Buying a flat in London - could use some advice

rainbow_carnage

We started looking at flats a couple of weeks ago, and it's pretty clear that this is an enormous undertaking. The market in London is insane, but it's not looking like it'll get any better in the next few years, so we might as well take the leap.

I'm looking for some advice from those of you who have been there.

Open days seem to be the norm. You end up walking around the flat with 30 other people. I get the feeling that if you don't make an offer right then and there, someone will beat you to it.

Is this really the only way to do it? Are there any alternatives?

I've registered online with several EAs. Would it help to go down in person and meet them?

Considering that it's a sellers' market, surprisingly few people seem to be selling without an EA. Is there any chance of buying directly from a seller? I've heard of people putting leaflets through doors, but I've never actually met anyone who's bought that way. Could it work, or is it just a waste of time and paper?

Should I be looking at auctions?

We're looking for a 2-bed flat in the Walthamstow area, as is everyone else, apparently. I love the ex-Warner flats, but they've jumped up in price from about £270k to £350k.

Any advice would be very much appreciated.

ruggedtoast

There's no magic formula unfortunately. One thing I would suggest is trying to get a relationship going with the EAs so they know who are you are and are ready to promote you to sellers.

There seems to be huge demand at the moment in London but that doesnt mean that all, or any, of the other potentials at the open day are viable buyers.

JohnDoe1

Getting in an offer early doesn't really work as it usually ends up as sealed bids anyway.

I feel your pain as I'm in the same situation.

Everything seems to be on the market at 25%-30% higher than the sold prices of 6 months ago!

verulamium

Having bought our house in South East London just last year, my advice is to visit the estate agents in person. Show them you mean business.

You will need to stand out from the crowd, so be proactive and call them every few days, or better yet, visit every weekend. Get to know an agent by his first name. A keen buyer is a serious buyer, and if you are keen they will remember you.

Many properties in London goes on offer before it hits RM/Zoopla, so you could work this to your advantage. If an agent knows you are serious, they will call you the moment they get an instruction.

We've been there and we know how tough the market is. We lost out on a lot of properties, but it did give a chance to re access what we wanted (initially wanted a flat in a more central location, but ended up getting a house slightly further out).

Best of luck.

dominoman

I feel your pain! We've been looking over a year and could write a book on the subject now (it would be a depressing read).

Definitely get to know the agents. Be friendly and show you are knowledgeable about the process. If you are not 100% sure of the lingo or all the steps then buy a book and read these forums. Agents like people who are going to be good, easy, hassle free buyers.

Be the best buyer and you can get a property in the face of multiple other bidders. Have your proof of deposit printed off, as well as your AIP.

When you offer (don't do it on the day) attach your proof of deposit, your AIP and your situation without being asked. It saves the agent time and shows you are serious. Also say nice things about the house and how much you love their decor / garden / whatever you can find.

Promise to exchange within 3 weeks, if that is what they want (regardless that it is outside your control it shows an intention).

If you really like something try and get in before the open day. Either 1) call and say you are on holiday on Saturday so could you see it before or 2) knock on the door and say the same. Then, if you love it, offer 5-10% over asking price to have it taken straight off the market before the open day. They might...

Keep trying. You will find something.

rainbow_carnage

That's incredibly helpful. Thanks so much. I'll go make friends with some estate agents.

Should I make an appointment to talk to them, or just turn up?

silvercar

Make an appointment or you may end up being seen by the work experience student.

Having proof of funds and/ or a mortgage in principle agreed shows you are serious. Also some research to show exactly what you are looking for shows you are keen.

princeofpounds

Also say nice things about the house and how much you love their decor / garden / whatever you can find.

Then give them your firstborn child as an offering ;-)

Seriously, you just need to look competent and decisive, but not desperate.

Joking aside, yes visiting in person will be useful, most of the advice here is good.

But you ask for an alternative approach... how about being patient? Bull markets don't last forever.

It sounds like you don't live in London yet. If that's the case I would really strongly urge you not to buy without living in an area first, or at least visiting it regularly. The difference between individual streets can be huge and if you don't know the area you can get stung quite badly.

This isn't me cautioning you against house prices; that's up to you. But buying 'blind' is rarely sensible.

TrixA

We are currently in the process of buying a house in the same area, after looking for about nine months. A few tips I would suggest:

1) Our experience was that houses in this area (and I'm guessing flats will be similar) were routinely selling for 10% or more over the asking price. So don't waste your time looking at properties which are towards the top of your price range.

2) Because the offer process is so competitive and people end up bidding more than they can actually afford, our experience was that quite a few offers were falling through. Even if a property you were interested in goes under offer, keep it on your saved properties on Zoopla/Right move, and get in the habit of checking the list regularly to see if anything comes back on the market. If it does, be prepared to get on the phone to the agent immediately with an offer. Similarly, if a property you offered unsuccessfully on is slow to appear as Sold STC, don't be shy to contact the agent and let them know you're still interested. If the buyer is being slow to get finance etc in place it may be they'll be receptive to another offer.

3) Insist on submitting offers in writing, and use this as an opportunity to emphasise anything about you that makes you a desirable buyer (chain free, large deposit, mortgage agreement in principle, in a position to exchange quickly etc). This will show the agent you are serious, and in the event of several very similar offers could give you the edge.

4) Be aware that properties which look 'done' and ready to move into tend to attract massive interest, and therefore a price premium. If you go for properties that require a bit of DIY or haven't sold the first week they're listed you will be competing with fewer people. A lot of people are not that rational and will be attracted to a property simply because the owner shares their taste in decor, furniture etc, even though these things are relatively inexpensive to change.

Good luck.

rainbow_carnage

I've lived in London for the past 13 years. My husband has been here since 1998. We've always rented.

I can't recall a time when it hasn't been a sellers' market. Even during the recession, prices in our area went up by 10-15% each year.

I don't know how long the insanity will last, but I can't see prices dropping in the foreseeable future. At best, they'll plateau at a level above where they are now. The population is set to grow to 9m by 2020. It'll get a lot worse before it gets better.

BitterAndTwisted

What about cloo's house up near Blackhorse Road tube? It's a freehold two-bed, has a downstairs bathroom but definitely has development potential for when funds become available:

http://www.zoopla.co.uk/for-sale/details/32036236?search_identifier=6b78f44a9e646a5f45b38f4993c4f3c0

Freehold is always better than a leasehold......