Press Article
METRO - 21 July, 2011
There's no such thing as a bargain
By Jo Eccles
Rightmove recently reported that 12% fewer properties were put onto the market in July, compared to last month. This shortage in property ‘stock’ is a major concern for potential buyers, especially in London, and demand for the best properties is fierce.
The heightened demand means that there is no such thing as a ‘bargain’ when it comes to good property in London; the key in this market is to make sure that the price you are paying is fair, rather than overpaying, which a lot of people are doing without realising. To avoid overpaying, you should do as much research as possible to ensure you are familiar with the market and average prices in the area in which you want to buy.
There’s not a huge amount of helpful information available to the public, but you can access historical price information on the Land Registry or one of the free websites (e.g. www.houseprices.co.uk or www.zoopla.co.uk). However, you should take all your findings with a pinch of salt; whilst these sites list house prices achieved, there are no photos or floor plans so you have no idea of the condition, the room proportions or lease length for the property and so can’t draw any concrete comparisons. If you know of a property that has recently sold in the area that is similar to the one you are hoping to buy, you can try to contact the estate agent who sold it to see how much it sold for – they will usually tell you the price once contracts have been exchanged.
If you have made an offer that you were confident was fair and it is rejected by the vendor, you will need to decide if you want the property enough to pay above the market value for it. This is a very personal choice, although the chances are, if you have fallen in love with the property, someone else will too. The best way to look at it is to decide how long you’re going to own the property for and whether the extra money you’re paying will be worth it over the length of time you own the property.