Death of the traditional Estate Agent?

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Have online estate agencies, the fees up front coloured Lego types really taken the lions share of the market? Are they the way to go? Have they wiped the smiles off traditional Estate Agents faces and changed the face of Estate Agency forever?

Hmm.

To me the issue is the chasm between what is marketing a property and the actual selling of it. Particularly in a market where, to put it mildly, it’s tough.

I am by no means in the thrall of Estate Agents nor a Luddite disliking of change and when I talk of High Street or traditional Estate Agents, I of course mean good ones, which is a whole different blog. The fact is that buying and selling in the UK (excluding Scotland) is a flaming nightmare.

Truth is, that when I buy and when I sell I want to use a good traditional, knows their stuff Estate Agent. I and every buyer I have worked with does not want to be escorted around a home by the Vendor extolling the virtues of his hot tub. As a seller I don’t want to see people traipsing through my house inspecting my cupboards.

I don’t want to have to negotiate with the Vendor on his main asset, it gets emotional. And as a Vendor I know it’s a darn sight easier for the Estate Agent to say ‘I have loads of interest’ and get the best price, than me trying it on with a sheepish expression.

But that’s the easy bit.

The tricky stuff comes after an offer has been agreed, when the mortgage companies, surveyors and solicitors get involved. These days their role can most often be described as ‘problem finders’. Someone in this sticky mix has to be the ‘problem solver’ and that is the Estate Agent (and the buyers representatives when used).

What happens when the mortgage company insists on a piece of paper from 1977 which doesn’t exist and they won’t accept an indemnity policy?

When the survey says there is a 20k damp problem and buyer and seller refuse to budge.

When the chain starts to break at the bottom, who is trying to put it back together?

Vendors threatening to pull out if we don’t exchange tomorrow and mortgage funds aren’t ready.

Just some real examples of deals of mine in the past 12 months where without the Estate Agent sweating bricks and managing the issues delicately, the deal would have died.

Before everyone starts throwing their toys out of the pram, I know there are exceptions and I know a bad Estate Agent is worse than dry rot. I also don’t think they have to be on the High Street, there are some excellent ones based in local trading estates. But the key is that they need to be on the ground, know the property business and manage the sale like a hawk. They need to be on top of all parts of the chain, the mortgage offers and the legals. When they do, the process of buying and selling generally works.

It costs money to manage a 3 months sales progression professionally. I don’t see how a fixed £1000 or £2000 fee can cover a business to do this properly. But of course, if you have been paid up front, you really don’t have to.

Until we have a conveyancing process whereby all issues have been ironed out before the offer and it really is a simple transaction, it is a people and relationship driven process. And when you have people you also have the words emotional, irrational, selfish, greedy and many others. These things have to be managed by people who know what they’re doing and quite simply, you get what you pay for.

Weirdly, traditional Estate Agents are really bad at selling the importance of sales progression, the key part where the safe pairs of hands make the difference between selling smoothly or a decade on Prozac. They bandy about their online presence and which portals they are on but they rarely allude to the part after the offer comes in. The part where it can and often does go horribly wrong.

Traditional ‘charge a reasonable fee’ Estate Agents need to get cleverer at broadcasting this USP.  Because in this tough market, a good, ‘proper’ Estate Agent has more value than ever.

 

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A few things I muse on when viewing properties.

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How safe would I feel walking home from the tube?
Can the iPhone be visible or would I only venture out in full Kevlar?

How resaleable?
Would even Purple Bricks baulk at listing it?

Structural soundness?
Indoor mushrooms and I am onto it.. more than that, GET A SURVEY.

Sound pollution.
Am I vibrating?

Storage space.
The hoover and ironing board ARE OUT warning klaxon.

Same road as a school?
Six weeks in and you’ll spend night and day plotting Yummy Mummy annihilation.

Garden office.
Sad. Cold. Damp. Sad.

Area – the ‘people like us’ test.
How many sourdough outlets?

Convenient location.
The Ocado, Deliveroo and Uber test.

Attic conversions.
There’s a reason they were attics.

Common areas.
How common?

Mezzanines.
Stupid.

Lower ground flats.
Smell of damp and a view of ankles.

‘Needs updating’.
How bad is the smell of wee?

Neighbours.

LEAVE MEANS LEAVE poster in the window?
The modern day Asda trolley in the front garden.

 

Baulking at the Balkans-a different kind of property investment.

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“Mum” said the footloose daughter in a Skype call. “I am in a ski resort in Bulgaria, Bansko and I am buying a flat, any advice?”

Woah! Serious intake of breath.

Well to start, me and Bulgaria have history. Back in the noughties  I travelled the length and breadth of Bulgaria, in the back of blacked out Land Cruisers – with increasingly scary Russian ex-Majors and Bulgarian Oligarchs. I was being shown building plots and off plan apartments to flog as investments. It still brings me out in a rash. But hey, thats for another night. This is family and property investment alarm bell territory.

I throw the usual questions. Got a good lawyer? “Yeah, the estate agent recommended one” Argh.

The estate agent is apparently a very nice man from Bournemouth – but still. Argh.

Have you checked how long the lease is? The service charge? Ownership rights? Freeholders? Apparently the lawyer has said it’s all in order – and as it’s in Cyrillic, she just has to roll with it. Argh.

Now I should say that my daughter isn’t dim. After ten years in Australia, bored of it’s cultural limitations and distance from family she has designed a globe trotting life for herself doing very clever and creative digital stuff. Years of copy writing and digital marketing has resulted in skills that provide an ongoing online income that keeps her in decent Sauvignon Blanc and clean sheets. This is the world of the Digital Nomad. And whilst she can do it from anywhere (that was the point) she hankers after a home – somewhere to use as a base, leave her gear, decorate and have her own kitchen. Plus, as a property owner after six months she becomes a Bulgarian resident, subject to Bulgarian income tax – and guess what, that comes with EU residency too.

But Bulgaria! Argh.

Why Bansko? She tells me that Bansko is a hub for ‘Digital nomads’ like herself. A community of like minded clever and energised young people (not kids) all making their livings through their wits, with skills generally honed through years of corporate grind. Brought together by a ‘co-working’ centre where an international community taps away on crypto currency, travel journalism and weird stuff us oldies don’t know exists as a work form. Sharing ideas and giving each other support and company. They have gravitated here because of the now internationally acclaimed (in their world) co-working space and the incredibly cheap cost of living. (a one bed flat can be rented for five euros a night).

Anyhow, Mother’s due diligence attempts aside, she buys it. Of course. The paperwork is done in two weeks but it won’t be legally hers for another fortnight. The Agent throws her the keys anyway. It comes with all the furniture, bedding, TV’s and teaspoons so he tells her she might as well enjoy, “save you spending on rent”. Novel.

With my property investment head at the fore I ask “I assume you will be able to rent it out for an income when you’re not there?” “Nah”, she says, “it’s swimming in property here, so not worth it..” Marvellous.

So this summer I dragged the husband out on a visit. He showed more enthusiasm on being posted to Kandahar.

Glossing over the hair raising three hour drive from Sofia, courtesy of Lurch’s less developed cousin. (we did start discussing burial or cremation to keep our spirits up). We arrived at the daughters apartment – she had the wine on ice.. good girl.

The apartment consists of two big bedrooms and two bathrooms, it was two penthouse flats knocked into one so daughters bedroom was an entire studio with a deep balcony overlooking the communal pool and the soaring ski slopes.IMG_0262 The sitting room has a bank of picture windows overlooking another mountain range. It needs ‘un-Bulgarianising’, it is all a bit brown but that’s half the fun- poring over Pinterest and Ikea delivery options. But, it was cosy and nice, surprisingly nice.

Daughter had a tight schedule arranged for us, determined to showcase the lifestyle, starting with a mountain bootcamp for the husband the next morning, run by ex-pat Brits.  Trouble with being in the Army is everyone thinks they want to beast themselves all the time (reader, they do). I of course stayed home and prepped the contraband ‘British’ bacon I’d been ordered to smuggle.

That day a picturesque trip up the cable car to high into the mountains, there’s a terrific restaurant, serving hearty portions, surrounded by adventurous activities including the longest water slide in Europe. Husband and the boyfriend partook – apparently it is less fun than water boarding, seems every orifice received a high pressure power wash. They needed medicinal beer.

An overnight trip to the stunning Greek coast close to Thessaloniki, just three hours drive meant delicious practically twitching grilled sardines and octopus alongside azure seas.

A surprise night booked for us in the local five star spa hotel The Kempinski with an awesome spa (no really) and equally awesome breakfast spread was a very unexpected luxury treat from the daughter and frankly unexpected luxury in Bansko.

There was also mountain quad biking, daughter and I were well up for it- until the men folk opted for the ‘hard ride’ tour and we realised neither of us could reach the pedals. We went shopping.

And a few hours girly time in the local beauty parlour for ‘very good value’ eyelash extensions. Little tip ladies – if you want to look like Aunt Sally meets drag artiste, ask for ‘natural’. I did. Three weeks later and I am still seeing the world through two hairy caterpillars.

There were properly delicious lunches and dinners in sylvan glades and town taverns with wood fired ovens. Whole grilled trouts for five euros, meat and potatoes fifty different Bulgarian ways and Shopska salad,  which became a must have healthy choice (with cheesy chips mind). Evenings in the town square with regular free concerts and jugs of very drinkable red wine for the price of a Heston services flat white. The vibrant and bustling cobbled streets and traditional taverns all with boulders of stone, wooden benches and bright red traditional table cloths is oddly intoxicating and really very jolly.IMG_1478

This is summer, in Winter I am told it’s a heaving snowy wonderland, much busier and full of skiers looking for a cheap European destination, with a buzzing apres-ski nightlife.

But Bansko obviously has it’s negatives. Many half built or unsold apartment complexes. Pavements, merely rubble in parts and Romanys towing cows in their horse drawn carts, rooting through bins. All are testament to an extremely impoverished Soviet past and extreme over-building more recently. And you can’t get an avocado for love nor money.

As I lazed on the balcony, sun setting over soaring mountains, daughter bustling around her own kitchen preparing a Bulgarian hot pot in a traditional clay pot. (layered meat, veg, spice, cheese, then bake). I mused on how dumb this all should be in the grand scheme of all things property investment.IMG_1618

But here’s the rub, she paid €39,000. No I haven’t missed a nought off. Service charge a couple of hundred euros, internet included. And becoming a Bulgarian tax payer means she now pays 8% income tax on her worldwide earnings – a 32% saving on her Australian tax.  It will have paid for itself in three months from tax savings alone. Plus she will have EU citizenship, dodging the Brexit bullet.

Will she ever be able to sell it? With difficulty.

Rent it out for decent money? No.

Will it appreciate? in decades, maybe.

So by every measure of a good property investment, it’s not… It’s cleverer.

In a property world oft guilty of knowing the cost of everything but the value of nothing,  it’s a timely reminder that sometimes it’s just a home.

 

 

 

 

 

 

 

 

 

 

Property market predictions for 2017, I guess?

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I read a little piece by Graham Norwood in Estate Agent Today where he touched upon property pundits such as myself and the far more esteemed spending the last few weeks of the year making property predictions. With a lightness of touch he also suggested that this might be a slightly trickier job than us pundits make out. In fact, I could almost make out a sote voce suggestion that we might all possibly be guessing. Guessing!

Oh Really?

Well I’m hurt. Frankly we are all immersed in the property market and talk to vendors and buyers all day long. We have seen it all, been there, done that. Some of us even have qualifications, (not many). Rest assured, what goes around, comes around, the past, as everyone knows dictates the future and we have some whopping crystal balls that we are brilliant at swinging around.

But maybe he has a microscopic point because in order to predict the future one  probably should have ‘been there before’ (I checked, I haven’t) and also one probably has to be a little bit certain about something. Just something.

And there’s the rub. Brexit, of exactly what can we be certain?

Will it be a soft Brexit? (a definite maybe but what does that mean anyway)

Will it be a hard Brexit? (Ooh, I hope not, really don’t like the sound of that)

Will they cancel Brexit? (don’t get me excited)

Will we just pretend we have Brexited? (that’s a thought, I can keep a straight face)

Will Boris Johnson be inappropriate with Madam President and screw all future US trade agreements? (hey ho, who needs ’em, the US will be so uncool without Obama anyway)

Will Liam Fox slip too many buddies into Cobra meetings and Putin gets the nuclear codes? (Army wives really, really shouldn’t joke about that stuff)

Will all our financial institutions flee to Frankfurt? (a little sob from me as all those potential Chelsea townhouse sales tumble).

Will the pound plummet so far that all our overseas holidays terminate at the Isle of Wight?

Will Mascarpone and Parma ham get slashed from the Waitrose Essentials range?

So many questions, however, the big question, the one that constantly chases me down the street, across the social media strata and in the queue at Waitrose is as always, what are house prices going to do?

Well that depends.

It depends on Brexit, it depends on the pound, it depends on people thinking they will have a job next week, it depends on whether they think houses will be worth more or less next year. It depends on how confident people are of their future. It depends on prices at the pump and on the supermarket shelves. And It depends on whether Brussels are feeling really, really vindictive. Above all it depends on our ruling politicians having the slightest slightest clue – and frankly I am not depending on that.

So grudgingly I have to admit that Graham may have a point, I think perhaps there will be a little bit of guesswork going on. Nay, quite a lot, nay, probs wouldn’t trust any of us. Especially the ones who shouted ” Brexit is having NO EFFECT WHATSOEVER”, on July 1st 2016 (oh yes, I remember you).

However, humour me.. I do have one surefire, rock solid, safe as houses property guess for 2017 (but please don’t get excited if you’re outside of Zone1)

In 2017 more foreigners will buy property in the UK than in 2016…

Stick that in your Cuban cigar and smoke it Nige.

 

 

 

 

 

 

 

Another Estate Agent type…

Caroline is single, she wasn’t always. She has left a number of husbands in her wake. The latest woke to find his suits sleeveless and a Facebook photo of him, a goat and an unverifiable accusation. Caroline is not to be messed with.

She rules her Agency with iron talons and only hires women older and fatter than her. She wears power suits in jewel colours, very very high heels and has long swishy hair, which she swishes, a lot. She rarely wears tights on her long fake tanned legs and when in the company of men could give Sharon Stone a run for her leg-crossing money.

Caroline prides herself on a new brand of feminine Estate Agency, thus the office has pink accessories, Designer Guild cushions and black and white photographs with motivational quotes.

Catchphrase: Fab after Fifty.

Likes: Carole Middleton.

Dislikes: Younger women.

The aspirational A-Z of a middle class home… Allegedly.

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A   Annexe. For ‘the help’.

B   Boot room. Only Dubarrys allowed.

C   Corian worktops. White. Ribena banned.

D   Dualit toaster. Purely for show because carbs are BAD.

E   Emma Bridgewater mugs. Fifteen quid a pop. Mugs?

F   Fruit and veg juicer. Only used once due to cleaning ‘issues’.

G   Glass box extension plonked on the back of your Wandsworth semi.

H   Hens. Ex-battery, housed in a plastic Joseph & Joseph looky-likey Eglu.

I    Induction hob. For creating a real buzzzzz in the kitchen.

J  Joseph & Joseph everything.

K  KitchenAid mixer. Cos life’s too short to hold an electric whisk.

L  Lutron lighting. Because sometimes you’re in a pink mood but other times mauve.

M  Music. Sonos etc. Or as we used to call it, piped.

N  Nandos. The middle classes KFC.

O  Ocado. No moving to the country unless they deliver.

P  Pantry. To store all your Quinoa.

Q  Quooka- boiling water tap, because your life’s too busy to boil a kettle

R  Riedel wine glasses. One for every type of wine. Like that’s gonna happen.

S  Shutters. AKA plantation blinds – because who needs light?

T  Tub. Stand alone in middle of the room. Shiny metal or egg shaped plastic. Silly.

U  Umami. Allegedly adds taste to Quinoa.

V  Vitra Eames stuff. Copies of design classic furniture. Copies.

W  Waste disposal. Quinoa disposal.

X   Xander. One child at least should be called this.

Y  You – think of something.

Z  Zebra hide rug. Cos there’s nothing nicer than walking on dead wildlife.

…and before you ask, I ONLY have eight.

Buying Agent chooses her Estate Agent. The Diary Part 2

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So the decision has been made to sell and now I have to decide which Estate Agent to use. I am relishing the prospect about as much as I relish bikini shopping. I have three choices, the middle market brand, the top end Ruperts or the village independent. Three choices and three goals- top price, least hassle and FAST, oh and one more esoteric need – how to put this delicately, hmm.. I don’t want to have to deal with anyone thick.
I have a middle market house which is quite individual (my use of the word is different to an Estate Agents- when they say ‘individual’ they mean odd, it isn’t). It has no major flaws such as road noise or structural or covenant issues so it is not technically a tricky one to sell. I decide to rule out the middle market brands simply because they don’t bring anything particularly special to the table, which leaves me with the independents in the village or Rupert.
The Agent’s in the village are pretty good and have the advantage of picking up specific buyers for the village and cheaper fees but will they attract and give confidence to that most delicious thing on a country agents wish list… The London buyer? Those lovely ingenues with the tendency to pay more than they have to. As a seller I’d obviously quite like one of them and they are just that bit more comfortable with a big posh UK brand, they are given the confidence that the price is right ‘because Rupert said so’.
The Ruperts (there are two to choose from in the town) also have the benefit of really classy photography/brochures and (here comes the contentious bit where I grab my tin hat), their Negs tend to be brighter. Like anyone, I want to squeeze every last penny out of my major asset. Their fees will be higher but I am gambling on getting a higher price which will cancel it out. On balance I think my particular house, in my area, is a good match for a high end brand, so (with a modicum of shame), I am going down the Rupert route. Having spent two years tweeting, blogging and taking the extreme Michael out of Rupert, his quilted Barbour and signet ring, the irony is certainly not lost on me.

I decide to only call one of the Ruperts in- why not both? flimsy reasoning but based on me wanting as painless a process as possible. One of them, when I have walked in on business over the years has been less than friendly – the other Manager, who I am inviting, treats me like a Goddess and makes me roar with laughter, shallow but pleasing and as simple as that. I really can’t be *rsed to deal with a snotty so and so.

So I ring up the Manager who makes me laugh and ask him just one question: Is my house an OK price for their office – or will it stick out like Katie Price at a Cadogan Square tea party. He reassures me that it sits just fine and they have plenty cheaper, sorry ‘less expensive’… I must remember we’re in Rupert territory. Having braced myself for the process (and removed undies from radiators, cleaned out the cat litter), I ask how quickly he can come around. Hmmm, slight hitch, he is off on holiday for two weeks, he will send his second in command and a Neg around. Hmmm again, young Ruperts, this needs preparation I think, as my eyes narrow. I am almost (not quite) ashamed to say that I find myself thinking along the lines of ‘Do they know who I am?’. They’re not going to bring me one of your bloody market reports are they? You know, those ones’s where it’s always a good time to buy AND sell. I decide to take no chances, ‘Right’ I say ‘I am going to send you some of my blogs and you are going to make sure they read them, starting with ‘Prince Charming The Estate Agent‘. Oh, and any hint of smarminess and they’ll be wishing they worked for Spicer-Haarts’.

Truth be told, I am a bit disappointed, I was buying into grey haired, older than me Estate Agent with a twinkle in his eye, and I am getting his mini-me’s. On the morning of ‘the visitation’ I am surprisingly agitated but clearly not as much as the frightened little rabbits who present themselves on my doorstep. Heaven knows what fear of God their boss put into them. I let them have a wander around, Estate Agents wandering around my house, evaluating, appraising,nose poking, eurgh horrid. Hard as you try it’s tough regarding your home as a commodity- few manage that emotional sidestep.

‘So let’s talk price, what do you think?’ I ask them. There are almost perceptible beads of sweat appearing on the upper lip of mini-me number 1 and boy number 2 fidgets. If I was a cruel and cold buying agent, I might be taking pleasure in this. No comment. ‘Well, over the road sold for X’ pipes up one. ‘No it didn’t’ I point out. ‘Yes it did’ he replies bravely. I bite my lip but not quite hard enough. ‘Lets agree to differ’ I say ‘but I do know the Vendor and the buyer and I checked Land Registry’. Cheap shot, quite possibly beneath me, I chide myself… but only a bit. However, I do remind myself that it helps if your Estate Agent likes you.

No 1 suddenly blurts out his view on the value, ‘excellent’ I say, ‘just what I thought’. They hadn’t tried to please or buy me with an inflated price. There is a palpable outlet of breath and relaxing of muscles all round and smiles. So, shall we put a little bit on top (3%) so the buyer can knock me down a bit and feel he’s getting a deal and I have the chance of getting a bit more than its worth if it gets significant interest? We all agree.
‘Onto your fee’ I say.. Apparently head Rupert has told them to give me a discount but it’s still 1.5%, I am OK with that. I want the office to be motivated, after all they are on commission and they might be keener on other higher fee properties if I really screw them down. Besides, if I am right about the quality of the team they should make that fee back for me through intelligent negotiating. Slight hitch when they tell me I have to pay £650 up front for the photography, EPC etc.. humph, I hadn’t banked on that. However, really good photography is key to marketing and to be fair, I expect my clients to pay up front because it shows commitment and weeds out the tyre kickers, so I find it difficult to whinge. I have a go mind, but they are intractable.
Right guys, we have a deal, they seem shocked that I’m not going to delve into the minutiae and make their lives just a little bit miserable. Why would I do that? I want them to really want to do a good job for me and the more they like me, the more that is likely to happen.
They approach the front door to leave, far more relaxed than when they arrived but I have to say ‘just one thing’ and they breathe in and eyes dart ‘I do no viewings, NO viewings ever, I never want to be present when someone is snooping around my house, that’s your job’. ‘Of course’ they reply, clearly relieved I hadn’t dumped something tricky on them.

So, I’ve gone and done it now, I’ve hired myself a Rupert and whilst I think I have made the best choice for my specific property, I must confess that at the thought of what is ahead, my stomach does do a little back flip.

Part 3 soon… let the marketing commence.

Buying Agent sells her House. The Diary Part 1

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February 2011

I am going to have to move, which means selling my house in the next couple of years. Watching the market it is darn obvious that I had better do it this year. In fact I wrote a blog back in February (Vendors!, take the bloody offer)  advising people of that fact because the whole market was full of over-priced properties with unrealistic Vendors who I knew would never sell and I felt rather sorry for them. When it appeared in The Guardian in October it went quite viral and I received quite a bit of schtick about my self interest in writing it ‘Kellett just wants to buy cheap houses’ and ‘Shame on The Guardian for printing this advertorial’. They were right in one sense, it was self-interest because I was about to follow that advice to the tee. I decide I am going to market at the beginning of September and I don’t mind saying that I wasn’t looking forward to it one little bit. The thought of Estate Agents in MY house, of grubby buyers poking through my drawers, of having to keep it tidy.. aagh. I’ll need this six months just to steel myself for the process.

July 2011

I start major preparations for selling, well I say ‘major’ more like quick titivation because frankly ‘I have a life’.

Preparation in total..

I chuck out all the crap I have accumulated.
I buy some filler and daub away at all those settlement cracks that the surveyor will say is subsidence, (Christmas cake icing experience dead handy here).
I paint over all those damp patches on the ceiling where the kids have left the shower door open- so the surveyor doesn’t call it rising damp.
I Civit Bang walls the ex-dog has sprayed with mud.
I purchase Febreze for ‘cat litter issues’

Friends in the business helpfully offer ‘property staging’. Good God no, life’s too short, besides, I couldn’t keep a straight face living with TK Maxx accessories at jaunty angles.

Now to pick an Estate Agent, (hackles bristle even at the thought). Do I go for ‘the only Estate Agent in the village’, some of their Negotiators have started shaving (around the spots mind), or do I venture into Rupert territory and have the big brand bang but with the danger of a high ‘Tim nice but dim’ quotient. It’s a between the devil and the deep blue sea decision. One thing is for sure – whichever choice I make, they shall be managed.

Your 2 week warning… Vendors! Take the blo*dy offer.

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I wrote the post below back in February 2011 when frankly I could see the writing on the wall. I could see the emergence of over-inflated asking prices and Vendors who’s price expectations were way and beyond what they should have been. This was partly the fault of Estate Agents, with available listings at the lowest levels for decades the easiest and quickest way to be successful in a pitch to prospective Vendors was to price high. But Vendors are not blameless, inherent greed allowed them to ignore common sense and allow their properties to sit on the market getting no offers, dismiss low offers and ignore suggestions of price reductions. This year both Vendor’s and Estate Agent’s have come un-stuck as a result. Transaction levels are through the floor. Estate Agent’s have not been able to sell their over-priced stock (and each one of these costs them money) and Vendors have often ended up taking a much lower offer 6 months down the line as their property sat around becoming stale and thus unattractive to the market. Vendor’s and Estate Agents, today is the 23rd October 2011- here is your 2 week warning;
If you don’t do something very fast, a price reduction or taking that offer you think is too low, you will be whistling until February at the earliest and I guarantee now that you will be getting a lower price than any offer on the table today….

Dear Vendors,

Working on the premise that you are a Vendor who really needs to sell, as opposed to a ‘let’s see what can I get’ tyre-kicker, here is my blunt advice:

You have put your property on the market and one of two things has happened.

Nothing.
or
An offer straightaway.

Why is nothing happening?

As there is a lack of good quality stock at the moment, chances are your property is over-priced or there is something wrong with it. Either way, it is over-priced.

An offer straightaway? Great, but I bet if it’s not the asking price you don’t take it. And if it is, I bet you’re screaming that the Estate Agent under-valued it.

Firstly for the lucky Vendors with a quick offer. You may think this is the beginning of a huge influx of ever increasing offers and therefore think you will sit back and await more pennies from heaven. Well don’t. From long experience the very first offers you get will almost always be the highest and the best. Buyers, when they are first to view on a good property will very often make excellent offers to stave off other bidders. Fresh to the market properties are sexy. If that property has been hanging around they don’t feel the need to and worry why no one else has bought it. The longer it is on the market, the worse buyers concerns about it being a turkey, will get and so will the offers. Don’t mess around with that offer, squeeze as much as you can quickly but remember it will probably be the best you get.

So your house has been sitting around for 6 weeks now, dribs and drabs of buyers no offers until one day up pops what you call a ‘derisory’ offer. Ask yourself how derisory it really is. Is it only derisory in relation to the over-inflated asking price? If it really is bad then rent the place out for three years. If you can’t do that then you are going to have to consider it, because the fact is, unless your house is in prime London or worthy of RIBA house of the year, your chances of getting more will only get worse as the weeks go by.

I am being so blunt on the basis that the market is surprisingly buoyant at the moment for Vendors but only due to lack of supply and low interest rates. It won’t last. This lack of supply is very likely to change as the year progresses due to un-employment, rising interest rates and general economic woes. When more properties come onto the market and the demand doesn’t rise, the chances of you getting the price you are offered today will decrease faster than a spider down a plughole.

If my house was going on the market tomorrow and I needed to sell this year, I would be pricing it very realistically, perhaps even under-pricing to create interest. (buyers love what they perceive as an under-priced property). If I had no offers after 3 weeks full marketing with a good Agent I would be dropping the price and I would be looking lovingly at any offer from a buyer with cash or a low LTV mortgage.

To heck with price indices and ‘what it’s worth’. A property’s ‘value’ is only ever what someone is willing to pay for it. And shortly, there will be fewer people who want to pay anything and more for them to choose from. So don’t puff out your chest and allow your ego to run negotiations.

Grasp the nettle and take that decent or even half decent offer… indecently fast.

Vendors, this is your two week warning! Take the blo*dy offer.

I wrote the post below back in February 2011 when frankly I could see the writing on the wall. I could see the emergence of over-inflated asking prices and Vendors who’s price expectations were way and beyond what they should have been. This was partly the fault of Estate Agents, with available listings at the lowest levels for decades the easiest and quickest way to be successful in a pitch to prospective Vendors was to price high. But Vendors are not blameless, inherent greed allowed them to ignore common sense and allow their properties to sit on the market getting no offers, dismiss low offers and ignore suggestions of price reductions. This year both Vendor’s and Estate Agent’s have come un-stuck as a result. Transaction levels are through the floor. Estate Agent’s have not been able to sell their over-priced stock (and each one of these costs them money) and Vendors have often ended up taking a much lower offer 6 months down the line as their property sat around becoming stale and thus unattractive to the market. Vendor’s and Estate Agents, today is the 23rd October 2011- here is your 2 week warning;
If you don’t do something very fast, a price reduction or taking that offer you think is too low, you will be whistling until February at the earliest and I guarantee now that you will be getting a lower price than any offer on the table today….

Dear Vendors,

Working on the premise that you are a Vendor who really needs to sell, as opposed to a ‘let’s see what can I get’ tyre-kicker, here is my blunt advice:

You have put your property on the market and one of two things has happened.

Nothing.
or
An offer straightaway.

Why is nothing happening?

As there is a lack of good quality stock at the moment, chances are your property is over-priced or there is something wrong with it. Either way, it is over-priced.

An offer straightaway? Great, but I bet if it’s not the asking price you don’t take it. And if it is, I bet you’re screaming that the Estate Agent under-valued it.

Firstly for the lucky Vendors with a quick offer. You may think this is the beginning of a huge influx of ever increasing offers and therefore think you will sit back and await more pennies from heaven. Well don’t. From long experience the very first offers you get will almost always be the highest and the best. Buyers, when they are first to view on a good property will very often make excellent offers to stave off other bidders. Fresh to the market properties are sexy. If that property has been hanging around they don’t feel the need to and worry why no one else has bought it. The longer it is on the market, the worse buyers concerns about it being a turkey, will get and so will the offers. Don’t mess around with that offer, squeeze as much as you can quickly but remember it will probably be the best you get.

So your house has been sitting around for 6 weeks now, dribs and drabs of buyers no offers until one day up pops what you call a ‘derisory’ offer. Ask yourself how derisory it really is. Is it only derisory in relation to the over-inflated asking price? If it really is bad then rent the place out for three years. If you can’t do that then you are going to have to consider it, because the fact is, unless your house is in prime London or worthy of RIBA house of the year, your chances of getting more will only get worse as the weeks go by.

I am being so blunt on the basis that the market is surprisingly buoyant at the moment for Vendors but only due to lack of supply and low interest rates. It won’t last. This lack of supply is very likely to change as the year progresses due to un-employment, rising interest rates and general economic woes. When more properties come onto the market and the demand doesn’t rise, the chances of you getting the price you are offered today will decrease faster than a spider down a plughole.

If my house was going on the market tomorrow and I needed to sell this year, I would be pricing it very realistically, perhaps even under-pricing to create interest. (buyers love what they perceive as an under-priced property). If I had no offers after 3 weeks full marketing with a good Agent I would be dropping the price and I would be looking lovingly at any offer from a buyer with cash or a low LTV mortgage.

To heck with price indices and ‘what it’s worth’. A property’s ‘value’ is only ever what someone is willing to pay for it. And shortly, there will be fewer people who want to pay anything and more for them to choose from. So don’t puff out your chest and allow your ego to run negotiations.

Grasp the nettle and take that decent or even half decent offer… indecently fast.