Press Article
COUTTS WOMAN - August, 2009
Make yourself a preferred buyer
The past few years have been a roller coaster in the UK property market and until earlier this year, central London house prices were down on average 20 - 25% from the peak, with some forecasts predicting further falls. So where does the balance of power between buyer and seller lie now?
Believe it or not, buyers now have to prove their worth in the current market like never before, as there is a significant lack of good quality property available, and often more than one buyer chasing each property. And there are a number of properties achieving the asking price - in some cases even going to sealed bids. So how can you get a step ahead of the rest?
Being organised at the outset is essential in this market. You’re not the only one looking to buy right now, so having your finances and solicitor already in place can give you a competitive edge. If you’re borrowing money, have agreement as to exactly how much you’re able to borrow. If you’re a cash buyer, ensure that you can access the money fairly easily as you don’t want to lose out because you’re taking too long to release the cash from other investments.
Early on in the search phase, it is always best to narrow down what you’re looking for. Providing estate agents with a clear brief gives them confidence that you’re a serious, focussed buyer. Estate agents are juggling various buyers and will be much more motivated if they’re confident that you know what you want and you’re ready to act quickly once you’ve found the right property. One approach to avoid is to keep viewing every new instruction on the market without narrowing down your criteria - estate agents will quickly write you off as a ‘time waster’.
If you want to get a step ahead in the search process and you have the time, call each estate agent rather than relying on their website and other property portals. This way you build a relationship with the agent, and can sometimes find out about properties before they are released onto the website. You may also get to view before other buyers.
Once you’ve found the right property, knowing what price to pay can be very tricky in this market. The key is to gain as much market information as possible. Find out whether there are other properties for sale on the same street, or if buying a flat, in the same building. Compare their condition, positioning, layouts, and asking price per square foot. If any close comparables are under offer, try to gauge from the relevant estate agent how close to asking price they achieved. It’s unlikely they will disclose the exact amount, but any extra information can give you valuable negotiating power. Also, when viewing the property itself, make a note of any additional expenditure which might be required, as this can be useful in substantiating a lower offer.
Given that there is a shortage of good property available on the open market, try to position yourself as the preferred buyer. A lot of vendors are making the most of the price falls by upsizing, so being seen as a reliable and credible buyer may give you an advantage if the vendor is in a chain and relying on the sale going through. Therefore, the way you present your offer counts. Confirming it in writing and supplying your solicitor and banker details demonstrates that you’re organised and ready to proceed. You could even ask your solicitor to call the agent to confirm that they are already instructed to represent you and in a position to handle the purchase quickly.
If, on the other hand, the property you like is already under offer, register your interest with the estate agent anyway. Despite the improving market, a number of purchases continue to fall through, so you want to be the agent’s first call.
Jo Eccles is Director of Sourcing Property, an award winning London property search company, which represents buyers and tenants across all price ranges. For further information call 020 7244 4485 or go to www.sourcingproperty.co.uk