The current housing market is ploddingly slow and properties can be on the market for months, sometimes for over a year in rural areas. But, as Ellie Rees, co-owner and creative director of Brickworks, the ethical online bespoke estate agency, says: “It’s a really great time to be buying and snap up a bargain. You just have to be brave.”
In a buoyant market, a house or flat that’s sticking would ring alarm bells to potential buyers, but in today’s market there are several reasons why you shouldn’t rule out a potential dream home without having a nose around in real life. And if you have a mortgage agreement already in place, you could be poised to get your property at a great price.
1. The asking price is unrealistic
This is the number one reason. Property prices are dropping or stagnating and potential buyers are putting in offers of 10 to 15% below asking price. They’re not being ‘cheeky’; they’re being realistic in these times of financial and political uncertainty.
Sellers need to be aware of the local property market and potential competitors in the same area. If they’re not getting viewings or offers, the price is too high.
Sam Mitchell, CEO of online estate agents Housesimple.com, says: “Despite all this Brexit uncertainty, there are still plenty of buyers out there looking to own a home or move up the ladder. It’s important to make sure the price is right from day one. Properties generate the most interest in the first few weeks so it’s a wasted opportunity to try to market at an unrealistic price.”
From the buyers’ perspective, Ellie Rees suggests searching above your budget. A property with an asking price of £250k could be yours for £200k, thus allowing you to take advantage of the stamp duty threshold. Note that first-time buyers do not pay any tax up to £300k.
2. A previous buyer had a change of heart
Brexit jitters, not getting finances in place, a housing chain falling apart or buyers simply having a rethink; there are myriad reasons for a house or flat languishing on or returning to the market.
“We had an entire chain of seven families fall apart because one family’s child didn’t get a place in their preferred school,” says Ellie Rees. “It’s tough but this is the stuff of people’s lives, and not a reflection on the property.”
3. The photos don’t do the property justice
While swiping through property pics, front rooms draped in wet washing, bedrooms decorated with collections of furry animals and lopsided curtain poles can leave us wondering what the sellers were thinking. But even the most house proud and eager-to-sell owners can be let down by gloomy ‘professional’ photos that don’t showcase the charm of the property or are simply dated and unappealing, showing the garden in drab winter when it’s actually spring, for example.
What matters is the size of the rooms, the natural flow (or the potential for cost-effective changes), the level of natural light and the location. Scrutinise the floor plan and don’t be too prescriptive about photos and other people’s tastes.
4. The property isn’t being promoted properly
You’d think in today’s property market, estate agents would take every opportunity to promote their listings to their max – but it isn’t necessarily so, with some homes that have been on the market for a while losing their prominent window spots or falling down the property portals listings into obscurity.
As a buyer, it pays to get estate agents on your side by being open, polite and checking in with them regularly. That way you’ll be first to hear if a property comes on the market or a languishing one is repriced. While Rightmove is the UK’s biggest portal, it still pays to look on Zoopla, Prime Location and OnTheMarket, as well as regular checks on individual estate agents’ own sites.
5. The property may not be your ideal – but could still be a fabulous find
The negatives may be obvious (the railway line at the back of the garden or the dated bathroom, for example) or may surface during a surveyor’s report (perhaps a recommendation to replace rotten window frames and renew guttering, for example).
Some may be personal deal-breakers, but it pays to not dismiss a property straight away. You should be able to negotiate a price that leaves you enough money to do any repairs while enjoying paying less on your mortgage than you were paying in rent.
Sam Mitchell of Housesimple.com advises: “If you can see through the superficial challenges that usually put buyers off, you might get yourself a great deal. Buyers now consume large quantities of properties in bigger areas than ever before and are quick to dismiss properties for trivial reasons. That mean there are some gems hidden out there.”
If you’re dead set on a particular location, Ellie Rees of Brickworks says: “Ex-local authority homes are incredibly good value. They’re well built, well-insulated and many have been owned by architects who’ve made the most of the space with clever design.”
The last word goes to Nick Marr, co-founder of property marketplace TheHouseShop.com, who says: “In the current market buyers should not necessarily be put off by the fact that a property has been sitting on the market for a long time – in fact you could take advantage of this in your negotiations.
“Take your time and consider your options carefully, but remember that a great value, well-located property will always sell, even in a buyers’ market – so don’t get too complacent!”
If you’ve seen a property you like the look of but you’re struggling to get enough cash together for a deposit, then you need to know about Post Office Family Link™ mortgages, provided by Bank of Ireland UK. With a Post Office Family Link™mortgage, a close family member (usually a parent or step parent) could help you raise a 10% deposit by borrowing the money against their own home (as long as it is mortgage-free). Find out more here.