A buyers Market, not a sellers…

It’s no secret that Covid-19 has had a devastating impact on the entire world.

Millions have lost their jobs. Off of the back of this, many will have to take payment holidays on their mortgages, some may eventually fall behind on mortgage payments and some may even lose their homes due to repossession. 

What does this mean for the market?

I’m going to focus on 2 things today.

  1. It will be a buyers market, not a sellers 
  2. Lenders will have to recover a lot of unpaid debt and be a lot more frugal with who they lend to

What does this mean for you? 

The person with a home to sell…

  • Now is the time! Sell as soon as possible and sit on the funds. Move in with family, think about short term renting and sit on the proceeds of the sale as in a few months, you will be able to buy a bigger house for a lot less.
  • Fast forward a few months… If you take too long to take the leap to put your property up for sale, you may need to take an Offer much less than what you wished for.

Are you in a chain? There’ll be more about what can do next week… 

 The person with a home to buy…

  • Hold your horses. There are going to be many houses to choose from and many people desperate to sell them so this may work in your favour when it comes to negotiating on price. 
  • You may need to front more deposit than you may have initially planned due to Mortgage products being quite unstable. 90% Mortgages which require a 10% deposit have been pulled and reintroduced week by week. Lenders may also be a lot more picky with who they lend to, request much more information and be much quicker to decline applicants who don’t fit within their risk appetite 

Key take aways

Home Sellers

  • The time is now!

Home Buyers

  • Be patient. Fix your credit & save save save!

All information on my blog is opinion driven based on market trends, statistics and forecasts regarding the current situation. 

*Photo Source https://www.standard.co.uk/news/estate-agents-face-ban-on-for-sale-signs-6781275.html

Questions to ask when viewing a property

1. When was the last time the *electrics were checked? (Particularly important for Victorian/Edwardian houses, not so relevant for New Builds)

2. Has there ever been any water damage to the property? Flood, roof leak etc.

3. How long has the property been on the market?

4. Roughly how much are the monthly property related bills? Water, gas, electric, council tax, Building insurance2, internet

5. How old is the roof? (Particularly important for Victorian/Edwardian houses, not so relevant for New Builds)

6. Have the owners done any renovations within the last 5 years?

7. How long have the owners lived here?

8. How far is the supermarket/train station?

9. What is the parking like? Do you have an allocated spot, drive way or is it first come first served?

10. Whats the crime like in the area? 

11. Does the property have a restrictive 3covenant? If the Agent is unsure, dig!

12. Is there a 4chain? How quickly does/can the owner want to proceed to completion?

Ultimately, the seller/agent has one goal, sell the property! Take what they say with a pinch of salt and do some research of your own. Ask friends that live in/know of the area. Get a feel for the vibe on the street.

Go to your official viewing in the day and once you feel like you are willing to proceed with the purchase, visit the property and its surrounding area in the night to get a real feel for what it’d be like living there. Pay close attention to noise, anti social behaviour, over crowded parking etc. 

1Electrics are particularly important, you can reasonably knock off £10,000 from the asking price of a property if the electrics have not been given the once over within the last 10 years. This is something you will definitely have to get done as soon as possible, this involves checking plug sockets, making sure no wires/cable are frayed and checking that the lights are working properly with no buzzing sound. Worse case scenario you will have to rewire the property. Rewiring a property is not cheap, but if required, is essential for older houses to prevent electrical fault damage which can ultimately lead to fires etc. 

2Building insurance is a necessity and legal requirement for a House. It is not required for a flat as you are covered under the ground rent that you pay to the Landlord/Freeholder. 

3A restrictive covenant can encourage neighbours to be to create harmony and deter anti social behaviour. It can also prevent you from carrying out certain actions like extensions, loft conversions or converting the house in to flats etc.

Obtain copies of the properties title from the official Land Registry website to be sure there’s no surprises.

4A property chain is created when more than one buyer is involved in a transaction. For example, say you are buying a home from someone and they are moving to a new home they are buying from another. That is an upward property chain, meaning that your completion date (when you move in) is likely to be affected by the date when your seller can move into their new home too.

If you’d like to add to the list of questions to ask when viewing a property, feel free to comment below. Happy House Hunting!