Buying New Versus Resale Property
Real estate agents offer advice and guidance for people buying a new home. One question you might be asking is whether you should buy a new build home or resale property. There are advantages and disadvantages to both new homes and resale property. Here we explore both.
Choosing between a new or resale property will depend on both your circumstances and your future plans for your property. Ask these questions of your estate agent:
- Are you planning to renovate the property to increase its value?
- Do you want to move to a property that doesn’t need any work?
- Would you prefer a period property or a property of a specific style?
- How much does energy efficiency matter to you?
- Do you want to use the latest technology?
- Does a property chain matter to you?
New build property is often much more convenient for buyers with many developers contributing towards Stamp Duty and even deposits. Many also come with a 10-year guarantee.
In contrast, resale properties offer the buyer the chance to increase its value through renovating and decorating the property. This can give buyers a greater chance to move up the property ladder later. They may also have more character and history, a selling point with some buyers. With an older property, there is also a greater chance to create a sense of your identity within the property.
Making An Offer On A Property
Estate agents are on hand to help you through the process of making an offer on a property.
After attending viewings you have found a property you would like to purchase. It’s time to enter an offer. Before leaping in with the full asking price, it’s a good idea to set some ground rules for your negotiations. You may also want to look into different strategies, like cost segregation, if you have a portfolio of property and want to ensure your money is working for you. Companies like tri-merit.com can help with this.
The ground rules you set with your estate agents will depend upon your own circumstances as well as how keen you are to secure the property you are bidding on. Start by working out the maximum price you are willing or able to pay for the property. Set this before your negotiations, making sure the estate agent is fully aware of this.
Bear in mind if going below the asking price you need to leave yourself room for negotiation. Learn as much as you can about the area’s property market beforehand. Remember the estate agents are in essence working for the seller, as helpful as they will be to you.
Discuss the price and price history of the property, how long it has been on the market and whether the seller needs a quick sale. Bear in mind that your own situation will influence a seller’s decision to accept your offer or not. You might have the edge if you are chain free, have already exchanged on your previous property and/or have a mortgage offer on the table or are a cash buyer.
Making an offer is done by calling the seller’s estate agent and making an offer via them. The seller’s decision to take a property of the market can largely depend on your buying position but most will agree out of goodwill.
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Ken Boyd
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