How To Be a Hot Buyer In a Hot Property Market

As stock levels continue to struggle, there are a reported 29 buyers for every property on the market, meaning competition is fierce. Presenting yourself as a hot buyer – someone a seller can’t ignore - is an absolute must.

We look at 5 ways to improve your chances of becoming the ‘chosen’ one.

  1. Find a buyer (or mortgage) first

If you have a home to sell, the first thing you should do is get your property on the market and agree to a sale as soon as you can. First-time buyer with nothing to sell? The equivalent is to have a mortgage in principle in place, showing any seller you can genuinely proceed with the purchase.

  1. Break the chain 

The first thing a seller often asks (aside from ‘how much are they offering’) is how big the chain is behind the buyer. The bigger the chain, the more chance there is of a property sale falling through, which can have a catastrophic domino effect. 

The absolute dream would be to break the chain altogether and offer as a chain-free buyer. If funds and circumstances allow, this might mean completing the sale of your own house and moving into temporary or rented accommodation. 

This could also result in you being a cash buyer, which removes the often arduous process of dealing with mortgage lenders. Another option is to use bridging finance to buy your new home before your existing one sells but it can be complex and expensive. 

  1. Have a maximum budget that is your actual budget

The strategy of looking at properties slightly above your maximum budget and then offering under the sale price simply won’t work in the current market. Around 40% of properties are selling above the asking price and gazumping is more rife than ever. 

The best advice for today’s hot market is to view properties around £25,000 under your budget so that you have a financial buffer to enter any bidding wars with buying rivals, especially if you’ve found your dream home. 

  1. Prepare your paperwork

Assuming you’ve got a sale agreed on your own home or secured a mortgage in principle, you need to make sure you don’t hold up the transaction. There are a few ways to ensure you’re ready to proceed:

  • Have all ID (photo versions, such as a passport), paperwork (utility bills, wage slips etc) and proof of funds (bank statements) ready for both the sale and the purchase
  • Have a solicitor lined up to undertake the legal conveyancing
  • Be available for viewings – even at short notice – as you don’t want to miss the perfect buyer
  1. Sell yourself to secure the sale

The good news is that the highest bid is not always the winning bid. Your personal circumstances often come a close second and if you can sell yourself as a reliable buyer who is invested in the purchase, then you could position yourself as the front runner. 

Many vendors will try and find an emotional connection with you or want their house to be lived in by someone who will take good care of it or not disrupt the neighbours they’ve spent decades turning into friends! With this in mind, it’s good practice to put your offer in writing, stating your case as the best buyer. 

Words of warning: don’t overheat

The home-buying frenzy has led to some agents requiring buyers to sign exclusivity agreements and pay a non-refundable deposit. Any delays to the sales process and the vendor could look for an alternative buyer, potentially leaving you with no home and out of pocket.

It’s not a practice we endorse here at White & Brooks but if you find yourself in this situation, do contact us for advice. We manage chains for our clients so they’re always in the strongest position possible, and we can negotiate on their behalf when it comes to an onwards purchase.

Hot buyer or not, we’d be delighted to help you find your next home in West Sussex and sell your current property.

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