January 16, 2008
Falling property prices may be bad news for the housing market and may be bad news for the wider economy of the country, but there is one group of people who will be delighted that house prices are showing signs of coming down, and that is buyers. With few keen buyers and still plenty of property up for sale there is little doubt that the current market is quickly turning into a buyersâ€™ market. But how should prospective buyers take advantage of the situation to get the best possible remortgages deal.
Although the market may drop further it is actually probably a good idea to buy early in the year before more buyers appear and prices start to harden.
If you know a property has been on the market for some time, then it is probably worthwhile making a low offer on the property as the seller will be getting more anxious to make a sale. Find out if the seller needs to move quickly as this will give you an opening to make a low offer.
You might also be able to use the new Energy Performance Certificates (that come with Home Information Packs) to negotiate a better deal if the EPC rating is not very good. You can also use any repairs that are required to drive down the price.
Watch the local market for how prices are moving. If prices are falling that can give you room to make a low offer.
If you are looking at a new house, you should also remember that the developers are sellers, and they need cash-flow for their business, so might be open to a deal, and you could make an offer below the asking price, even if there are incentives. In addition, if there is only one property left on a development then the developer may accept an even lower offer as they try to avoid squatters and advertising costs, and move on to the net development.
Finally, save money by making sure that fixtures and fittings are included in the price and by making sure your mortgage is at the lowest rate possible.