Do you like the thought of overpaying for a property?
Would you be happy if you missed out on the top ten best properties you could buy within your budget?
I expect not.
And yet, the majority of buyers manage to do one if not both of the above. There are several reasons for this which I reveal in my book, The Insider’s Guide To Acquiring £1m to £100m Property in London (if you don’t already have it, please email email@example.com to request a complimentary copy).
I expect one of the key reasons is that most buyers think that they can find everything by just looking at the websites. And in some cases, this will be true because the best opportunities often hide in plain sight.
“Hide” being the operative word because we often acquire properties that are on the websites that are somehow overlooked by everyone else – either they don’t physically view the properties or, even more inexplicably, they do view them and still don’t realise what they are looking at.
I mention this because there are two properties on the open market that I have inspected recently which are best in breed properties but are being overlooked by buyers. One is a large house that I will be showing one of our clients. The other is a flat for which I don’t have a client at the moment but will be strongly recommending it when I do.
The flat is a little overvalued but it is very clear that they will accept an offer. And yet, it remains on the market while inferior properties are being bought.
I see this on almost a weekly basis. Buyers missing out on the best opportunities and overpaying for average properties.
And what I am about to say is going to sound incredibly crass, but be honest with the answer to this question: if you are looking for a property ask yourself this – “how will I know if I am looking at a great property/opportunity?”
Most people answer by saying “I’ll know it when I see it” and in some cases it will be stunningly obvious. Unfortunately, these are the properties that tend to invite bidding wars (especially in this market). But, very often buyers don’t know it when they see it, i.e., there are many good opportunities that are, apparently, less obvious.
Admittedly I have personally inspected 23,000 properties, studied the details of over 150,000 more and negotiated hundreds of millions of pounds worth of acquisitions for our clients, so I have a frame of reference no-one else has but I am not especially gifted, so it stuns me how myopic people seem to be.
Of course, it may not bother you if you miss out to other buyers and acquire an average property – in which case congratulations on being so relaxed – but if you would rather find the best home or investment that your money can buy, it is essential that you know what a good opportunity looks like otherwise you will fail.
As I have said, this may sound crass and simplistic, but that doesn’t make it any less true.