Remember, when you are buying a property, it is not a statistic. When you read a national statistic saying that property in the South East has fallen 3%, or London is down 10%, it doesn’t follow that the property you are viewing will follow this figure. Each property has to be judged and valued individually, no matter what the market conditions are.
It is a great time to be buying.
The majority of my clients right now are savvy investors who can see there is value in London. The market is softer this year than it was last, but this doesn’t guarantee you will get a deal. If you are going it alone (without my help), make sure you follow some basic buying principles, or you may over pay.
5 basic buying principles for your next London property purchase
- Seller that wants to sell: Find that willing seller (they may not be desperate, few are in London, but seek out what the motivation behind the sale is).
- Don’t view the new: Ideally only view property that has been on the market for three months (new property that hits the market are often overvalued. It will take a few low offers for the owner to realise that that low valuation they had was actually correct). There is no point wasting your time.
- Don’t be pressurised: Make sure you view numerous options and then cherry pick. This is a buyers’ market with a low chance of being gazumped. Remember, the owner probably needs you more than you need them.
- Research what the selling price per sq ft is: Agents may tell you that they “don’t value property in this way” but you should, just make sure you are not comparing a basement flat with a first floor as the sq ft price will be different of course. Each transaction should have a spreadsheet. You’ll see what the going rate should be and then try and negotiate under this.
- Negotiate slowly: Don’t get too clever or cocky as you need the agent on side. Rather, justify your offer with evidence derived from point 4. If you increase, do this gradually in your own time and when you do, hit them with a newspaper headline or national statistic. Just because you do not believe in the statistic, doesn’t mean you cannot use them!
No matter how the market is behaving, there are always strategies and opportunities that you can take advantage of – you just have to find the right angle. If you’re looking to capitalise on the current market in London, please get in touch for a no obligation chat. Call me on 07946 311 002 or email me at matt@astutepropertysearch.co.uk.
