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Why Sell? Let your Home Instead!

Why Sell? Let your Home Instead!

Due to the high demand for rental properties, a cultural shift has occurred over the past few years and many people are now consider letting out their property as a profitable alternative to selling it. Indeed, letting out your property has a number of advantages.

Firstly, the value of a property is, in practical terms, irrelevant, unless you are actually selling it. So renting it out instead means that you simply don’t have to worry about property prices. It wouldn’t matter if prices were to rise or fall in the short term.

Secondly, by letting out your property, you get to keep the investment in which you have no doubt expended time and money, and you don’t have to spend money on the various costs of selling, and especially re-buying. There is also something pretty cool about being a landlord!

Of course, your rental income should at least cover your mortgage payments. Whilst monthly mortgage costs should remain virtually static throughout the term of a typical loan (subject to interest rate fluctuations), and then disappear at the end of it, rents are more likely to rise over the long term, providing you with an escalating annual profit, which many people regard as their pension.

Renting is also quicker than selling, so you can immediately realise your short-term plans, and unlike selling, renting is highly reversible should your plans change in the future.

Finally, tightening mortgage lending criteria under the Mortgage Market Review regulations suggests that it might just be worth keeping the mortgage you have, as a new one might be harder to secure, should you wish to buy again in the future.

So before you put your property on the market, why not ask us to provide you with some expert confidential advice on the options available to you. You might be in for a pleasant surprise!

© Copyright 2017 Richard Rawlings except as excluded under licence. 

Advertising for Results

Advertising for Results

As estate agents, our job is to sell property. Sounds obvious really! However, some people judge an agent’s ability to do the job on the amount of advertising undertaken on behalf of each client, rather than on the strategy behind their advertising policy.

Clearly, it is virtually unheard of that someone will buy a property on the strength of an advert, without actually visiting it. So the purpose of a property ad or portal listing, is not to sell the property, but rather to encourage a buyer to enquire further and arrange to see it.

Nevertheless research, and our experience, has shown that it is also unlikely that a buyer will go on to purchase the property about which they originally enquired from an advert. The chances are that once they have made contact with the estate agent, then that agent will begin to gain a thorough understanding of the purchaser’s wants, needs, preferences and areas of potential compromise, and can steer them towards the property that most closely fits their requirements. This can often turn out to be something quite different to the one that initially attracted the buyer.

The most important function of a property advert is to encourage buyers to contact the estate agent, so that the agent can then have the opportunity of doing their job in facilitating a successful sale.

We have found that our creative ads and portal listings are really effective at enticing a wide variety of buyers, leading to a happy outcome for all concerned.
© Copyright 2016 Richard Rawlings except as excluded under licence. 

Holding the Sale Together

Holding the Sale Together

It is well documented that, nationally, around 30% of all sales arranged fail to reach a successful exchange of contracts. Fortunately, our conversion from sales to exchanges in the last 6 months has been 74% so three quarters rather that two thirds.

However, the sales cycle can be frustratingly slow and the longer the sale takes, the greater the chance of it falling through. This makes it particularly important that your estate agent handles your sale with kid gloves. So we typically advise our sellers as follows:

Preparation – Make sure your solicitor has called for the deeds and prepared a draft contract in anticipation of finding a buyer.

Be serious – Only accept a serious offer. Does the buyer have anywhere to sell, a mortgage agreed in principle and a solicitor lined up? Ask to see details. A serious buyer will be prepared and won’t want to delay.

Don’t accept an offer exclusively from someone with a property to sell. By doing so you limit the saleability of your property to the saleability of theirs, and you lose control.

Bridge – Bridging finance can provide a solution if you are caught between selling and buying. It is effective but costly and risky, so think carefully before entering into any agreement.

Ask your solicitor about pre-contract agreements, which can bind the purchaser to buy prior to exchange, subject to certain provisions, much as they use overseas. You can even take a deposit from the purchaser to guard against them pulling out or renegotiating.

At Newman Property Experts, we pride ourselves on our ability not only to deliver buyers to your door – but, more importantly, to make sure that your sale sticks! So you’ll find our agents don’t just walk away once the deal is done, but are fully involved in the whole sale process and will hang in there with you until the day you move.

© Copyright 2016 Richard Rawlings except as excluded under licence. 

For more informative blogs on the property market and how it may affect you please visit www.newman.uk.com or you can call me on 01926 431431.

December 2017 Market Comment

December 2017 Market Comment

2018 turned out to be a politically turbulent year, but a somewhat lacklustre one for the property market, once again demonstrating the resilience of the British when it comes to home ownership.

Indeed, the latest report from LSL revealed that average house prices have seen a return to growth after several months of slowdown and the Land Registry reports that house prices are, on average, up 4.5% on last year when the figure was 6.3%.

These figures are skewed by significant regional and timeline variations and should be viewed with caution. For example, the Land Registry reports a fall of 0.6% fall last month alone, despite the annual rise. The more recent LSL report this as 0.9% – its lowest since April 2012.

Much of the downward pressure on prices has come from the influence of a poorly performing London and the South East, although this is now easing. Even within these areas the figures fluctuate widely (eg Westminster down 18%, Redbridge up 8.6%), although every region except Greater London has seen some sort of price rise. Nevertheless, Rightmove is predicting an average asking price increase of just 1% next year – about a third of the rate of inflation!

RICS members concur in their latest Residential Market Survey that the short-term outlook for prices is broadly flat, with contributors unconvinced that the market is going to gain any momentum in the coming months due to the continued shortage of new instructions, alongside general economic uncertainty. Indeed, the number of new-to-market properties has now been declining for 22 months in succession.

Contrary to the usual laws of supply and demand, low stock levels in a country with a severe housing shortage do not always support house price increases. Most would-be buyers are not in the market, as their own property is not yet on the market. It’s a vicious circle that is broken when people put their faith in their agent to deliver results. Only then can wonderful things can happen!
©Copyright 2017 Richard Rawlings except as excluded under license.

For more informative blogs on the property market and how it may affect you please visit www.newman.uk.com or you can call me on 01926 431431.