Ask Jackie: Getting outbid? Advice to help secure your first home
My daughter & her partner are trying to purchase their own home. They are becoming disheartened as they have been outbid so many times in the past few months. Have you any advice that will help them secure their first home?
Covid-19 has certainly made buying in today's market more difficult. The result is simple supply and demand economics – fewer houses with more people bidding for them.
The lockdown period has accelerated the number of first-time buyers into the property market, a good six months, or a year before they might otherwise have been. And because they have not lost their jobs, they have more disposable income leading to strong buying power.
There are a few things they can do to help their cause.
1. They should have their AIP (agreement in principle) in place for a mortgage. Sellers will usually prefer a "ready-to-go" buyer over someone who needs to sell before they can purchase.
2. They should broaden their search area. Moving a little further out from their ideal areas perhaps an area they had not considered before will give a wider selection of properties.
3. Have a look at online auctions. These types of sales can present good buying opportunities – but make sure to take advice in advance. These properties can have issues such as sitting tenants or be in poor condition, but can over good value, and most problems can be overcome.
4. Establish a relationship with local estate agents in the area they are looking to buy, remind the agents and drive home the message "we are ready to buy now". Agents and vendors prefer certainty from their buyers. If you are selling your house, someone who is ready to go is better than someone who may have to sell their current property.
I would suggest to keep searching and view as many properties as possible. Have a relationship with an estate agent, and have the funding in place ready to go. Property is always coming to the market and their ideal starter home could be only a click away!
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