Buying Property Archives | Page 2 of 4

Can Self Confidence Really Improve Your Properties Value?

I’m not talking about braggadocio or arrogance here. I’m not even discussing an ability (or lack of) to point out a properties most “sellable” assets. What I’m referring to is our nations endearing strength in it’s own beliefs. With the trigger of Article 50 due later this week many conversations I’ve had over the last fortnight have asked for my opinion on “what will happen?”. Why anyone would ask me I don’t know, but it’s made for a few interesting exchanges.

The HomeOwnersAlliance, after studying recent data released by The Office for National Statistics, revealed the extraordinary evidence that self confidence has not only bucked a trend but stuck candles in it and launched it skyward.

The five regions which voted most strongly to leave the EU have all seen property price increases in excess of 3 per cent compared to June 2016, with the East of England the fastest-growing region at 4.25 per cent.

At the opposite end of the spectrum, the only three regions which voted to remain have seen substantially slower growth.

Paula Higgins, Chief Executive of the HomeOwners Alliance said

“There is a clear pattern here; areas that voted more strongly to leave the EU have seen property prices grow faster over the past six months than areas that were pro-remain.

“Of course, house prices are dictated by a myriad of economic, political and social factors, but confidence – the all-important ‘feel-good factor’ – is vital.

This really does show how “optimism” can “trump” negativity. The public feeling more confident in both their everyday lives and working environments is echoed by willingness to not only buy but also to spend. Of course, in regions where many incomes are generated by overseas trade and the associated industries that support it, a real nervousness about personal circumstances cannot be underestimated.

Why would you be willing to invest where uncertainty reigns? Like most aspects of life it all boils down to how confident you feel and no advice or opinion can normally alter that!

If You Hear “I Can’t Believe my Home is Worth That Much!?”, Then it Probably Isn’t!

You’ve just won £250,000 on the lottery but need to pay £500 to have the cheque couriered to you! A relative has left £1.1 Million to you but it’s in a holding account in Nigeria! We Buy Any Car have told you your car is worth more than you could sell it for yourself on Auto Trader! You think your house is worth about £250,000 but an Estate agent with a low volume of agreed sales tells you it should be marketed at £325,000!

If these declarations sound too good to be true, it’s because they are! Since January 1st 2017 we have agreed sales on an incredible amount of new instructions. Sensible sellers, once the facts are presented, understand that if their home is worth “more” they will likely “get more”. Supply and demand in a market place with little stock dictates that buyers may have to pay the “asking price” but if the property is overvalued to start with, then they’ve no idea of the true value anyway. This is when property just sit’s there. And that’s no good for anyone.

If priced “reasonably” the public demand increases and in 70% of the cases this year, our properties have sold for the asking price or above.

Our advice, to enable a smooth sale remains the same. If the buying public think an asking price is reasonable, then the buying public will come. They won’t come one at a time either. You will have a choice of buyers to suit your needs and it’s this balance that makes for as little stress as possible. It’s also this balance that enable’s you to move onwards and secure you new home.

“Over Value & Risk Under Selling”, Consumer Watchdog Which? Reports!

We always try to explain to our clients that if their home is worth more than the valuation we have placed upon it then the public will surely make that decision.

Since January 1st 2017 we have agreed sales on homes valued at a total of £7,967,950. The actual total of sales agreed is £8,010,006.

The consumer watchdog “Which?”has found that 1 in 5 houses had been reduced from there initial asking price . Most interestingly houses that were sold after a 5% reduction sold for an average of £19,000 less than those that were sold from their original asking price.

The indication here is that by overvaluing, greedy agents and sometimes greedy vendors will cost themselves 8% of the value of their home.

A fascinating indictment of these facts was realised by Paul Higgins, chief executive at The Homeowners Alliance. “Sellers shouldn’t just consider the price that agents claim they can get. They should be thinking about how the agent is going to sell the property and whether they are asking the right questions!”

Richard Headland of “Which?” states that if the valuation is not realistic you could end up thousands of pounds worse off and wasting a lot of time.

We completely agree. Think about your onward move with one hand and your proposed sale with another. Don’t get too caught up with the minutiae. Don’t hold out for another £500 for a light fitting if there is a risk of upsetting the sellers of your dream home. Ask your agent for advice. Don’t play games. Just be logical and hopefully your agent will guide you with the bigger picture in mind, not just the initial instruction.

White Paper, Blank Paper or Paper Promises

A wider range of “affordable housing” is what former Prime Minister David Cameron lauded and was delivered by way of the Governments latest White Paper. However quite how this change in stance genuinely affects the balance between what is “affordable” and what could only be purchased by “first time buyers” is surely the key. Since being a first time buyer in 2001 I have seen nothing that has made the process easier other than having a larger deposit and a wage increase.

How you get this could be a matter of luck, graft, and genetics with a familiar pinch of nepotism becoming the deciding factor.

If the Governments pledge to contribute to savings, shared ownership or life time ISA’s do actually work then in equal measure they have failed. Most schemes have been withdrawn and most were badly marketed resulting in very little uptake.

Bottom line it’s simple. If you want to own a home and you want a mortgage that ties you to it, then you have to find the money to pay for it. You also have to have the earnings to support it. If both answers are yes then you now need to find the housing stock you can afford……

……As of 8th February 2017 it didn’t exist. The Government want 250,000 new homes each year until 2020. Unless the majority of this stock is affordable nothing can or will change and with 360,000 homes having already undergone planning within our existing Green Belt this entire proposal seems more unlikely than ever.

How South Coventry Benefits From Kenilworth & Vice Versa

Sometimes, reactions surprise you. Our stylish window changes within our Kenilworth office have been really well received and comments from one customer in particular were fascinating. She was looking at an attractive “South Coventry” property we were marketing for a Kenilworth resident. “This is great, my children can’t afford to buy in Kenilworth so I’ll send them your way!”. This was unexpected to say the least. I hadn’t even thought of that market at all. Residents of Kenilworth have children (and by children I’m talking 21 – 40 years old here!) who can’t often afford to buy in Kenilworth. That’s why advertising the occasional South Coventry gem in the Kenilworth branch can be so effective. It works and people are so interested.

On the flip side of this equation we have current sellers in Coventry looking to move to Kenilworth to downsize and also families within Kenilworth moving to Earlsdon.

This is a fascinating market in itself because on the face of it quite honestly the prices in Earlsdon and Kenilworth are surprisingly similar. A three to four bedroom period terrace in both towns are often comparable. The advantages of one over the other though are completely subjective.

The schooling in Finham, Stivichall and Kenilworth is certainly outstanding whilst the infrastructure with the A46 and A45 being so close allows easy access to the motorway networks. What’s for sure is that homeowners with property in Kenilworth, Finham, Stivichall, Earlsdon, Burton Green, Gibbet Hill and Westwood Heath could not find greater coverage for marketing their home than Elizabeth Davenport.

Best & Final Offer! You’d Better Make Sure It’s Not a Repossession!

What a fortnight that’s been. Three weeks to be exact. From being an Estate Agent to becoming a buyer myself has been an absolute revelation.

A house I’ve been looking at for over three years finally came onto the market. Sure it needed a little work but I was expecting that. It’s being sold “On behalf of a corporate client” was the official line. The viewing staff who showed me round were genuinely lovely. “Is it a Repossession?” I asked. “No, we’re just selling on behalf of a corporate client” was the reply. A Repossession it indeed was. If the word, Halloween like, fills you with dread (think Grim Reaper & Exorcism) then you’d have nailed it. After the fourth time of being asked for a best and final offer myself I felt like I had become a summoned corpse.

I do not blame the agent. To handle a repossession correctly and respectfully I would suggest no one other than investors get involved. The emotional roller coaster would not have been prevalent if the entire process was purely finance motivated.

This is where the law needs to change. Is a buyer a buyer? If they indeed are then why should be treated differently simply because the seller is a Financial House rather than a Mr Smith or a Mrs Khan. What gives a Financial institution, a Bank or Building Society and the companies that execute their debt collection for them, the right to act contrary to a genuine, human home owner.

What homeowner would sell to an investor rather than an owner occupier if the price agreed was the same? Where is the consideration to the neighbours? Why isn’t the sense of community a consideration? These are questions that are morally & socially unanswerable. And I had agreed to pay more. Sour Grapes you might say. Try Watermelons.

Securing Finance For Your House Purchase

The announcement of the end of the ‘help-to-buy’ scheme this week raised a few eyebrows and even surprised some commentators. In reality, the volume of property sales that involved help-to-buy was marginal. Over the course of the scheme, our agency was not involved with a single sale that utilised the government backed scheme.

The good news is though now that there are lots of mortgage lenders that are offering 95% mortgages again so it is possible (though not easy) for many first time buyers to get together their deposits without the need for such schemes.

Generally it is more difficult to obtain finance now than it was 8 or 9 years ago before the credit crunch came. There are many more hoops to jump through (including more rigorous means testing), more paperwork to fill out and you won’t find any self certification mortgages nowadays as there were at the height of the boom in the late naughties.

That said it is still easier to get a mortgage today than it was 30/40 years ago, and with interest rates historically lower than ever before, repayments are small by comparison to those from years gone by. And if you really hunt around there are lenders out there that are offering interest only mortgages again (you’ll have to venture off the high street to find them though).

So whilst today’s generation of buyers think they’ve got it tough, buying a home is generally cheaper than renting and is an excellent long term investment for the future.

Clinton Trumped or Donald a Lame Duck!

Like the majority of the UK I’m sure, my interest surrounding the US Election is born more out of caution and fear than a desire to see the best candidate succeed. How can two opposing candidates with huge question marks hanging, halo like, over their uniquely manicured barnets create anything other than morbid curiosity?

With the first of the three debates over, Hilary Clinton seems to have taken a substantial lead in the US opinion polls. Why?

It seems like simplicity is again the key. If asked a question, the least the respondent should do is answer with as much integrity and supporting fact as possible. This is where Donald Trump seems to have let himself down. In his commercial life, having so long been able to simply preach demands without explanation, he seems to struggle with anything other than “this is my opinion, therefore it is correct”.

This failure is a lesson to everybody. If you are going to preach, then prove it. If you are going to provide “facts”, make sure they are “correct”.

Nick, George and myself will not even undertake a valuation of anybody’s home without thorough research and up to date statistics with evidence to prove each point we make.

Loud voices a successful sale do not make. Incidentally we’ve just placed a “White House” on the market. Bit smaller and slightly less prestigious but “White” nonetheless.

Honey, Lemons and Why Simple Is Best!

HONEY, LEMONS & WHY SIMPLE IS BEST!

Whether you like Lemons or not, Dr Chris van Tulleken’s flawed documentary “The Doctor Who Gave Up Drugs” did reveal more about us than originally intended. An over-reliance on taking professional advice and the easiest solution possible seemed to be the standard medication both prescribed.

“Get some exercise!”, “drink Water!”, “socialize a bit more!”, were the simplistic views offered to the solution of aching joints, depression and headaches. They could be a lot safer though than simply taking the advice you are given.

However, keeping it simple and understanding what you’re being asked to do (and why you are being asked to do it!) spoke volumes to me.

How many times are you preached complicated solutions to problems that really aren’t there?

Our industry is full of peculiar language that simply doesn’t need to exist.

The person selling a house is called a “Vendor”. Why? Do you really “Vend” a house? No, you sell a house. Surely the person selling the house is a “seller”? Then, if you want to buy a house, are you an “applicant”. Sorry, do you “apply” if you want to buy a house? Is it a job or a gym membership? If a house is for sale does the process of buying it require an application to do so? If you buy a “Bentley” or a “Sunseeker” I think you’ll find the dealership will refer to you as a “customer” not an “applicant”.

I think sometimes business creates a world of semantics just to make itself seem more important than it is. I think it creates it’s world to simply distance itself from the truth of how simple business should be.

If you make yourself sound complicated you justify your role. Well, I think you need a “holistic and cradle to grave approach that loops back to our initial dialogue”. Mark, stop it man you’ve sold out! “Let’s just keep it simple”. Anyone for a hot Lemon and Honey?

Every Home Can Be Your Castle!

Researchers at Cambridge University have recently undertaken a study revealing British new homes to be amongst the smallest in Europe. New homes being built at sizes potentially detrimental to our health are one of the claims the research suggests. With the average new build in the UK being measured with 76 sq metres of living space comparing to Ireland at 87.7, Germany at 115.5 and Denmark at 137 sq m the evidence does appear to overwhelmingly support the findings as well.

Pre loved, second hand, used or nearly new are not phrases associated with house buying or owning but every house has a tale to tell and older properties have assets all of their own. Mature Gardens with trees and hedges rather than seeded rubble strewn turf are the external equivalent of high vaulted ceilings versus energy efficient light fittings. The emotion evoked when purchasing a period building cannot be replicated in other than the most bespoke new build.

The space available in many a 1960’s detached home together with it’s driveway and traditionally generous plot should always compensate for it’s not so aesthetic façade. Two up, two down, Victorian houses, found abundantly throughout Coventry offer two terrific double bedrooms and two reception rooms and can be easily modified to incorporate two bathrooms if the mood takes. You’ll have period features, more floor space and real character for less than your average starter home! Look around, take your time and use your imagination. You don’t have to own a Castle for it to be a lovely home.