Some clients this week have raised the issue that previous Estate Agents did not undertake their own viewings and instead relied on the owners to perform them instead. On paper this opinion looks a fair one. Certainly when Estate Agents fee’s are as considerable as they are, the Agent should be doing everything possible to sell there Vendors home’s as effectively. There is no hard and fast rule in this regard though. I had a chat with my Mum about this as well and although they have always used Estate Agents to sell their houses, Mum always undertook her own viewings by choice (I’d like to state they haven’t moved since I have been in the business but watch this space!). Not only did she do this but my parents homes always sold very quickly.
You see sometimes, but not always, the owner can make an impression that the Estate Agent cannot. The Estate Agent can present in the third person how a family “could” feel in a house or what fun “could” be enjoyed in such a lovely home where the owner, if confident and willing, can present a “do feel” and “do enjoy” sensibility. This, allied with the fact that the applicant may well have viewed countless other houses by Estate Agents who simply opened a door and let you look, would present a much more attractive proposition to them. So the answer here is that if the seller is confident, comfortable and able, they can do as good a job if not a better one than even a good Estate Agent. If they are not, then the viewing representative employed by the Estate Agent must be knowledgeable, courteous, understanding and as good a listener as possible. This is how relationships develop and when your first meeting with an Estate Agent is through a viewing appointment, the Estate Agent is certainly responsible for making it a positive one.
If you want to be part of a success story that just keeps on growing then selling your property through Elizabeth Davenport would be a prudent move. We have just revealed our 2013 results to October and even we are staggered at the figures. The phrase “selling like hot cakes” is something of an under-statement.
Since the beginning of this year, of the properties that we have put on the market for our clients, 79% have already been sold, 19% are currently on sale and just 2% have been withdrawn.
Needless to say our clients have been absolutely delighted with the results and many have been able to move on to pastures new without stress or delay.
We believe these results to be totally unprecedented in the Coventry area and challenge any of our competitors to come forward if they can beat our figures.
Even more amazing is the prices that our properties have fetched. Just 17% of all our properties marketed during 2013 have need an asking price adjustment, that’s less than 1 in 5, proving that our valuers always give homeowners the most accurate, professional and honest advice.
So if you want to get moving then call us now on 02476 010105. If you prefer to get snoozing then please call one of our competitors.
Being an Estate Agent gives one exclusive insights into the secrets of the industry and how it works. Today I am going to risk my own safety and reveal all for the first time.
As a sales Estate Agent, one makes money from selling property. One can only sell property if one has property on one’s books to sell. So the first rule of Estate Agency is “Win The Instruction”.
With most property owners choosing their agent based upon the valuation given, the most important thing for an Estate Agent is the figure they give at the valuation. So most Estate Agents as a matter of course over-value in order to win the instruction. And because they know that the other Estate Agents attending are also going to over-value, they need to really, really over-value in order to win the instruction.
If this sounds strange to you, just think of all those properties you’ve noticed that have been on sale for months (or even years). These are products of the over-valuing trend amongst many Estate Agents.
I checked official figures yesterday and discovered that according to Rightmove, the average property at Elizabeth Davenport had been on sale for just 7 weeks. By comparison some very well known large Estate Agents in Coventry had averages of more than 30 weeks. Why? Because their properties are over-valued and over-priced.
Imagine trying to sell a £10 note for £11. What do you think would happen? Of course, people would laugh and walk away. And that is exactly what happens to over-priced properties. By comparison what do you think would happen if you put a £10 note on sale for £9? Of course, people would flock round and an auction would begin, resulting in a bidding war and probably a sale price approaching the £10 mark. In other words the only danger when pricing a property is “over-valuation” and in reality there is no danger of “under-valuation” whatsoever.
But the magic circle will never admit any of this to you and my head will probably be on a stake by tomorrow morning…………………
I recently arranged some viewings on a property that was one of those homes that could have attracted the attention of anyone on the planet, or at least seemingly.
And after all, as I was tought when I studied Economics A-level, price is driven by demand. In other words if you mange to maximise the demand for any item, commodity or service, you increase it’s value. The higher the demand , the higher the price.
With this in mind why would it ever make sense to make a commodity or service “exclusive” and frighten away or “exclude” some of the potential buyers. The simple answer is it would never make sense.
And when one is deciding upon which buyer to choose or indeed which supplier to choose, surely an open mind and a decision based upon merit will lead to a win-win situation, both in economic terms and personal satisfaction terms for both consumer and supplier? Surely yes??!!
Apparently not. Even in 2013, exclusivity is still alive and well. Some consumers, suppliers, buyers and sellers base their decisions not upon what would work best for them or their clients but on whose handshake fits or which buyer is on the right committee.
At Elizabeth Davenport, we don’t have any favourites or hold allegancies. We work to achieve the best results for all of our clients by bringing in the widest range of buyers and customers possible. We don’t judge applicants by their handshake or in fact by their weekend habits, or for that matter their creed, colour, sex, poitical views or indeed anything other than their ability to purchase.
We are inclusive, not exclusive and as a result we achieve the best prices and results for all of our clients.
I have just left a series of viewings on a property of ours that we really want to secure offers on. We have worked closely with the owners to ensure the right price and marketing has been implemented such that the level of viewings have dramatically increased since they placed their house on the market with us. The viewings were undertaken with myself and the owner both present. I really wanted the prospective buyers of the house to hear the position of the sellers from the sellers themselves. It is really vital when trying to secure the very best offer on a house that the buyer understands how motivated the sellers are. Do they need to sell sooner rather than later? Have they seen a property themselves that they may be able to negotiate at a lower price? Do they indeed have the luxury of waiting for the highest offer? Surprisingly even when numerous offers may have been placed on a house the recommendation is not necessarily that the seller accepts the highest offer but that they accept the most suitable offer that best suits their needs.
As a buyer your ability to negotiate is dependent upon a number of factors.
Whether you want the house or not, you are not buying the property yourself unless you are buying with cash. Therefore the seller needs to know the offer you make is genuine. It’s very easy to say I’ll offer the asking price but whose paying for it? The mortgage needs to be agreed in principal to put you in as strong a position as possible. This will help.
Is the mortgage subject to additional funds raised by the sale of your own house? As George explained last week, if this is the case, secure your own sale first.
Are the buyers going to want to sell to you? Excuse me! This is without doubt the most personal part of the negotiation process. If the house you are buying is owner occupied then present yourself to them as well as possible. The amount of sellers who refuse offers because they “didn’t like” the prospective resident in waiting is always a surprise but really shouldn’t be when you consider neighbourly relations and the emotional attachment to they have to their home.
Lastly rationalize and be genuine about your offer. Why is it 10% lower than the asking price? Why is it that your asking price offer is better than another’s? Do the research. Look at the value of other houses in the Street and when they sold. It is our job to present your offer to our Client’s in as good a light as possible. It is also our job to secure the best offer possible for our Client. Remember though. The best doesn’t always mean the highest.
By Mark Walmsley
A common dilemma when moving home is juggling things into the correct order.
Should you find somewhere to move to first or find a buyer for your own place beforehand? Many homeowners call our office and say that they are scared to put their own property on sale until they have somewhere to move to. This is an understandable concern but trying to find somewhere to buy before you have sold is putting the cart before the horse. It simply won’t work and will lead to disappointment and frustration.
Firstly many estate agents simply won’t book you in to view any of their properties unless you have already agreed a sale. And even if they do, if you find something that you like then you will not be in a proceedable position and will miss out. After all, how can you possibly make an offer on your next property when you don’t know what your current one is going to sell for?
So the first thing to do is to get your own place on sale with a good estate agent that gets results fast. Look for an agent that has a high proportion of “Sold” stock (around 60% is excellent). Elizabeth Davenport currently have 66% of our stock Sold STC compared to other local agents that have as little as 10%.
Once we find you a buyer and accept an offer, you can begin your search in earnest. And don’t forget, ultimately if you can’t find anywhere to go to then you are not legally obliged to move until contracts are exchanged.
Whilst the recent birth of my second child only a week or so ago has left the Dad within me contemplating nothing but cuddles, gurgles and kisses, the Estate Agent couldn’t be faulted for wondering if my children will ever be able to afford a house at all.
According to recent research those actively motivated, fully employed, first time buyers are having to save for an average of eight years to acquire the basic deposit needed to by their first property. I don’t work for the Department of National Statistics but my children having full time employment could well be triumph enough. Buying their own property could simply be the icing on the cake. 60% of first time buyers receive help from parents and grandparents and if it’s possible to do so then I would certainly like to honour this statistic. I would love to believe I’ll have the ability to pass lump sums to each allowing them to purchase their first home.
Could this be realistic though? It’s cost enough raising children whilst maintaining the ability to pay a mortgage, financing the family car and facing the inevitable breakdowns and household dilapidations that running a family require. My head began to ache (could have been lack of sleep?). Here are a few suggestions Elizabeth Davenport’s financial advisors have recommended to me.
There are many ways that a parent or grandparent can help their children with that DO NOT involve parting with their own assets. Remortgaging your own home, with the right advice, may mean that your own repayments raise but you will have released a sum to enable your children to pay for their own house rather than Mr & Mrs Landlord’s!
Even more generously minded parents or grandparents who seek to downsize themselves will find tax benefits in gifting monies to their offspring rather than allocating it as possible inheritance. This is a particularly tough conversation to instigate with Grandpa as it involves giving money and death but nonetheless it may be one that an astute Grandma could initiate instead!
Thirdly the ability for a working parent to guarantee a mortgage loan can help top up the deposit. Certainly if their own professional history and credit rating is credible this can be a very valuable tool in securing the right property rather than the compromised shed in not as bad a location as the other forty you looked at!
Finally, despite there being a raft of other options available I’ll present the ultimate. If your relationship with Mum and Dad is faultless and you truly remain the apple of your parents eye then a mortgage can be guaranteed via a charge on the parental home. This is a massive trust related gesture which is essentially a declaration that you can trust your children implicitly and they honour you enough to never default. This, of course will be my chosen path because as every new parent is certain, their children will be faultless!
We’ve just been instructed on a property “To Let” because the Agent didn’t do what the “Landlord” told them.
As a Property Manager I have often faced a question. “Can’t you just tell them to do it!?”
The issue may be about access to the landlord’s rented property. It may be the tenants obligation to keep the grass cut, it could even be that a “dog” has been heard in the house! As it happens the instruction was earned because I explained an agents obligations to a landlord when a previous agent had not. We have simply made sense of the roles all parties play in a successful relationship.
Your agent is bound by regulations not of their making. It may be the Housing Act 2004, The Landlord and Tenant Act 1985 or the Consumer Protection Act 1987. The role they play should be to give advice and the simplest solution to whatever problems faced. You, the Landlord, are our “Client”, the Tenant is our “Customer”. We have a duty of care to the tenant, but we work for you. So, if you have a request to make of the tenant, or a query or concern and the request is legitimate and legal, the agent should support you because you are “The Client”. If we can help with any Property Management or Lettings issues you may face please contact us and we will be delighted to assist.
By Mark Walmsley
I have just finished talking to a “soon to be” landlord who is in the process of completing on her first property investment. She was excited and a little nervous.
When I called her following her enquiry, I was the only Estate Agent to call her back. She’s secured a three bedroom family house in Coundon for a price of £125,000. Nervous? She needn’t be. The average price of a three bedroom house in Coventry is currently £676 pcm. I had valued hers at £675.
Interestingly, she could mistakenly have paid £20,000 more to return no greater a yield. Nervous? Why? This lady has clearly been well advised and her research has proved very successful. With a yield of over 6% she has purchased a property to suit professional residential tenants in an area that will appeal to them. She has decided what sort of tenant she wants to rent to, what areas will fulfil their requirements and secured a property at a price that works. With the security of our nil excess Rent Guarantee policies, free Legal assistance and our honest and realistic advice, this landlord will certainly harvest the fruits of her efforts and time. Where else would you achieve a yield of 6% or more?…..We look forward to hearing from you……author: Mark Walmsley 18/06/13
Statistics show that in the current market your property only has a 52% likelihood of selling. That’s just a 1 in 2 chance of finding a buyer. This is a shocking statistic and sheds light on the real state of the current housing market (outside of London).
Many homeowners have no idea of the task ahead when they market their property, usually because of poor advice and a string of broken promises from their Estate Agent. But why should this be the case?
Quite simply, many Estate Agents are afraid to tell you the truth when they value your property. Instead they opt for the easy option and tell you “what you want to hear” promising instant results and recommending an unrealistic asking price. Overpricing is the most common reason that properties fail to sell but other important failures typically include poor marketing details, shoddy photography, poor descriptions, and omission of important information such as dimensions and floor plans.
The good news is that you can instantly increase your chance of selling to at least 84%. This is the percentage of sales achieved by Elizabeth Davenport, Coventry office over the last 2 years. This has been achieved by careful pricing of properties and excellent marketing details including professional photography and high quality printed brochures that show off properties to their best potential.
In the current market don’t leave things to chance with an average Estate Agent. Give your property the best chance of achieving a sale by calling George at Elizabeth Davenport on 02476 010105.