We’ve had power dressing, the power lunch and even power walking but have you heard about the power buyer? It’s a phrase recently used by property portal Rightmove to describe purchasers who are in the strongest position possible.
As we move into 2022, becoming a power buyer will increase in importance. Expert forecasts for the months ahead are in agreement – moving activity will continue, buyers will face competition from rival purchasers and sellers will prefer offers from those who can proceed without drama and delay. Have you got what it takes to be a power buyer?
The value of the offer is important….
As well as reflecting a home’s value, finish and desirability, the asking price will play an instrumental role in the owner’s next move. In almost every case, the seller’s onward purchase and potentially how much money they need to borrow will hinge on the offer they accept. A power buyer will offer as close to the asking price as fairly possible.
….but it’s not everything
As an estate agent, it’s highly unlikely that we’ll encourage sellers to accept the highest offer without investigating the potential buyer’s wider circumstances. One of the first questions we ask anyone hoping to view a property is ‘do you have a property to sell?’. If the answer is yes, we’ll ask if the property is under offer.
These questions relate to time and proceed-ability. A power buyer will already have their home under offer so they’re ready to hit the ground running and won’t risk delaying the transaction. Remember, even if a buyer offers way over the asking price, they may be overlooked if their own property isn’t on the market and this can draw out a transaction for weeks or even months.
It’s behind you
A chain, that is. Power buyers realise that getting caught up in a long chain isn’t what any seller wants, so they make themselves as chain-free as possible. Of course, first-time buyers are naturally chain-free but some power buyers will sell their own property and move into rented accommodation as a temporary measure. This makes them chain-free when they decide to make their next purchase.
Some of the most powerful buyers are those who can purchase with cash. By having money in the bank, they sidestep the mortgage application process and remove the risk that they may be turned down for finance. For a seller, a cash buyer represents a quicker, simpler transaction.
The majority of buyers, however, will need a mortgage to purchase a property but there are two simple steps people can take to move them into the power buyer category. The first is to have valid evidence of your deposit and the second is to have a mortgage agreement in principle. Both of these should be in place before a buyer starts looking for a property.
Sellers will sit up and take notice of purchasers who are sincere, open and reliable. That means turning up to pre-booked viewings (preferably on time), putting forward sensible offers and not making outlandish demands. Building the best ‘power buyer’ picture also includes having a solicitor instructed when an offer is made, showing flexibility when it comes to a completion date and taking a genuine interest in the property for sale.
If you would like more advice about how to become a power buyer, contact our team today.