Looking for a new home this year?
At the moment, many buyers are up against stiff competition, when it comes to houses on the market, there are a much larger amount of people searching than there are available homes.
Figures from December 2021 – January 2022 show that there are 17% more people looking to buy but 50% less properties on the market which is driving the current demand.
If you’ve been considering relocating, you’ve probably seen how competitive the market is first hand.
“You need more buying power than the rest of the field to be in pole position in the race for the greatest property,” says Rightmove property expert Tim Bannister.
What we’re seeing today is sellers going to ‘power buyers,’ or those who have already found a buyer for their own home, aren’t in a chain, or don’t have any immediate plans to sell.
What can you do to increase your buying power?
In order to become a ‘power buyer’ and increase your chances of being considered for a property – try following these steps;
1. Organise your sale agreed
If you’re planning to sell your property in order to relocate, estate agents recommend starting the process right away. Many sellers select buyers who have already made a purchase agreement.
Some individuals prefer to sell their house first and then rent so that they may take their time shopping for their next home and be ready to act quickly when the appropriate one becomes available.
First time buyer? Organise your Mortgage In Principle
2. Meet the sellers requirements
It may seem like an obvious one, but make every effort to keep your offer’s contingencies and compromises to a minimum.
There’s no wrong in attempting to obtain the best potential price for a home, but keep your bids practical and fair in comparison to the seller’s request.
Make sure you can afford the home you’re thinking about. If you’re purchasing a house with a mortgage but your loan doesn’t cover the asking price, you might want to consider alternative choices.
Making a detailed offer to a seller can make them think you’re more hassle than your offer is worth.
3. Be as close to a cash buyer as possible
When it comes to purchasing a property, cash is king. This is due to the fact that cash purchasers are the safest alternative for a seller, since there is no chain or dependent transaction to throw things off course.
There are techniques to get yourself as near to a cash buyer as possible, even if you aren’t actually purchasing with cash.
The easiest method for you to achieve this is to get your property sold and contracts exchanged. This effectively puts you in the same position as someone with cash in the bank, as it ensures that you’ve sold your house and are ready to relocate.
If you haven’t yet swapped, having a sale agreed in principle is a smart compromise.
4. Have a solicitor lined up
Get a solicitor lined up and ready to carry out their various duties. A solicitor will have a big impact on your purchase power – handling contracts and dealing with the Land Registry.
Finding a solicitor who you trust, and starting the process so you can move quickly, puts you in an excellent position and shows the seller you mean business.
Solicitors and their workload are the greatest delay in the housing transaction at present so ensure you have decided upon and instructed a solicitor well in advance of offering.
Advising a vendor or their agent of this will help significantly if you are competing against other interested parties. Remember as always you get what you pay for and the purchase of a property will only go as fast as the least proactive solicitor in the chain.
Ready to buy?
Take a look at the houses we have for sale at the moment here and benefit from being able to view properties online with virtual tours and videos. If you’re looking for a new home in this new year, make Belvoir your choice.
