A Buyer’s Market for the Opportunist
The UK property market has been a seller’s paradise over the past decade or more. Those who took on heavy mortgages thirty years ago and sold when the market was at its highest point, were especially fortunate. House prices have now performed a full circle and we have finally arrived at a buyer’s market, which some people never believed could happen.
House Price Slump
A buyer’s market situation arises when houses are in low demand and do not sell, forcing the homeowner to review the valuation of their property and drop the price in order to sell quickly. When this equation is repeated across the nation, the domino effect knocks down prices everywhere. If homeowners in certain communities lower their prices simultaneously, everyone wishing to sell in that community must lower their valuations too, in order to remain competitive in the marketplace and stand any chance of selling their property.
First Time Buyer
A buyer’s market is the perfect time for potential homeowners to take their first step on the property ladder, casting off the shackles of being a tenant and finding an affordable home while the iron is hot. Searching around for the ideal value-for-money home is still as important as at any time. Check smaller estate agents first, because they can afford to be more competitive, having fewer overheads to pay than larger companies. The same property can also be listed with numerous estate agents. So double check if it could be cheaper with one or another.
Doing your Research
Even in a buyer’s market, a potential homeowner must do his homework, not only with property prices, but also with mortgage brokers. Make sure you provide the seller with a realistic offer, based on your research of similar properties within the same area or community and the existing market conditions. Start low: once you have made an offer, the figure is unlikely to come down unless the mortgage survey gives good reason. Do not forget, you are the one in control in a buyer’s market, and you can afford to call the shots. There are a great many bargain prices to be obtained at this point in time and the seller will already be aware of this. The current homeowner will be overly eager to sell, so try to negotiate for items you might like that are already in the house, because you never know what is on offer when someone is eager to sell.