The property market is exceptionally strong at present, with continuing price rises and reported tussles for properties in some locations. We take a look at how to give yourself the best chance of success as a buyer in a seller’s market.
House prices have risen almost 9 per cent during the year ending April 2021, according to the Land Registry. Online property portal Rightmove report that the average time to agree a sale in April was 45 days, the shortest time since the start of the pandemic.
With reduced Stamp Duty in place until the end of September, the energetic market could be set to continue for some time yet. Estate agents are also reporting a shortage of properties coming to the market and are creating hot lists of buyers who are able to act quickly and who will be the ones chosen for viewings.
Put your finances in order
If you will need a mortgage to finance your purchase, ask your lender for a mortgage offer in principle. This is an offer that is made to you before you find somewhere to buy and it will show sellers that you are both serious about buying and that you are prepared and organised. You should also make sure that your deposit is available at short notice. Make sure you communicate both of these things to the estate agent so that they can let the buyer know that you’re ready to go.
You should know exactly how much you can afford, as the property you want may go to sealed bids, so make sure you are ready to put forward your best and final offer.
For some sellers, finding a buyer who is likely to be able to complete quickly is more important than the price and they may accept a lower offer from someone who they believe will be able to move fast. This is particularly true if they are in a chain and they have perhaps lost a buyer already, meaning everyone is becoming impatient.
Find a buyer for your own property
If you have a sale to tie in, make sure that not only is your property on the market, but that you have all of the paperwork ready for when a buyer is found. Your solicitor will be able to give you a list of what you will need so that you can put this in place as soon as possible.
Instruct a solicitor
Even if you are not selling as well, by instructing a solicitor before you find a property you will be ready to give the estate agent their details as soon as you have an offer accepted. Again, this demonstrates that you are serious and ready to act.
The solicitor will be able to open a file and start work on your ID checks. As soon as you find a property to buy, they will be able to start sending off search requests.
Build a rapport with the estate agent
With almost every property that comes to market receiving multiple offers, make sure that the estate agent knows what you are looking for and remind them of the strengths in your situation, for example, if you don’t have a chain or you don’t need a mortgage.
You will want them to contact you as soon as they have something suitable and to present your offer in a good light to their sellers. Try and show that you are relatively easygoing and willing to compromise on smaller details so that they establish the impression that you are likely to be a good buyer.
If you are thinking of buying or selling a property and you would like to speak to one of our expert lawyers, ring us on 0333 305 5189 or email us at info@lpropertylawyers.co.uk
