Date: Thursday 11 June 2009
Buying a brand new home could prove a shrewd move as recovery in the property market heralds the return of gazumping and sealed bids. Estate agents this week claimed gazumping – where buyers lose out at the last minute to a higher bid – is back in some areas of the second hand market. Sealed bids are also being used for some properties where demand is high.
Taylor Wimpey, which builds new homes under the Bryant Homes, George Wimpey and Laing Homes brands, says that confidence is returning to the property market, but with this comes some uncertainty for buyers as competition for houses hots up. Buying new enables purchasers to secure their home at a guaranteed price with no danger that someone will come in with a higher offer.
The house builder has also seen an increase in cash buyers investing in property and a move towards buying ‘off plan’, where purchasers commit to buy sometimes months ahead of homes being completed.
Taylor Wimpey believes that both these trends signal confidence in the market and suggest that people feel buying at today’s prices is a sound investment. This coincides with recent reports from Nationwide that house prices rose in May and data from Hometrack which showed an increase in the number of buyers registering their interest with estate agents.