With an increasing number of people looking to invest, and rising prices meaning there's increasingly little around for under £130,000, we are noticing that investors are being afforded practically ZERO time to make a decision regarding purchase.
In the past week, I've been tipped off about 2 decent buys, both under £120k. I've been to see them on the same day, then contacted a couple of buyers who I thought would be interested and discussed them. 24 hours later, both were sold and the buyers missed out. Neither property was an outright bargain, but both were priced realistically and sensibly - not over-valued.
It's fairly clear that some estate agents are encouraging this behaviour. In a competitive marketplace, agents are under pressure for fees and I know a number locally are having to "go lower than they want to" in order to win business. With a long list of buyers it's then easier for them to get 3 or 4 people round there quickly, get an asking price offer (or higher) and move onto the next one. It seems that's how things sit with the property market currently!
This sort of pressure puts some buyers off. I spoke at length to one investor on the phone this weekend who wanted more time to think about big purchasing decisions and for that reason wasn't going to bother looking for the moment. He said look again when things had calmed down. I completely understand his reasoning - if I'm not 100% sure of what I'm buying and people start pressuring me into committing, I back off. It's human nature.
The solution is to know your stuff - it emphasises the need to do your homework. If you're clear about what you want, and follow the market carefully, you'll then have the confidence to snap it up when you see it. For instance I know a really nice 2 bed in Semilong will sell for £125k in the current market - so if I'm on my way to see one that's on at £118k, I know it's on the money and unless there's a major problem with it, I need to offer on it. If you've 'studied the form', you will know this too which will mean you won't delay and lose out. If you don't have this confidence, buying property at the moment can be a frustrating experience as there's little time to decide!
It's fairly clear that some estate agents are encouraging this behaviour. In a competitive marketplace, agents are under pressure for fees and I know a number locally are having to "go lower than they want to" in order to win business. With a long list of buyers it's then easier for them to get 3 or 4 people round there quickly, get an asking price offer (or higher) and move onto the next one. It seems that's how things sit with the property market currently!
This sort of pressure puts some buyers off. I spoke at length to one investor on the phone this weekend who wanted more time to think about big purchasing decisions and for that reason wasn't going to bother looking for the moment. He said look again when things had calmed down. I completely understand his reasoning - if I'm not 100% sure of what I'm buying and people start pressuring me into committing, I back off. It's human nature.
The solution is to know your stuff - it emphasises the need to do your homework. If you're clear about what you want, and follow the market carefully, you'll then have the confidence to snap it up when you see it. For instance I know a really nice 2 bed in Semilong will sell for £125k in the current market - so if I'm on my way to see one that's on at £118k, I know it's on the money and unless there's a major problem with it, I need to offer on it. If you've 'studied the form', you will know this too which will mean you won't delay and lose out. If you don't have this confidence, buying property at the moment can be a frustrating experience as there's little time to decide!
