February 29, 2024
Avoid these pitfalls when buying property.

Although it can be very exciting to buy property for sale in London, it can also be very nerve-wracking.  While there are the positives that come from living in one of the biggest and most culturally and ethnically diverse cities in the UK, there is the negative aspect that there are many pitfalls that people experience every day when searching for property in a big city like London.

In the following article, we will give you some helpful tips on how you can avoid these pitfalls. The first of which is starting off with too strong an offer.

At the home buying negotiating table.

Avoid Offering The Asking Price As Your First Offer

Too many people make the same mistake after viewing a property and coming to the conclusion that they really like it, of offering the asking price as their first offer.  Although this tactic makes common sense, it actually means almost always that the estate agent will make more than just the asking price.

Related Read: Online Versus Traditional Estate Agents?

This is even without having to get involved in a bidding war.  Always, as a rule of thumb, offer between 10 to 15% less than the asking price. Also, as you’ll see next it is important to act the part too! Don’t be like this dad:

A homebuyer showing too much excitement.

Never Come Across Too Keen During A Viewing Or Afterwards

One thing that all successful estate agents are adept at doing is working out people’s sign language.   If you are making obvious signs that you love the property, they then will know that they won’t have to push you very hard or negotiate much on getting you to pay the asking price for the house.

It is therefore a good idea to not tip your hand to the agent. Be as aloof as you possibly can when you are viewing properties and try to avoid closing doors as you leave them or turning lights off during a viewing because this shows an estate agent you are mentally moving in.

Never Make An Offer During Or After Viewing A Property Straight Away

The simple reason for not making an offer until after you have finished viewing a property and not making it immediately after is that this will show an estate agent you are too keen.  If you really are sure you want a property and want to make an offer, or the agent pushes and asks you to make an offer, you need to ask them what the seller is asking for it.

The result of this will be that estate agents will just tell you they want the asking price.  Avoid interrupting the agent when they answer and might talk themselves down in price.  This could be a big sign that the agent is desperate to make a sale. Here’s a short video by Kris Krohn with a few more negotiating tips to take to the table:

Never Disclose Your Personal Maximum Budget When Registering With Estate Agents

Statistically, it is thought that 9 out of 10 buyers, who register with estate agents, pay as much as 10% more than their maximum budget.  If you want to avoid spending your entire budget, never give away how far you would be willing to push the amount of money you are willing to spend on properties.

Avoid Putting Offers On Properties Over 10 Minutes Away from a Tube or Train Station

This tip is most important if you are looking for looking to buy as an investment.  Remember, you can always alter how properties look, but you can’t change where they are located.  It is reckoned that up to 90% of all short-hold tenants prefer to live within 10 minutes from the local tube or train station, with direct links into central London.

Underground Station

Why the London Underground is the Most Convenient Thing About Living in the City

The London Underground is one of the most convenient things about living in a big city like London, as it allows you to travel very quickly and easily around without having to spend time sitting in traffic or getting lost trying to find your way around. It also means that you can reach every point in the city within 30 minutes. Lines run all over London, so it’s not hard to get anywhere you need to go.

After The Negotiations – What’s Next?

Here’s what you should expect after getting through the negotiations for your new property. You’re close to the finish line, but there are a few more steps prior to your big moving-home day.

A cartoon image depicting a home move by Guy Kilroy.

Image Credits to Guy Kilroy

Avoid Paying Any Additional Costs After Agreeing To Buy A Property

When buying property, there are always going additional costs involved on top of the original sale value of the house or flat. These extra costs include stamp duty, solicitor fees, surveyor fees, etc., which can range anything from £5K up. Be sure to find out what these extra costs are before agreeing to buy a property so that you can factor them into your budget and avoid paying any more than necessary.

Get Your Mortgage In Place Before Completing Your Purchase

Before signing the contract on your new home, it’s always important to have your mortgage in place. This will ensure that you’ll have funds available to meet all these costs mentioned above. It’s also important to factor in the costs of moving, such as finding local movers, if needed.

Be sure to create a thorough checklist prior to closing.

Create a Checklist of Items You Will Need To Bring to Close On Your Property Purchase

Once you have completed the process of negotiating and buying your new home, it’s important to create a checklist of all the items you will need to bring with you on the day of closing, such as bank statements, government-issued ID, proof of funds for any additional costs like stamp duty or surveyor fees, and other important documents.

Lastly, it’s important to take some time after closing on your purchase to celebrate this major milestone in your life! Enjoy your new home and rest easy knowing that you negotiated well and got a great deal on this new property. Good luck and welcome to London!

Leave a Reply