Yahoo Finance Five tactics to use when buying a property
The property market has been a Wild West over the past two years, with bidding wars and tales of the extraordinary lengths movers went to, to secure a new home.
But the balance of power between sellers and buyers is about to swing in favour of the latter and that means everyone needs to change strategy.
A chronic shortage of homes for sale created a supercharged market but the number of for sales are rising and higher interest rates and the cost of living crisis will curb buyer appetite, giving house hunters negotiating power.
We asked the experts for the best buyer tactics once the property boom finally ends.
1. Negotiate
A record share of properties have sold for over their asking price in the past year. However, Jonathan Rolande, of House Buy Fast, a property buyer, said negotiating with sellers will soon be back on the cards.
"The cost of living crisis hasn't really been felt yet in property prices but quite a big shift is coming and buyers will soon be in a position to negotiate again.
"We may even see the return of gazundering. This has the same annoyances as gazumping and ethically won't sit right with a lot of people," Mr Rolande said.
Gazundering is when a buyer lowers the offer made on a property just before contracts are exchanged, putting pressure on the seller to either accept it or go back to the market. The controversial tactic has been absent from the market while it boomed.
2. Do your research
Jonathan Hopper, of buying agency Garrington, said buyers should research the local area and seller's motivation before making an offer. "Knowledge really is power and successful negotiation is often the result of the adept use of emotional intelligence rather than just an ‘arm-wrestle’ over price," he added.
Buyers should ask the estate agent how long the property has been on the market, why the seller is selling and where they are moving to and how long they have lived in the property, he added.
"When you present your offer, you should stress that it’s well-informed and pragmatic rather than emotional. Above all you should show that you know the local market dynamics and that you have other options if the seller won’t negotiate."
3. Go under the hammer
Auctioneers have reported a boom in demand for their services over the past two years, with bidding wars completed out in the open and buyers favouring price transparency. As the market turns, appetite at the auction house is expected to continue.
Mr Rolande said: "Auctions will become an even better places to go, particularly for cash buyers. They can have their pick of sellers who are keen but shift their property on the market."
4. Know your agent
It has been a busy couple of years for estate agents, with their books severely depleted and property selling within weeks of listing for sale.
As the market begins to cool, Mr Rolande advised buyers to invest time into building a relationship with a local agent.
He said: "A lot of what is good in a seller's market is also good in a buyer's one. Go into the estate agent's office and tell them what you are looking for, don't just send a generic email or solely stick to Rightmove.
"Report back on any viewings so they know you are serious – building up this rapport will pay dividends later down the line. And if you are buying to invest, then speak to agents about using them to let the property once it is bought. The glimmer of a second fee could encourage preferential treatment."
5. Get your ducks in a row
Good housekeeping rules – securing a mortgage in principle, engaging solicitors and completed compliance checks – still apply in a buyer's market.
Mr Hopper added: "A buyer who is ready to proceed full steam ahead increasingly trumps the price tag for sellers. With some sellers starting to get twitchy, you’ll give yourself a huge advantage if you get all your ducks in a row before making an offer.
"With the market beginning to turn, sellers want certainty above all – so be sure to show your offer is the safest and most certain of the lot."
