The choice of available property can be daunting in a buyers’ market and frustratingly sparse in a sellers’ market. Either way, you have a budget and you need secure the best value you can for your money. How should you do this?
Firstly, this is not a stock market investment. This purchase will be your home, probably for many years, so your personal lifestyle objectives ideally should come first. Property has always proven to be a secure long-term investment and it is unlikely you’ll make a really bad decision. However, here are some pointers that might contribute to greater peace of mind.
Location Analysis
Location remains the primary value driver. So research local amenities, transport links, school catchment areas, and future development plans. Properties near excellent schools or transport hubs typically command premium prices. However, if these are not important to you, why pay the premium? Check crime statistics and neighbourhood price trends using resources found on the portals.
Asking Price
The property’s asking price is based solely on the seller’s desire, influenced by their estate agent’s advice. However, if the property is, in your opinion, better for you than others of a similar price locally, then it is priced correctly – assuming that you are a reasonable representation of the market. Once you have seen at least half a dozen properties, then you should be in a good position to assess this in context. Bear in mind that it is unlikely that you will fulfil all of your preferences – expect to achieve six or seven out of then at best., and be prepared to compromise on the smaller things.
Comparative Market Analysis
Examine recent sales of similar properties nearby. Look for homes with comparable size, condition, and features sold within the past six months. Also consider the asking price of unsold property. How long have these been available, and could they be overpriced? Use this evidence to negotiate the best price, as unsold stock influences future prices more than the apparent evidence of recent sales.
Property Condition Assessment
Factor in renovation costs when calculating true value. Arrange professional surveys to identify structural issues, damp, or required updates to heating, plumbing, and electrical systems. A fair price now may become expensive once repair costs are included.
The Market
What is the economic and political climate looking like? What is the media saying about the property market. Property market speculation often becomes a self-fulfilling prophesy so don’t ignore the word on the street.
Remember this is your decision – the seller’s agent is acting for the seller, and your friends might just tell you what you want to hear. Ultimately, it’s about balance between the head and the heart. And if it’s any comfort, very few people regret buying the house they bought. So go for it before anyone else does!