Tag: newman sales & lettings

Should We Accept The Offer?

Should We Accept The Offer?

When you are planning to move house it can be tempting to accept the first buyer who comes along with an attractive offer. However, buyers come in all shapes and sizes, and it is important to assess your purchaser’s ability to perform before accepting any offer.

We often receive offers from people who themselves have a property to sell that is not yet under offer. Depending on the circumstances, our advice to our seller, generally, would be not to accept such an offer. The main reason is that by doing so, you would effectively be linking – and possibly reducing, the saleability of your own property to the saleability of theirs. Their property may not be as saleable as yours, so you would need to check this out first. Whilst they might tell you that it is likely to sell quickly because of its immaculate presentation, unique architecture or stunning views, these attributes do not necessarily make it a saleable proposition if the price is too high. If, of course, their property is regarded as being more saleable than yours, then it might well be worth accepting their offer.

What about your buyer’s financial ability? Do they have confirmation from a recognised lender confirming that they qualify for the right size of mortgage, subject only to your property being suitable for mortgage purposes? You could also ask for their solicitor to confirm that any other monies required are available.

By accepting an offer from someone who has a property to sell, you risk slowing down your move, and in doing so you also risk your property becoming an old chestnut should their offer subsequently fall through and the property has to be remarketed some time later.

There is more to selling your home than finding a buyer, so do take advantage of our skill and experience in qualifying anyone who makes an offer.

© Copyright 2016 Richard Rawlings except as excluded under licence. 

Protecting your Rent…and your Investment

Protecting your Rent…and your Investment

One of the most important aspects to consider when choosing a letting agency is whether or not they subscribe to a Client Money Protection Scheme. There have been several examples of unscrupulous letting agents who have mysteriously closed holding many thousands of pounds in client monies – primarily rental receipts that should have been paid over to the landlord.

According to the National Approved Letting Scheme (NALS) it is estimated that residential letting agents currently hold £14 billion in client monies but only when it is too late do consumers consider asking their agent whether the monies are held in a designated client account and whether they have the necessary insurance in place to protect that money in the event that the firm were to experience financial difficulties, or if the money were misappropriated.

Whilst deposits from tenants have been protected by way of the Deposit Protection Scheme introduced in 2007, there is no mandatory framework for the protection of rents actually received.
There are currently approximately 8,000 to 10,000 agents in the private residential sector, of which only around 40 per cent come under any regulatory framework and can offer the necessary protection to consumers. Member firms of NALS and the professional bodies, Association of Residential Letting Agents (ARLA), the National Association of Estate Agents (NAEA) and the Royal Institution of Chartered Surveyors (RICS), must meet clearly defined criteria as a condition of their accreditation or membership, which includes Client Money Protection cover.

As you might expect, we have full accreditation and all our rents are fully protected for our clients’ security so you can sleep easy knowing your investment is in safe hands.

© Copyright 2017 Richard Rawlings except as excluded under license.

Market Comment – November 2017

Market Comment – November 2017

This November has seen both an increase in interest rates and the abolition of SDLT (Stamp Duty) for first time buyers up to £300,000. Certainly the nominal 0.25% interest rate increase is unlikely to cause most homebuyers a problem. However, this first rate rise in a decade might be regarded as a tipping point for further increases in the coming year and the market remains subdued. This is despite the apparent windfall for first time buyers, which will almost certainly turn out to be inflationary.

Although we remain busier than expected for the time of year, with some record prices being achieved, there is at atmosphere nationally that we are moving towards a buyers’ market. According to UK Finance, mortgage approvals for purchases are at their lowest for over a year and, according to Rightmove, some 37% of sellers are reducing their asking price (the highest percentage in five years) and new-to-market sellers are being overoptimistic in their pricing. In other words, sellers must price competitively if they are to achieve a respectable sale before the added complication of a further supply of stock hitting the market in the New Year and Spring 2018.

So now, more than ever, sellers should avoid their property becoming stale on the market by quoting a price that buyers will regard as exciting. They should also avoid the mistake of pricing high on the basis that buyers will “make a lower offer”. We employ excellent negotiators and consistently find that we are able to achieve our asking prices (and sometimes even exceed them), but if the asking price itself is too high then there won’t be enough buyers to prompt a sale. This is the type of balancing act that we as experienced estate agents (as opposed to the online alternative) deeply understand, and harness to our clients’ advantage.

Interested in the market? Curious about the current value of your property in context? Why not call 01926 436111 for a confidential chat? You might be pleasantly surprised!

©Copyright 2017 Richard Rawlings except as excluded under license

For more property related matters please visit our property blog which can be found here www.newman.uk.com

For more information on how we can help you as a landlord please visit www.newman.uk.com

A Move by Christmas

A Move by Christmas

Many people whose property is on the market now would ideally like to move by Christmas, yet only those who are prepared to price realistically to reflect the current market are likely to be successful.

Buyers who are currently active in the market are now getting increasingly keen to move before the end of the year and we have recently noticed a significant ramping- up of activity.

Despite this increase in activity, your choice of agent is paramount as too many agents are currently making rash promises. If you are selling, beware of the agent who tries to flatter you with promises of an inflated price, or entices you with a commission rate so low (sometimes with hidden charges) that they cannot provide a decent level of service or train their staff effectively.

Whilst the market is in fact quite stable, buyers do have a choice. Buyers buy by comparison, and they will always buy the property that offers them the best value in relation to alternatives available nearby.

So don’t fall into the trap of assuming that because your property is slightly wider than the one on the market next door, or because it has better views or a bigger garden, that you should quote a higher asking price. By doing so, your price offsets these benefits. Likewise, if your house is similar to next door, then you should undercut their price if you are to achieve an early sale.

So if you’d like to sell this year, the rule of thumb for this market is to choose a strong, independent, locally-based agent, listen to their advice, and quote a competitive asking price. With the wind behind you, you might just be in your new home by Christmas. Please feel free to call us for a confidential no-obligation chat.