7
Nov
Principally speaking...
Standing on principle can be an expensive position to adopt when
buying and selling property. In a level or falling market hanging
out for a high price because - in one's own view - it is worth it
can often backfire, because a property which is too highly priced
can look out of step with the rest of the market. Can sellers
really know what their properties will fetch? Surely they are worth
what others will pay for them. Property purchase and sale is seldom
an end in itself. It usually forms part of a life-changing event
such as gaining independence, committing to a partner, starting a
family or reaching retirement. These events are bigger than any
property in the scheme of things. So standing on principle can
sometimes stand in the way of moving on. We have just had two
fairly good years of rising prices. We have got used to this. But
all good things come to an end - until the next time. Despite the
lowest interest rates and some of the best mortgage deals in living
memory the property market is showing signs of cooling. Some prices
set in the spirit of acceptable optimism earlier in the year are
beginning to look decidedly over-inflated now. And, as any skilled
negotiator will tell you, one should always open realistically. A
general election is on its way, the European economy again looks
worrisome and Christmas is round the corner. If you have any big
personal or family events which involve property purchase or sale
now is the time to be reasonable about your expectations. Listen to
buyers, listen to the market and listen to your experienced estate
agent. Listen to your heart - and not your wallet. Wallets make
poor property advisors. Good estate agents make better ones.