Economic downturns usually mean that the housing market will turn in favour of buyers. While housing markets seem to be resilient, this might only be a lure. The Centre for Economics and Business Research, a leading consultancy organisation based in London, expects house prices to fall by around 13.8% next year, and that’s one of the most optimistic forecasts. This means that there could be lots of opportunities for those with money to spend.
However, there are some things you need to be aware of when buying during times like these, as it is easy to make mistakes. You also want to make sure that you get the best deal possible. Here are a few tips on how to buy luxury property in a buyer’s market.
1. Stay in Close Contact with Your Agent
The first thing you have to do is make sure that you stay in touch with your estate agent. You also want them to set alerts for you and send listings for new homes that fit your requirements straight to your inbox. This will allow you to have a jump start on other sellers and check properties first. Make sure to contact them as soon as you see something that interests you and schedule a visit. Houses can go very fast, so be ready to move engagements if an opening comes up.
2. Start Looking at Mortgage Companies
The next step is looking at a few mortgage companies and trying to get pre-approved. As a buyer, you will know exactly how much margin you’ll have and it will show agents and sellers that you’re not a time-waster.
One good option for a large mortgage would be to work with a company like Enness Global Mortgages. They’re one of the best mortgage brokers for luxury property in the country and will be able to connect you with over 500 lenders from all over the world. They don’t deal only with major institutions either. They work with small building societies, alternative lenders, and global private banks to get you the best deal possible. This will allow you to look at a variety of offers and go for the ones that work the best for you.
3. Get an Inspection Before Making an Offer
Now that you’re pre-approved, you’ll have a little bit more leverage and can make a few demands. One smart move would be to ask for a pre-offer inspection. Yes, you may lose out on a deal to someone less scrupulous, but there’s no point in taking unnecessary risks. This will allow you to possibly negotiate a better deal if you find sticking points.
4. Forget Finding the Perfect Home
If you want a home that’s exactly the way you imagined, you’ll have to have it built. There is no such thing as a perfect home and you’ll have to be ready to make some concessions. You should start with a shortlist of deal breakers and work from there instead.
Now would be a good time for investors to start looking at price trends and plan a move. This is also a good time for domestic buyers who want to relocate farther from the city and make their money stretch further.