The real estate market has been quite busy for many buyers and sellers in the UK. Due to the effects of the pandemic, many homeowners and prospective buyers are looking to purchase a much bigger house to accommodate their current needs.
Many factors can influence a seller’s decision to give away their property after receiving an offer including the current state of the local real estate market and the main reason for selling the property. Therefore, before you decide to buy a bigger house, there are certain factors you need to consider during negotiations with the seller.
Knowing the seller’s motivation for wanting part with their property can give you an upper hand during negotiations. Whether it’s a job transfer, a growing family in need of a bigger space, avoiding foreclosure or having a financial emergency, a prospective buyer can greatly benefit from this and purchase the property below its list price. If the seller is highly motivated, they could sometimes reduce the list price of the property more than once, just to attract more buyers.
Additionally, before you consider buying a bigger house, you should ask your agent to provide you with a competitive market analysis of properties that were recently sold in the area that are similar to the one you’re interested in. Doing this would give you a clear idea of whether or not the property is overpriced. The longer the house has been on the market, the more negotiation power you would have and you can place an offer below the list price without fear of rejection.
Getting your mortgage pre-approved before approaching a seller puts you at an advantage against other buyers. Once you have a great credit history and meet other requirements need to acquire a mortgage, you’re most likely going to get approved by your lender. Some homebuyers can decide to make a loan overpayment during the duration of their mortgage by paying extra money above the agreed monthly sum to improve their home equity, clear their debt faster and reduce the accumulated interest throughout the loan period.
With a preapproved mortgage, sellers are more than willing to negotiate a much lower buying price for the property you want to purchase, even when you’re faced with competition. However, it is important to note that the more houses on the market, the lesser the competition and vice versa. Therefore, buyers would need to structure their offer strategy based on this information to avoid wasting time and losing out to another buyer.