publication date: Oct 16, 2013
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author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Are you buying, selling or investing? Is now the right time or should you wait?
What Does this Mean for Buyers?
In areas where property markets are picking up, it will be a little scary as you will see properties coming onto the market and could be selling in a matter of days or weeks. So be prepared to be patient and not panic. Take your time to wait for the right property.
Top tips for making sure you are ready to make an offer if something comes along that you really do like and know you can afford, is to ensure you have your finances and legal paperwork in place before you start your search.
Make sure you are clear on what properties are worth, and try to avoid things like sealed bids if you have a small deposit as it’s easy to overpay and you may regret paying alot in haste, only to find out prices slip back after you have bought.
And, it’s not necessarily the case that buying is cheaper than renting, so if prices are still falling in your area or are stagnant and have been for some years, then it may be worth checking out whether
buying is cheaper than renting for you.
What Does this Mean for Sellers?
For sellers, if the market is improving this is great news as it would indicate there are more potential buyers taking the plunge and buying a home. However, as a seller, don’t become complacent and expect your home to fly off the shelf just because there is a shortage of properties for sale in the area.
Buyers are a lot more savvy and cautious since the credit crunch. They know an over-priced property when they see it and they won’t make an offer because they won’t bother viewing it in the first place! It is still extremely important your property is correctly and fairly priced. Make sure it’s clean and tidy and either accept offers on a wreck or in good decorative order. The more attractive you make the property, the more it will stand out from the competition and the more likely you are to receive an offer near to what you are requesting – but buyers will not overpay in this day and age, nor will lenders or surveyors allow them too.
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What Does this Mean for Investors?
Well this depends on whether you already own property or are intending to buy now. For those that already own, it’s likely you will breathe a sigh of relief as your existing property is hopefully starting to go up in price, or at least has stopped falling.
However, it’s not the case everywhere, so it’s important to value your property portfolio regularly so you know if now might actually be a good time to sell poor investments which aren’t delivering, and switch your money into more profitable properties.
If property prices are zooming upwards in your area, don’t panic. Take your time to look at alternative ways of
buying properties below market value or buy from someone keen to sell as they are committed to another.
If property prices are still falling in your area, but the pace of the falls has slowed significantly this year, it may be worth buying, but make sure you still get money off and any yields are ideally well above 7%.
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Find out what’s happening to your local market by speaking to your local agents about asking price ratios, time to sell and how many viewings it is currently taking to sell a property. It is also critical that you get all your legal paperwork and forms ready before you put your house on the market, as this can save a huge amount of time and money once you do find a buyer, especially if there is a buyer out there that wants to move fast!
If you are an investor, there are still plenty of bargains about, so do your research and check out the local property auctions as well as keeping in touch with the local agents to ensure you get the best properties at the right price. Make sure you take the correct steps to
analysing your buy to let property to be clear of your long term investment objectives.
