There are only two more weeks left before we say goodbye to another year, and for many, that might be much-welcomed news after the last 12 months. If you’re on your property journey, take this as your sign to keep going. Whilst Christmas can be a season of stress, there are some things to be hopeful for. We hope this article of top tips will help you to increase your buying power.
For one, things start to calm down a little around Christmas, meaning now is the perfect time to put your current home on the market. Traditionally, interest grows in January as prospective homeowners plan to kick start the new year with a new property. As a matter of fact, Right Move suggests the post-Christmas ‘surge’ can begin as early as Boxing Day! Starting the process now will put you in a fantastic position to increase your buying power.
What is buying power?
If you haven’t heard the term ‘buying power’ yet, let us help you out. Buyer power is when you are in the best possible position from a competitive standpoint – maybe you already found a buyer for your present home, or perhaps you don’t need to sell at all. Regardless, putting your home on the market will let sellers know that you are serious about moving. Having more buying power than your competitors gives you the upper hand when you are ready to put an offer in. Read on in this blog post to learn our top tips to increase your buying power!
Don’t forget, there is still a national shortage of homes for sale, so take every opportunity you can to increase your competitive advantage. If it comes down to negotiating with a seller for a home you want to buy, buying power will put you in a strong position.
Buying your first home?
If you’re in the unique position of buying your first home, first of all, congratulations! This is a very exciting [and probably stressful] time, and if you’re reading this blog post there’s a chance you probably want to learn as much as you can about buying and selling.
You don’t want to find yourself in a position where your dream home comes along, but another buyer snatches it up before you even have time to contact your agent about the listing. One way to avoid this scenario is by getting a mortgage in principle from your lender. This will save you valuable time later.
Jacksonheim Invest top tip: hold your cards close to your chest when it comes to putting an offer in on your dream property! Don’t let the seller know just how much you’re interested, should they choose to hold this against you and push a hard bargain.
What is a mortgage in principle?
A mortgage in principle, also known as a decision in principle (or DIP), is essentially a written indication from your lender as to how much money they are willing to borrow you. This may be calculated based on your income, spending habits, and any debts you may have.
Whilst having a mortgage in principle puts you in a very good position when it comes to buying, it is also worth noting that this does not always guarantee you a mortgage. Always check with your lender that your information meets their criteria.
Stand out from all the rest
According to Right Move, the level of buyers interested in the market is currently 4% higher than it was before the Covid-19 pandemic, meaning competition is higher than it has been in a few years. One way you can make yourself stand out is by getting all your paperwork in order before the rush begins in January. A conveyancer can help you with this! For all you newbies, a conveyancer in basic terms is someone who specialises in the legal aspects of buying and selling a property.
Paperwork can take a while to process at the best of times, never mind over the Christmas holiday. Give yourself that headstart and source your conveyancer today.
Jacksonheim Invest top tip: be careful putting an offer in on a property being sold for more than it’s worth, no matter how much you want it!
About Jacksonheim Invest
Jacksonheim Invest is a cutting-edge property asset management company in Manchester that provides end-to-end service for investor’s looking to maximise their property investment returns. We use our extensive knowledge and industry experience to target a specific demographic of property, applying smart design and refurbishment to tired, unloved homes. Find out how you can become a property investor here.
