How to grab yourself a Christmas Property Bargain
Christmas is notoriously the slowest time for the property market; indeed property seems to be the last thing on everybody’s minds. But this does mean you can pick up a property bargain!
Everyone knows that the property market has had a tough few years and property is no longer the solid investment it once was. But this has done nothing to dissuade the thousands of people wanting to purchase or sell homes. Indeed, Rightmove (the largest online property portal) claims to have over a million properties for sale in the UK at any given moment.
Due to the current state of the market it is a buyer’s haven. Sellers are all clamouring for that elusive buyer, which means you can really pick up the perfect property for much less! During the holiday season (mainly December) the volume of house-hunters dramatically reduces. As a buyer this puts you in an even better bargaining position for those sellers looking for a quick sale.
How to successfully put in a low offer
When viewing the property bear in mind how much the property is on the market for and how much you are willing to pay for it. By doing this you can decide your maximum offer and how low you feel you can start initial negotiations.
To decide what to offer try to find out: - how long has the property been on the market? Does the seller need a fast sale? And has the asking price already been reduced?
The answers to these will dictate whether you can place a cheeky offer. For example, a seller who has just put their property on the market is unlikely to accept a low offer, unless they are looking for a fast sale. Similarly, a vendor who had just lowered their asking price is unlikely to seriously consider a much lower offer. However, a vendor who has lowered the asking price a couple of times is clearly looking for a fast sale and may consider a cheeky offer.
If you feel the seller may be open to a reasonable, cheeky offer then place one and gauge how to proceed from their reaction. If your offer is initially rejected and you feel confident doing so sit back and leave the seller to ponder for a few days before upping your offer. Present it as you would really like the property and have worked hard to find more money. This way you avoid angering the seller and force them to seriously consider your offer.
Always bear in mind that many sellers can’t afford to accept an offer substantially beneath their asking price without risking negative equity or being unable to afford their next home. Therefore, do not be angered by what you feel is a reasonable offer only to find it immediately rejected.
Tip: -Try and make yourself the perfect buyer
A seller is far more likely to be open to your low offer if you are the perfect buyer. Furthermore, their estate agent will present your offer in a more favourable light and it therefore is more likely to be accepted.
The prefect buyer is:-
- Chain-free – A short chain means a faster transaction, which is a big plus for many sellers.
- A cash buyer - Not having to deal with a mortgage lender dramatically speeds up the conveyancing process. Again a potentially fast transaction is very appealing to sellers.
- One step ahead by instructing a conveyancer or property lawyer early – Instructing a lawyer prior to making an offer proves you are a serious purchaser. At In-Deed you can instruct a lawyer before you have an offer accepted placing you in a strong bargaining position. Your lawyer can even have all the preliminary paperwork completed shaving days, even weeks off of the conveyancing process! With In-Deed we also offer a no completion, no fee basis, meaning if you don’t complete on a property you won’t even be charged!