Property experts share how to find off-market homes and avoid ‘money headaches’, as prices boom

The recently ended stamp duty holiday, coupled with potential buyers having saved more money during the pandemic, has led to an increasingly fast housing market, with properties being snapped up immediately – and, in some cases, before they have even been placed on the market.

Astonishingly, a recent study on house prices across the UK has revealed that a quarter of properties have recently sold for £30,000 to £40,000 more than originally asked. Often, these increased prices are the result of desperate buyers who are bidding against large numbers of others in the same position.

So how can you ensure that you won’t be caught out by the rising price of incessant bidding wars?

Money.co.uk teamed up with Sophie Cope, an expert at Mojo Mortgages, who revealed just how you can find yourself a dream property and reduce the competition when it comes to offers.

Sophie Cope, home buying expert at mortgage broker Mojo Mortgages, said:

”Before viewing any property, it’s important to do your research to get a rough understanding of its market value and not be swayed too heavily by other factors such as pressure from the agent, emotion, or current market conditions. Yes, offering 10%+ above the asking price is likely to result in a successful purchase, but it could end up coming back to bite you in the future when going to sell the property.”

In order to get ahead of the game, here are three tips you can employ to reduce the competition amongst other potential buyers where possible.

1. Network with your local agents

If you’re planning to view multiple properties in your local area, you’re going to become accustomed to regular calls and meetings with many different agents, so it makes sense to build and develop these relationships as early as possible.

Now that restrictions have been lifted, one of the best ways to do this is to pop into your local estate agent and get to know the agents and put a face to the name. This is also a prime opportunity to ask about properties due to come on the market imminently and express your interest. If an eventual seller needs a quick sale, the pressure on an agent can be dramatically reduced knowing they already have a potentially interested buyer in line – particularly if you have no chain and want to move quickly!

2. Maintain a strong relationship with your neighbours

It may sound obvious but another effective way of finding out when properties are due to come on the market near your current residence is to keep in touch with your neighbours. Mention that you are on the hunt for another house nearby and you may be surprised how often someone has heard of somebody local that’s looking to move in the near future.

Don’t be afraid to ask for an ‘in’ to any potential sellers ahead of the property going on the market – having conversations with the seller ahead of the sale formally going to market could save both buyer and seller thousands of pounds.

3. Keep an eye out for new developments

Look out for construction notices that may indicate building is due to commence in the area in the coming months, as this can often be the trigger point for those that have been thinking of moving for a while to finally up sticks.

This could be the development of a new retail or business park, school, or leisure facility – something that may benefit one homeowner but is seen as a hindrance to another.

Nisha Vaidya, mortgages expert at money.co.uk, added: “When buying your dream home it can be devastating to lose out because of a higher offer from another buyer and all too tempting to go in with an even higher offer to secure the property. However, you must be careful to not overstretch yourself financially in the race to collect the keys.

“A mortgage is already a large financial undertaking that you are committed to for a significant time period and to push yourselves to the very limits of what you can pay could lead to money headaches in the months to come. Always make sure you have done a full budget and financial plan before counter offering and be willing to walk away if the property becomes unaffordable. It’s a bitter pill to swallow but will save you from money misery in the future.”

We hope that these tips from money.co.uk and Mojo Mortgages can help potential buyers get their foot in the door and secure the perfect property without hassle.