Miles Shipside, Housing analyst and director of Rightmove, has commented upon the interesting shifts in boroughs throughout London. At the end of March, London has seen the second lowest monthly rise in the last Seven years. I say lowest monthly rise, we are still looking at growth but not to the extent we have been familiar with.
The most exciting analysis of growth is directly relevant to Coventry and it’s own twists and turns. Suburbs of London and neighbouring towns with Train Station improvements have seen dramatic growth over recent months. Rochester in Kent, having spent £26 million on it’s own improved terminal, has seen a mini boom of 20% over the last year. Slough, Gillingham and Gravesend have seen very similar.
A further reason for “abnormal growth” is due to the most obvious and archaic commercial adage of all time. Supply and demand. In a number of these regions the reason for such rapid growth is the lack of property coming onto the market. Coventry and a number of its most desirable areas are seeing multiple buyers for each. We have properties sold whose sellers are desperate for that right property to come to the market to move in to. When it does, the price they have to pay, by default, is a premium.
Very interestingly, if we take this analysis at it’s most simple and if all sellers placed their houses on the market before finding another property (rather than waiting to see what properties appear before marketing), the stock levels of property would increase and the demand therefore wouldn’t be as great. In time the prices would stabilise as sellers and buyers began to match each other in number. Rather than sell high and buy high we would all be selling sensible and buying sensible. I like the sound of that. That’s how solid and sustainable growth occurs. I wonder what Mr Shipside thinks of that.
Well it’s really beginning to happen! Mastery of the much maligned but surprisingly safe 1960’s ring road requires a touch more forethought but otherwise FriarGate is really beginning to take shape. All being well and if politics, procrastination, budget and bloody mindedness don’t interfere the new Train Station development will see 39 sustainable new buildings, including Offices, Residential Accommodation, Hotels, Restaurants and open spaces for families to enjoy. With completion in 2018 we’ve still got awhile to go but it’s clear improvement, throughout the city, is at the forefront of minds and not simply brushed under the table as has appeared in years passed.
With Coventry – London in under an hour and buyers relocating to Coventry from the Capital City, improvement and investment seems set to continue. Let’s not panic though. These buyers are not driving prices upwards like the Oligarch’s in Chelsea and Kensington. They’re a small proportion but certainly a demographic that haven’t been so familiar before. Home owners in Styvechale, Cheylesmore and Earlsdon certainly could take advantage of this affluent new wave though.
Property a 10 minute walk from the Station, whatever you own, whether Apartment, Terrace or Detached, should certainly see above average growth as FriarGate continues to prosper.
Together with Virgin Trains we’ve invested on Platform One & being situated on Greyfriars Green, just a stones throw from the development, we’ve already begun to see a difference.
Its a question that we here all too often. “What’s the secret of selling my home quickly and for the highest possible price?”
This questions gets asked of us by not just homeowners looking to sell, we also hear it from some of our own competitors in the Estate Agency Industry. At Elizabeth Davenport we have years of experience trying and testing different formulas and know exactly what works and what doesn’t when it comes to getting a Sold board up outside a property.
And today I am happy to reveal a very large secret (but please don’t tell the other Estate Agents!). The secret to selling a property in any given price range and in any given condition in the quickest possible time and for the maximum possible price is this:
Quite simply, you need to generate as many viewings on the property as possible, concentrated together within a set time frame. That’s it! Not Rocket Science. Just common sense. Simple economics dictates that high demand equals high price. By contrast, low demand (low number of viewings) equals low price.
“But how do I get a higher than average number of viewings?” I hear you ask. That’s easy too. Simply call Elizabeth Davenport Estate Agents on 02476 010105 and invite us to market your property with our specialised methods and we promise to get you a high demand for your home.
When you decide to sell your home the net amount you walk away with will be critical to the amount you can afford to pay for your next home. This net amount is what your property sells for minus all of the costs of selling and moving.
The costs of selling and moving include the estate agents fee, solicitors fees, removal costs, stamp duty, plus any mortgage redemption and set-up fees. In total these costs can typically amount to between 2 and 5% of what your home sells for. That’s a lot and so trying to keep these costs down can seem like a sensible idea.
So if you hunt around and bargain hard on these fees by choosing the cheapest options you could possibly save yourself perhaps 0.5% of the sale price and on a £200,000 house that’s £1,000 in savings. Nice job.
Here’s the flip side. When it comes to selling property, the difference between good marketing, skilled negotiation and professional local knowledge versus cheap marketing, call centre negotiation and a distinct lack of local knowledge, the result can be as much as a 5% reduction in the sale price of a property, sometimes more. On a £200,000 house this would be a difference of £10,000.
Elizabeth Davenport offer a high quality estate agency service via skilled local professionals who will fight hard to get you the maximum price for your property and could ultimately save you 10s of £thousands by getting you a better sale price.
Call us today to find out more about our exceptional service and dramatic sales results.
So what do Mr Osborne’s tax changes mean for buy-to-let investors in Coventry after 1st April 2016? Time for a heated debate? Well it would have been nice to have had one at least!
“Frankly, people buying a home to let should not be squeezing out families who can’t afford a home to buy,” So George Osborne proclaimed in his Autumn Statement, before announcing major policy changes aimed at making buying property to let out less profitable to investors. Noble comments indeed but do we seriously believe that the intention is not to raise money for the treasury? Will this decision slow Buy to Let? Will first time buyers and owner occupiers have more opportunities?
The reigns have been pulled taught at the coal face and beyond into the mine. To purchase an investment property or a second home the buyer will, from April 1st, have to spend 3% more in stamp duty than anybody else. This places a charge of 3% up to £125,000 where owner occupiers pay 0%. Between £125,000 and £250,000 3% is added to the existing 2%. £250,000 to £925,000 adds a further 3% to the existing 5%. Then, once rented, the landlord will also have to suffer a variety of further profit dampening changes. I’m not crying about all of this but I do think the changes are too fast and too hard.
At Elizabeth Davenport we have seen a volume of buyers investing from London. This is where Mr Osbourne’s theorising hits a potential brick wall. His buy to let investors in Shoreditch, Twickenham and Croydon may well decide to look elsewhere where the expenditure is less and the short term returns equally attractive. This may free up potential “1st Time Buyer” opportunities on his doorstep but geographically the investment will just occur elsewhere. My theory is simple at best and wrong at worst. Realistically the volume of buy to let investors from outside of Coventry will grow and there will no change to the volume of first time buyer opportunities whatsoever.
Thinking practically if you wish to purchase a second home or buy to let investment then move fast! Look for chain free properties or tenanted homes. Don’t quibble about a reduction of £2000. On April 2nd it will cost you a lot more than that.
Dear Father Christmas, On behalf of all of the staff at Elizabeth Davenport we’d really like to thank you for your visit and for the wonderful news! Your Elves really brightened up our day when they told us we’d made the Christmas Number One for instructions worth over £120,000 this December. What fantastic news! So many agents seem to have struggled this past month, which in fairness is the norm. In fact, being Number Two for instructions at any price gives us the same illustrious standing as Beiber and Bruno Mars so we can’t complain at that either! I’d also like to thank you for making sure that George received the fantastic camera and equipment he asked for. They’ll certainly be put to good use (He asks for the same thing everything year and you’ve never failed to deliver!). Well, for this year I think it’s time to say goodbye, give my best to Mrs Christmas and Rudolph (tell him I didn’t mind clearing up his mess from the roof!) and we’ll be sure to drop you a line again next year! Kind regards, Mark.
Without further Ado and with the Festive Bells ringing as my pen hits parchment, Elizabeth Davenport are really pleased to welcome Nick “Not just for Christmas” Luntley to our burgeoning office on Warwick Row! Having started his Estate Agency career in 2005, Nick has truly worked his way up through the business. Tea was soon sitting cold and biscuits stale as his desire to become the best Estate Agent possible become reality. Leaving a successful position as Sales Manager of a much respected Coventry Estate agent means a lot to us. St Nick, you’re welcomed with open arms!
2015 has been a very busy year for everyone. Our office has grown dramatically. So, when volumes of business increase, the key is not counting the profit (Scrooge, take note!) but retaining and further improving our customer service levels by employing the right team.
With Rightmove actively marketing the fact that the Christmas period is the busiest for Online viewing, promoting your house now, rather than later can be a positive and genuinely beneficial decision. As the interest in your home grows, decisions to view are made and in the New Year they happen!
Of course no one will want to view over the Christmas weekend, but they’ll be getting excited! So, if you get a knock on the door on Christmas Day it won’t be me. It might be St Nick though!
2015 has seen Coventry benefit from new employment in a variety of roles and locations. Many of these locations have seen properties sell to those new employees who in many cases are also new to the area. What with Coventry University also hitting The Times Top 15 list, the resurgence of Coventry as a City of investment and progress, has also seen us achieve record sales over the first nine months.
With Whitley, Cheylesmore and Styvechale serving Jaguar Landrover we can also see Travis Perkins set to employ 300 new staff at it’s new multi million pound distribution centre at Whitley Business Park.
Metrocab and The London Taxi Company are seeing over 1100 new jobs being created between Ansty Park and Tile Hill. Unipart and it’s new division, Powertrain Applications, being based in Holbrooks, will see a need for 150 new roles to support it’s growth. This grow is expected to also have an impact in hiring experts in legal matters like this job accident lawyer Las Vegas who in case of any problem rises with a new employee.
Sainsburys also sees new roles within digital design and development bringing a further 300 new jobs to the city spread between Walsgrave and Ansty.
With The University Hospital, Warwick University and that ever so simple Coventry – London Euston commute, Coventry with a wealth of property stock to suit all pockets, seems to be driving the market from strength to strength.
We’re really happy to be part of it.
Just last week we received instructions to sell a property in Coventry. The agreement was for 2 agents (Elizabeth Davenport plus one of our competitors) to market the property simultaneously. The idea of appointing 2 agents is to get a quicker sale for the client and because of the extra competition, presumably obtain a higher price for the property.
Sadly the arrangement soon became counter productive. The other agent involved received the first offer on the property. Their immediate response to this was to suggest to the owner to quickly accept the offer and remove the property from the market. Under any circumstances this is not the best advice to give especially when an offer has just been received and there are several other viewings booked in. Higher offers could well follow from other buyers so to accept the first offer instantly is questionable.
As it happened our agency subsequently negotiated a higher offer with a second buyer, well in excess of the one received via our competitor. By then though a deal had been struck and the original offer firmly accepted. The owner of the property, true to their word decided to stick with the original deal. They have now been left substantially out of pocket.
If one Estate Agent had been appointed then a different outcome would probably have prevailed and I suspect the owners would have now accepted a substantially higher offer on their property. Using multiple agents to sell your home is often NOT the best way forward.
Elizabeth Davenport specialise in sole agency and will get you the best results bar none. Call our office to day and arrange a free valuation for your property.
As soon as the Christmas Tree took home in the loft space and our bums hit the hot seats back at Warwick Row, we have seen month after month increases in sales results, instruction levels and viewing figures. Interestingly we have seen a few other repetitive patterns emerge that aren’t so favourable.
If we accept that the way we market a property attracts a greater number of Online Click Throughs than competition then we must also accept that is one of the reasons we have a greater volume of viewings. This in turn should create a wave of offers. When this occurs we find it sensible to set a date for “Best and Final Offers”. The Vendor is happy, the buyer is happy and we did all we could to ensure fairness for the parties who weren’t successful.
Then a Mortgage Valuation is booked. Is it Santander? Is it Natwest? Is it the Coventry?
Then, more familiar than ever, certain lenders are undervaluing the properties we are selling. The Vendor is not happy, the buyer is not happy, my colleagues are not happy.
What next? Renegotiation? Compromise? A scratch of head?
Stop! A pattern has formed and it’s one that seems to victimise the success our marketing has created. If we have a volume of buyers wanting to pay more than the mortgage valuation suggests, then are the buyers wrong? They viewed countless other houses they deemed not of value. When the Mortgage Surveyor attempts justification, “Have you had other offers on the property and what were they?”, we can safely state “Yes! Here they are! What does that tell you?”.
The answer? Should we reduce the value of the houses we are selling? No. On at least four transactions this year the answer has been to appoint another lender who offers a free survey. The result? Four houses that were not down valued a second time.
The Vendor was happy. The Buyer was happy. My colleagues were happy and I didn’t have to scratch my head again.