The UK’s property market is in a state of flux, with incoming changes to stamp duty making it challenging to work out where house prices are going and how much to offer when you are looking to buy a home.
One expert claimes to be able to spot the signs that a home is overpriced. Jo Eccles, founder and managing director of Eccord, told The Telegraph that the majority of the individuals and families her property search company helps have already been searching for an average of 6-12 months. Eccles says she has helped with hundreds of house purchases and her expertise has helped her clients get the best deal for thier money. She claims all buyers who ask these crucial questions will have a better understanding of how much a property is worth and how much to offer.
1. How long has the property been on the market?
Eccles says there is more chance of negotiating a price when a property has been on the market for a while. Find out how long it has been for sale and whether the price has been reduced. You may also want to find out why the owners are selling.
She said: “If a property has been on the market for some time, it is likely the seller will be much more open to considering offers. They might have had grand ideas about what their property is worth and insisted on setting a high asking price, but a prolonged period of time on the market is usually enough to make even the most ambitious seller lose confidence.”
2. Ask how much other homes in the local area have sold for
Ecceles urges buyers to check Land Registry data, which can also be found on Rightmove, to find out how much similar properties nearby have sold for.
You can also ask the estate agent who is acting for the seller the prices of other comparable homes they have sold in the last three months. If they cannot provide any good examples, then it may be the property is overpriced.
3. What is the price per square foot?
Eccles says very few buyers know what they have paid per square foot. She said in London, property values are based on price per square foot, so if they didn’t know what it was for their own purchase, they were essentially bidding blind.
She said once you have the price per square foot you can use it as sarting point and then look at other factors, such as the condition of the property
4. Ask why a home has been ‘done up’
Eccles says to be wary if a property has been refurbished just before it has been put up for sale.
She warned in some circumstancese, sellers have overpaid and have had to sell their house as a result. It may be they need a quick sale although at poor-quality renovation should ring alarm bells, as you never know what they’re covering up.
Eccles said she met one lady who was trying to give the impression that her house could accommodate a family living there by presenting it tidily, but every time she had a viewing, she filled her car with extra clutter and drove it around the block during viewings
5. Sit tight
If something is overprice but you want it, then it may be worth waiting, as other buyers may also find it too expensive. Eccles said by waiting, buyers could put the squeeze on sellers who may not want to wait much longer before agreeing to a purchase.
6. Recognise when you have got a bargain
Eccles said she managed to get one family their dream home because they offered the asking price while other buyers tried to offer lower. Once the seller agreed, the other buyers came back.
“At that point, the seller was too far down the purchase process with us to take the risk of switching for a higher offer – much to the regret of the other two buyers, who lost out as they hadn’t recognised the value at the outset.”