Property Purchasers Buying After Just One 30 Minute Viewing

It is reported that 40% of property buyers are making the decision to buy after just one viewing according to U-See Homes.

Furthermore, 50% of those took 30-minutes or less with their viewing. That is a massive financial commitment without having the time to consider all of the implications of the purchase, whether you are buying a property to live in, or, are going to be renting it out.

Even for seasoned property investors, who frequently buy property to add to their rental portfolio, it can be difficult to fully assess a property in just 30-minutes. There are so many aspects to a property that can have cost implications on renovation and maintenance that can be missed if you are quickly walking through a property, such as the heating system, electrics, plumbing, glazing, doors, security, media, roof, plasterwork, paintwork, signs of damp, or, subsidence that can cost tens of thousands to remedy.

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Property FOMO (Fear of Missing Out)

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Buyers are acutely aware how quickly properties are selling, with the UK property market moving at is fastest pace in 5-years. It is taking 22-days on average for properties to sell, compares to nearly double that at 42-days in May 2019. Some areas are in such high demand, properties are selling before they reach the open market as traditional high street estate agents who sell re-sale property have large waiting lists for properties coming on the market.

Buyers are being impacted by FOMO, the fear of missing out, with one in three re-sale properties are selling for an average of £16,000 above their asking price, in response to the high demand and low supply creating an imbalance. We have also seen the return of gazumping, where property purchases are derailed by buyers offering more than the pre-agreed sale.

Buyers continue to reassess their living environment and regardless of the Stamp Duty Holiday coming to an end, they are continuing to move as they seek access to outdoor space and more indoor space to accommodate working from home and new hobbies and pets picked up during the COVID lockdowns.

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Are Buyers Making Bad Decisions?

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Buyers are being driven by FOMO and jumping in without really knowing what they are buying, which can be very risky.

You don’t fully commit to a property purchase until you exchange contracts, however, you will incur significant costs getting to that stage, as you will pay for legal fees, searches, surveys, mortgage application fees, etc., which can quickly mount up at the start of a transaction and aren’t typically recoverable if you pull out of your purchase.

Even worse, you could end up buying a property that needs thousands of pounds worth of work that you didn’t expect, or, budget for, in order to make it habitable.

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How Do You Avoid Competing with Home Buyers?

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These fast paced market conditions are mainly being fuelled by home buyers, as opposed to buy-to-let property investors, as they are more emotionally attached to the need to buy / move home and prepared to pay more than its worth to achieve their desired lifestyle.

As a buy-to-let property investor, it makes no commercial sense to pay more than the property is worth as it will erode your returns from rental income and capital appreciation.

Purchasing properties during construction, or, pre-construction can offer many commercial benefits for property investors keen to get a deal.

Property developers are under pressure from their lenders to sell a proportion of the development pre-construction; therefore, are prepared to offer buyers good levels of discount off of the market price. They also sweeten the deal with various incentives, such as free legal fees, furniture packs, interest accrued on any deposit money and in some instances, rental guarantees.

Properties can be reserved exclusively for you, with a small reservation fee to avoid losing out. As there are a number of properties available, you don’t have to rush and make a decision within 30-minutes and have the luxury of being able to ask as many questions as you like to feel comfortable with your purchasing decision.

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Register your interest in buying off-plan property today by completing our quick and easy 60-second questionnaire and our property experts will be in contact with a variety of options that meet your investment criteria.

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