According to the property experts at Rightmove, the UK housing market is likely to return to a “closer to normal level” in 2022 after a very frantic 2021. They anticipate that more properties will be listed for sale in 2022, providing buyers with more options.
That said, sustained strong buyer demand means that competition for available homes will still be fierce.
So, if you are looking to move in 2022, how can you get ahead of the competition and increase your odds of scoring the property you want? Read on to find out.
[top_pitch]
Becoming a power buyer in 2022
According to Tim Bannister, property expert at Rightmove, “To be in pole position in the race for the best property, you need to have greater buying power than the rest of the field.” In other words, you need to become a power buyer.
But what exactly is a power buyer?
In simple terms, it’s someone who is in the strongest possible position to buy. It could be someone who:
- Already has a buyer for their current property
- Is chain-free
- Has no need to sell in order to buy
Sellers will prefer such buyers because they are more likely to proceed quickly, without drama or delay.
So how can you become a power buyer and get ahead of the competition in 2022? Here are three useful tips.
1. Get a sale agreed on your current home before you buy
Unless you’re a first-time buyer or have a large sum of cash to hand, you’re likely to have to sell your current house before purchasing the next.
However, many buyers are hesitant to list their current homes before they have found somewhere to buy. Waiting might not be the best idea. If you don’t already have a buyer for your current property, you could be up against other buyers who have, and sellers and their estate agents could be less likely to take your offer seriously.
So, if you are going to need to sell your current home in order to move, you should not only put it on the market as soon as possible but also try to agree a sale, according to Rightmove. This will put you in a much stronger position as a buyer.
It’s natural to be worried about where you will live should your property sell before your purchase goes through. But a short time with family or friends, or a brief move into rented accommodation could be preferable if it helps you secure your next home.
[middle_pitch]
2. Get a mortgage in principle if you are a first-time buyer
Another way to move into the power buyer category is to provide valid proof of funds to pay your deposit and to have a mortgage in principle.
A mortgage in principle, also known as a decision in principle, is basically a statement from a lender saying that, in principle, they are willing to lend you a certain amount of money, subject to you passing full affordability checks.
Having a mortgage in principle essentially proves to a seller and their estate agent that you are capable of obtaining a mortgage to cover the cost of the property.
3. Let your estate agent know if you are a cash buyer
According to Rightmove, cash buyers who do not need to sell a property first in order to buy will be much more attractive to sellers. So, if you intend to buy your home in cash, inform your agent that you are ready to act quickly.
Looking for more information and guidance on purchasing a home in 2022? Take a look at our other helpful articles, including:
