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How to become a power buyer in 2022, a new article from Jameson and Partners estate agents in Altrincham

How to become a ‘power buyer’ in 2022

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How to become a ‘power buyer’ in 2022

The past 12 months have taught us a lot. But one of the main things is that in today’s market, it’s easy to  feel powerless as a buyer. We know the frustrations felt by many buyers as they are being outbid and losing out on their dream homes. With low stock and high demand, we’ve noticed a change. And that is most of our sellers are choosing to sell to ‘power buyers’.

We have compiled a list of criteria which vendors are looking for in a buyer. Of course we cannot guarantee these steps will lead to an offer being accepted. But they will increase your chances.
So, how can you become a ‘power buyer’?

There are a number of ways you can put yourself in pole position to secure your dream property.

If using a mortgage to fund your purchase, get an agreement in principle
An agreement in principle is a certificate your lender or mortgage advisor will provide you with.  You can show this to your estate agent to prove you can obtain a mortgage and follow through with your offer. This is a requirement we need to see proof of, along with evidence of your deposit, to ensure the offer you are making is one you can follow through with to completion.

By obtaining an agreement in principle prior to making offers, you will save valuable time. This will also give you the most accurate idea on your affordability.

Many buyers use lenders ‘affordability calculators’ to test what they can afford; however, these are not always accurate. Many factors can influence what you are able to borrow. This includes credit score, other loans previously taken, your employment status and how much deposit you have saved. All of which these calculators do not consider, and why your estate agent will not accept these as proof you are able to obtain a mortgage.

Get a sale agreed on your current home before you buy
Are you thinking of selling your home in order to move? If yes, then we implore you to put your home on the market as soon as possible. Many sellers are choosing buyers with sales already agreed. This is because they are in a ‘proceedable position’. A seller will not have to wait for you to find a buyer or wonder how long of a chain you may have connected to you. If you have a sale agreed on your home, it will ensure you can move quickly and avoid delay.

We have found that some are opting to sell their home first and then move into rented accommodation so they can take their time looking for their next property and be ready to move fast when the right home comes up. Whilst this may not be for all, it gives you the ‘chain free’ title that many sellers look for, making you a power buyer.

Let your estate agent know if you’re a cash buyer
Cash buyers are attractive to sellers for a number of reasons. If you don’t need to sell a property in order to buy, you’ll straight away be more attractive to vendors. Having a connected chain does inevitably cause unforeseen hold ups. It also gives a greater risk of the chain falling through, and therefore a seller at risk of losing their buyer.

Cash buyers have the advantage of not being tied to mortgage lenders. Mortgage valuations can cause minor hold ups, depending on the level of demand at the time you purchase. They can down-value the house or even decide once seeing, they will not lend whatsoever. Whilst this is not the case for everyone, it is a risk that some sellers would rather not take, especially due to the number of houses that have reached sale prices much higher than the asking price, due to the level of demand.

If you’re keen to sell your current home and capitalise on buying your next dream property as a power buyer, get in touch. Our professional team of property experts can advise and help see your property sale through, all the way to completion. Contact us today