You’ve set your heart on buying a property, worked out how your furniture will fit and even imagined the housewarming party. You ring the estate agent, ready to negotiate, only to hear the dreaded phrase: “The seller has just accepted another offer.”
UK homeowners are all too familiar with this scenario, especially when buying homes in sought-after areas. So, are there ways to get ahead of the crowd when you are buying a property?
Our estate agents in Ilford believe there are key actions you can take to increase your chances of success. Working with our estate agents in Newbury Park, they have come up with four essential steps to help you beat the competition.
1. Decide what you really want
The first step is to create a concise ‘must have’ list for your ideal new home. Be specific about what you are looking for, otherwise you could waste time viewing unsuitable properties.
Do some careful research into your preferred neighbourhoods. If you are not familiar with these areas, an estate agent with good local knowledge can help. They may even suggest looking at more affordable properties just outside your search zone.
When you discover a hidden gem in a lesser-known area, you may be happy to leave your rivals scrapping over a premium-priced property in a popular street.
If you are determined to purchase a home in a sought-after location, keep an open mind about condition. A recent survey of homebuyers revealed that 59 per cent would reject a property that showed signs of poor maintenance. Being open to improvement work could be the key to securing a property in a location where homes are usually in high demand.
2. Be ready to proceed quickly
Before you start your property search, make sure that your property has an offer in place, has already sold or is currently listed for sale.
If you haven’t yet sold, or your home is proving hard to sell, you could consider a let-to-buy mortgage. This enables you to move into a new home while keeping your original property as a rental investment.
With this type of mortgage, you can secure your ideal property and benefit from rental income (although rental legislation requirements could involve additional costs).
First time buyers in the UK and homeowners who have already sold have a strong advantage over buyers with properties stuck in a chain.
A chain-free buyer is always attractive to sellers, as the sales process is likely to be faster, with fewer issues. There is no pressure to complete on a particular day, and this may suit a seller who needs more flexibility around the moving date.
As a first-time buyer, schemes such as First Homes or Shared Ownership can help you take the first step on the property ladder.
3. Fine tune your finances
If you are dependent on a mortgage, talk to a good mortgage broker early in the process, so you know what deals are available. A broker can also advise you on other financial matters, such as cleaning up your credit score to improve your eligibility for a loan.
The minimum deposit amount accepted by many lenders is five per cent of the property’s purchase price. If you can raise a larger deposit (20 to 30 per cent), this will unlock lower mortgage interest rates and more affordable monthly repayments. In a competition between bidders, the buyer who needs to borrow the least may be favoured, as there’s less chance the deal will fall through.
Getting a mortgage offer in principle (AIP) is a good indication to sellers that you are serious about your intention to proceed. It will also speed up the admin when your offer is accepted.
Finally, engage a conveyancer before you start your search, so you can hit the ground running when your offer is accepted.
4. Tell your story
While it’s crucial to demonstrate that you are in a strong position financially, it’s equally important to show your human side.
Tell the seller’s agent who you are, describe your circumstances and reason for moving. Maybe it’s because you want more space for your children, or you are retiring and downsizing to an area you knew when you were young? This knowledge can help persuade the seller that you will be the right fit for their former home.
Sellers often have a strong emotional attachment to their homes, so at this time it may be better to avoid discussions about any major restructuring work you might be planning.
Where can I get advice on East London properties?
If you are thinking of buying a property in East London, we would be delighted to help. We are local experts with extensive property knowledge, and we would love to help you find your perfect new home. Why not get in touch to share your plans?
Call us at 020 3972 7341 or email info@oaklandestates.co.uk
If you are looking to sell, rent or buy a property in Ilford, explore our latest listings below.
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