With the slowing of the property market, we’re seeing less and less houses being sold on the auction floor. This means that houses are either being passed in, or buyers are purchasing by negotiation instead. But, what does that mean for the buyer and their strategy?
When buying a property there are two main ways to make an offer – having done your full due diligence on the property before making an offer, or making the offer subject to due diligence. There is no right or wrong way to make an offer, however the way you make the offer can impact your competitive advantage in navigating the deal.
When purchasing property at auction in a competitive market, serious buyers would’ve already done their complete due diligence on the property including lining up any pre-approved mortgage requirements. However in a slower and less competitive market where more properties are available to be negotiated upon, buyers tend to feel they can be less prepared. Unfortunately, this can lead buyers to miss out on a better deal.
Simply, as a buyer, the lesser conditions your offer has, the stronger your offer is. A seller is more likely to take your offer seriously if you’ve already done your due diligence, as they know that you’re a serious buyer who has done all the upfront work, in order to make the ‘no strings attached’ unconditional offer. This removal of procedural barriers can add a lot of appeal to your offer, and can in many cases, help you to negotiate a better price, as the seller may be more willing to accept a lower ‘as is’ price, to secure a sale.
So to put yourself in a strong position to negotiate, before making an offer on a property, you should understand:
By understanding all three areas of a particular property before making an offer, will put you in a strong and competitive position to negotiate.
So how can a Haven Mortgage Adviser help?
A Haven Mortgage Adviser can help you get your ducks in a row ahead of purchasing a property, whether it’s through auction or negotiation. They’ll advise you on the procedure, not just around finance, but guiding you through the whole process to ensure you’ve got the right actions in place, in order to get you in a position to maximise your circumstances in relation to property.
To optimise your circumstances, engage a mortgage adviser as early as possible in the process. Whether you’re considering buying a new home, or your first home, a Haven Mortgage Adviser can help you navigate the entire process.
Contact us for a no-obligation chat today about your home buying plans.
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