The price of paying too much

Scottish property finders, Garrington highlight some of the risks facing buyers in the current property market.

Regardless of what you are spending your money on, nobody wants to buy something today, only to find afterwards they could have bought it cheaper. This is acutely the case when it comes to property, which for most people will be the most expensive thing they ever purchase.

A distorted market

Across Scotland there is a continued shortage of homes for sale. Average property prices have grown over the past 12 months and some sellers, and their agents, are pricing at very optimistic levels in the hope that a desperate buyer, facing the chronic lack of choice, will pay what is required to secure a purchase.

Whilst any home is obviously worth what somebody is willing to pay, in the current climate, there is an increasing risk of frustrated buyers making purchasing decisions led by their ‘hearts’ not their ‘heads’. This can lead to the expensive mistake of paying too much for a home.

Is it ever worth paying a premium?

In a market lacking choice, paying above valuation for a property may be your only option, but is it ever a good idea? Again, the answer is – it depends. Certain types of properties are always going to be in short supply in any market and as such, will always achieve strong prices due to the scarcity value attached to the type of property or the specific location they enjoy. However, these are the exception, not the norm. If you are paying a premium price, it is normally only worth doing this if you are sure that the home you are acquiring truly is a ‘best in class’ property and therefore the premium you pay at the time of purchase, should still apply when you eventually come to sell it again.

Someone on your side

In a changing property market, forming sound purchasing decisions is a complex challenge. Buyers need to think about how they are approaching their moving plans and might benefit from seeking independent advice. Before starting a property, search and entering negotiations, having a trusted advisor on your side can be hugely beneficial for ensuring you receive objective advice from people working in your best interests, who can, in turn, give you the clarity and confidence that the price you are paying is justified.

If you would like to learn more about how Garrington can help save you time and money please do get in touch for a free, no obligation initial discussion.