Our Founder, Jennie Hancock, was interviewed recently by The Times for protective measures on how buyers can deal with badly behaved house sellers. Following a strong few years for the housing market, the industry has reported that some vendors (not all) believe they now hold all the cards, and are bending the rules and changing the goalposts at the last minute, often causing deals to fall through – even as close to when it’s time to exchange. Moving house is one of the most stressful and expensive things one can do in life, so for purchasers who are ready to exchange having paid for surveys, solicitors and other associated costs, it can be devastating financially as well as emotionally when a sale collapses. Of course, there are occasions when a vendor may have to pull out, but when they’re changing their mind for no good reason, it’s generally considered poor behaviour.

So what can buyers do to protect themselves from such a situation? Here are Jennie’s top five self-protection measures…

Offer a quick exchange and a long completion

I have long said that being flexible with a vendor on completion dates can often act in a buyer’s favour, and this is even more applicable in a market with a lack of stock and huge demand. Sellers can panic that they won’t have time to find a new property so pull out. This is especially pertinent with those in their sixties and seventies, who may feel reluctant to let go of a much-loved family home. So what we’re doing more of is a quick exchange to secure the deal, then a delayed completion date of six to twelve months. The critical thing is that the delayed completion date can be moved forward by mutual consent if needed to.

Engage a good solicitor

Engage a good solicitor who is going to be proactive, communicative, and excellent at moving things forward quickly. There’s nothing more off putting to a vendor than a buyer’s solicitor taking a long time.

Suggest a ‘rent back’ agreement

‘Rent backs’ are another good option to give sellers time to find the property they want too. This is an agreement between the buyer and seller that allows the seller to continue to live in the house after completion in exchange for rental payments for a set period of time. A typical scenario would be that we present a cash buyer to Mr and Mrs X, the vendors. We would then say to them ‘They are in a very strong position to buy your house, so if you’re not ready to move yet why don’t they rent it back to you for a year?’ This is often an attractive option for “the older generation of vendors. It stops them having to do a double move. However, it really only works when the buyers are mortgage free, because most residential mortgage providers would not agree to it.

Be a cash buyer

If possible, buyers should try and be cash purchasers. A vendor is less likely to walk away from a cash buyer because they are like gold dust in their eyes. Such purchasers can proceed quickly, are chain free and are less risk of the sale falling through because there aren’t any mortgage affordability tests to go through.

Retain a buying agent

Finally, find a good local buying agent. They will do all the fighting talk on a buyer’s behalf and manage any complications with the seller. Buying agents also provide vendors with reassurance that their client is a serious buyer due to all of the due diligence checks they have to do for proof of funding. This can help minimise the chances of a vendor messing around or walking away, tremendously.

For more information about how Property Acquisitions can help you find your next home in West Sussex, contact Jennie Hancock at info@propertyacquisitions.co.uk.

Our Director, Jennie Hancock, provides her thoughts on how recent years have transformed our lives and where we live.

Will there be a return to the City living again that many are discussing or will we continue our lives as we now know it in more rural locations with good Wi-Fi ? As demand still outweighs supply for the Chichester, Midhurst and Petworth triangle, and buyers purchase off market to secure the good properties and locations, I see this trend continuing.

I did believe after September and the mini budget we would see a fall in activity, but this hasn’t happened. With access to London from Haslemere in under an hour, this patch continues to be a favourite spot as 2023 clients are still very keen to secure those special village homes.

Perhaps we will see fewer under 50’s moving as the equity in their homes is likely to be smaller, meaning they will be hit harder with interest rates rising when they re-mortgage. Whilst more activity will be with those that own their homes or have relatively low mortgages on loan to value which enables their repayments to be less.

With good quality properties in our area and availability low, this is partly down to this area having three large estates – Goodwood, Cowdray and Leconfield – who between them, own a substantial amount of properties and land which are rarely sold. This can be seen as a positive though, as it means that the land around us is kept in excellent condition and being situated within the SDNP.

This is where the moving trends are at the moment, and it will be interesting to see how it continues throughout 2023 and hopefully these properties will kick start and encourage others. Buyers are seeking village or edge of village properties, within close proximity to a pub and a shop and for families, close to good schools, which we are also blessed with in this area. There are also plenty of buyers who sold their homes last year and are now in rented properties with cash in the bank.

I am very much looking forward to an interesting spring and summer ahead.

For more information about buying a home in and around Chichester, Midhurst and Petworth, contact Jennie Hancock on jh@propertyacquisitions.co.uk. 

It’s odd how different words can make a huge difference to our decisions and our thought process.

Having spent now 40 years in property and this year will be my twentieth year as a buying agent, I have watched the ups and downs and a lot of change especially recently: Brexit, Covid, and now the Economy.

We all forget where prices were only three years ago so why the word correction is not being used more is puzzling. We like to see our property investment rise by huge amounts, but when there may be a slight adjustment it is seen in a completely different light, perceived as a downward spiral or bad news which throws panic into our thought process.

For many of us our home is our one and only property, therefore it’s all relative with these ups and downs which we have seen before will see again. However, now is the time to negotiate and sellers are coming to terms with the expectation of taking a reduction.

In 2023, we will see a lot of house transactions in every walk of life as decisions have been delayed during the Covid pandemic especially. This has changed the way we think and work and now we have so many new opportunities, our location can be our new office for instance. Moving is in the forefront of our minds with many exciting prospects.

Acting for buyers and a life time of property knowledge in West Sussex, has resulted in being able to help prevent expensive mistakes which can be easily made without prior knowledge. The large majority of homes we acquire are quietly off market, and one of our main attributes is good negotiation skills and knowing the market inside out.

Whatever the reason for moving, careful thought and planning is necessary in the coming year and there is every reason why buying well is a possibility.

Having been in favour of sellers over the last few years, the property market in West Sussex is now becoming a buyers’ market, giving house purchasers more of an opportunity to negotiate on price. When to gauge the property market is always a game of chance, as none of us have a crystal ball. However, in my experience, often opportunities are missed as the tide turns like this, as a difficult market for sellers can prove to be a great opportunity to trade up as a buyer.

How many of us see a fall in prices and think they will not recover? History tells us they do. If we look at statistics year on year, property has always provided us with a capital growth of approximately 6-7% a year which isn’t a bad return (looking a ten year period with ups and downs). The only issue with this is as for most of us we are property rich and cash poor, but it has its advantages as we grow older as we can sell in retirement or have something to leave to our children.

If you are buying a similar value house to add value, or better; buying a more expensive home and trading up market (as long as you have done the maths on your mortgage repayments), then don’t wait for the market to be at its lowest. You may miss the current opportunity as the tide can turn back in a flash – as we have all experienced recently with the mini budget.

In the eighties and nineties moving was far more frequent, money was easy to borrow and stamp duty land tax didn’t exist, but the obsession with property over the past twenty years has grown and it gives us all a feeling of wealth and importance.  In my experience as an estate agent seeing the dip in the early nineties, then as a buying agent since 2003, then again in 2008; could 2023-24 offer us many opportunities if we are willing to grasp the nettle and see if history repeats itself?