Luxury Real Estate in London |
You have two main goals when acquiring luxury real estate in London:
- To find the best property your money can buy.
- To acquire it for the lowest price possible (assuming that is a good price).
But how many people do you think manage to achieve this?
Well, research by Savills showed that between 2005 and 2013 the top decile of properties increased in value by 190% while the bottom ten percent only increased by 63%.
While achieving that 190% increase is unrealistic in most areas and price ranges, it is true that in every area and budget there will be properties that are much better than others and common-sense dictates that only a tiny percentage of people will purchase them.
So how will you be one of the select few to acquire what I call “Best in Breed Properties”?
Do you think that doing what every other buyer does will give you an edge? No, probably not, so what are you going to do differently?
Questions and facts to consider…
Here are a few questions and facts to consider which will give you an insight into the most expensive mistakes you will make when buying luxury real estate in London:
- Research by Hamptons showed that over 30% of properties priced over £1m in London were sold off-market. How many of these do you think were the best opportunities and how will you find off-market properties?
- If you are relying on property portals and “property alerts” does this give you an advantage over other buyers or are you just joining a virtual queue? Would it be a bad idea to hear about price reductions before they are announced on the websites for the world to see? Do you know how to do this?
- Price per square foot valuations are a blunt instrument. They don’t take into account location, quality of refurbishment/décor, outside space, orientation, ceiling heights, quality of the building, etc, etc. – do you know what affects prices in each street for each style and size of property?
- If you don’t have a clear understanding of valuations how do you expect to negotiate intelligently? The lowest price you can negotiate – even if you have achieved a significant price reduction – may still mean the property is massively overpriced. Will you become a victim of “anchoring”? If you don’t understand this psychological term in negotiations be very wary.
- What is the easiest way to achieve a price reduction and give yourself an advantage in every negotiation? This is vital to know and has allowed me to negotiate purchases for our clients where we did not put forward the highest offer, but the sellers still decided to sell to us.
- Numerous studies on negotiation have proven that logic is not the determining factor when negotiating successfully. Do you think that making arguments based on pound per square foot valuations is the best way to negotiate? If not, how will you negotiate successfully?
- Do you understand the role of the agent and how can you use this to your advantage?
- Between 20-25% of purchases fail to proceed once a price has been agreed. Do you know what the main causes of failure are and how you can minimise, if not eradicate, these?
These are just a handful of things that you need to consider when acquiring luxury real estate in London. If you don’t know the answers to them do you really think you will find the best property your money can buy and acquire it on good terms?
And this isn’t just mere theory, these are the strategies and tactics that I have been using for over 20 years to acquire some of London’s finest homes and investment opportunities for my clients.
“What I found most impressive was that the asking price of this apartment was just 2/3 of the upper end of my budget… His initial offer was much lower than I would have made despite the fact I handle negotiations as a regular part of my job. Indeed, the strategy he devised meant that I acquired the property at a favourable price and for less than the maximum price we had targeted, once again showing that he had my best interests at heart.” Mr M Stoleson (Belgravia)
“Jeremy handled the negotiation to achieve a discount to the asking price, so we now own an exceptional apartment that has cost us less than inferior properties have sold for in the same building.
Frankly, we would not have even visited this property and would have missed the opportunity if Jeremy had not been representing us.” Dr & Mrs Stelter (Marylebone)
Contact Mercury Homesearch
Of course, everyone’s specific requirements and situation are different, so if you are serious about acquiring luxury real estate in London but have reservations or concerns that you want addressed, you can request a complimentary Strategy Call with me.
The Strategy Call is a diagnostic consultation where I analyse your requirements and the plan you have to acquire a home or investment property, to highlight mistakes you will make to help you make an astute acquisition rather than an expensive blunder.
And don’t underestimate how big a mistake you can make. I have seen poor properties bought when there were considerably better options, for the same price or less, literally just around the corner. And I have seen properties being bought for 25-30% over fair value.
If that doesn’t bother you, then good for you. But if you would prefer not to be fooled into making a bad purchase and would like to make a more intelligent decision, you can request a complimentary Strategy Call by simply clicking here, emailing my assistant Dee at email@example.com or calling 02034578855 (+442034578855 from outside the UK).
Whatever you choose, please focus on the Best in Breed properties.