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.

 

 

 

 

 

 

 

Housing bubble, what housing bubble?.. Oh.

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I’ll be honest, I’m a bit perplexed.
I’ve been on the telly and the radio a few times over the past few weeks. Firstly, about three weeks ago, it was to talk about the Bank of England’s governor Mark Carney. Carney had said that the BoE had tools in their armoury to ward off an over-heated property market should it arise. These tools were primarily based on reducing the Loan to value percentages that Lenders could offer. This caused the press to question if there was a housing bubble.
His solutions to a problem we didn’t yet have, I pointed out, were interesting as they were in direct conflict with the governments Help2Buy scheme, which was addressing people’s lack of deposits by ostensibly encouraging and facilitating 95% mortgages. Strange as the BoE was surely hand in hand with the Government on Help2Buy.
However, I said that it was far too early to talk of a ‘housing bubble’ and it was clear he was merely being cautious. I also said, with conviction that I didn’t feel Help2Buy was fuelling a feeding frenzy. That it merely aided those in need and gently added to general confidence that had arisen with a little more economic confidence.

Then RICS came out with their suggestion that property price rises should be capped at 5%, with the inference that a housing bubble had started. I hit quite a few screens and airwaves that day. By the end of the day the sweeping 5% cap had morphed into ‘well maybe not 5%’ then ‘maybe geographically targeted’ and ended with a general sense of ‘this hasn’t really been thought through’.
Again, I pointed out, the market simply has a bit more confidence and is a bit better than the past few horrendous years. A little more traction allowing more people to get on with their lives and buy, sell, move. Yes, there may be a little blip before supply starts to meet demand but this should level as builders build and more sellers sell.
It was far too early to talk of a housing bubble, I said with conviction.

I was confident that Help2Buy would not create a frenzy. That it was being introduced gently and that it would slowly but surely help the right people access home buying. I was confident that the lenders criteria on who they lent to would be strict and that we wouldn’t be making the same mistakes of pre-2007. In fact only last week the Chancellor had tried to address housing bubble fears by supporting Mark Carney’s earlier position. The Chancellor is clearly concerned not to cause a bubble I thought at the time. Hmm.

Then, on the eve of the Tory conference, funny that, George Osborne comes out and says they are bringing forward the Help2Buy guarantee scheme from January to almost immediate effect. As I spoke to a BBC researcher on Saturday night (admittedly through a haze of Sav Blanc), we pondered why. There could be no good timing reason for this from a property perspective. The market is close to slowing for Christmas. January made sense.

Suddenly there are reports of high street banks staying open late. Mortgage Brokers I know are in a state of panic as phones ring off the hook, (and suggest lenders aren’t ready even for January). Buyers are calling me saying they need to buy quickly before prices go up. Vendors are visibly digging heels in on what last week I regarded as inflated asking prices. My clients with homes under offer are questioning if they have undersold.

The only thing not visibly changing is stock. It isn’t coming on. The estate agents phones may be ringing – but not with sellers. All in a few days.

Now I’m not an economist but I do understand simple supply and demand maths.

Rather than the ‘steady as she goes’ approach to the housing market, we’ve been delivered a political peeing contest: ‘I’ll take your energy price freeze Ed and raise you our ‘mortgages for all’ corker, Woohoo!’ (but ssh about the supply bit).
I can no longer with conviction pooh pooh talks of a housing bubble – a little political oneupmanship and I fear the supertanker is no longer on what I believed was a steady course. I am left with a sinking feeling.

The Pippa’s bottom of the London property market.

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It’s been a funny old year in the prime central London property market. I signed up new clients in December for a search. Clients with simple but classy tastes. One is a lawyer and one a cosmetic surgeon to the rich and famous – very disconcerting for a lady buying agent of a certain age. Two bedrooms, outside space in South Kensington, 1000 square feet for our £1.5m budget, easy! I left for my Christmas holidays smug in the belief that I’d be kicking my heels up at their house warming in Spring.

In January I hit what I imagined would be a sleepy market. However, I find the prices of new stock surprisingly high and I am definitely not alone walking the South Ken streets clutching a wad of cash to splash.

I console myself with the belief that these prices are simply Agents trying it on and that buyers won’t bite. I’m wrong. They aren’t just biting, they are fighting tooth and claw for anything half decent, whatever the price.

As the weeks pass, I view a lot:

I see common areas that would have crack dealers reaching for the Cillit Bang.

Outside spaces where you’d sip your Cosmopolitans next to the bins.

Bitumen ‘roof gardens’ scented by curry house extractors and second bedrooms where you’d struggle to swing a hamster.

Not to mention the 635 square foot reception rooms, mezzanined and paper partitioned into nothing more than a collection of cupboards.

As for the client’s desired Cornwall Gardens, that was only achievable with a basement flat so damp you could forage your own Girolles.

Everything was unashamedly ripping the Michael out of the words “two bedroom flat”.

It seemed that overnight South Ken had become the Pippa’s bottom of London real estate, royally desirable but royally untouchable. So I throw in some creative thinking, ‘I am going to look in Notting Hill’ I tell my losing patience clients ‘You’ll love it!’.

But in Notting Hill I find Bridget Jones flats. Deconstructed kitchens with curtains for cupboard doors. Walls covered in ethnic hangings, CND posters and ponging of joss sticks. The elusive 1000 square feet remained a forlorn dream. I even ventured into Queensway wondering if I could keep a straight face calling it Connaught Village. I couldn’t.

Something had to give, I decide it will have to be the tube and they’ll just have to get an Add Lee account. So I start looking in an area where old money trims their Wisteria at weekends, where mansion flats jostle with Arts and Craft houses and corner shops stock Gentleman’s relish but no scratch cards.

Bingo, I was right, this little corner of London was yielding far more bang for our tortured buck. I find the first flat in four months that warrants me demanding my client hot foots it from some sagging pop star’s brow.

It’s got the lot, it’s spacious, has a proper little patio garden (client mentions hot tub but I blank him) and you can swing a whole litter of Bagpusses in the kitchen. Above all it has the most elusive quality of all.. Class.

Client is wide eyed, he wants it badly but it’s a bit over budget. He turns exuberantly to the 30-something male Agent and against this Buying Agents strict instructions, makes him an offer. Not one this Agent has had before.

” If the Vendor takes £XXX I’ll give her free Botox for life.. and you too!”

My client looks at me bashfully and says “Sorry Tracy, I wasn’t thinking, I had a bottom lift in mind for you”.

We did eventually get the flat but if you spot a little pop star spinning around London a tad lop-sided, I’m to blame. But perhaps therein lies a lesson?

In today’s London property market, sometimes you have to think outside the Botox.

Written for my column in http://www.primeresi.com – the journal for the prime central London property market.

I loathe Vendor Viewings


Heart sinks, there is an audible sigh and an under the breath ‘bugger’ when the Estate Agent utters the line “The Vendor will show you around”.
Now I can forgive the odd vendor viewing at weekends or evenings but this is a focus on those Vendors who ‘insist’ on doing them all.. Some truisms:

They regard the Estate Agent with disdain and know they can ‘sell’ their house better.
*that’s why it’s been on market 12 months at 25% too high*

They WILL follow you around with a look that says ‘you’re going to pinch something’.
*thanks luv but your Capo de Monte is safe*

You will hear the line ‘We have been so happy here’.
* A rare outing for my cocked head and faux ‘Aww, how sweet’ face*

If it’s a divorce you’ll no doubt get the one who doesn’t want to sell.
*Awkward*

It is made very clear that the hot tub is NOT STAYING
*Phew bloody phew, they just don’t make Civit Bang strong enough*

We built the annexe for my Mother.
*An effort not to ask ‘Erm, did she die in hospital?’ while you scan for stains.*

‘This is the kitchen, my wife’s domain’ followed by loud guffaws.
*It’s how he tells ’em, sigh*

The loo is now a WC, the lounge is a ‘main reception where they like to entertain’ and there is a ‘master suite’ because it has a corner shower and fitted louvred wardrobes.

You must view the eaves storage and the attic where he laid the floorboards himself – there will be a train set.
*15 go’s at pulling down a half tonne ladder and just missing the kids heads*

‘We’re leaving the sauna, we’ve had hours of fun with it’.
* It’s an airing cupboard*

‘We don’t have to sell’
*Don’t tell me!.. ‘You’ll move for the right price’*

‘I’ve been on Mouseprice, the house over the road sold last year for £50k more’
*yes love but that’s twice the size, doesn’t have swirly carpets or a gummed up avocado jacuzzi*

My clients and I wander the property in abject silence, arms clamped to our sides taking turns to say ‘lovely’ – as the Vendor stares at us like a cardigan clad Norman from Psycho.

These are the people who take the stair carpet, every shrub over a fiver and leave wires where the B & Q wall lights were.
So yes Mr and Mrs Vendor, I know your type and whilst I may be saying ‘Lovely’…  I’m fibbing.

Estate Agent Types…

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Estate Agents I have known and loved.

Michaela
Michaela is more careful about showing off her tattoo since being promoted from receptionist, although the fake tan has sadly dulled it anyway. She has also splashed out on a couple of Next suits. Michaela would like to live in every property she shows and she tells you. Sadly this is just a pipe dream since boyfriend Gaz got made redundant from Kwik-Fit. Still, his Grandma is ill and she’s got a lovely retirement bungalow in Hastings so all is not lost. Michaela has Heart.

Catchphrase: It’s alright for some.
Likes: Loose Women
Dislikes: Anyone above ’emselves.

Foxy
Foxy looks great in his House of Fraser suit and wears his pointy D&G shoes with pride, particularly as he got a right deal at TK Maxx. Foxy is driven to sell, partly because he is on £8k a year basic and a shared flat in Clapham don’t come cheap. Partly because if he doesn’t he knows he’ll have to stand on a table at the morning meeting and recite ‘I am a tosser’ while his colleagues/enemies jeer and spray him with Perrier. If an unknown number comes up between 8am and 12pm it will be Foxy – ‘calling out’. No matter you found 12 months ago, he was just checking you were happy in it because if you need to sell….

Catchphrase: If you throw enough shit..
Likes:  His database.
Dislikes: Loooo-sers.

Christine

She looks Mumsy but she has seen it all and let me tell you, it was all negative then and it’s no bloody better now. The only people she likes are her son, ( adopted because ‘her husband’s even bloody useless at that) and the Manager and district Manager, who she bakes cakes for. Those young bloody negs in the office are a constant irritant and they ain’t picking up the phone first or getting their bleeding fingers on her applicant list if she has anything to do with it. They can do her viewings though.  Christine only likes buyers who are male,  middle class and flirt with her. Do not bring children, that steel eyed stare will cause them nightmares.

Catchphrase: I spoke to that applicant first.
Likes: Strictly Come Dancing
Dislikes: People.

Dave
Dave is to be found in his one man office above Greggs offering 1% deals. ‘It’s all about volume innit. Pile ’em high and sell ’em cheap didn’t do Tesco’s any harm did it?!’
Dave is a bit stressed quite a bit of the time because he isn’t piling them high and frankly he’s not selling ’em neever.
You can find the Greater Spotty Dave on Rightmove. His properties have the toilet seats up and the washing up takes centre stage. If you look even closer, there he is complete with flash in the bathroom mirror.
Dave drives an Astra but he really, really Aspires to a Vectra.

Catchphrase: I just want to offer punters value for money.
Likes:Greggs sausage rolls and Boots meal deals.
Dislikes: Any Estate Agent with a listing.

Sheila
To be found in the shires, Sheila is upper middle class and upper middle aged with hair sprayed so hard you wouldn’t get through it with a toffee hammer. Particular specialties are equestrian property and being scary. Expect the Spanish Inquisition if you try to book a viewing, for ease of passage change your name to Camilla, honk a lot and have equine worming tablets visible in your handbag.

Catchphrase: If Daddy hadn’t lost on Lloyds I wouldn’t be here.
Likes: Princess Anne
Dislikes: Commoners.

Rupert
You didn’t think I’d miss him out did you?
The older Rupert wasn’t quite bright enough to go to University but young men from frightfully good families do need a profession with a business card and the City was picky back then. The younger ones have Land Management degrees from St Andrews, Durham and of course Cirencester. Dead handy because they never know if Papa might pop his clogs and they’ll have to take the reins at the family large-holding.
Never try jokes or irony with a Rupert – they won’t get it. However, they ‘won’t get it’ with the most impeccable manners.

Catchphrase: Do you play Rugger?
Likes: A bloody good pheasant shoot
Dislikes: Being called an Estate Agent.

So, clearly these character are not based on anyone living or dead and bear no resemblance to any Estate Agent I have met in the course of my daily life. In fact I shall go as far as saying that I have made it all up. In fact all Estate Agents are made of sugar and spice and stop for hedgehogs crossing the road. Apart from Rupert, who shoots them.

Buying Agent sells her house. Part 3. The marketing

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2nd week of August 2011

Photography done and it looks lovely.  Not sure about the words on the brochure but I figure no one reads them anyway, I don’t. All I need is a postcode, as many photo’s as possible and a floorplan, then I can make my decision to view.

Starting to get a bit frazzled. Dreading having people through my house. I am not Mrs Tidy and keeping the place ‘right’ will be a bore. Also I really find the thought of people viewing my house as quite upsetting. A home is not a commodity, no matter how hard you try to pretend it’s just a ‘transaction’.

Third week of August

With the brochure ready I suggest to the Agents that they call their ‘hot-box’ buyers. No, they say, we would rather give it a proper launch to maximise the excitement. I hope they know what they’re doing. D Day is set for 6th September. Schools are back and hopefully the buyers are hitting Rightmove, checking their emails and planning on getting into somewhere new before Xmas. I know full well that I have a 6 week marketing window before the buyers go into hibernation and the economy probably implodes. Fingers crossed.

First week of September

First phone call comes in- Can I bring someone around on Thursday 8th September? Then another call- I have two first viewings. More phone calls, and more viewings are booked in for the following week. I find myself interrogating the receptionist making the bookings. Are they in a chain? What LTV mortgage do they need? Do you know them? When I started asking if ‘they are nice?’  I decided to shut up. I was developing into one of those ‘hands on’  sellers that I despair of.

Thursday morning.. lot’s of Febreze, cat litter box cleaned and hidden. Bed’s made, which is a first. Cut flowers plucked from garden and I even start thinking about brewing coffee, I allow myself a wry smile and stop right there on principle. If it’s going to sell, then the smell of cookies and a cynical attempt at ‘you too can live my pretend lifestyle’ ain’t going to be the reason. I then get the hell out of there.

When I get back – they are still viewing so I hide down the lane. I watch them leave and pathetically leap on the young Estate Agent James for feedback. ‘The first one said over-priced- although his wife disagreed’ My hackles rise. Over-priced? Over-priced, I hear myself getting shrill and all the advice I give people about ‘listening carefully to feedback’ get’s dumped as I explain to the patient young James why they are WRONG!

What about the second couple? I ask

‘They seemed to like it’ he says. The Agent then has to endure my picking away at his statement. How d’you know? What’s their position? What about price? I am even annoying myself.

The next morning James calls with feedback- I am impressed. He recounts that he met the ‘might be interested’ couple in the pub last night and they were poring over the brochure, which he felt was a good sign. The first couple were ‘still thinking’ and he had yet to talk to the second couple. He tells me that this second couple were despondent about ever finding a long term family home, so they had reduced their price and search to an in-between’ townhouse which they would stay in for a couple of years. James had called them to say ‘Hey! I think I might have that dream house you really want’. Clever James- creative thinking and knowing your applicant list well is how good agents do deals.

Two hours later James calls again. He has an offer. £25k below asking- at the level I actually think it is technically ‘worth’. They are in rented. 60% LTV mortgage agreed.

I ask James ‘how much they liked it’ James tells me ‘she’ walked through the door and said ‘it’s perfect’ and didn’t stop beaming. That is what I want to hear, because that is what my reaction was. I want the buyer to have complete emotional buy in- if they have that then they are far more likely to breach the undoubted hurdles that crop up during the buying process. If they are buying on a practical basis they are far more likely to be swayed by the forthcoming economic maelstrom or by any crappy legal woes.

‘Go back and tell them I am very keen to do a deal but they were the first through the door and I have four more viewings booked already. I would be foolish to take such a hit straightaway. However, I make it clear to James to not lose them. I tell him that I would be prepared to look at less than asking but when pushed for a figure I say £5k more than I would actually take- gotta be careful, because if I told him my actual bottom line- trust me, that’s all I will get.

Phone rings ten minutes later with a higher offer. This is a very good sign. These buyers mean business, no messing around, it shows they really want it. This offer is £10k more than before- another good sign, they aren’t playing silly beggars with £1k increments. I want to close this. The thought of no more people coming around is delicious. I go back with a split the difference offer of a couple of K, 28 days to exchange and 28 days to completion thereafter and the deal is done. This has taken 22 hours. The viewings booked for next week are cancelled and the listing goes straight onto Rightmove with a big ‘under offer’ across it. Even in this market, with decent property, decently priced, ‘you snooze, you lose’.

My head is spinning. I need to find somewhere to live. I am going to move into rented. That will be straightforward, won’t it…?!

part 4 soon- sales progressing and finding a rental.

By the way.. I am rather excited at being nominated for Primelocation Blog of the Year again. A quick vote would be everso appreciated 🙂 VOTE

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.

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.

What Estate Agents are REALLY saying..

Not going to bother with the obvious ‘compact and easy to maintain’ stuff, lets delve a little deeper.

When an Agent tells you:

The Vendor will look when he has an offer…
He will only move if some idiot pays him more than  it’s worth.

The property had an adverse survey but the problem has been fixed…
Yeah right.

Yes, the property has been on the market a while but we haven’t been fully marketing it…
Nobody wants to buy it

40% below market value…
Well, sort of..not saying which market

Three bedroom house..
Two bedroom house.

small garden…
Patio.

The Vendor is open to offers…
He’s desperate.

The Vendor is open to offers…
Even he is laughing at the asking price.

The Vendor is keen to get near to asking price…
He’s an awkward sod.

The Vendor will not move for less than asking price…
He’s a REALLY awkward sod.

The property has been up-dated…
Two tins of magnolia, some Ikea laminate and a B&Q kitchen.

That damp patch on the ceiling was a one-off leak…
It’s got an upstairs wet room – you may as well just leave the taps on.

Luxury bathroom…
One of those bloody green glass sinks that just about holds a puddle.

Luxury kitchen…
Vendor splashed out on Wickes instead of B&Q.

It has potential…
No, it’s just horrid.

Competitively priced…
Well, it’s a catchy phrase innit?

Yes, the price is ‘full’…
The Vendor came up with the price

The Vendor is on holiday, can’t show until he’s back…
The Vendor hates me and won’t trust me with a key.

With useful loft conversion…
If you’re a midget.

Characterful property…
Full of spiders

Interesting Architect designed property…
Odd

Could benefit from some updating…
The swirly carpets are sticky.

The vendor is prepared to negotiate on the hot tub…
Hee hee. I know what he’s been doing in it

The Vendor may take some specimen plants with him…
Five Polish guys are booked to strip it bare

All planning permissions and building regs are in order…
We’re hoping

The vendor has eclectic tastes…
He’s barking.

It’s an interesting property…
It’s really, really wierd.

Previous buyer pulled out due to ill health…
Yeah, the survey gave him a heart attack.

I am not keen to insult the Vendor with your offer…
I know he will shout at me.

I have a property that might interest you…
Most unlikely