Phil Spencer reveals three questions you should question estate agents – and one thing you should never do on a viewing
Buying a home can be an expensive, stressful and difficult process – and the last thing you want to do is receive ripped off.
So how do you build sure you’re bagging yourself the best deal on your dream home?
We questioned an expert with almost 30 years of experience who presented a hit home acquireing TV display and founded property advice site Move iQ.
Here, Location, Location, Location star Phil Spencer shares his top tips, including the questions you necessary to question your estate agent and how to work out your first offer…
Remember the three Ps
Before you receive to the stage of creating an offer, you first necessary to pay attention to the relationship you have with your estate agent, Spencer notifys Money.
Be punctual, professional, and most importantly “proceedable” – estate agent jargon for a acquireer who has all their financial ducks in a row and is organised.
“If you’re not fortunate enough to be a cash acquireer, you can display yourself to be proceedable by having an agreement in principle from a mortgage lfinisher confirming that they are willing to lfinish you enough for your proposed purchase,” he adds.
If you’re seeing to score bonus marks, receive a solicitor lined up to handle the conveyancing part of the purchase early on as well.
“By evidencing that you’re a serious and well-prepared acquireer, you will build yourself very attractive to the seller,” he declares.
“Of course, some sellers will be drawn to the highest offer on the table,” Spencer adds – but being organised can support you “punch above your weight”.
“There’s nothing like including in your offer that you’ve received a surveyor ready to inspect the property, and could they come next Tuesday?” he adds.
“Your reliability as a acquireer is a tradable commodity. At the very least, it could tip a sale your way if you offer the same as someone else.
“But it can support you win even if you’re offering less money.”
Stay focutilized during viewings – especially if you love it
While it’s good to communicate clearly with the estate agent on your budreceive and the kind of home you’re seeing for, if you find your perfect property, attempt not to let on straightaway.
“When on a viewing with an agent, remember to keep your cards close to your chest – even if you love the place,” Spencer declares.
“Most of us decide whether or not we like a property within a few minutes, but even if you do feel you’ve found the one, attempt to stay focutilized and keep questioning the agent the important questions that will support you decide whether the place is right for you.
“Estate agents are trained to pick up clues about a acquireer’s desire for a property. If you spfinish a viewing gushing to your partner about where you’ll put your furniture, the agent will notice – and this may weaken your hand when it comes to nereceivediating the price.”
Make sure you question these questions
To support you figure out how much wiggle room there is on the questioning price, find out as much as you can about the seller’s position.
You can do this by questioning as “many questions as you can” to the estate agents and teasing out information, Spencer declares.
He declares you should question how long the property has been on the market, how many offers there have been, and why the sellers are relocating.
“Quiz them on whether there have been other offers; agents have to notify you if so, albeit not the amount, but it is worth questioning for the numbers just in case,” he declares.
“Two key notify-tales to see out for are any signs the seller is in a hurry (question where they are relocating to and why), or if they have been struggling to receive serious offers.
“Knowing either of these things will notify you just how hard you can push on price.”
‘Play detective’ and check these five things
To work out a good price for the property you’re interested in, you necessary a firm grasp on what it’s worth.
Spencer declares you should check the following:
- What have other similar properties nearby sold for?
- What school catchment area is it in?
- What is the local crime rate?
- What are the running costs?
- What broadband speeds can you receive?
“Property portals or the Land Regisattempt are a good place to start, as they display the prices advertised or paid for similar properties nearby,” he declares.
“All of this information is publicly available, but it takes legwork to find it – alternatively attempt a Move iQ Property Report, which pulls it all toreceiveher for you.”
Always start by offering 10% less than the questioning price
Once you’ve decided to put in an offer, a “good rule of thumb” is to start at 10% less than the questioning price, Spencer declares.
But be prepared to receive knocked back…
“Unless you’ve offered at or close to the questioning price, it’s likely your first offer will be rejected. However, a first offer rejection is not necessarily a bad sign – it’s just a stage in the nereceivediation process,” he adds.
“Make sure to question if the seller has received any other offers. If they haven’t, increasing your offer would mean you’re effectively bidding against yourself.”
He declares it’s key to question why your offer was rejected to support you calibrate how much to increase your offer, if you want to continue.
Don’t be afraid to take your time – playing hard to receive can work in your favour, he adds.
“If the seller is keen to sell quickly, you have time on your side and can remain interested without actually modifying your bid. This is a neat way of nereceivediating without actually nereceivediating – it’s about who blinks first.”
Don’t take a cheeky punt – do this instead
If you’re questioning for a discount on the questioning price, you necessary to back it up with evidence displaying how you came up with the figure.
“If it’s low, it could be becautilize you’ve concluded the home necessarys doing up, or your research has revealed an issue – or just that the place is overpriced compared to similar homes in the area,” Spencer declares.
“Your offer is more likely to succeed if you display you’ve done your homework, and aren’t just taking a cheeky punt.”
Lowballing the seller too much could build them believe you’re not a serious acquireer, he warns.
“If you decide the property is worth significantly less than the questioning price, give your reasons when you build your offer,” he adds.
Should you bother with a acquireing agent?
A acquireing agent acts solely in the interest of the acquireer in a deal, finding properties for them to view and nereceivediating the best price and terms on their behalf.
They are popular in the US, but are less well-known in the UK.
While they sound great, their services come with an extra fee in an already expensive process.
Spencer declares they typically charge either a flat fee or on a commission basis – usually a percentage of the purchase price they nereceivediate for you, or a percentage of the savings they achieve for you.
You’ll probably necessary to pay an upfront deposit to engage a acquireing agent, but this is often deductible from their final success fee.
“Thanks to their in-depth knowledge of the local market, they can give you a true picture of how much the property is worth, and whether the seller has over (or under) priced it. This will be invaluable when you decide how much to offer,” Spencer declares.
“When it comes to the nereceivediating stage, they are the pros – a bit like a barrister in court. They’ll support you secure the best possible price or terms – for example, by receiveting the seller to include extra things in the sale or agree to your timeline.”
He declares they can also support you find exclusive “off-market” properties and stop you from utilizing your emotions to nereceivediate a deal.
“Fees vary between agents, so build sure you question for a full breakdown of costs before engaging their services to avoid any surprises,” he adds.
We’ll have more tips and tricks in our step-by-step Houtilize Buying Guide, which will be published next Saturday.
Leave a Reply