Tradition is a wonderful thing, and in the UK we do tradition as well as any nation in the world.

But I also think it is important to challenge the status quo. When we blindly accept the way something has been done in the past as good reason to carry on forever the process inevitably becomes outdated, not fit for purpose and will have a bias towards unfair outcomes. This is very much the case for house buyers buying a property in England.

Buying and selling a house generally involves 3 people: the seller, the estate agent and the buyer. Traditionally, the estate agent would place an advert in the local newspaper, and the buyer would contact them to make a viewing and might eventually make an offer. The price is set by the estate agent, intended to appear to be a fair indication of the property’s value. In reality, the agent is usually setting a price to please the seller – but in any case, it sets a marker for the buyer when making their offer.

The only difference between this historic process and today’s is that adverts are now placed on website portals rather than a newspaper. It is otherwise unchanged. What remains the same is that the asking price is set by an estate agent, who is paid by the seller, motivated by winning the opportunity to list the property, and whose role is to attain the highest price to maximise their own commission. They are the only professionals involved in this process, and they are working to support themselves, and the seller.

Who is representing the buyer? No one.

In this dynamic, it is perhaps not surprising that research shows that 1 in 3 houses listed for sale are overpriced.  But how would a 1^st time buyer, or single parent buying a property for the first time in 10 years know which property is priced correctly and which is inflated?

The value of a house is determined by a multitude of factors including location, square footage, condition, age, proximity to amenities such as a train station, shops and good schools to name just a few. Unless you’re are local property professional its extremely difficult to work out, from scratch, the actual value of a property.  So the selling agent has a massive upper hand, as well as a psychological advantage by putting the onus on the buyer to challenge the listed price.

In almost every other industry there would exist an equal and opposite to the selling agent who is working on the buyer’s behalf. Sadly, in the UK buying agents are generally only employed by those looking for expensive city pads or country homes, and consequently their fees run into the thousands. The house buying system in the US is much fairer. Both the buyer and seller will independently instruct an agent, known as a Realtor, and each works to secure the house at a fair price.

It’s so important, therefore, that every buyer is aware of the steps they can take to avoid overpaying for a house in the UK. Here are my top tips to getting the best deal for your purchase:

1. Establish how long the property has been on the market. A house that remains on the market for more than 8 weeks risks becoming stale and is likely to be have been overpriced.
2. Look for motivating factors which might mean the sellers are willing to accept a reduced offer. A divorcing couple may be more motivated to sell to move on with their lives compared to a retired couple who are in no hurry to sell.
3. Obtain comparable evidence – the price similar local houses have sold for. There are many websites that list the actual Land Registry sold prices so check and compare these before making an offer.
4. Work out your upper limit. It might sound obvious to work out the maximum price you can afford or wish to pay before calling the agent, but having this red line in mind, and sticking to it, will help you to avoid paying a premium for a property you are emotionally attached to.
5. Downplay your love for the property. No matter how interested you are in a purchase, remember you are in a negotiation. Assume a professional but semi-formal tone, and don’t express your attachment to the property. If you’ve seen other houses, or intend to, make the agent aware of this.
6. Demand a swift decision from the seller. It’s important to avoid your offer being used to leverage other buyers, or end up being strung along while they wait for other offers. Avoid making offers on Friday as you won’t hear back until the following Monday or Tuesday which will play havoc with your mind over the weekend, fuel anxiety and tempt you to increase your offer by Monday!

Alternatively, you can employ our expertise at Savvy Property Buyer. We’re determined to rebalance the process, acting firmly on the side of house buyers. Once our client has found a house they wish to buy we view the property, undertake extensive due diligence and negotiate with the agent dispassionately to secure it at the lowest price, and the best terms for you and the property you are buying. We think that’s the fairest way to operate – and we would love to see more of this balanced approach in the UK property market.