Press Releases 2007
Press Release - The Price Is Right
Property Today talks to Jonathan Handford, Managing Director of Newman Property Services and Fine & Country
This week revealed even more promising movement within the housing market. Alliance & Leicester, Barclays, Abbey National and Nationwide have all passed the reductions in the bank of England base rate to the UK consumer creating cheaper and more affordable mortgages. “We are inundated with people that are prepared to buy but the only restriction was their borrowing capabilities”. He explained “although this is a step in the right direction I believe that only the sensibly priced properties will be those receiving interest and offers. Sellers have much more control over the speed in which they find a buyer and secure their dream home”.
Reality of the market
Contradictions within UK media coverage have made it difficult for the public to know the right thing to do or think. “Avoid falling into the mindset that the market isn’t moving so it is ok to sit tight and wait for things to pick up. The reality is that correctly priced properties are selling in abundance, there are lots of examples of properties selling within weeks, even days of coming onto the market. In recent weeks we have even seen properties achieving prices above the marketing price”.
Get it right first time!
“We all want to get the very best price for our home, and so it is always tempting to ask just that little bit more for it.” Jonathan said. “Unfortunately, some estate agents are only too well aware of this, and will deliberately over-value your home at an unrealistic price in order to secure your business. However, this does not mean you will end up with more money! Remember, buyers can spend months looking for the right property. They know an over priced home when they see one, and they simply walk away”.
Jonathan added. “Be very wary of any agent that carries out a market appraisal without providing any accurate comparables. Valuing property is not a dark science it is a straightforward process. A property is only ever worth what a buyer would be prepared to pay for it. So how does a buyer decide? They look at comparable properties – they see what is currently available in the market place to determine value for money. The internet makes it much easier for buyers to become experts on asking prices. They invest time in researching their options before even looking at property.”
“When selecting an agent the most common mistake made by sellers is deciding upon the highest valuation and the cheapest fee. This is a false economy and your decision on choosing an agent should be based upon their success within the market place and also the service they provide. The old adage you get what you pay for could not be more appropriate. In the words of Red Adair “if you think it is expensive to hire a professional to do the job, wait until you hire an amateur”. A good indicator of a successful agent is the volume of sold boards within their catchments. This demonstrates their capabilities to secure buyers for their clients.
“Many buyers won’t make a low offer for fear of insulting the seller – so they just go away without giving you the chance to negotiate. Even when you reduce your price, it can be difficult to persuade buyers to reconsider a property they have already rejected. Missing out on a sale may mean losing your dream home. Or it could mean you end up trying to pay two mortgages whilst trying to sell the property at an inflated value. In the end, you will have to bring the price down to where it should have been in the first place. But meanwhile, of course, you will have missed out on all that initial market interest. Last, but by no means least, building societies will not lend on over priced properties. Surveyors are required to assess the lending viability on behalf of the building society for the client. So even if you do find someone willing to pay your inflated asking price, they could have problems getting a sufficiently large mortgage!”
Is your life on hold?
“Having your home on the market for an over extended period of time can be very stressful, because it can mean your life is on hold. Also, constantly trying to keep it in a suitable condition to be inspected by complete strangers can be inconvenient, to say the least! All that happens, if you put your house on the market at too high an asking price, is that it will languish there while other, more sensibly priced properties sell all around you. It is also worth considering that the longer your property is on the market, the greater the chance that something will need repairing, leading to expense that could have been avoided. Buyers notice the amount of time a property is on the market, and may wonder if there is something wrong with it. Correctly priced your move can be as stress free as possible.” Jonathan added “I have seen very little evidence of anyone achieving over inflated prices so my advice is to get it right first time”.
Try and negotiate from the top of the chain
When aiming to upgrade it is important to remember that the market is relative and this is the best possible time for you to sell. Jonathan stated “If selling at £100,000 and buying at £200,000 work out the saving if the entire market was to realign with a 10% reduction, you would actually save £10,000 to buy and sell. If the market was to increase 10% more it would cost you an extra £10,000 to buy and sell” ie selling at £90,000 and buying £180,000 the difference is £90,000 where as selling at £110,000 and buying at £220,000 the difference is £110,000. Jonathan believes that “If you do receive a lower offer on your property don’t sit tight and wait for an increased bid, go and work the top of the chain to see if the seller at the top will absorb your reduction to kick-start the chain”. A good and effective agent should already be doing this on your behalf.
It used to be best practise to put your property on the market to get it sold before viewing other properties. The danger is that this tactic creates a stalling motion in the market and if everyone was out looking it makes it easier to chain build. I believe we will see an increase in home swaps and part exchanges to overcome this problem.”
Crash versus an adjustment?
Jonathan enforced “it is important to remember that we are experiencing an adjustment of prices rather than a property crash. Even if we experienced a further reduction of 5% on property prices they would still be higher than levels seen at the start of 2006. I also believe it is not a question of IF prices will recover but more WHEN prices will recover. My advice is that if you are really serious about selling, there are probably only two things holding you back, either your price, or your agent!
Three Wishes for 2008
Property Today talks to Newman Property Services Jonathan Handford
2008 looks set to be a great year to move house as predictions show the market calming down following the highs and lows of 2007.
But leading Coventry and Warwickshire estate agent, Newman, are hoping their New Year wishes will help buyers and sellers secure the house of their dreams.
Jonathan Handford, Newman’s Managing Director, said: “We’re looking to see some stability in the market in this coming year. 2007 has been a turbulent year for many - with the introduction of Home Information Packs and problems in the banking sector. Now that the HIP process has settled in and is here to stay we hope initial concerns will no longer be an obstacle for those looking to sell their house. We know that people are wanting to move but are hesitating – 2008 is going to be a great time to get off the fence!”
“We’re also hoping to see further interest rate cuts in the early part of 2008. The last change saw a reduction in the Bank of England rate to 5.5% - the first drop for more than two years. Many of our clients have already benefited from that fall and we hope further reductions will make the house-buying process easier for lots of people,” he added.
2007 has been an exciting year for the Newman group. The firm has been placed top of the leader board in the For Sale sign analysis surveys and came away with four gongs from the National Estate Agency Awards. Jonathan Handford says their commitment to providing the best service has made them the agents of choice in the area and they are looking to continue that success throughout 2008. “We particularly expect to see an increase in the number of buyers wanting houses with land or properties with the opportunity to re-build. Building plots are very popular at the moment in this area and we predict this will continue. If you’ve got a property with lots of land or re-build potential this is a great time to get on the market!”
Sellers are facing up to reality, says Agent Analyser.
The number of sold properties listed on agent’s websites has increased for the second month, as sellers are beginning to price their properties more realistic.
Martin Halsall, of Agent Analyser, said sellers are now starting to face up to the reality that their houses are not worth as much as they were 12 months ago, and are understanding that if they are serious about selling then price is paramount.
Agent Analyser has indicated the increase is clearly down to sellers adjusting their asking prices to the realities of the market place, as in previous months price reductions were heavily noted.
