Even in Britain’s ultra-competitive housing market – where there are 11 house-hunters vying for every property – the highest bidder doesn’t always win.
New research shows nine in 10 (89%) house sellers favour buyers that are able to complete a purchase quickly, even if others are making bigger offers.
According to credit checking service ClearScore, 22% of sellers would definitely accept an offer 5% lower than the asking price if their buyer is chain free and has a mortgage agreed – the equivalent £10,366 on the UK’s average house price of £207,308.
A further 52% would consider doing so, meaning that only a quarter of sellers wouldn’t budge on price.
Buyers looking for more expensive properties have the most to gain by being as prepared as possible.
The research found that 88% of those selling houses worth more than £500,000 would definitely or consider taking a 5% price cut if the buyer is chain free with an agreed mortgage.
The top three factors which sellers say encourage them to accept an offer are:
- Proof the buyer can afford the property
- The buyer having a mortgage agreed
- They are chain free
Justin Basini, ClearScore CEO, said that with the chronic housing shortage it is no wonder those selling have the luxury of being picky.
“It’s not just about how high you bid, you must be seen as ‘buyer ready’. Buying a home is likely to be the single biggest purchase we ever make, which is all the more reason to ensure finances are in the best possible place before kick starting a housing search.
“I strongly recommend checking your credit report for any unexpected surprises at the outset, so you can begin the house buying process with confidence.”
Joel Baseley, company director at London estate agents Rampton Baseley, said: “We hear from our sellers that the thing they want most from a prospective buyer is for them to have their ducks in a row.
“People are willing to take a financial hit if it means more certainty and the process is likely to run smoothly. Knowing that the buyer has already been provisionally screened by a mortgage provider gives them the edge when buying a property.”
How to bag your dream home – Justin Basini
When it comes to buying your dream home, you have to sell yourself and that means getting organised in advance when it comes to finances.
It strengthens your offer by showing you have taken steps already to secure finance and will be able to act quickly. That means getting your credit score in order as early as possible to maximise your chances of getting accepted for the mortgage deal you want.
Getting a mortgage agreed in principle at the start of the buying process can show a seller and the estate agent that you are serious about a transaction.
And finally don’t apply for too many different mortgage products as each one will leave a footprint on your credit history and too many footprints can make lenders wary of you.
What Mortgage has teamed up with London & Country to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
