Why you should be buying a house in London – and why you need a local buying agent to help
Buying agents represent only the buyers’ interests, as opposed to estate agents, which represent the seller; plus many of the best properties in London are sold off-market
Trump’s fake news, the Brexit roller-coaster, climate change … We live in unsettled times. It’s not easy to forecast the direction of anything, let alone markets, and the prime central London residential property market is no exception.
Buying or investing at this time naturally entails some risk, but it also offers the potential for huge rewards. With 2019 prices down 20 per cent since the 2014 high and discounts of over 40 per cent for US dollar-based buyers, this is a tantalising time to invest in London property.
Recent research released by global agency Savills, suggests we are at the bottom of the market, so if ever there was a time to buy in London, it would appear to be pre-Brexit. How can you minimise risk and maximise rewards when investing in prime central London residential property?
Professionals who represent your interests
London may have a familiar feel to US buyers, but the property market operates very differently to the US. You will want to ensure you have the right team of professional advisers. A key member of your team should be your buying agent.
Why work with a buying agent? Quite simply, buying agents represent the buyers’ interests – and only those interests. Estate agents represent the seller, not the buyer. Unlike in the US, you must seek out and specifically retain a buying agent, usually with an upfront retainer fee, to have your own professional representation. Buying agents will also charge a small percentage of any completed transaction.
Buying the right residential property in London is a difficult thing to do for a host of reasons. The prime central London residential property market is competitive and complex in the extreme. It would be reckless to undertake what may be one of the largest financial transactions of your life without professional representation.
Estate agents prefer to deal with a property professional who understands their world and can negotiate objectively. Knowing the estate agents well through years of building relationships provides insights that ensure the best property is sourced and the best deal is reached.
It’s important to work exclusively with a single retained buying agent, rather than one who is only compensated with a success fee. When we engage in a property search for a client, we preview 50-60 properties before the client sees anything. We do extensive due diligence on the areas and individual properties. When an agent is not retained exclusively, they can’t afford to do this level of search, so you are not going to get the best out of them.
In addition to a buying agent, you will need a solicitor, valuer and surveyor. You should also consider a private banker, mortgage broker, tax adviser, accountant, wealth manager, currency trader, contractor, builder, planning specialist, structural engineer, damp specialist, interior designer, architect, and possibly even an education consultant, depending on your circumstances. The right buying agent will have a network of trusted service providers and can help you to find the best professionals to suit your needs.