Blakes Estate Agents Blog

We don't know what to think of housing market, say consumers

2010-10-26T05:21:00.000-07:00

One in three consumers believes house prices will fall over the next year – but one in four believes they will go up.

According to a consumer confidence survey released by Rightmove this morning, the highest proportion of consumers (36%) think house prices will stay the same. Only 5% said they had no idea which direction prices will go in.

But the 32% of those who believe house prices will fall is a higher percentage than this time a year ago, when only one in ten believed house prices would drop.

The huge survey of 25,584 consumers took place in the first two weeks of this month.

The main reason cited by those believing that house price falls lie ahead was lack of confidence in the economy. But the main reason given by those believing that house prices will rise is confidence in the economy. Nearly a quarter of these optimists believe that the housing market is improving.

In contrast, 20% of the price pessimists believe that the housing market will worsen. The same proportion of pessimists also see little or no improvement in the mortgage market, whereas 12.4% of the optimists see mortgages as improving in terms of both rates and availability.

Miles Shipside, director of Rightmove, said: “If you saw such an even distribution in opinion after using an Ask the Audience, you’d probably follow very quickly by using your Phone a Friend. It’s unusual to see such a split, but it shows that current economic uncertainty is forcing people to take sides in their view of the housing market.”

(source:estateagenttoday.co.uk)

We are selling houses consistently and at reaonable prices. One of the main factor in our client's success is that they offer value for money in a market that has lots of supply. In every case their property is the best example of what can be found in the current market.

The other factor is that they chose amn agent who told them the truth and ensured that they did not languish in a no mans land of waiting to sell.

The sale of your home is too important to leave to chance. The correct pricing and marketing of your property is vital. This is not something that happens by accident. Rather it is the result of careful preparation and of constantly talking to buyers about what they want.

If you are serious about selling then we would love to talk with you as we have a constant demand for new property.

If you need a realistic strategy that will get you sold, call us on 023 92 602155 for a confidential chat without obligation.

Bewilderment as asking prices for houses bounce

2010-10-19T09:02:00.000-07:00

New asking prices on Rightmove have jumped an astonishing 3.1% over the last month, the site reported this morning.

The rise is in seeming defiance of market trends and will re-ignite the debate on valuations.

Rightmove said the “seemingly illogical” rise took “some explaining” and is unsupported by market fundamentals.

The 3.1% figure comes shortly after Halifax’s latest report, showing a 3.6% fall in the average prices of properties across the UK in September.

The average new asking price on Rightmove is now £236,849 – which is hugely disjointed from the Halifax’s figure of £162,096.

Whilst Nationwide reported a very slight (0.1%) rise in prices for September, its average national house price of £166,757 is not far adrift from Halifax.

The breath-taking rise in new asking prices on Rightmove comes after measuring the asking prices of 105,769 properties new to the market. In previous Octobers, asking prices have jumped 2%. The 3.1% rise equates to an average of over £7,000 in a month.

It appears to be the clearest sign yet of over-pricing.

In London, Rightmove said this morning that asking prices of properties new to the market have shot up by 5% in the last month.

But large numbers of houses in London are not selling, and prices are having to be cut. Ivor Dickinson, managing director of Douglas & Gordon, said his firm did 33% fewer transactions in September than a year ago and that asking prices are down by 10%. He said buyers should not be afraid to make “bold offers”.

Generally, market fundamentals, says Rightmove, “remain poor as property per branch rises from 69 in October last year to 78 now, and mortgage availability continues to deteriorate. However, 105,769 new October sellers asked a seemingly illogical £7,082 more for their homes than last month’s sellers. Why would new sellers test the market at asking prices 3.1% higher than a month ago?”

The site said that whilst bullish pricing is a normal autumn characteristic, vendors are struggling to react to new market conditions and, post-HIPs, are now testing the market at minimal cost.

Rightmove commercial director Miles Shipside said: “Given the challenges of the current market, the behaviour of sellers in raising their average asking prices by over £7,000 takes some explaining.”

He said one possible explanation was that sellers are not experiencing high levels of financial stress, but cannot afford to move unless they make their sums stack up.

But most sellers, said Rightmove, are doomed to disappointment, pointing to near-record stock levels and deteriorating mortgage availability.

Shipside said: “Some estate agents are showing a much stiffer resolve than others about the price they are recommending.

“For some agents and sellers there is the temptation to launch to the market at a speculative price, knowing one can always reduce it later.

“In these stock-rich, buyer-poor times, such a strategy stands minimal chance of success for the vendor. However, the agent that wins the instruction to sell in the first place is often able to keep the seller exclusively on their books while recommending a series of price reductions to try and get the price to a more saleable level.”

But he warned that the market can easily be “lost for good” if the launch pricing is wrong. Rightmove statistics show that interest in a property drops away sharply after the first week of marketing.

(source: Estate Agent Today)

Concerned?

The sale of your home is too important to leave to chance. The good news is that we are selling properties within the first week of marketing. This is not something that happens by accident. Rather it is the result of careful preparation and of constantly talking to buyers about what they want.

If you are serious about selling then we would love to talk with you as we have a constant demand for new property.

If you need a realistic strategy that will get you sold, call us on 023 92 602155 for a confidential chat without obligation.

Confusion as house prices plummet by record amount – or rise slightly

2010-10-08T06:08:00.000-07:00

In the biggest monthly house price drop on record, house prices fell 3.6% in September, the Halifax reported.

But in an extraordinary development, a report out this morning – the Acadametrics survey – claimed housing market activity picked up in September by 3.4% and prices rose by 0.2%.

The confusion underlines why the Government has called in its chief statistician to report on the huge divergence between the house price surveys.

The Acadametrics report was distributed by the PR firm Wriglesworth, which strongly defended its findings – despite the fact that it was also sending out press releases on behalf of other clients agreeing with the findings of the Halifax report.

One, Alan Cleary, of Precise Mortgages, was quoted as agreeing that transactions had gone down in September.

Asked to comment, Wriglesworth said there were ‘Chinese walls’ with different PR executives representing the views of different clients.

In defence of the Acadametrics report being so at odds with Halifax, the PR executive said that the Halifax does not include cash-only purchases, whereas Acadametrics does.

However, the Land Registry survey does include cash purchases, and has recently been putting average house prices at much the same level as both Halifax and Nationwide. Yesterday, Halifax reported that the average price of a home in the UK is now £162,096. The fall equates to an average drop in price of £6,000.

But this morning, Acadametrics reported the average price of a home is now £223,965 – an enormous difference of almost £62,000.

Nor does its finding that housing transactions rose in September appear to tally with what some estate agents are saying.

Yesterday, Hamptons International said that its transaction levels in September were down an astonishing 20% on August.

Adam Challis, head of research at the firm, said the Halifax statistics were “worrying figures for the housing market”.

He said: “Government austerity measures have been harmful to market sentiment. Across our network, we observed some weakening of the market over the summer which continued into September. Transaction levels were down 20% last month alone.”

He said there was a “pause” in market demand and he did not expect the market to adjust to the “new normal” until next spring.

According to Halifax, the fall means that house prices are now just 2.6% higher than this time a year ago, and are now 0.9% lower than three months ago.  

The Halifax’s economist, Martin Ellis, said: “Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way, and more people are putting their homes on the market. These will all be constraints on the market, dampening housing prices.  “On the positive side, we expect interest rates to remain very low for some time, which will underpin the improved affordability position for home owners.”  

The Halifax report also draws attention to mortgage approvals, which the Bank of England said fell to their lowest level for six months in August, to 47,372.  Ellis said that low transaction levels increased the “difficulty of getting a clear reading on the current state of the housing market”.

At the RICS, Simon Rubinsohn, chief economist, said: “The latest numbers from Halifax provide further evidence that house prices are easing. That said, the 3.6% drop in this index in September undoubtedly highlights the extent of the softer trend in prices.

“Significantly, the annual rate of change in prices in the Halifax index at 2.6% is not far away from the equivalent figures from Nationwide Building Society (3.1%).

“RICS expects prices to slip a little further over the coming months.”

Peter Rollings, managing director of Marsh & Parsons, said the Halifax survey was not “the story of London”.

He said London prices had reached a plateau, but had not gone down, held up by strong demand from cash buyers.

However, Cluttons and Knight Frank both disagreed with him. Knight Frank said central London house prices had fallen for three months running.

Cluttons said central London house prices had gone down slightly (by 0.2%) and would fall further because demand had weakened and the number of properties on the market had gone up.

Andrew Stanford, head of Cluttons’ residential professional division, said: “Whilst potential applicants continued to register during the third quarter, in reality demand was low.

“There has been little activity or interest in property above £3m or for secondary stock which, as a consequence, is likely to remain on agents’ books until a price adjustment is made.”
(Estateagenttoday.co.uk)

The only way to know what is happening in your local market is to ask a qualified local expert. If you are interested in knowing what is really going on then call Blakes on 023 92 602155 for a Free appraisal. Or click here to book online.

Housing market 'would have been decimated' by sensible lending

2010-10-06T08:43:00.000-07:00

If proposals on responsible lending had been in effect from 2005, the housing market would have been decimated.

The claim has come from the Council of Mortgage Lenders, which says that around 3.8 million perfectly sensible loans would potentially not have been granted.

The Council of Mortgage Lenders makes the point after carrying out an impact assessment of the Financial Services Authority's Mortgage Market Review proposals.

So strongly does it feel on the subject, that the CML is sharing its findings with the FSA ahead of its formal submission to the consultation paper.

It says that in rewriting the mortgage rule book, the FSA stands to “sacrifice far too many borrowers” and does not chime with people’s aspirations to become home owners.

In its own research, the CML has particularly looked at the proposal that lenders should have to assess borrowers’ ability to pay a mortgage.

Applying the various requirements to mortgages taken out between the second quarter of 2005 and the first quarter of 2009, the CML disputes the FSA’s assertion that 17% of all mortgages would not have been granted.

The CML, however, believes the true figure is over half of all loans.

It says that the FSA’s analysis was not thorough enough and failed to take into account the impact of some of its own proposals.

The CML concedes that a large number of borrowers would have avoided difficulty had the FSA’s proposed regime been in place: its estimate is that 151,000 cases of arrears and 38,000 cases of possession might not have occurred, as the applicants would not have obtained their mortgage.

“But under the same assumptions, 3.8 million ‘good’ loans, that have never suffered evident payment problems, would not have been granted,” says the CML.

Another key finding in its analysis is that first-time buyers would have been dealt “a massive blow”.

Meanwhile, Tesco’s plans to sell mortgages before the end of this year face a long delay because it has yet to receive approval from the FSA. Untangling the regulator’s red tape could take another 12 months.

“The FSA is just being careful. It is a new process and it is very difficult,” a Tesco spokesman said, diplomatically
(estateagenttoday.co.uk)

If you want to know more about mortgages, check out this link. You might be in for a surprise.

House prices fall or rise (take your pick)

2010-09-01T03:42:00.000-07:00

House prices went up slightly – by 0.4% – in July, the Land Registry has reported. It brings the average property value in England and Wales to £166,798.

But a separate survey published at exactly the same time found that house prices went down 0.1% in July and dropped a further -3% in August.

The disparity underlines why the Government has called in its chief statistician to probe the house price indices.

According to the Land Registry, in July there was the strongest growth since January, although there was great regional variation. House prices rose in London and Brighton, for example, but fell in Cardiff and Bath.

The Land Registry also reported an increase in transactions. In February to May 2009, there was an average of 36,947 sales per month. In the same months this year, the figure was 48,219.

However, a different picture is painted by the Hometrack survey, which is based on responses from over 5,100 estate agents and surveyors. It found that falling demand and lower prices are “more than a seasonal blip” and that “re-pricing of housing” is under way.

Along with the second successive price fall for a month, it found that new applicants fell by 2.2% compared with a 2.4% rise in property listings. Houses are also taking longer to sell, at 8.9 weeks.

Whilst the Land Registry acknowledges in some detail the regional variations, the Hometrack survey says that prices rose in only 3.3% of postcode districts. In particular, it says that house prices in London fell – for the fourth consecutive month – by 0.4% in August. By contrast, the Land Registry said prices in July rose by 1.6%.

Richard Donnell, director of research at Hometrack, said: “The housing market is in the process of a modest re-pricing that is likely to run for the next six to 12 months. The signs of a slowdown and price falls have been building since the election was called, back in April. This monthly survey of over 5,000 agents provides a strong litmus test from the front line of the housing market.”

Meanwhile, asking prices of more expensive properties have fallen 0.3% on Primelocation.

The site says there has been a 6.7% rise in prime property coming on to the market, the seventh consecutive monthly increase, but that demand has reduced. The steepest price falls were in the South-West and west London.

In another indicator, estate agency signboard supplier Agency Express reckoned that transactions in August increased by 0.9% over July.

For the previous two months, the company reported declining house sales.

The number of houses ‘Sold’ in August was the fourth highest month in 2010, and compared to August 2009, monthly house sales were up 6.2% – and against August 2008, they were up 50.7%.

Locally, there has been a notable increase in the number of properties coming onto the market, but not a corresponding increase in buyers. However those buyers that are looking (and there are some) are generally of high quality and keen to buy now.

We are finding that buyers are typically viewing between 15-30 properties before making a decision and, because they have this amount of choice, are often starting with an offer of 10-15% below the asking price (which must be reasonable or they won't view in the first place).

Some homeowners are accepting these offers and are able to move on, but many others ignore them in the hope of obtaining a better offer from someone else.

This, depending on the individual circumstances, can be a costly mistake as we find that in many cases home owners have to wait for an extended period of time for a second buyer and then sell for a lower figure that that offered by the first buyer.

We have a useful guide to succesfully selling your home. If you would like a copy, just send us an email to info@blakesestateagents.com with "7 Reasons" as the subject and we will send it to you free.

Probe ordered into 'confusing' house price surveys

2010-08-19T00:52:00.000-07:00

The Government is to launch an investigation into the usefulness of its own house price indices – the Land Registry and CLG surveys.

The Office of National Statistics will also look at other house price surveys and report by the end of the year.

The probe comes after a rash of absurdly differing reports and a disturbing gulf between asking prices and even the most generously reported selling prices.

For example, in July the Halifax, Nationwide and Land Registry all put house prices at between £166,000 and £170,000, whereas LSL Acadametrics gave the average house price at £218,119 and the CLG’s own survey put it at £209,505.

None of the house price surveys came near the asking prices on Rightmove, which quoted an average of £236,332 for the same month.

While CLG’s own survey claims to be the most accurate, its prices are at odds with the Land Registry records, which also lay claim to being the most accurate.

CLG only introduced its own survey after expressing concern about the accuracy of other surveys.

The media also regularly report the RICS survey as being a factual poll, when in fact it merely expresses the opinions of some 250 or so surveyors.

Robert Bartlett, chief executive of Chesterton Humberts said: “The plethora of indices and the variety of what they measure is very confusing.    

“For example, the CLG index tends to lag all of the other indices, which limits its value. The Land Registry index is useful because it gives a detailed breakdown of property prices by local authority and is generally considered to be the most comprehensive index. However it takes place only when the sale is complete, which means the data lags the RICS, Halifax, Nationwide and Rightmove indices.    

“Moreover, figures are subject to revision due to the increased number of transactions that are processed when the first estimate of the index is published.”

Stuart Law,chief executive of Assetz, a property investment firm, said: “The differing figures produced by the various monthly house price indices frequently offer a confused picture of the state of play in the UK property market.

“This is especially true at times of major price correction, when contradictory patterns of positive and negative growth emerge between the indices, as seen several times during the recent recession.

“In addition to the capacity for contradiction across the indices, I have always maintained that individual monthly indices from specific providers should not be viewed as reliable market indicators in themselves.

“Property is an illiquid asset and minor monthly fluctuations recorded by a specific organisation cannot be generalised to the sentiment of all home buyers.”
Source www.estateagenttoday.co.uk

To be sure of what is happening with local prices, why not tslk to us? We are usually months ahead of house price surveys and provide an accurate picture of your local market. Simply call us on 023 92 602155 for a free appraisal with no obligation or book online.

Buying is cheaper than renting in 74% of Britain

2010-07-27T00:47:00.000-07:00

Zoopla has just released its latest 'Rent v Buy Index', which reveals the top places across Britain where renting a property beats buying and vice versa in current climate. This was done by comparing current asking prices to the average rents for two bedroom flats in the top 50 locations around the country.

What may come as a surprise to many is that buying a home beats renting in 74% of cases around Britain with average monthly mortgage repayments being 8% lower, on average, than the cost of renting (assuming interest-only mortgage at 5% interest p.a.). Perhaps the biggest surprise is that it is still cheaper to buy than rent in London, despite high prices.

Topping the list of places where renting is a better option than buying currently is Huddersfield, where the average two-bed flat costs only £493 per month to rent versus £146,898 to buy. Renting is also cheaper than buying in a number of other places including Oldham, Brighton, Swansea and Edinburgh.

At the other end of the scale, Dundee comes in top of the list of places where buying is currently the best option with average asking prices for two-bed flats at only £88,263 versus £530 per month in rent. Other locations around Britain where buying is by far the better choice at current asking prices include Birmingham, Derby, Cambridge and Milton Keynes.

Even in London, which has the highest rents in the country, buying is still the more cost-effective option, with average rents on two-bed flats currently at £2,155 per month versus average asking prices at an eye-watering £446,345.

While buying wins out over renting today, the impact of a rise in interest rates cannot be ignored. If interest rates were to increase by 1% and rents to remain the same, renting would become more cost-effective in 80% of the locations studied.

The Rent/Buy Ratio indicates the degree to which renting is less/more expensive than buying in each location. A figure above 1.0 indicates it is cheaper to rent than buy and the greater the figure the more expensive buying is versus renting. Similarly a figure below 1.0 indicates it is cheaper to buy than rent and the lower the figure the more expensive it is to rent versus buy.

Current active property listings on Zoopla.co.uk have been used to compare the relative costs of buying versus renting two bedroom flats in the largest 50 cities/towns across Britain. The cost of buying is based on repayment costs of an interest-only mortgage at 5% interest per annum.

Source: http://www.zoopla.co.uk

Mortgage lending up 15% in June

2010-07-27T00:43:00.000-07:00

Gross mortgage lending in June was an estimated £13.1 billion, a 15% increase from £11.4 billion in May and a 7% increase from £12.2 billion in June last year, according to new data from the Council of Mortgage Lenders (CML).

Gross lending in the second quarter of 2010 was an estimated £35 billion, up 17% from the first quarter of this year (£30 billion) and up 7% from the second quarter of 2009 (£32.7 billion). Lending in the first half of 2010 remained unchanged from the first half of 2009 (£65 billion).

In today's market commentary, CML economist Paul Samter commented: "Our gross lending estimate of £13.1 billion in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.

"There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.

"The FSA has outlined a clear direction of travel as part of its mortgage market review. The consultation paper on responsible lending increases the regulatory burden on lenders and could make it harder for borrowers to access credit."

CML's members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.4 million mortgages in the UK, with loans worth over £1.2 trillion. CML does not publish statistics for mortgage approvals. The data in CML's monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.

Source
http://www.cml.org.uk

e-Scams on the rise in the rental sector

2010-07-27T00:40:00.000-07:00

BRISTOL -- The Police Department today issued a warning about a house rental scam involving ads on the Internet.

Police said they have received a number of complaints from city residents describing a scam in which the potential victim finds what appears to be a rental advertisement on the internet and makes contact with an individual, claiming to be the homeowner, by e-mail .

As the scheme progresses, police said, the alleged homeowner, who claims to be living in another country, requests money be sent by a Western Union type of transfer to an address given.

The houses presented to the victims as rentals are in fact homes for sale by the legitimate owners.

If confronted with the above described scenario, residents are advised to notify the Bristol Police Dept. at (860) 584-3011 .

The Bristol Press

Home buyers to pay the price for energy guzzling properties

2010-07-24T07:15:00.000-07:00

Home buyers could be forced to pay a higher rate of Stamp Duty if they buy a home with a poor Energy Assessment.

The proposal would be introduced alongside the Government’s £90bn Green Deal scheme in 2012, by which householders will be offered ‘free’ green makeovers by energy companies, local councils or DIY chains.

The UK has to meet legally binding targets to cut greenhouse gas emissions by 34% of their 1990 levels within ten years.

The Stamp Duty proposal comes from the Green Investment Bank Commission, an advisory body set up by the Labour government last year.

The report says: “Ultimately, either implementing penalty rates of Stamp Duty for houses purchased where the buyer does not implement available energy efficiency measures, or setting minimum standards on properties, will be required.”

One idea being considered by the Department of Energy and Climate Change is that people who buy a property with low levels of insulation and a dated boiler would have to pay an extra 0.5% levy on top of the normal Stamp Duty.

If they improve the energy efficiency within a year, they would get the money back as a tax rebate.

To avoid paying the higher Stamp Duty, a home would need to be upgraded to at least band E on an EPC.

However, the proposals have met with heated opposition, with critics complaining that it is a stealth tax and that improving the energy efficiency of properties should not be part of the sales process.

John O’Connell, deputy research director of the TaxPayers’ Alliance, said: “Just when the housing market is starting to pick up, it would be madness to throw in a punitive tax like this that could put people off buying altogether.

“Requiring expensive upgrades to people’s homes now, when so many people are struggling just to get on and stay on the property ladder, is particularly awful timing.

“The idea should be thrown in the recycling bin immediately.”

But Marc Blomfield, managing director of The National EPC Company, said the Stamp Duty change would incentivise sellers to make improvements, in order to make their properties more saleable.

He said: “Despite scrapping HIPs, the Government has signalled its intention to increase household energy efficiency by retaining the EPC as a required marketing tool.

“The Government is committed to reducing carbon dioxide emissions and sees households as the major target.”

This may be a good time to start planning for the future. You may even qualify for some grants.

Why not have an Energy Assessment carried out by one of our accredited Energy Assessors?

Bloated listings as buyers can't find funds, say Rightmove

2010-07-19T04:00:00.000-07:00

New sellers now outnumber new mortgage approvals by 5.2, Rightmove reported this morning, while the number of unsold number of properties sticking on agents’ books has jumped by almost 25% in the first six months of this year.

Rightmove – which has some 90% market share – reports that more than 30,000 new properties are coming to the market each week, up by 45% on last July.

Asking prices for properties new to the market are, however, finally dropping. Rightmove reports that over the last month, they have come down by 0.6% – the first fall this year.

But with the average asking price now £236,332, there is still a huge gap between sellers’ expectations and the reality of mortgage-approved prices as reported by Halifax and Nationwide. Halifax is quoting £166,203 and Nationwide £170,111.

Rightmove is, however, forecasting more falls in asking prices as the year goes on.

Commercial director Miles Shipside said: “The number of new mortgages being approved each month is less than half the number of new sellers, with the imbalance being exacerbated by the increase of nearly 50% in the number of properties coming to the market compared to a year ago.

“More aggressive pricing is now the order of the day.”

He went on: “Estate agents are suffering from podgy portfolios and buyers’ fitness to purchase is in correspondingly poor shape.

“With agents beginning to choke on a surfeit of new stock, sellers are going to have to price at bargain levels.”

He warned: “The tradition of testing the water at a higher figure before reducing at a later date will backfire in areas of excess supply, as over-ambitious sellers will have to cut back even more as they chase prices downwards.” (source www.estateagenttoday.co.uk)

The good news is that THERE ARE buyers out there for sensibly priced properties. For an accurate assessment of your property, call Blakes today on 023 92 602155

Property Market Outlook - Summer 2010

2010-07-13T11:40:00.000-07:00

Property prices are highly sensitive to market fluctuations and always reflect the balance between supply and demand.

Earlier this year we saw a degree of price stability and even some modest gains due to demand outstripping supply. Buyers, frustrated after two years of confusion started to re-enter the market, only to be met with a scarcity of properties from which to choose. Sellers simply didn’t want to sell at what they perceived to be the bottom of the market, especially in view of the possible abolition of Home Information Packs after the election. So prices held up well.

However, the election happened and HIPs were abolished making it easier and cheaper to commence marketing. Sellers, hoping to cash in on hearing of the earlier price rises decided to come to market and as a result 43% (51% in London) more homes are currently on the market than at the start of the year, with a 6% rise in stock levels this month alone. However, the RICS has reported a drop in the number of new buyer enquiries nationally in the past month.

This will inevitably have an adverse effect on prices although this is yet to be fully reflected in the summer trading figures. (You may recall in January that we advised people not to delay their sale this year!)

In view of this shift in balance as well as continued economic uncertainty, our advice to sellers is to look very carefully at how your property is positioned in the market in relation to others available for sale, and let their bullish price be a springboard to help you sell yours.

But, as they say on Crimewatch, don’t have nightmares. We seem to be bucking the national trend! We also find our clients are happy to heed our advice and when they do…they move! Why not call us on 023 92 602155 for an initial chat about how we can help you too?

Asking prices stick as 43% more homes flood market

2010-07-12T08:44:00.000-07:00

There are now 43% more houses on the market than at the start of the year – but asking prices are still not coming down.

According to FindaProperty this morning, the average asking price is £220,231 – compared with the £166,000 actual sales price quoted by Halifax.

Stock levels have grown 6% in the last month and there are more houses for sale than in January 2008.

FindaProperty says that in seven regions in the UK, asking prices have stabilised or risen slightly in the last month.

In only four regions have asking prices fallen. These are the West Midlands, Wales, the South-West and London. In the first three, asking prices have fallen only 0.1% to 0.2%.

The only meaningful fall in asking prices is in London, where FindaProperty records a 1.1% drop, down to an average asking price of £435,110.

In London, stock levels rose 7% over the last month and are up 51.3% compared with the start of the year.

source www.estateagenttoday.co.uk

Inflated asking prices are confusing to buyers and sellers alike and will not meet with approval from mortgage lenders. In order to sell sucessfully in this market, it is even more important that you get the true selling value of your home from your agent rather than an inflated "ego booster" figure. This is a trick that some less scrupulous agents will use to buy your instructions and who will then spend the next six months beating you down to a realistic selling figure which is often far lower than the figure that would have received had the correct pricing strategy been used from the start.

Why not call Blakes to get an honest and reliable appriasal of your property's current value?

Call 023 92 602155.

Lloyds extends 5% deposit scheme to home movers

2010-07-09T11:54:00.000-07:00

Lloyds TSB is extending its direct-only Lend a Hand scheme, which grants mortgages with 5% deposits, to home movers today.

The product was only available to first time buyers but will now target home movers who do not have the large deposit.

With Lend a Hand borrowers can take out a mortgage with a 5% deposit of and access a rate that is the equivalent of products available for borrowers with a significantly bigger down-payment.

The deposit can be so low because funds are backed up with the savings of helper, such as a parent, grandparent or other family member.

Borrowers can get rates from 4.79% with a £895 fee, even if they have a 5% deposit.

At the same time, their helper benefits from a 3.75% savings rate but a legal charge is taken over the savings to offset the risk.

Stephen Noakes, commercial director of mortgages, says: “The Lend a Hand mortgage has been a very successful way for people to take their first steps in the housing market. It’s great news that it can now support those that are looking to move up the ladder too.

“The product retains all of the features that make it so unique - borrowers can move with just a 5% deposit but without the high price tag that it would normally bring. At the same time, their family can provide their support and benefit from a competitive savings rate.”

Lloyds TSB is launching a campaign looking at the challenges facing first time sellers in today’s market.

A good time to visit our mortgage finder

http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560

Article from: www.mortgagestrategy.co.uk 08/07/10

Worrying discrepancies in latest housing market reports

2010-07-09T11:52:00.000-07:00

Sales volumes up – prices down: that appears to be the story for June.

However, there are puzzling discrepancies in the two latest housing market reports.

According to the LSL Acadametrics house price index, housing market transactions soared 20% last month. They went from 52,975 in May to an estimated 63,500.

Way down on the long-term monthly average for June of 100,213 deals, the rise reverses the abnormally large drop in transactions during May.

Unlike Acadametrics, Halifax is silent on transaction levels, but hints that housing market activity has eased. It says that mortgage approvals in the three months to May were 3% lower than in the previous three months, “indicating a modest softening in housing market activity”.

Both Acadametrics, which produced its report for the first time in conjunction with LSL’s input, and Halifax yesterday were agreed in reporting falls in prices. Halifax said prices fell 0.5% in June and Acadametrics said they fell 0.6%.

Halifax has reported house price falls in four out of the last five months, with the pace of the decline increasing.

The Halifax figures show that prices are still 7.5% higher than their April 2009 low, and the average UK house price now stands at £166,203.

Acadametrics, which puts annual house price inflation at 7.7%, says house prices are in fact lower (by 5.9%) from peak, which it says was February 2008.

More concerning is the huge disparity in average house price. Halifax says it is around £166,203 whilst Acadametrics puts it at £218,000 – an unbelievable gap of £52,000.

So large is the discrepancy that, despite agreeing on other changes, the two indices once again call into question the reliability of such surveys, given the headlines they create and the rush of experts to comment.

Once again, it seems, we will have to await the Land Registry figures.

Article from: www.estateagenttoday.co.uk 09/07/10

Anxiety on lending and job cuts could threaten market

2010-07-08T15:09:00.000-07:00

Indicators are suggesting a market buzzing with activity – but while home-owners are increasingly keen to move, there is growing anxiety among the public.

Mortgage funding is as tight as three months ago or even tighter, say nearly eight in ten would-be home movers.

A survey of 5,442 home owners by Zoopla underlines other worries over job losses and interest rate hikes.

Although 78% of the sample think property prices will rise over the next six months, the proportion has fallen from 81% three months ago.

While 50% say that mortgages are as difficult to obtain as three months ago, 27% say it has actually become harder. One in three (34%) cite mortgage availability as the biggest continued threat to the housing mortgage.

According to new figures from Mortgage Brain, a mortgage sourcing system, there are now 6,009 mortgage products available. It is the first time since 2008 that the number of mortgages has broken the 6,000 barrier.

The figure is up 4% from 5,803 at the end of May. This time last year, there were just 2,413 mortgages. But even today's new figure remains a fraction of availability at the height of the market, in August 2007, when there were over 30,000 mortgage products available.

The Zoopla survey also shows that a potential rise in interest rates is a major worry for 25% while job losses in the public sector concern 21%.

Nick Leeming, commercial director of Zoopla, said: “The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase lending.”

Property firm CB Richard Ellis also warned that the sales market remains constrained by the lack of mortgage finance.

Jennet Siebrits, head of residential research, said: “First-time buyers require huge deposits to get a foot on the housing ladder and there is no sign of banks relaxing lending in the near future.

“Tougher times are ahead as the various governmental financing support schemes draw to a close and there becomes a growing need for lenders to refinance assets currently protected under their umbrella.”

Yet, as more houses have piled on to the market, surveyors say they are extremely busy.

The number of residential property valuations in June was 20% higher in June than in May, according to Connells Survey and Valuation. This was an annual increase of 16%.

The strong performance of the valuations market in June was underpinned by the increasing number of home owners looking to move.

The number of valuations for home movers (as opposed to first-time buyers and for remortgage purposes) was up 6% month-on-month, following a rise of 26% in May.

Ross Bowen, managing director of Connells Survey and Valuation, said: “Summer has brought a seasonal uplift in activity. But this has been exaggerated by the decision to discard HIPs.

“In June, there was a strong bounce in the number of properties hitting the market and it’s not just speculative sellers testing the waters. Thousands of home owners are no longer trapped in negative equity and are looking to move up the property ladder.”

There was also a strong annual improvement in the number of valuations for buy-to-let investors looking to add to their portfolios (plus 12%). Buy-to-let valuations also increased by 10% in June compared to May.

The first-time buyer market did not show such strong progress. Although there was a seasonal increase in valuations, jumping by 36% compared to May, this was only a slight improvement on June 2009 (plus 1%).

It is an interesting time to sell, but one that needs expert guidance for the home owner.

How many mortgage deals are out there? just click on http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560 to see for yourself!

Why not give us a call on 023 92 602155 for a free chat about how to succeed in selling your home?

“A Reasonable Budget for Property”

2010-06-24T13:42:00.000-07:00

There have been mixed messages surrounding Tuesday’s budget, with most criticism predictably coming from those now sitting on the opposition benches.

Whilst everyone was expecting tough measures, those announced are unlikely to have a major impact on the recovering property market. The Stamp Duty tax break for first time buyers up to £250,000 remains in place, which is good news. The two main changes concern Capital Gains Tax and VAT.

CGT is rising with immediate effect from 18% for basic rate taxpayers to 28% for higher rate taxpayers. This nevertheless remains well below the 40% it used to be until just three years ago. This is unlikely to affect the majority of homeowners as in the UK, unlike many other countries, we enjoy tax exemption from any appreciation in the value of our principal residence.

However, second home or buy-to-let owners will need to take this new regime into account when deciding whether or not to sell. An important consideration is that any gain is actually added to income for CGT purposes and could well tip a basic rate taxpayer into the higher rate bracket.

The good news is that this change is immediate. Had the chancellor decided to implement this from eg. the next financial year, there would have been a flood of properties entering the market in order to avoid the hike, thereby undermining prices.

VAT is to rise from 17.5% to 20% from January. This 2.5 point rise is again unlikely to affect property prices as it will only apply to certain costs of sale such as removals, solicitor’s fees, and estate agency fees. The actual figures involved are relatively nominal, and are unlikely to prompt people to sell as a direct result. At Blakes we’ll be absorbing the difference for all our existing selling clients for a whole year in any event!

Property industry escapes lightly in Budget

2010-06-23T05:39:00.000-07:00

The property market was both a winner and a loser in yesterday’s Budget, with most estate agents breathing a sigh of relief that it could have been worse.

The existing Stamp Duty regime remains in place, with the Chancellor impervious to calls for its reform. However, the £250,000 Stamp Duty break for first-time buyers escaped unscathed and the tax clampdown on furnished rental holiday homes will not go ahead. The capping of housing benefit could affect the supply of private rental accommodation in this sector.

However, most focus was on the rise in Capital Gains Tax, from 18% to 28% for higher-rate taxpayers, and its effect on the buy-to-let market.

This was despite the fact that at 28% CGT is still considerably lower than the rates of three years ago, of up to 40%, before Labour introduced the flat 18% rate.

One unexpected complication will be who is caught by the rise.

Tony Bernstein, tax partner at financial group HW Fisher, warned: “On the surface, it appears that the 28% rate will only affect higher earners whereas in reality, people on lower incomes could also easily be caught by it. The 18% CGT rate for people on basic rate tax will increase to 28% if the gain, when added to their income, pushes them over the threshold into the higher rates of tax.”

The Chancellor had been subject to intense lobbying from landlord and property groups, including ARLA, who argued that buy-to-let landlords should be exempt from any CGT rises for fear it would damage the lettings market.

Yesterday, a disappointed Ian Potter, operations manager of ARLA, said: “The planned rise of CGT may not be as extreme as many had anticipated, but it still comes with little consideration for the needs of landlords. Because of this, the Chancellor risks driving those landlords paying the higher rate of tax from an already very fragile housing market, at a time when they should be actively encouraged to stay and, ideally, further invest.

“In particular, neglecting to include rollover relief is a big gamble, as many landlords will now be penalised by CGT – and hit by Stamp Duty – when they sell one rental property and purchase another. This may further disincentivise some landlords from remaining in the Private Rented Sector (PRS) and negatively impact the overall supply of rental property.

“The PRS represents an extremely important part of the housing market, providing much-needed flexible and affordable housing to the UK. With this rise in CGT, the Government is taking a huge risk in destabilising the future supply of homes to the UK.”

But Louise Somerset, tax director at RBC Wealth Management, said: “There was some talk before the Budget that landlords should not suffer from the increase in CGT rates, but this was always wishful thinking. There is no good reason why an investor in property should be taxed differently to an investor in quoted shares, and the Chancellor clearly recognised this.

“Of course, this is going to leave a lot of buy-to-let investors who were relying on making a profit on the sale of their properties with a big headache when it comes to paying off interest-only mortgages in the future.”

However, David Whittaker, managing director of Mortgages For Business, said the rise in CGT was a major blow: “By increasing CGT, the Government is taking money out of the economy,” he said.

“In the property market the liquidity pool is still relatively parched. A healthy property market tends to mean a healthy economy. But by taking more cash out of the pockets of these investors, the Government is threatening to stunt the growth we expected to see in 2011.

“The rise in CGT combined with the income tax that landlords already pay on rent means a double blow for these investors. They’ll be left asking what they did to deserve such punishment. Professional property investors will now have to work much more efficiently in order to maximise the amount of money they are able to take home from their portfolios.”

However, many estate and letting agents were delighted that the CGT hike was not as bad as it could have been – 40% or even 50% had been mooted – and were pleased the change was implemented so quickly.

David Smith, senior partner at estate agents Carter Jonas, said: “The rise in CGT is unlikely to have a detrimental effect on a property market that is still in the early stages of a recovery.

“Although tax rises are never good news, what the Government has achieved by announcing an increase in CGT immediately, has avoided panic-selling by landlords and people with second homes, which could have seen the market flooded with properties as investors desperately tried to sell before the higher rate tax kicked in.”

Peter Rollings, managing director of estate agent Marsh & Parsons, said: “The market now knows where it stands and I don’t believe it will curtail the investment decisions of those wanting to invest in the London property market.

“In London, there is incredibly strong demand for rented accommodation, particularly from young professionals and international workers who prefer the flexibility of renting. In May, almost one in five purchases (19%) were made by investors in central London and we must avoid unfavourable conditions that discourage investment.”

Unhappiest at the Budget was the construction industry, which felt it would suffer a knock-on effect from the tax and VAT hikes.

Phil Westerman, head of construction at tax firm Grant Thornton, said: “As consumers now face an increase to their tax bill and a rise in VAT, this will undoubtedly lead to a fall in the confidence they need to make larger-scale purchases. Many will question if now is the right time to buy, if they have the funds to do so and if their jobs are secure.”

Asking prices are way too much says Rightmove

2010-06-21T04:54:00.000-07:00

Asking prices for houses edged up just 0.3% over the last month, Rightmove reported this morning, and will have to be slashed – not merely trimmed – if the properties are to sell.

It said that in real terms, because of inflation, house prices are in fact already falling. But there is still a huge gap between asking prices and what is actually achieved.

Rightmove warned that the market is beginning to turn as unsold stock per branch jumped from 71 to 74 in the last four weeks.

With a surplus of properties on the market – Rightmove says there has been a 22% rise in new sellers since the suspension of HIPs – the portal says that sellers everywhere other than in hottest of hotspots will have to cut their prices.

The average asking price for a property on Rightmove now stands at £237,767 – around £60,000 more than actual mortgage-agreed prices recorded by Halifax and Nationwide.

Rightmove commercial director Miles Shipside said new listings are now up 56% on a year ago and that there was a post-HIP party atmosphere.

He added: “Estate agents will get more selective about what price they are willing to market at, and the commitment of sellers to doing what it takes to achieve a sale.

“Serious sellers in all but the most popular hotspots are going to have to reduce their asking prices unless buyer demand recovers after the World Cup.”

He said that might sound like good news for first-time buyers, but warned of the continuing mortgage drought.

“HIPs are Dead – but beware the trap!”

2010-05-24T11:29:00.000-07:00

The suspension of the requirement to have a Home Information Pack (or HIP) has been welcomed across the property sector. From now on nobody has to have a HIP.
This is really good news if you are thinking of selling, but are worried about the possible delay and costs involved in securing a HIP in time. It is also good news if you are one of those clients “quietly” on our books, who could be tempted to consider selling if the right buyer comes along. Many such excellent opportunities were thwarted by HIPs.

There is however, still a requirement to have commissioned an Environmental Performance Certificate (EPC) although you do not have to have actually received it prior to marketing. An EPC is generated by a qualified Domestic Energy Assessor and can be actioned as soon as we visit your home for an initial marketing meeting. But it need no longer delay the marketing of your property. People are generally much more interested in a property that is new to market so time is of the essence and we aim to act extremely quickly when a property comes to market.

Fortunately, with two qualified Domestic Energy Assessors in our offices, we are able to provide this vital document quickly.

And, if you instruct Blakes to sell your home, it is free of charge.

However, when other sellers may be breathing a sigh of relief at the demise of HIPs, don’t fall into the trap of being caught out – as in the “old” days! So often a buyer would be found, only to find that the seller’s solicitor had not even been appointed – let alone made a start on preparing the various required documents.
Our advice is therefore to consider securing some form of HIP anyway during the early stages of marketing.

By having most of the required documents in place early on, your sale is more likely to proceed smoothly and you will be reducing the window of opportunity within which it could fall though. Your solicitor will be pleased to deal with this, or we can arrange this for you if you wish on a "no move, no fee" basis.

To quote Henry Ford, “Before everything else, being prepared is the secret of success”.

HIP HIP Hooray, HIPS are History (but you still need an EPC)

2010-05-22T04:23:00.000-07:00

Sellers and estate agents are no longer required to have or to provide copies of HIPs with effect from 21 May 2010.

In an important step at a point of fragile recovery in the housing market, Communities Secretary Eric Pickles and Housing Minister Grant Shapps announced that with immediate effect, they are suspending the requirement for homeowners to provide a Home Information Pack (HIP) when selling their homes.

Mr Pickles laid an Order suspending HIPs with immediate effect, pending primary legislation for a permanent abolition. The Secretary of State has taken this swift action in order to avoid uncertainty and prevent a slump in an already fragile housing market. Today's announcement sends a clear message of encouragement to people thinking of selling their home that they can put it on the market with less cost and hassle.

HIPs are currently holding back the housing market because sellers are having to fork-out extra cash, sometimes hundreds of pounds, just to be able to put their home up for sale. Suspending HIPs will reduce the cost of selling a home, remove a layer of regulation from the process and provide a welcome help to the housing market during the recovery. It will also mean a saving for consumers to the tune of £870m over ten years, giving sellers more money in their pocket to spend in the wider economy.

Mr Pickles and Mr Shapps also said that the Government is determined to help people reduce their energy bills, improve our energy security and tackle climate change by increasing the energy efficiency of their homes. Sellers will therefore still be required to commission, but won't need to have received, an EPC before marketing their property, and the Government will consider how the EPC can play its part in the new drive for a low carbon and eco-friendly economy.

HIPS were introduced in 2007 in an attempt to reduced the number of property transactions falling through as the attrition rate is typically around 30%. Flawed from the start; this new dogma was somewhat undermined as demonstrated during the consultation period when I asked a senior civil servant why all the paperwork had to be in place before a property went onto the market. She replied "to enable buyers to pull out more quickly."

HIPs ultimately had no impact on the number of abortive transactions as buyers showed no interest in them. However their high up front cost undoubtedly deterred many hard up homeowners from selling thus reducing consumer choice in a very difficult market.

HIPS will be missed by no-one (except the HIP providers) and I am delighted to offer vendors the opportunity to get onto the market at no cost by providing the required EPC for free. Call us on 023 92 602155 to find out how to claim youe free EPC.

New Government Good News for Property Market

2010-05-17T12:12:00.000-07:00

Following the somewhat indecisive election result and extensive negotiations leading to our new coalition government, it seems that the property market can only benefit from the various political concessions that have been made.
Certainly the Conservatives are keen to kick-start the property market, with the permanent abolition of stamp duty up to £250k for first-time buyers, which looks set to say. Also helping first time buyers will be the gradual raising of the starting point for income tax liability to £10,000pa.
Meanwhile one of the Lib Dem concessions is to release their plans for a 1% “Mansion Tax” on properties worth over £2 million, paid on the value of the property above that level. With a market fuelled as much from above as below this is certainly a relief, although there could be some long-term Capital Gains Tax issues to be addressed by buy-to-let investors.
However, the most immediate and relevant issue affecting anyone considering selling, is the almost certain removal of Home Information Pack (HIPs) legislation. Whilst the timing is not clear at this stage, the Secretary of State does have the power to suspend the law at a stroke. HIPs have not been popular, primarily because of the restrictions of proactive marketing of a property at an early stage until a HIP has been completed – frustrating many a keen seller. The requirement to have a HIP also deterred some speculative sellers – just when the market needed them!
Whilst the idea of getting various documents in place as soon as a property hits the market is fundamentally a good idea, and we would recommend vendors continue to do this voluntarily. The Energy Performance Certificate element remains a European Union regulation, so this is set to stay, although how this will be managed is as yet unclear.
In all, it therefore looks like the market is set to move on apace, especially with a 24% improvement in mortgage lending and historically low interest rates probably around for some time yet.
With the election issue now resolved, a degree of optimism in the air, and increased activity levels in our offices, this looks to be a healthy market for buyer and seller alike.

“The Media and HM Land Registry”

2010-03-31T03:05:00.001-07:00

The issue of house prices is a hot topic and close to every homeowner’s heart. Everyone has their opinion, but even that of experienced estate agents is no more accurate about the future of property prices than that of the layman. Prices are subject to micro and macro economics, political direction, taxation, the City, the Euro, the Dollar, and a whole host of tangibles and intangibles that all combine to influence the market.

Of course, a movement in the market can even become a self-fulfilling prophesy when subject to reckless or dramatic media headlines, prompted by the smallest shred of “evidence”.

Fortunately, most people have by now become somewhat immune to media hype and speculation, and look to the fundamentals of the economy to try to gain an understanding of the market – which still eludes most of us!

Ironically one indicator that is often misinterpreted is the one which is usually hailed as the most reliable source of all property data – the stats provided by HM Land Registry based on completed sales. Although newspapers will highlight the latest released figures, any estate agent will tell you that they are seldom an accurate reflection of current market sentiment. This can really only be measured by the activity levels reported by agents on a daily basis, and we can certainly testify that the current market in this area is far from the dire picture reported by HM Land Registry.

For example, the latest HMLR figures reflect completions which happened up to three months ago, which reflect exchanges that happened up to six months ago that in turn reflect offers that were accepted up to nine months ago on properties that came to market possibly over a year ago!

When we provide homeowners with our market opinion, we take the fullest account of current buyer activity in the context of available comparable stock across the market, and find this up-to-the-minute approach helps us to secure the very highest prices the market will pay – today!

“Should Your House Have Sold By Now?”

2010-03-16T10:22:00.000-07:00

We are often asked to look at properties that really should have sold, but haven’t, and we understand the disappointment of vendors whose experience of the sales process has fallen short of their expectations.

We usually find that it’s the way that the average estate agent communicates that causes the frustration – not necessarily a lack of buyers.

So if you find yourself with a property that appears to be sticking, you might like to determine the reason by asking yourself the following questions:

• Is your agent as enthusiastic as the day he/she listed your property?
• Do they keep you regularly updated with constructive feedback immediately following a viewing?
• Do they phone you, or do you have to chase them?
• Do they accompany viewings to make sure they are maximising buyer contact and feedback opportunities?
• Do they keep you informed of what is available and actually selling in the area – and not just their own stock?
• Have they provided you with practical marketing advice in terms of how to present your property for sale?
• Do they regularly advertise properties similar to your own in order to attract a variety of buyers?
• Do you feel like a valued customer with an important property, or one of a number of instructions on their books?
• Are they blaming a slower market, or taking responsibility?

If the above rings any bells, it might be worth rethinking your sales strategy with a refreshing kick start before your property goes stale on the market. Why not give us a call on 023 92 602155 before it’s too late?*

“Buying on Instinct”

2010-02-14T04:38:00.000-08:00

Recent research concurs with our own view that most buyers buy on instinct, typically viewing their eventual home no more than twice before making a decision to buy.

Buying a property certainly appears to be a decision of the heart over the head. In other words, the “I’ll know it when I see it” approach turns out to be quite reliable.

Despite the detail offered about their property by sellers when they instruct us to market their home, buyers actually register their preferences with a very broad brush indeed. They seldom, if ever, ask what type of boiler is at the property, or if there is a double wash basin in the bathroom or an aerial point in the sitting room before viewing it. These are small details which have little bearing on whether the buyer will find the property to be a suitable home.

Once certain non-negotiables, such as price, minimum amount of accommodation, and the general location of the property have been satisfied, buyers are primarily influenced by “How does it feel?” and “Could we be happy here?”. These elements are intangible, but if the right button has been pushed, virtually nothing will stop the buyer from wanting to buy the property.

Of course, the brain then tries to over-rule the heart, forcing the buyer to revisit the property, just to make sure. During this second viewing the buyer will take a more detailed look at the property, and may take more notice of the type of fittings and the structural condition.

The brain will usually decide whether to support the heart solely on the strength of this second visit and the buyer will either make an offer there and then, or decide against. Our job is to facilitate the right decision.

So sellers would be well advised to remember they are selling a home, not just a building, and work with their agent to promote the lifestyle benefits of their property – not just the features.

“Mystery Tour”

2010-01-24T05:22:00.000-08:00

As a buyer, it can sometimes it can be difficult to decide which properties are worth viewing, and which are not, simply from their on-line description. Perhaps you don’t have time to consider the particulars, or the choice of properties is simply overwhelming. So why not let us help you? Let us take you on a “Viewing Hour”

The Viewing Hour is designed to take into account your basic requirements in terms of accommodation, location and price. A telephone conversation with you in advance should give us a good idea of the type of property that would fit with your lifestyle your preferences. We than agree a mutually convenient time with you and take you in one of our company vehicles to view all of the available properties on our books that appear to match your requirements.

The Viewing Hour is designed to be a short, sharp, whistle-stop tour to give you a general overview of potentially suitable properties. You can always come back and revisit the most appealing ones later.

This initial viewing method generally saves considerable time as you will typically view around six properties in the same time that it would take you to view two. You’ll quickly become an expert in the local market, enabling you to spot good
value for money when you see it. You’ll also gain a really clear picture of how realistic your expectations are in relation to what’s on offer.

Importantly, during our time together, we get a good overview of your requirements in detail and are then able to fine-tune our understanding of your needs, meaning we are even more likely to be able to help you. For example, we can tell you about properties as soon as they become available (important, as the good homes go quickly!).

So if you are serious about buying, why not book your Viewing Hour now, by calling us on 023 92 602155? We guarantee you a magical mystery tour!

“Save Time by Helping your Estate Agent”

2010-01-06T09:25:00.000-08:00

Buyers often waste an inordinate amount of time viewing property that is either too expensive or blatantly wrong in other critical ways.

Additionally, more than 30% of UK property-sales fall through due to buyer or seller suddenly changing their minds. Both these annoyances could be attributed to the agent not having gained a good understanding of buyer/sellers requirements, and/or not having earned the trust required to secure this understanding.

One way of overcoming this is for the seller to address a few fundamental issues prior to agreeing terms, which will help avoid false starts, additional expense and wasted time. Here are a few suggestions:

1. Ensure that you get your finances in order and know exactly how much you can borrow, with an “in principle” agreement from your lender.
2. Before viewing properties understand the difference between your preferred “wants” and absolute “needs”.
3. Locations can vary from one street to the next, and at different times of day. Consider school runs and pub times.
4. Do not make an offer on a property unless you are absolutely serious about making it your home. The seller’s expectations will be raised and you could damage your reputation as a genuine purchaser.
5. Don’t lie about your home. Be upfront about any defects or the reason for moving if you are to speed up the sale and reduce stress.
6. Don’t ignore the facts. If your home has been on the market for several months, it is likely to be overpriced. Promptly reposition it in the market before it goes stale.
7. If you’re unhappy with your agent – say so! Don’t be afraid to change agents, being careful to note any onerous contract terms, and don’t change more than once, or people with think it’s the property – not the agent!

Please feel free to call us on 023 92 602155 if you would like further advice on how to prepare your home for an efficient sale.

“This year - Don’t wait till Spring!”

2009-12-07T09:11:00.000-08:00

As the Christmas holiday season is upon us, many people will start to think about the prospect of moving house early next year. However, as the evenings will still be dark, and the garden remains rather sad, there is usually the feeling that it would probably be best to wait until the spring before putting your property on the market. After all, spring is traditionally associated with a time of change and this has always had a bearing on the property market.

However, we would urge some caution on this. Firstly, serious buyers do not give up over the Christmas and New Year period, and can even become frustrated by lack of choice as properties are withdrawn from the market in the mistaken belief that nobody will be looking at this time of year. You can take advantage of this temporary imbalance of supply and demand by being one of the properties that is actually new on the market! Whilst viewing activity may be slightly less frenetic, you can be assured that every viewing will count, as you will only be dealing with serious buyers.

Many sellers will inevitably wait until the spring before putting their property on the market – which could flood the market and potentially thwart prices. However, last year’s backlog of frustrated buyers are already looking today.

So if you are contemplating a sale this year, we suggest you take advantage of the situation, be strategic, and position your property for an early sale at a time when demand is likely to outstrip supply.

“Showing Buyers Around” (Part Two)

2009-12-01T13:46:00.000-08:00

Some people feel that houses should be able to “sell themselves” and do not need to be “shown” by estate agents. Whilst this may be true of certain exceptional homes, or where achieving the optimum price is not an issue, most properties require the skills of a well-trained estate agent if they are to sell for the best price within a reasonable period timescale.

One benefit of your estate agent showing your home is honest feedback. Many purchasers wish to avoid appearing rude and build up a seller’s hopes by telling them what they want to hear; “It’s lovely – we’ll get back to you”. By the time they have seen several other properties their feedback to the agent about your particular home is likely to be minimal.

Additionally, the buyer will probably want to discuss aspects of the property out of the seller’s earshot. They may have plans that they feel would offend the seller, such as knocking down a wall the seller built!

When we show your property, immediate feedback can also be generated from buyers who might not have been so frank with you directly. This helps us understand their buyers and allows us to fine-tune our marketing efforts. Clients often say that sincere post-viewing feedback significantly helps to reduce the stress of selling, and after all, this is surely one of the most compelling reasons for appointing a professional and reputable estate agency to represent you in your sale.

Please feel free to contact us at any time on 023 92 602155 if you would like to discuss any aspect of the possible sale of your property, without obligation.

“Showing Buyers Around” (Part One)

2009-11-23T03:51:00.000-08:00

Some estate agents claim that the seller is the best person to show a property to prospective purchasers.

However, apart from the inevitable awkwardness of inviting strangers into your home, there are sound reasons why good estate agents prefer to accompany buyers around.

When buyers see a property for the first time, they are probably viewing it alongside other properties, and simply want to get a feel for its relative suitability in terms of location, layout, size, condition and style. These can all be assessed within the first few minutes. Vendors are understandably emotive and partial to their own property and tend to go into too much detail, which can frustrate buyers who simply want to assess the property in principle and move on to the next house. Such a vendor can unwittingly appear desperate to sell.

The agent on the other hand is the “impartial broker” who has an understanding of the buyer’s needs and can use the feedback gained during each viewing to facilitate the decision-making process, leading to strong offers and decisive moves.

Children and pets, no matter how sweet they may be, should also be kept out of the way during a viewing, as they can become an unnecessary distraction. Buyers should be focussed not on the property’s occupants but on the home itself and what it would be like living there. Our job as estate agents is to facilitate this in order to secure a speedy sale with the minimum of disruption to our clients’ life!

“How Long Has It Been On The Market?”

2009-11-18T06:15:00.000-08:00

One of the first things a buyer will ask an estate agent when offered a property is “How long has it been on the market?”, and with good reason. Buying a property is a huge transaction and it takes courage to commit to undertake such an apparently huge decision – often with very little support other than pure instinct.

One of the most persuasive and apparently reliable indications as to the suitability of a property is to check out whether other people have expressed an interest. There is great comfort in knowing that you are not the only one who would like to buy the property.

Once people hear that others have expressed an interest, then everyone seems to want the property as the power of this “social proof” kicks in. This competition can often stimulate a quick sale at a high price, and usually occurs when a property is attractively priced in relation to other properties available for sale.

Of course the opposite is also true. When the price of a property is overly ambitious, the excitement that should surround a property that is new on the market is reduced, and it can begin to go stale. This is when nobody has made an offer and the property is seen to be repeatedly advertised. When buyers find out that it is no longer new on the market they think “Well nobody else wanted it – perhaps we are making a mistake.”

So our advice would be to position your property as one of the best available in its price range from day one. This will prompt interest and encourage asking price offers from qualified buyers. Under your agent’s advice, you should then have a choice of buyer, resulting in a fast, reliable, sale at the highest price the market will pay.

“ Autumn’s All Go!”

2009-11-05T13:56:00.000-08:00

With the summer now firmly behind us, the market is active once again, and we actually find that we currently have the opposite of many estate agents – we have far more buyers than we do stock, but predict that there will be a run of properties coming onto the market in the run up to Christmas. Those who enter the market ahead of this rush are likely to be the winners, as they will be competing with old stock.

Property which is new to market is highly prized over old stock. The first question buyers ask is, “how long has it been on the market?” If nobody else wanted to buy it – why should they? Any agent will tell you that a property is most likely to sell within the first two to three weeks of marketing. That’s when buyers are excited about your property, often leading to a price increase as buyers compete for your property.

So if a move is on the cards, we urge you to consider bringing it forward if at all possible. You can always extend your completion date if need be. But the key in this market is to secure a buyer sooner rather than later.

We would be happy to create a Marketing Plan that really works for you – without obligation – quickly, efficiently and with great care and courtesy for local homeowners over the coming weeks.

So why not call us today, and discover a refreshingly different estate agency?

The Value of Sold

2009-10-30T07:38:00.001-07:00

Our last article considered some of the dangers associated with pricing your home in relation to other properties available for sale (ie those remaining unsold). This time we’ll consider pricing in relation to properties which have actually sold.

When considering what asking price to quote for your home, common sense dictates that the price of other homes which have sold locally should be a good indicator of the price you should be quoting. However, your research could well prompt you to price your property at a level which could prove difficult to sell. In this weaker market it is a sure bet that the price achieved for a property is highly unlikely to be achieved again, and may well represent a snapshot of the market several months ago.

Additionally whilst a property might have been advertised at a particular figure, it could well have actually sold substantially below this.

Irrespective of national trends, the property market is very sensitive to imbalances in supply and demand even on a street by street basis. When there are many qualified buyers all seeking a rarely-available house in a popular street the price goes up. If fate dictates that the following week five such houses become available in the same street, the price will inevitably fall.

Likewise there can be situations where a property is sold at a record price to an individual who particularly wanted a specific property for personal reasons. Conversely a situation could arise where a desperate seller, who might otherwise suffer repossession, agrees a sale at a very low figure for a quick sale.

Only the estate agent involved in any of these transactions knows how the individual circumstances of sale can affect value. So a word of caution – leave the science of valuation to an experienced local estate agent who is highly active in the market and has a good track record of achieving swift sales at or close to his/her suggested asking price.

The Value of FOR SALE

2009-10-30T07:37:00.000-07:00

When considering the value of a property prior to putting it on the market, many vendors understandably look at the asking price of other properties currently on the market locally, and draw pricing conclusions based on this research.

Whilst this is not an unreasonable way of determining value, there are some traps for which to look out.

Firstly, an important observation is that if a property is on the market, it is by definition “unsold”. An unsold property is invariably one which is overpriced. If it had been priced correctly then it would have sold, but in the event the market has rejected it and it will probably only sell if the price is reduced. So if you have a similar property and you price it at about the same level as the unsold property, then the chances are that yours will remain unsold as well.

We know that purchasers buy by comparison. So your property has to compare favourably when seen alongside others on the market. If your property is similar to another on the market nearby, then yours only becomes readily saleable when it is priced favourably and offers better value for money.

Additionally, if you feel that your property is slightly better than a neighbouring property for sale (as you are bound to as you chose the décor and it has your own possessions in it) then surely it makes sense to quote a similar price, rather than attempting to offset the extra features with a higher price.

Ultimately, correct pricing is all about seeing the world through the eyes of the buyer and making responsible and effective pricing decisions which always point to offering better value than that offered by competing properties available locally.

Our next article will consider the merits of pricing in relation to properties that have already sold.

Sole Mates Forever?

2009-10-30T07:35:00.000-07:00

Most estate agents make similar claims about their ability to secure the highest possible price, in the shortest possible time, with the least possible inconvenience.

These things are easy to say, although in reality many agents do not always find them easy to deliver. Indeed, such claims set a level of expectation that can sometimes be followed by disappointment.

One thing to look out for when selecting an agent is their period of sole agency. There is no doubt that a sole agency is far preferable to asking two agents to market your property, particularly in terms of accountability. But some agents insist on a sole agency tie-in period of 8, 12, 16 or even 26-weeks! Our question is….why?

In our opinion, a long period of sole agency suggests a lack of confidence on the agent’s part, and it is a way of preventing the seller from sacking them if they fail to deliver! What sort of accountability is that?! It means that the agent can say whatever the seller wants to hear in order to secure the property on their books, and then wait for the property to sell itself. Indeed, some agents take on properties under a long-term sole agency agreement, only to recommend a price reduction shortly after the initial marketing period. Sole agency periods protect agents not sellers!

We are breaking the mould in this area, as we believe property sellers deserve better. We feel that if, at any time, you no longer enjoy working with us, you should have the right to fire us! We simply ask for twenty eight days notice. We find that our clients really appreciate this transparent approach. It certainly keeps us on our toes, and ensures you get the commitment we promise at the outset.

More than Pictures

2009-10-06T08:13:00.000-07:00

As you look through the pages of most local property newspapers and magazines, all you generally see are pictures of properties. As you turn from page to page the only discernable difference between estate agents is their corporate colour scheme, which does not tell you a great deal about who they are, what they stand for, or what it would be like to work with them.

Additionally, most readers are not actually thinking of moving, although the majority of homeowners naturally have an ongoing interest in the local property market, especially during these uncertain times.

So, from October 2009, we will be publishing weekly articles on our website that look at property-related issues. Not just about flats and houses that are currently available for sale, although these will always feature prominently on our site, but opinion, commentary and advice on the wider issues of property ownership.

After all, there is so much more to property than selling; yet few estate agents offer anything remotely associated with property lifestyle. This is surprising considering the overwhelming interest in property-related subjects on TV. Where many agents appear only interested in the sale, we see our role as helping with the move as a whole, including a contribution towards helping people enjoy their home.

So whilst many of our articles will offer advice on how to maximise your prospects of buying or selling quickly and with minimal stress, we will also consider other aspects of property, including topics such as interior design, gardens, security, planning, etc.

We hope you find the articles we publish here over the coming weeks and months interesting, informative and relevant. And, if there is a property-related topic you would like to see in print, please let us know and we’ll rise to the challenge.