Category Archives: House Prices

Why Your Property Is Worth More Than Next Door’s….

We recently dealt with 2 identical properties located just yards from one another. Theoretically they were both worth the same amount, there was nothing in it. Both went onto the market within a few weeks of one another and both were sold. BUT…One of them sold for significantly more than the other. How on earth did this happen?iStock_000014885905_Medium

The first property was valued by our agency and subsequently marketed with our usual high quality details and at the correct market asking price. There was a brilliant response and lots of buyers flocked over to view, with several offers being quickly received and very soon a buyer was selected. Job done.

The second property was also valued by our agency, but subsequently went on sale with a low-budget Estate Agent at an inflated asking price. The house sat on the market for several weeks attracting little interest. The photos that appeared online were of poor quality, some were blurred and out of focus, others were very dark and the house looked unappealing. Some weeks later the asking price was reduced to the correct level, however by then the property had gone stale on the market and buyers were suspicious. Three or four months later the owners reduced the asking price further and eventually accepted an offer some 5% below the figure achieved by their neighbours.

They saved several hundred pounds in Estate Agency fees but lost several thousand pounds on the sale price of their home. As someone once said “The cheapest option often turns out to be the most expensive…….”

Elizabeth Davenport have a track record of achieving excellent results for our clients. If you want to work with a High Quality Estate Agent then please call us today on 01926 298 298 and we can help get your home sold.

Kenilworth & Surrounding Villages Prospering

Kenilworth Estate AgentsDespite the school summer holidays and some continued uncertainty surrounding Brexit, etc, a very healthy and encouraging number of sales have been achieved during July and August at our Kenilworth Branch. Sales achieved represented a broad range of values and property types, showing that buyers are electing to “get on with it” and not let the continued media circus put them off.

Not that surprising really when you think about it. I’m currently in the process of buying a property myself, the main motivation being that my family and my son in particular need a bigger home and more space to run around in. It’s a decision that has been made out of necessity and when it comes down to it, the “shall we or shan’t we” dilemma turned out to be a no brainer. As a family we are more interested in ourselves and our own lifestyle than what a few hundred dithering politicians are doing in Westminster.

Purchasing a home and investing in property is a long term proposition and whilst in the short term the market can fluctuate, in the long term property prices always go up. In fact as a rule of thumb prices double every 10 years so the phrase “as safe as houses” has been around for decades and is here to stay. The supply of property available for sale continues to fall whilst demand continues to rise.

If you are still thinking of moving in 2019 then now is a fantastic time, September always brings a busy and bustling market once the kids have returned to school. Call our office today on 01926 298 298 to arrange your free property appraisal and set the ball rolling. You’ll be glad you did.

2019 & What a Surprise So Far

Kenilworth and Coventry. Wednesday 2nd January 2019. Christmas Break and New Year over (Somewhat thankfully for the tummy and the head at least!). Five sales instructions, two letting instructions and over forty viewing appointments booked into two office diaries. Not exactly what I was expecting that’s for sure.

My trepidation for the year ahead wasn’t based upon our own sales pipelines (which were sizeably higher than the year previous) but the overwhelming negativity promoted by the general media. Bad news travels faster than good. We all know that negative or stressful news is far more readable and enticing than good.

“Everything is OK. Mortgage rates are low and lenders are even giving you cash back as they try to attract new business. Brexit’s OK too. It’s all been smoke and mirrors.  Everything is fine. If you need to move then move”.

I’d put my name to that quote (as I wrote it!) but I’m being entirely flippant. I haven’t got a clue.

Let’s think about all of us for a moment though. If your employer is not trembling in her heels and your boss hasn’t mooted redundancies overheard in the gents toilets then just look at yourself. What has really changed? What is different with Brexit than without? Your own home. Your own life. Do you borrow and extend? Do you move instead? Do you accept the daily stress of living in the wrong area or within a horrendous commute?

Geographically we are often lucky. Like the weather and hopefully the return of the Beast from the East, we don’t suffer the extremes here.

Mortgage rates are genuinely excellent despite the banks remaining cautious. They’re not giving mortgages away. They’re just lending wisely.

If you buy wisely, you borrow wisely and you show your own  due diligence then the ideal house could be sat there waiting for you. Everything is relative.

Memories are short. Only 18 months ago the buying process was fraught with the horrors of up to a dozen buyers for every popular home. 7 out of 10 houses were rocketing above asking price. Their were more unhappy, “missed out again” buyers than happy ones.

Now you will have the time to even book a second viewing. House prices aren’t soaring above asking price. The houses selling (genuinely in greater numbers than 18 months ago!) don’t have multiple buyers but are selling for the right price and to the right people.

On the ground locally, sense seems to exist in the market despite the political turmoil surrounding and intellectualising it beyond any comprehension. Maybe everything really is OK.iStock_000002696243XSmall

 

Flocking Out Of London For A New Nest Here!

Well we’ve seen  it with our own eyes.  We’ve opened the doors and we’ve shook the hands.  We’ve passed the keys into the palms of many 30 and 40 somethings excited to be leaving the capital for the size, space and peace offered here on our own doorsteps.  Now both Nationwide and the Resolution Foundation thinktank have statistically proven the exodus from London northward. With property prices down 5% year on year and with over 330,000 leaving the city last year  (ONS statistics, year ending June 2017), London is the only region in the country with falling prices with the average increase nationally being 2.2%.

The Midlands, most specifically Birmingham, but now Coventry and the surrounding towns of Kenilworth, Leamington Spa and Warwick have seen the highest property price increases over the last year with a regional average of 4.5%.

HighSpeed2Infrastructure is vital. Investment in the city and the towns will reap rewards for all and the Rail network’s part in this cannot be understated. Whether people live in or out of London they’ve still got to get there after all.

Closer to home though and on an emotional level, the appeal of a commute no longer than many travelling from Wimbledon to Wembley means that living in Kenilworth or Earlsdon  or Styvechale or Leamington Spa will offer substantially more living space for the pound. It will also offer a community that can see children raised in outstanding schools without a forty five minute traffic jam and a bill for £100 a day childcare.

The distance between us and London seems to be getting smaller every year. Whether or not Mash and Liquor will be sold at The Almanack or Millsys though could be a step too far….

 

Autumn Sales & Dangling Christmas Baubles!

Firstly, apologies for the word “Christmas” being used before Mid November. Within this industry though the “Christmas Effect” often generates the same response as the “Autumn Sale”. And it does happen early.

There are a multitude of reasons why people want to sell. For those who genuinely want, or need, to sell (not because they “may” want a change or they have seen only one unique property they want) then having a sale agreed before the next calendar “milestone” seems to be a much needed psychological box ticked.

With over 37% of properties (nationwide) being reduced from the initial listing (our average sits currently at 8.8%) this Autumn Sale has hit a 5 year high. Why?

Once again, over eager pricing to win the instruction or the clients desire to ride the high price wave experienced by neighbours in the Spring could be the most obvious motivations.

The simplest explanation to the dangers of over valuing are easily explained . If I value your home at £400,000 and you want the house marketed at £425,000 (and we both agree the launch marketing is perfect!) then if no one comes, we know the launch price was wrong.

It is, honestly, as simple as that.

At £400,000 (if my appraisal was correct) more than one buyer may well be interested and we secure £410,000.  At £425,000 if we then have to reduce, the buying public are aware of the reduction and what comes next are even lower offers than the reduced figure.

So with Christmas around the calendar corner, now must surely be the time to consolidate. A rebrand and a sensible asking price will surely be recipe needed to generate the sale price you need.

Leaving you free to think about what to buy your Children and your Aunts, what food you’re preparing, whose house you are going to on Boxing Day, whether Mable prefers Sherry or Port and whether Santa is actually a good or bad influence etc etc……………..Santa (1)

Why Over Inflated House Pricing Sells Your Neighbours House and Not Yours!

Big Shot Estate Agents

Welcome back! That was as long a Summer as I’ve enjoyed without Sun as far as I can even remember!

Business however was brighter. There was none of the traditional slow down over the months of July and August whatsoever. Instruction levels were high and the interest accordingly. The buyers we needed to attract had obviously decided to not take gloriously long overseas holidays and instead concentrate on securing new home’s for themselves!

Such a successful Summer led me to review the market in general and a couple of valuations I was involved with.

Now, more than ever, the asking price for a home is so crucial that an overvaluation will have such negative effect it will simply show buyers what good value neighbouring homes are instead of your own. I am not saying undervaluing is the solution but, put simply, it bears no risk in comparison to its capitalist and heinous cousin, the greedy valuation.

If a house is truly “undervalued” whether purposefully or accidentally then the worst that will happen is the public will agree it’s exceptional value and numerous offers will then be received. Through negotiation the price then reaches the correct (and increased value!). Although as a buyer this can be an unpleasant experience, a good agent, if they handle it correctly and honestly, will offer advice and build relationships that will help those unlucky first time round (or third if you are like myself!) that will come good in the end.

I looked at the Purple Bricks very carefully. I saw more local instructions with Purple Bricks than any other agent. With false promises (semantics if you will) of no commission (fee’s instead) and a NO SALE BUT STILL PAY OUR FEE philosophy, there is no surprise to see that their “Price Reductions” are also the highest in the local area.

Without being too simplistic about it, the easiest way to achieve an instruction is to tell a client that there property is worth more than it is. Add that to “pay me whether it sells or not” and you have an agent whose ethos is for “being paid for instructions to sell houses for less than the listed price”. If you want annual statistics to prove this point in Black and White (not Purple) then contact me and I’ll be happy to explain that all that glitters isn’t Gold (but it is possibly Purple!).

Coventry Bucking The Trend or Could It Be Ourselves? Just Maybe….

After some careful analysis that we would be delighted to present to any potential client wishing to sell their home, we seem to have bucked a national trend somewhat.

The latest data from NAEA Propertymark has revealed that, during Februrary, agreed house sales rose to a 10 year high – 74% of which were below the original asking price, suggesting sellers are becoming more realistic when it comes to property transactions.

This, although clearly good news, and personally to me, a positive move in terms of reality and affordability, is not what we have observed ourselves. Since January 1st this year we have agreed 35% more sales than the same period last year. Of this and if we consider 100% of our agreed sales we have found that 70% have sold for the asking price or higher. 

As a business we are delighted with these results. Now we find that they may be even bucking the trend. 

If priced correctly and marketed without compromise and as well as physically possible then asking prices and over asking prices can certainly be achieved.

If your marketing is simply so so and your asking price is too high then what hope could a seller possibly have. Please don’t fall down into this trap.

I valued a house on Friday that needed decorating, offered nothing exceptional at all and had been marketed for 10 weeks by another agent. The asking price was close to 10% too high, the photography was poor and the “professional” advice he received (which achieved only four viewings in 10 weeks) was “don’t worry about the decoration, the new owners can do it themselves”.

Honestly, it’s no wonder Estate Agents aren’t taken seriously sometimes.

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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-reiStock_000002696243XSmallmain.

“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!

BPA-Vinyls-OL-AiCC-10-Coventry_BPA_540pxYou’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.

Price Increases in Coventry by 24%. Brexit Showing No Ill Effects Whatsoever!

iStock_000002696243XSmallNo Brexit Ill effects whatsoever? Well, as is always the case the deeper you delve the murkier the reality becomes and that certainly seems to be the case here as well.

Coventry has seen tremendous price rises over the last few years with Styvechale and Earlsdon being the forerunners in most cases. Not anymore. Median price increases are certainly more common than price reductions but some areas have suffered when others have soared.

The remarkable and seemingly unstoppable wave of new students in the city dominates those areas with the highest price rises. CV4 including Charter Avenue, Cannon Park, De Montfort Way, Cannon Hill Road and a radius stretching as far as Hearsall Gold Club have seen prices rise from an average of £370,000 to as much as £458,000 over the last calendar year!

CV6 comes a close second but with a very different demographic. Student accommodation again, albeit Coventry University rather than The University of Warwick, has seen similar increases but with dramatically lower actual sales prices agreed.

What must always be considered when analysing statistics like this is what isn’t included. Statistics are only available because transactions take place. Many areas, Earlsdon being a prime example, have become almost landlocked with sellers wanting to move but with not enough property coming to the market for statistics to be even relevant.

This suggests, as we all know, that if you are truly happy in a location then comparable prices are hard to find and that statistics, sometimes, only tell one of a thousand stories!