You might indeed get lucky and end up purchasing the right property, but the chances of that happening are rare. The people whom you see following a hot market and also making a high return on investment (ROI) are also the people who study the UK house market volatility and have a good understanding of the price fluctuation.
And if we’re talking prime property, not following the trend is sometimes the best thing you could do. You need to keep an eye out for the best offer at the right time.
Dreaming About the Dream Home
Being subjective is part of human nature, but it has no place in buying a property. So even if the house you found feels right or seems like the dream home, don’t sign anything just yet.
Look to see beyond the beautiful façade and into the nitty-gritty of the property. Check the electrical system, and the plumbing, look for rot in the woodwork and mildew on the walls and don’t forget to inspect the roof and the basement if any.
Believing Verbal Agreements Hold Value
And while we are on the subject of illusions, it’s important to know that in the UK, verbal agreements about the property are NOT legally binding. This means that even if you come to conclusion with the seller/developer about an offer, that conversation is nothing more than a discussion. They can decide to sign with someone else or to increase the price.
So, until you see the contract, don’t pre-assume or believe everything that you are promised.
Miscalculating the Cost
Old-built properties for sale in London are often marketed as ready-to-go projects. This way, you are rapidly convinced to buy thinking the property won’t need much work.
But when you start putting two and two together, you realise you didn’t take all risks into account. And a miscalculation can drastically set you back by a few months.
How to avoid this? Do your research! Get to know the area you want to buy in, the type of neighbourhood, the way prices changed over the past five years and what the people living there are saying about the current property management.
Failing to Get the Best Deal on Your London Property
Purchasing a UK house can be a tedious job. You will probably have to view many listings, talk with multiple real estate agents, and frequently adjust your budget until you set your mind on the right purchase.
This lengthy process can cause you to lose patience. So, when you find a property that meets your criteria, you may be quick to sign for it. This means that you might fail to negotiate for the best deal or even negotiate at all.
Many even end up overpaying for their London properties for lack of better guidance.
Don’t be one of them. Learn how to avoid this with our guidance.
Not Getting the Funding You Expected
When you are looking to buy a property in London, obtaining enough funding should be your number one priority. And when buying with a mortgage, as the majority of UK homeowners do, two aspects can pull the plug on your desired funding:
➢ Pre-Approval
When looking for a mortgage, the amount that you desire and the one you will be approved for can differ. And to avoid these differences, you can head to your lender’s office and ask to be pre-approved. They will run an in-depth analysis of your financial data and will be able to come up with the correct sum, which they can also hold for 90 to 120 days.
➢ Appraisal
Most lenders in the UK house market require an appraisal before they give you access to the mortgage. The appraisal determines the asset’s value at the current market price and can differ from what you initially agreed to pay.
This usually means that the lender will release a smaller amount of the mortgage than what you planned for, leaving you to come up with the rest of the money on your own.
The best way to avoid this is by always bidding for a smaller amount than the one you were approved for.
Not Knowing the What, Why, And How About Your London Property
As we are getting to the bottom of the list, you should know that most buyers often make the mistake of not having a clear answer to the three main questions:
➢ What? Answering this should give you a detailed list of criteria that you are looking for in the purchase you want to make.
➢ Why? Learning why you want your potential investment to fulfil certain criteria will give you an advantage in negotiations. It will help you draw the bottom line and determine your BATNA — the best alternative to a negotiated agreement.
➢ How? The way you plan to strategize your purchasing will ultimately determine your success rate. The better you plan, the higher the success.
Thinking It’s a One Man’s Job
Trying to do everything on your own is the biggest mistake you could make!
Buying a London property can be a full-time job. It requires in-depth research of the house prices and location, high availability for viewings and discussions with agents, detailed analysis of the property, and a high understanding of the legal and financial dimensions of real estate in England.
Final Thoughts
We at Vogue Properties can be your help, guide, and consultant through this process and beyond. Our services include information about the latest properties for sale, legal advice, mortgage services, property management, interior design, furnishing and any other property-related need you may have through this journey.
