One of the biggest perks of a studio apartment is that it is cheap, compact, and easy to maintain. However, when the time comes to eventually move out of your studio flat and onto bigger and better things, the qualities that once attracted you to it can make it harder to sell.
In this blog, we will be looking at what a studio flat is, the advantages and disadvantages of a studio flat as well as whether or not studio apartments are harder to sell.
What Is A Studio Apartment?
A studio apartment is a flat that is completely self-contained and multi-purpose. It is essentially one room that usually contains a bed, kitchen, and living area combined with an open plan layout. The bathroom is often the only isolated room.
Hailed as the pragmatic solution to limited living space, the average size of a studio flat is around 500/600 square feet.
Advantages Of Owning A Studio Apartment
A lot of studio flat owners find that there are plenty of benefits that come with living there.
One of the things that attracts people to a studio flat is that it is compact and perfect for young single professionals or students. Having everything in close call makes it a perfect home for a first-time buyer as it offers the independence of a home, without the daunting size.
Another bonus to a studio flat is that they are very cost-effective to buy. Due to their small size, they are much more affordable to purchase than a larger flat or small house.
As a studio flat is so small, it means that it is much lower maintenance than a larger flat or house. It takes much less effort to clean and tidy as well as costing much less to heat and light meaning that it also cuts down on the cost of utilities as well, making it a very cost-effective choice.
Disadvantages Of Owning A Studio Apartment
Whilst there are perks to owning a studio, there are unfortunately downsides that come with it:
Whilst the size of a studio flat is a huge positive, it can also be a huge negative. As they are so compact, a studio flat can put a lot of people off as they are looking for a roomier property. It also means that you don’t have as much room for possessions or as much space to relax in and can leave owners feeling quite hemmed in.
Not For Everyone
As a studio apartment is so small, it is not suited for everyone. Couples and families with children are all generally unsuited to a studio flat as there is simply not enough room for everyone to live comfortably in. It also makes entertaining difficult as only a limited number of people will be able to stay.
Harder To Sell
The biggest downside that owning a studio flat brings is that it is not easy to sell. We will look at this in further detail below, but a studio flat is a difficult property to sell, especially in a slow market.
Disadvantages Of Selling A Studio Apartment
The main reason that studio flats are so difficult to sell is that mortgage companies consider them to be a risky asset.
The biggest concern for a mortgage broker is getting their money back and if they think they won’t, then they won’t lend you the money. If the borrower can’t pay, then they will have the asset repossessed and will be sold by them.
There are two main reasons why mortgage lenders are concerned about the saleability of a studio apartment.
Non-mainstream Property Asset
One of the big advantages of studio apartments is also one of their downsides – they are short-term accommodation.
A single person living in a studio flat for any longer than a year is likely to feel cramped, let alone if there are two people. As they do not make good long-term accommodation, it means they are not a stable asset when compared to bigger flats and houses.
Cheaper End Of The Property Market
As studio flats are so cheap it means that when the property market is booming, studio flats are sold quickly as larger flats and houses are unaffordable.
However, when the market is slower, buyers have a lot more choices and can afford to shop around. This means that studio flats are getting looked over in favour of a longer-term investment of a larger flat.
Another reason mortgage lenders may not lend for a studio apartment is because they are often viewed that they are popular with buyers at a lower end of the market and will be more likely to fall behind on their mortgage repayments.
Are Studio Apartments Harder To Sell?
Whilst there are undoubtedly many positives to owning a studio flat, they are ultimately harder to sell. The fact that they are not a stable asset combined with the fact that they are at the lower end of the property market means that when selling your studio flat you are only really left with three options when it comes to selling. You can do it through an auction, an estate agent, or a cash buyer.
One of the routes that you can use to sell your studio flat is through an auction. At an auction, you agree on a minimum reserve price for your flat and if a buyer meets this price, then your property will sell.
The ideal outcome that you want from a property auction is that multiple buyers are all interested in your property and will each outbid each other, boosting the total of your final profit.
Another positive to selling through auction is that auctioneers have a lot of experience with selling a broad range of properties, studio apartments included.
A downside to selling through a property auction is that it involves a lot of waiting. If you are eager to sell your studio flat then this may not be the best option for you as once you have listed your property for sale, you could have to wait weeks or even months for the next auction to come around.
Even after the auction is complete, you will still have to wait for the paperwork to go through which can take a month or more, once again adding to the delay.
Furthermore, auctioneers also charge a commission to cover the cost of marketing and selling your flat, and this can eat away at the profit made from your flat sale.
When it comes to selling any kind of property, the first way that most people think of is through an estate agent. Estate agents undertake all of the responsibilities that come with selling your home in return for a ‘commission.’
One of the huge pros of selling your studio flat through an estate agent is that they will do all of the hard work for you, such as creating a listing for your property and advertising it for you.
However, the downside is that selling through an estate agent is that it can be time-consuming. You will need to book house viewings at your flat for potential buyers, which can be a lengthy and inconvenient procedure. It will mean taking time off from work, making sure that any issues with the house are fixed and at the end of the viewing you still may not have a buyer and you will have to repeat the process again.
Another downside to selling your studio apartment this way is that it can take months to find a buyer on the open market, which is not ideal if you are looking for a quick sale. As studio apartments are difficult to sell even when the market is good, selling through an estate agent may take quite some time.
Selling through an estate agency also means that after you have dealt with estate agency fees and taken time off work for viewing, you will still have other fees to pay such as legal fees and removal costs. Those extra costs can add up and eat away at the final profit.
The third option for selling a studio flat is to do so through a genuine cash buyer. A cash buyer is the best way to guarantee a sale on your house. Unlike other buyers on the open market, a cash buyer would not be put off by the qualities that make a studio hard to sell.
Another positive to selling through a genuine cash buyer is that it means a guaranteed sale within a time frame that suits you.
If this sounds like something that you would be interested in, then look no further because we are here to help! At The Property Buying Company, we are a cash buyer of houses who buy any house in any location in a time scale that suits you! Plus, we cover all the fees for you – even the legal ones!
We will only require one quick viewing to make sure that our cash offer is accurate and as we are a genuine cash buyer, once you’ve accepted our offer that is the amount you get in FULL in your bank.
We are also a member of The National Association of Property Buyers and The Property Ombudsman, as well as being rated excellent on Trustpilot, with over 1000 reviews, allowing you to feel safe in our hands.
So, if you have a studio apartment that you are ready to sell, give us a call or fill in our online form for a free, no-obligation CASH offer which we could have in your bank as soon as you choose…