The buy-to-let real estate market is very competitive because it’s a very popular investment option right now. Finding the perfect buy-to-let property is the first step, but you need to make sure that you get it.
When you are up against other investors that are also putting offers in, there is a chance that you will miss out on this excellent opportunity. The good news is, there are some simple ways you can improve the chances of your buy-to-let offer being accepted.
Research the market
Knowing what kind of offer to go in with is so important, which is why you need a clear understanding of the market. If you are new to investing in real estate, spend some time researching the basics of buy-to-let properties first. You also need to research the property market in that area and see how much similar properties are going for. If properties are staying on the market for a long time and selling for below asking, you are safe to go in with a lower offer. But if they are moving quickly and many are selling for above asking price due to competition, you need to go in with a serious offer if you are going to be considered.
Speak to the seller to find out if anybody else is interested and what their reasons for selling the house are. It plays in your favour if they need to sell the house quickly and they don’t have much interest.
Consider a bridging loan
If you are trying to buy a property in a competitive area, you have to move fast. But people often find themselves in a tough position if the purchase of the new property is dependent on the sale of a previous property. If you are unable to come up with the money for a deposit until you have sold the old property, you might miss the opportunity. Using short term bridging loans is the best way to get around this. They allow you to raise the money that you need quickly, so you can get an offer in right away before somebody else beats you to the post.
Start low but be realistic
It’s always good to start low when negotiating because if you appear too keen, the seller will just keep trying to drive the price up. So, going in a little under the asking price is fine and many sellers factor this in when pricing their home. They might just accept your first offer if you go 5-10% under the asking price, but if you are unrealistic and push it too far, they won’t take you seriously and they will just start negotiating with other buyers of their buy-to-let property.
When you are negotiating, you need a clear idea of how much you are willing to go up to. A lot of people make the mistake of letting their emotions get the better of them because they’re already invested in the property and they really want it, so they just keep increasing their offer. But if you pay too much, the return on your investment will be much lower and it won’t be worth it. So, set an upper price limit and stick to it, no matter what happens.
As long as you keep these rules in mind, you increase your chances of having your offer accepted on a buy-to-let investment property.