Buying and selling real estate is an exciting process full of dilemmas for both parties, which of course does not mean that they should be a nightmare for buyers or sellers!
As someone who has been in this business for over 20 years, I have seen a lot of cases where people “get lost” in panic or indecision make them make the wrong move. Unfortunately, these wrong decisions sometimes cost them a lot of money or they simply ran out of real estate that would be ideal for them.
We all occasionally lose sight of what is important due to a lack of information or a combination of circumstances, so don’t let that make you unable to provide a roof over your head for yourself and your family. In order not to “neglect the forest because of the tree”, I have singled out the most common dilemmas in buying and selling real estate, and since there are many of them, this text is divided into two parts.
How to easily find your second home in the United Kingdom:
1. PURCHASE OF REAL ESTATE OR SAVINGS IN A BANK?
Without any dilemma – if you have a “surplus” of money, buy real estate because banks currently do not offer attractive interest rates for savings. The most common goal of such a purchase is rent, and as a result, real estate agencies are “overwhelmed” by requests for (mostly smaller) apartments in better locations, which can be easily rented out, and in case of need for money – sold quickly.
It sounds like an ideal plan, but when you try to implement it, you quickly realize that the demand for quality apartments in the most sought after parts of the city is higher than the current supply, which results in the following:
Apartments in attractive locations sell very quickly (even on the day they are offered)
The prices of such real estate are on the rise
What to do if you have decided to buy a property for rent?
First – realistically assess your material capabilities.
Second – the locations where you will look for an apartment, choose according to the budget (which is sometimes inconsistent with the wishes)
Third – react as soon as you come across a suitable property because, while you look at “everything that is offered and think”, what suited you will be sold.
Tips for easier navigation:
Be perfectly aware of your financial possibilities and do not exhaust yourself in the search for an apartment in the most sought-after locations if you do not have enough money for such a purchase, ie. if you can only buy common yards, basements, ground floors, top floors without an elevator or under a flat slab… because while you visit all that (and get disappointed), some beautiful apartments will be sold in other parts of the city, the price of which you could pay and then, start renting.
In order for a purchase to be successful, it must be profitable according to the annuity criterion, for a maximum of 20 years. This means that the monthly rent should be multiplied by 12 months, and the amount obtained by 20 years. If the money invested in the purchase would return in 15 – 20 years, feel free to buy such an apartment and go to work!
2. APARTMENT UNDER CONSTRUCTION OR USED?
This is a really big dilemma for many. An apartment under construction can be the best story in the world, but also the worst… There are countless “for” and “against” this kind of purchase.
One thing is for sure – you should never enter the purchase of an apartment under construction, without checking the documentation, by a lawyer who represents the interests of the buyer. Also, the buyer must be aware that no one can guarantee him anything when it comes to the further course of work!
On the other hand, an apartment that has already been used is more or less a “read book”. You already know the good and bad sides of both the apartment and the apartment, there are almost no surprises…, the harder side of this purchase is the fact that such apartments usually need to be renovated, which means replacement of carpentry, pipes in the bathroom and kitchen, new tiles, toilets, planing and varnishing of parquet, control of electrical installations, works on the terrace… For the purchase of a used apartment, it is also mandatory to check the documentation!
If you are buying an apartment through an intermediary, you will be able to get information on this topic at the very beginning, because professional intermediaries review the documentation at the reception of the apartment and consult their lawyers if they think it is necessary. So, good agents from the beginning of the sale, have a clear picture of the “papers” that accompany the real estate in their offer, which greatly facilitates the buyer to make a purchase decision.
4. HOW REAL ARE THE PRICES IN THE ADS?
Agents will always say that the advertised real estate prices are mostly – a list of good wishes of their owners. As a rule, the sale is advertised at a slightly higher price than the real one. How much is “something”? It is very individual but it should not be exaggerated.
How do you know you have gone too far with the price of an apartment? Simply – no one calls you to inquire about the apartment and make an appointment, or no one calls your agent, because the price declines buyers! In that case, slowly lower that “dangerous” figure in the ad, until the market reacts with interest.
Work with your mediator. Most agents will initially draw the seller’s attention to ask for too high a price, but a small number of owners will accept that opinion. In the end, it turns out that the experienced agent was right, but, until then, the sale will be unnecessarily extended…
4. WHY NOT NEED TO NEGOTIATE DIRECTLY WITH THE SELLER?
An experienced agent will always draw the buyer’s attention to the fact that he does not start a price conversation directly with the seller. There are several reasons, and the most important is that practice shows that such an approach is wrong.
Often, a buyer who ignores this advice begins to convince the seller that the price of the apartment is high. The most common answer of the seller is that it should be even higher for the 1001st reason… Since such conversations certainly lead nowhere, it is best to make an offer through your intermediary and avoid direct, sometimes long, tedious, and difficult negotiations. They will be done in the best possible way, instead of you, by the person to whom you have entrusted one of the most important tasks in your life – your mediator.
These are just some of the many dilemmas that real estate buyers and sellers face. In every sale, there are many of them, often combined with fear, worry, misunderstanding, nervousness… This is normal, it is about the property. So don’t go through the buying process yourself. Seek the help of an experienced agent who will be able to advise you at all times and with whom you will feel the best for each client throughout the sale – for sure!