There has been a general softening in residential property prices across many parts of the UK, according to some estate agents, which, if accurate, presents canny investors with a genuine opportunity to bag a bargain before prices inevitably recover, but prospective buyers are being warned not to make ‘silly’ offers.
With the residential property market reopening for business, investor confidence in the buy-to-let sector is starting to improve with a growing number of landlords reportedly looking to take advantage of existing market conditions and potential bargains by preparing to add to their property portfolios this year.
Various property experts believe that there is plenty of room for negotiations when buying property, which is welcome news for some property investors, especially those who expect to see long-term capital growth.
“There are a number of buyers out there, and we see them registering every day on Rightmove, who are perhaps looking for an opportunity, call it a fire sale or whatever they want to call it in this market,” said Lucy Pendleton, co-founder of London-based James Pendleton estate agency.
Speaking on a ‘Lessons from Lockdown’ Rightmove webinar for property professionals yesterday, Pendleton said purchasers who were genuinely interested in a property were shooting themselves in the foot by putting forward ridiculous bids.
She had this message for prospective buyers: “Don’t see this [existing market conditions] as an opportunity to make silly offers, incredibly low offers, as it might not put you in good stead if you actually want to buy this property.
“No vendor is going to listen to you if you’ve come in so significantly under the asking price.”
Pendleton insisted that now is not the time to “flex your negotiation muscles without there being any data to substantiate your approach”.