How to buy a home in a hot market
Here are some tips from estate agent Mark Manning on how to win your dream home in a highly competitive property market
The property market is hotter than it’s ever been, which means it is more competitive than ever too.
Rightmove’s property data expert Tim Bannister says: “Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained.”
Mark Manning adds: “In a market where properties for sale are now receiving an average of 24 viewings, 10 offers and then selling for at least eight per cent higher than the asking price, buying a new home has become extremely competitive.
“This means that once you spot your dream home, you need to be in the strongest buying position possible to increase your chance of successfully getting it.”
But what does a good position look like and what can you do to make yourself a better buyer? Here Mark reveals how to give yourself the best chance of securing the home you want to buy:
There are two types of buying positions that really set you apart in a market. The first is being a cash buyer, as it means you don’t require a mortgage, don’t have to rely on a mortgage valuation and won’t be involved in a chain.
Cash buyers are always extremely attractive to sellers and their agent because of this, but it’s not a position many of us are lucky enough to be in.
The second is being a chainfree buyer, as it puts you in a proceedable position where you are not reliant on selling another property to be able to progress. This is an easier position to get yourself in, because if you already own a house, you can sell it and move into temporary accommodation while you find one you want to buy.
However, with house prices rising month-on-month, this might not be an option that everyone wants to go for, as while they’re renting or out of the market, prices will be going up around them.
Luckily, there are other things you can do to put yourself in a strong buying position. Here are my top tips on how to become a better buyer:
Be mortgage and finance ready: Speak to a good independent mortgage adviser with access to a wide range of mortgage lenders and products to determine exactly how much you can borrow and get them to provide a mortgage agreement in principle, so you can prove you have the funds required to buy.
Work out exactly how much deposit you will have too, as the larger it is, the less likely you are to be subject to any down valuations from the mortgage company, therefore making you more attractive to the vendor. And be ready with your proof of funds to show where that money is coming from when you make the offer.
Be legally prepared: Being legally prepared will also make you stand out, so find a reputable solicitor who can begin conveyancing work as soon as
your offer has been accepted. This will put you in a position to move forward quickly with a sale and shows the seller that you are serious about buying their property.
Add some personality: Many people assume that buying a house is purely transactional, but more often than not, that’s simply not the case. If a vendor has lived in a property for a long time or brought their family up there, it can be an emotional process
to let it go and it’s important to remember that.
So, if for example you are looking to buy a property being sold by an older family and you have a young family, make them aware that you want to buy it because it you believe it will make a fantastic family home for you to bring your children up in. They may want to sell to someone similar to them, so it is always worth speaking up.
It is also worthwhile taking the time to write a personal letter.
In it, tell the vendor why you love their property and why you think you are the perfect buyer for it.
You could even try pairing it with some photographs of your family.
Get the estate agent on side. Never, ever underestimate the importance of building a good relationship with the seller’s agent.
If you can get them to like you, they will be much more likely to go above and beyond to help you secure the property.
Once you’ve got yourself in a strong buying position and you find your dream home, it is time to put your offer in. But what do you do if you put it in, it doesn’t get accepted and then it goes to best and final offers?
My advice here is that if the property is the one you really love or it is likely to be your forever home, then do not try to cut costs. Instead, you should give all that you can give to secure the deal.
You will not look back and regret it once you are in the property.
It is worth taking time to write a personal letter. In it tell the vendor why you love their property.