Buy now or wait?

Why buy now when it may well be cheaper to buy next year when prices are lower? A persuasive argument indeed.

However, where there are weaknesses there are also opportunities. What one must analyse is the sentiment sweeping the market right now and what buyers and sellers alike preceive WILL happen in the coming months. One must then use that sentiment to positive advantage, just as buyers of property did back in 1992.

The point is this: if there is the view that prices may well drop a further 20% from today and crucially, if vendors believe this too, then an offer of say £1.6m against a £2m asking price, will not necessarily be laughed out of court. Indeed there are increasing examples of such offers being agreed. (much of course will depend upon whether the asking price was realistic in the first place.) Some vendors will be willing to drop and others will not. This is not a problem. Simply shop around and ignore those vendors who still have their heads buried in the sand. Total saving achieved since the peak in June 2007 will be roughly 35% (15%+20%) by buying now.

Be warned though. Trying to time such offers to co-incide with the bottom of the market is fraught with problems. The moment sentiment of what is likely to happen in the future changes to a positive tune, expect vendors to be less willing to drop at all. So while the asking price of £2m may lower to £1.8m in say 6 months if no sale is agreed, the vendor may well stick at £1.8m if such perceptions shift. Total saving achieved by waiting 6 months since the peak in June 2007 will only be 25% (15% plus 10%)

The motivation behind the sale is key. Negotiate hard.