7 Mistakes To Avoid While Buying Prime London Property
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f you are planning to acquire a property in one of London’s internationally renowned addresses then you have one goal: to buy the finest property available on the best terms possible. In order to achieve this goal, you need to exercise the same care and attention you would when making a major investment.
Unfortunately the London property market is rigged against buyers. This is true whether you are born and bred in London or if you are based verseas.
Consequently some buyers literally throw away hundreds of thousands of pounds, and in many cases millions, by making a few basic mistakes. Fortunately many of these mistakes are extremely simple to avoid.
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The Prime London Property Market
Prime Central London consists of a number of neighbourhoods including Knightsbridge, Belgravia, Mayfair, Kensington, Chelsea & Notting Hill. There is a stunning array of modern and classical architecture, which attract the most discerning buyers. Eaton Square, Chester Square, Egerton Crescent & Park Lane have been internationally desirable addresses for centuries. More recent developments such as The Knightsbridge, One Hyde Park and Montrose Place provide 21st century facilities – spas, concierges, underground parking & 24 hour security – for those requiring a family apartment or London base without the concerns of maintenance and other tedious issues associated with classical buildings.
Unfortunately, you can make some hugely expensive mistakes when acquiring one of these properties. Although the prime central London property market is mature, it is biased against buyers. However, if you understand how the London property market works, then you can use the system to your advantage.
Although it is incredibly obvious, very few buyers realise that they are at a disadvantage. This is because it is the status quo, the way buying and selling property has been handled for centuries. Many assumed that, with the advent of the internet and property websites, the situation would improve. In fact this has probably led to most buyers becoming more complacent and even less thorough in their search.
In fact research by The Financial Times has discovered that the average buyer only spends 96 minutes viewing properties before they buy – This is 43 minutes less than people typically spend deciding on where to go on holiday or which computer to buy.*
If you follow the same strategy, the probability of you finding the best property available is extremely low. In fact, relying on the internet could prove fatal as you will learn later. When buying property in London the 2% rule definitely applies: 98% of buyers do the same thing and so buy poor or average properties. Going along with the herd simply isn’t an option. Fortunately for you, you can be one of the 2% who turns this situation to your benefit.
Why Are Buyers At A Disadvantage?
The reason is simple: estate agents. The majority of property in London is sold through estate agents. This is hardly a revelation. The problem is that most buyers forget the real role of the agents.
It is essential that you remember the following:
• Estate Agents Are Employed By Owners – they are legally obliged to sell their clients’ property for the highest price possible, on the most favourable terms possible. They only have a “thin legal duty” to buyers.
• You Are Not The Priority – Each agent can have over one hundred buyers registered with him/her. As friendly as the agents may be, they are not concerned who buys the property as long as a high price is achieved for their client. Their focus is not to find you your perfect home, but to sell one of their clients’ properties to you.
• Each Estate Agent Can Only Show You A Small Percentage Of The Properties Available – The agents can only show you the properties on which they have been directly instructed. Therefore you need to be registered with every suitable agent to ensure that you do not miss out on the best
opportunities (it is true that some properties are shared amongst the agents. However, these tend to be the properties that they are having trouble selling).
• The Finest Properties in Prime Central London Rarely Reach The Open Market – You need to be able to source those exclusive “off market” properties that the average homebuyer never even knows exists.
This is why acquiring a home is rarely the enjoyable, exciting experience that it should be. If you follow the route that the typical buyer takes, you will find it an unbelievably time consuming and frustrating battle.
Of course, if you are based outside of London or are simply extremely busy, the problems are exacerbated: it is harder to discover all the relevant agents and to stay in regular contact. In addition it will also be very difficult to view properties.
Therefore the estate agents are more likely to contact other buyers about the best properties before they call you (it is a simple fact that they will be more likely to earn their commission by focussing on clients who are easy to contact and can view properties quickly).
Now you might be busy but you must find the time to carry out the necessary research to find the finest property in your criteria and ensure that you are not paying an excessive price. Most buyers fail to plan their acquisition.
Therefore they actually spend more time than is necessary, fail to find the best properties and end up making an average purchase at a high price. Fortunately, you can avoid these issues by following seven simple steps to ensure that you make an astute acquisition.
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