Asking prices hit record highs: ways to get the best offer when purchasing a home

Asking prices have hit record highs as confidence returns to the property market, but how can you ensure you’re getting the cheapest price?

Here, Which? explains what’s happening to the property market, whether now is the best time to buy and the way to grab a good deal when making an offer.

Asking prices hit a record high

New figures from Rightmove show prices on homes being brought to the market have increased by 2.4% this month.

This means the typical UK asking price has risen to lb320,265, an amount the home portal says is really a record high.

Rightmove says the amount of monthly sales agreed has risen by 15% compared with last July, as buyers and sellers make up for lost time.

But despite this mini-boom, the entire number of properties available on the market continues to be down 13% year on year.

Does this suggest houses are becoming more expensive?

If you were thinking of buying a home in the next few months, you might seem like your hopes of grabbing a bargain have been dashed.

But that’s certainly not the situation. Rightmove’s figures reflect the prices sellers are asking, rather than what buyers are paying.

The most accurate guide to what’s happening to accommodate prices comes from the Land Registry, but it hasn’t released any data since March.

Property experts have predicted that house prices could visit around 5% this year because the UK recovers in the COVID-19 outbreak.

Will the stamp duty holiday make a difference?

The stamp duty holiday means many buyers across the UK will make savings if they move before 31 March the coming year.

In England and Northern Ireland, the threshold has been temporarily increased to lb500,000, so those purchasing a property can save as much as lb15,000 in tax.

This change will have a big impact on the number of buyers seeking to move home within the next eight months – but not everyone will secure a better deal.

If buyers flood to the market however the number of homes for sale doesn’t rise quickly enough, this extra demand could simply result in higher prices, thus wiping out the advantages of the stamp duty cut.

Is now a good time to purchase a house?

There’s optimism around the property market at the moment, but we’re living in uncertain times.

The COVID-19 fallout means house price volatility and mortgage difficulties could remain for some time.

If you’re considering making a deal on the property this year, take heed from the following tips.

Think regarding your future plans

First of, think about your personal long-term plans.

If house values have a hit over the next 12-18 months and you want to sell, you could make a loss of revenue.

On the other hand, if you’re considering staying put for the long term, your patience could be rewarded when the investment rides out any short-term price falls.

Assess your mortgage options

It’s not just a volatile time for house prices, but for mortgages too.

If you’re buying having a 5% or 10% deposit, you’re likely to have very few mortgage options right now.

Buyers with bigger deposits can still take advantage of great rates, but those who’ve been furloughed or are self-employed may find it harder to get accepted.

Consider taking advice on your choices from a large financial company before you start your home search.

Don’t be used by stamp duty cuts

The stamp duty changes mean some buyers will make considerable tax savings, but it’s important to consider the bigger picture.

Estate agents will explain demand is soaring within the wake from the cut, but don’t be used by the bluster or tempted into a deal without first doing all of your own research into the local market.

Buying a home is a big commitment and timing is important, so while the stamp duty change could save you some money, it should be your considerations rather than your primary reason to buy a home.

Making a deal on a property

Making an offer on a house is a nerve-wracking process, whether you’re competing with other buyers or attempting to secure a cut-price deal.

How to create your offer stand out

If you’re only some of the interested party, you may need to put forward a case why the seller should choose your offer.

Emphasise the important thing things inside your favour, for example, if you’ve already got a mortgage agreement in principle or really are a chain-free buyer.

In addition, allow the seller see you’re organised and ready to move. Have your surveyor and conveyancer pencilled in to instruct as soon as you obtain the green light.

How to grab a bargain

On another hand, the circumstances round the sale could make you believe you can get a better deal.

Perhaps the home continues to be on the market for some time, the seller is within search of the quick sale or you’re confident you’re the only bidder.

If that’s the case, be prepared to haggle.

When one enters into a negotiation, play it cool and don’t reveal your budget towards the seller or estate agent.

Think together with your head rather than your heart and make time to consider whether you’re really obtaining the cheapest price.

If there’s something concerning the property you’re unclear about, you might consider having a survey done first before committing to a price.