With house sellers’ asking prices lifting to record highs for two months in a row, and amid a poor supply of homes for sale in many areas of the South, is buying privately the answer?
New seller asking prices in England and Wales hit a new peak of £262,594 in April, up 7.3 per cent on a year ago, marking the fastest annual rate of increase seen since October 2007. So buoyant is the market that many popular locations are suffering from for sale sign “black spots” due to properties being snapped up within days of doing on the market. In London, asking prices are up by 15.9 per cent on a year ago typically and since 2007, London sellers have typically hiked their prices by more than the cost of an average home in the North West. And it’s not just the capital, prices are higher in every region across England and Wales than they were a year ago. It’s a sellers’ market again, but can buying privately help redress the balance in power?
Buying privately puts you in control of the buying process and offers many advantages over the more common process of buying through an agent. Primarily, communication is direct and so tends to be quicker and less complicated; you can get immediate answers to your questions and an instant decision on any offers. Negotiations too, can be quicker and more simple, and by dealing directly with the vendor, you will be able to get quick and accurate updates of the sales process. In fact, in many ways, buying privately is much easier than buying through an estate agent, but more than ever, it is advisable to do your homework before attempting to buy a property without one.
Researching the market is key no matter how you decide to buy, but not just the listed prices on agency websites. Check the actual sale prices of houses in the area using sites like Zoopla, taking into consideration the readily available market statistics to calculate the most likely up-to-date figures.
Having already sold your home, or being a first time or cash buyer can put you in a strong negotiating position. Whether or not your offer is accepted may depend upon other factors and your own personal circumstances. Be sure to include this information when you make an offer, particularly if it is in your favour. It is also worth getting all the necessary information ready to go before you make an offer. Simple things that make you look well-organised and reliable, like supplying your contact and financial details promptly can make a difference.
Meanwhile, the Royal Institution of Chartered Surveyors (Rics) predicts that house prices will continue surging by around 6 per cent annually for the next five years, mortgage support schemes such as Help to Buy and improving consumer confidence have prompted more buyers to flood into the market in recent months, and London continues to attract strong interest from overseas investors. It seems like the sellers’ market is here to stay, but buying privately is one way to lessen the cost and stress of purchasing property, making it the right time to buy too.