Once you have found the perfect property, you need to decide how much to offer for it. Do you put in a high offer to secure the deal or make a low offer and risk losing your dream home? We are going to take a look at some of the best tactics when buying and selling houses, to ensure you get the perfect property at the best possible price.
Buying and selling houses is hard enough at the best of times, but during this global pandemic, the housing market has become even trickier to navigate. People are reviewing what they want from their homes and are on the hunt for more space and gardens. It has become a sellers market, where competition for properties is high.
Here are some things to think about when buying and selling houses.
If a property has only just been put up for sale, the owners will be unlikely to accept a significantly low offer. On the other hand, if it was listed several months ago, it may have been priced too high and the owners may be more likely to consider accepting an offer under the asking price as a result.
Assessing how much interest there has been in the property is another good way of assessing how open sellers will be to an offer. Sellers are more likely to hold out for the full asking price if there have been a lot of viewings.
A sellers’ market, which saw during 2021, was characterised by demand exceeding supply, meaning those selling a property generally had the upper hand. In such cases, you are less likely to have a low offer accepted. By contrast, in a buyer’s market, there are less buyers than there are properties, decreasing the competition for homes.
If the market is hot, sellers may receive several offers for their property making them unlikely to accept one significantly below their asking price.
From HM Land Registry, Published 13 April 2022, we are told that in England, February data shows, on average, house prices rose by 0.9% since January 2022. The annual price rise of 10.7% takes the average property value to £295,888.
Pay attention to what is happening to house prices locally. If prices are currently seeing strong increases, sellers are more likely to sit tight if they don’t get an offer close to their asking price in the hope that their home is rising in value. If house prices are stagnant or falling, they are more likely to accept an offer.
The best way to judge a fair price for a property is to see how much similar properties in the same area have sold for or are currently listed for. If the asking price is significantly higher than these, it gives you a good idea of what to offer.
When negotiating for a house, keep in mind that the seller is also concerned about getting the price they want. Sometimes the circumstances can be in your favour, making it more likely the seller will accept a bid lower than the asking price. This is especially the case if: