Bungalow Bill - an estate agent's perspective on the Property Market and life in general

What are you waiting for?

The irony is that this is probably the best time in the past 12 months in which to find a buyer for your property, but potential sellers are holding back thereby causing a very real shortage of homes to buy

Much to my surprise, and considerable relief, we have seen sales rise inexorably since the start of the year, culminating in our having achieved our 1st quarter's sales target for the first time since the company was formed in 1992. (as at April 18th we have sold 44 bungalows in just 14 weeks)

I believe that the reasons for this upturn in sales are twofold... firstly, we have improved every aspect of our service, particularly with the introduction of our celebrated new web site which allows us to show 'Video Highlights' of many of our bungalows; this unique facility having proved immensley popular with visitors to web site www.thebungalowcentre.co.uk

Secondly, buyers are returning to the UK housing maket in ever increasing numbers. Last year, it was true to say that the virtually only people who moved were those that had to move, for whatever reason. Whereas this year, people have now accepted that if they sell for perhaps £20,000 less... but then buy for £20,000 less than they had anticpated paying for their new home, they are no worse off. 

In other words there is nothing to be gained by waiting. So they are now out there looking for their ideal home... but guess what, there aren't enough properties coming on to the market to satisfy the demand.

The irony is that now we have more buyers, there is a shortage of properties developing... Spring has arrived and at a time of year when people put their homes on the market in droves, New Instructions have all but dried up.   (the vagueries of the Property Market will eventually be the death of me)

Why, what are you sellers waiting for?

If you want to move, get your home valued, select a good agent and get it on the market at a realsitic price.

You will then be in a position to pick up a bargain.

Be warned though... property prices may have just about 'bottomed out' but they will not rise this year... perhaps next year we will see the start of a slow increase which may return prices to their 2008 high in 5 or 6 years time.

Technology can be great, if you embrace it...

It became apparent to me some months ago that an ever increasing proportion of our enquiries were going to be generated through the Internet.

I therefore decided to conduct a detailed review of precisely how we can display our clients bungalows on Rightmove.co.uk to best effect; this being by far and away the most widely used property web site in the UK, with over 1 million visitors every month.

As a result of this review and the changes we enacted we have now been informed by Rightmove that our bungalow entries generate 50% more leads than the average results achieved by other contributing estate agents.

My next target was our own web site www.thebungalowcentre.co.uk which though effective at generating leads, had become rather bloated and could not incorporate some of the cutting edge technology which I wanted to introduce.

Since Christmas I have been investigating a software system for creating and subsequently displaying on our web site a 3D Walk-Through of a bungalow.  This is particularly helpful with a property that is in need of modernisation as it gives you a jolly good idea of how the property would appear, once modernised.

Click on the link below and you will see the end result... cutting edge technology at its best

http://content.metropix.com/p/1210286 

Keep watching this space as my new web site will be going live on February 5th and we will be introducing the 3D walk-throughs and Video Highlights on selected bungalows.

Bungalow Bill

When making an offer...

£?????   If you are planning to move, then sooner or later you are going to have to decide what offer to accept for the home you are selling and subsequently how much to offer for the property you want to buy.

This is not easy an easy issue to resolve, largely because we all tend to get attached to ideas and notions... for example, almost every day we hear sellers say that they are unwilling to 'give' their property away, by accepting what they consider to be an unacceptably low offer.   In the same vein, buyers say they are 'after a bargain'.  Both expressions are understandable and express a fear that they could make a decision that they will regret unless they 'stand their ground.'

Sellers naturally need to feel that they are receiving a fair price for their home, while buyers need to be sure that they price they agree to pay reflects the recent reduction in property values.

However, offers have to be reasonable... If your home was on the market for £230,000 and were offered £20,000 below your asking price, when only last week you had reduced your asking price by £20,000 you would be feeling fairly angry and insulted. 

But, if you found that the price of the property in which you were interested had remained unchanged for the past 6 months then you would be perfectly justified in submitting an offer somewhat lower than the unreasonable price being asked.

Remember that the selling agent really does want to be able to secure the property for you but he is duty bound to ensure that he is obtaining a price for his client that reflects the property's true market value.

He will take in to account your position and if yiou are in rented accommodation, with no property to sell and a mortage all arranged the he will certainly take this in to account when advising his vendor client.

Visit www.nethouseprices.com to learn what similiar property has been selling for in and near that postal district and then decide what you are willing to pay, taking in to account the condition of the property and any other relevant factors.  

It is perfectly acceptable for your initial offer to be somewhat lower than the asking price and then increase your offer, hopefully a price being negotiated to a figure that is acceptable to both you and the seller. Be flexible and good natured in your dealings with the estate agent... it can only help your case.

Should I wait till the Lambing Season?

Should I bite the bullet and place my bungalow on the market now, at the start of 2009, or wait till The Spring (the lambing season) in the hope that demand may by then have increased?Well it depends realy on just how much of a gambler you are...Personally all I think will have happened by Easter is that your property will have fallen in value by another £15,000 (a £250,000 property is currently decreasing in value by £5,000).

The best advice I can give you is to place your property on the market in the New Year, with the provisors that you:-

• Appoint a good, professional estate agent preferably an independent agent who has been recommended to you and is an individual who you feel you can trust
• Adopt an asking price which is appropriate for these market conditions because if you don't then you won't even have anyone look at your property, let alone make an offer for it
• Your Bungalow is in a competitive market; competing with all the similiar properties on the market, so you must invest the time and effort to ensure that it has curb appeal and is presented in the best possible way. If you can't be bothered to declutter etc then don't waste my time wanting me to find a buyer for your home. I am good at my job but I consider that my vendors and I are in a form of partnership and we will only acheive pour common goal if we both do our bit. I only work with genuinely motivated sellers.I am not going to invest my money in marketing your property unless you are willing to fulfill your part of the bargain.

How to sell your home in this most challenging market

If you would like to move home you can adopt one of two attitudes...

Either, "woe is me... this is the worse market since Noah's Ark was launched and there is no way I am going to allow anyone to 'Steal' my home."            or, "if I take advice and adopt a sensible approach to marketing my home in what is a 'Buyers Market' then I will be able to attract a genuine buyer, at a price which will enable me to move."

I have been an estate agent for over 20 years and having owned The Bungalow Centre for 17 years. I therefore feel, with all due modesty, that I am able to offer good advice to people wishing to move, even in these difficult conditions.

Just take these 3 simple steps:-

1.Choose the best estate agent for your particular property

If you own a house or flat (eg NOT a bungalow or chalet bungalow) then make your choice of estate agent based on factual information, as a ouji board has proved somewhat unreliable in the past.

Ask for recommendations Ask friends, relatives, neighbours and work colleagues for recommendations.

• Choose a good Independent Estate Agent, rather than a large muti branch corporate agency as, generally speaking, they will provide you with a better and more personal service.
• SOLD Slips Investigate which local agent has the most SOLD slips on his boards. This is a surefire way of establishing who is walking the walk rather than just talking the talk.
• Interview perhaps 3 estate agents and give them a good grilling... ask whether they have sold properties similiar to you and, if so, where, when and for how much.
• You get what you pay for Don't get hung up on their fee. Anyone who is selling property in this market is worth every penny of their fee and more.  Alternatively you can hide you head in the ground and recruit the agent that quotes the lowest fee and the highest valuation... after all their is one greedy, sucker born every minute... just make sure that sucker is not you.

However, if you are considering selling a Bungalow, Chalet Bungalow or Park Home   then your choice is much, much simpler ...just dial 01202 582460 and we will come around and discuss with you a marketing plan for your property, which is virtually guaranteed to attract a buyer. (there's gold in them, there hills!) 

2. Adopt a realistic Asking Price                                                                    We are currently experiencing a buyer’s market, which is where there are more far owners trying to sell their properties that there are people looking to buy.

It is therefore an undeniable fact that if your property is to attract a buyer it must be perceived as offering ‘good value.’ 

Have realistic expectations… Naturally, everyone quite rightly wants to achieve the most they can for their property, but don’t let ‘wishful thinking’ stand in the way of your better judgement, which is telling you to be realistic.  You can bring up numerous other issues to try and avoid facing up to reality but the truth of the matter is that until you adopt a realistic asking price you will not sell your property.                                                                                                            Do you want to just have your property ‘on the market’ or do you want to sell it?

3. Make sure your Home's Presentation is 'as good as it gets'                        When selling a car you would naturally make sure it was beautifully cleaned, that the interior was tidy and uncluttered and that everything on the car functioned as it was designed to do. So why should it be any different when you are selling your home?  You just wouldn’t believe the attitude some people have to the all important question of presentation.

Rusty gates, unmown lawns, unkept shrubs that are taking over the garden, drives full of weeds, cluttered, dirty, poorly decorated interiors, light bulbs that don’t function, filthy carpets, dirty windows, broken sanitary ware, pet smells, dirty laundry… the list is like a comedy of errors.  How some people expect to attract buyers is surely one of life’s great mysteries.  Sensible people, however, will agree that presentation is of paramount importance, whether we are selling a tiny 2 bed terraced house for £150,000 or a 5 bedroom family home for £500,000. All the old sayings happen to be truisms…not only do “first impressions count” but also ”you can’t change a first impression” being first and foremost amongst them.

As part of our  “House Doctor” service we talk of the 3 Cs…Colour, Cleanliness & Clutter. Our other mantra being “maximum improvement at minimum cost.”

Making the most of your property is not about spending a great deal of money. It involves your listening to expert advice and then investing a certain amount of time, together with a relatively small sum of money to introduce changes which will dramatically improve its appeal to prospective buyers.

 

People pay me a big fat consultancy fee for advising them what steps to take in order to attract a buyer for their home. BUT sellers who employ the services of my company, The Bungalow Centre, get the benefit of my advice FREE OF CHARGE. I am happy to be able to help and I don't sulk if people, for whatever reason, don't take my advice.

 

If you want to take me up on my offer of free advice, then just call me and we can make a mutually convenient time to meet up and discuss what, if any, stpes need to be taken in order to maximise the appeal of your Bungalow.

John Nixon

Senior partner

The Bungalow Centre

Pass it on...

If you are selling but buying again, within the UK, then it could be argued that the exact price you get for your home is relatively unimportant. 

If you accept an offer perhaps £10,000 or even £20,000 below the price being asked and then have your offer accepted by the seller of the property you want to be buy, which reflects this reduction, then how are you worse off?

There is therefore no need to get our knickers in a twist (see the picture of  the carrots) over accepting what is a low offer.

Providing we can pass on the reduction, then its great, if it enables us to agree a sale on our present home and thereby proceed with our chosen purchase.

In this challenging property market the key to accomplishing our plans is flexibility. If you rigidly attach yourself to the price you are asking for your home, then you might aswell accept the fact that you will not be moving...You will prove to be your own worse enemy as your stubborness will prevent your estate agent from doing the job you are employing him to do... agree a sale at a price that is acceptable to both you and your buyer.

When making an offer...

£?????   If you are planning to move, then sooner or later you are going to have to decide what offer to accept for the home you are selling and subsequently how much to offer for the property you want to buy.

This is not easy an easy issue to resolve, largely because we all tend to get attached to ideas and notions... for example, almost every day we hear sellers say that they are unwilling to 'give' their property away, by accepting what they consider to be an unacceptably low offer.   In the same vein, buyers say they are 'after a bargain'.  Both expressions are understandable and express a fear that they could make a decision that they will regret unless they 'stand their ground.'

Sellers naturally need to feel that they are receiving a fair price for their home, while buyers need to be sure that they price they agree to pay reflects the recent reduction in property values.

However, offers have to be reasonable... If your home was on the market for £230,000 and were offered £20,000 below your asking price, when only last week you had reduced your asking price by £20,000 you would be feeling fairly angry and insulted. 

But, if you found that the price of the property in which you were interested had remained unchanged for the past 6 months then you would be perfectly justified in submitting an offer somewhat lower than the unreasonable price being asked.

Remember that the selling agent really does want to be able to secure the property for you but he is duty bound to ensure that he is obtaining a price for his client that reflects the property's true market value.

He will take in to account your position and if yiou are in rented accommodation, with no property to sell and a mortage all arranged the he will certainly take this in to account when advising his vendor client.

Visit www.nethouseprices.com to learn what similiar property has been selling for in and near that postal district and then decide what you are willing to pay, taking in to account the condition of the property and any other relevant factors.  

It is perfectly acceptable for your initial offer to be somewhat lower than the asking price and then increase your offer, hopefully a price being negotiated to a figure that is acceptable to both you and the seller. Be flexible and good natured in your dealings with the estate agent... it can only help your case.

Satisfactory service is no longer good enough......

I read in The Times today that a director of a leading group of UK estate agents is predicting that 1 in 3 estate agents will go out of business during the course of the year.
His experience is that the volume of property sales this year is down by between 30 & 50% as compared to the same period last year. A pretty gloomy outlook...
As the owner of The Bungalow Centre, a well established firm of estate agents who like most estate agents is currently feeling the pinch, I would agree that the market is difficult at present.
A shortage of buyers, low offers and unrealistic expectations by some sellers all contribute to what is undoubtedly a difficult market and I have no reason to believe that things will improve within the next 6 months.
What my colleagues and I have decided is that we will take steps to ensure that our service improves still further. It is no longer good enough to provide a satisfactory level of service... my clients have to be surprised and amazed by the exceptional service they receive from us.
I do share the view expressed above that a significant number of estate agents will cease trading this year but it will not be the good estate agents that disappear. Instead it will be the minority of agents that would not recognise the truth if it bit them in the ass, that see every client purely as a unit of profit and has no interest whatsoever in helping their clients. A minority of agents are only interested in feathering their own nest and it is merely coincidental if this also happens to prove helpful to their client.
Perhaps, you would agree that if these unworthy people should cease trading as estate agents and perhaps join the disreputable end of the ranks of used car salesmen and purveyors of double glazing, then our industry would be a better place and our clients would be far more likely to receive the standard of service that I feel they are entitled to expect from the person they are trusting with their hopes and aspirations.

Re-negotiating the price...

Having chosen a property to buy you will take in to account all relevant factors including its asking price and how close it is to satisfying your criteria when formulating an offer.
Negotiations then would usually take place and you finally agree on a price known as 'the sale price.'
Once the survey is performed you may have reason to try and re-negotiate the price.
We sometimes have buyers coming back to us saying that as the survey says the window frames are rotten they want a £5000 reduction in the price. Our answer would be short and to the point. "Sir/Madam, when you made your offer you were well aware of the fact that the window frames were falling out and therefore it is very unlikely that our vendor will agree to a price reduction."
If, however, the survey identifies substantive problems of which you could not have been aware, then this is a different matter. For instance, if the survey identifies that the drains are leaking badly and need immediate replacement then it is only fair that the seller should agree to at least share the cost of this work; perhaps on a 50-50 basis.
As with all things these matters can usually be settled amicably, providing both sides are flexible and act in a reasonable fashion.

Its enough to drive you insane...

We were anticipating exchanging contracts this week on a sale that was put in hand in early January.
But low and behold a letter arrives today informing me that the buyers have decided not to proceed as the noise form the aircraft will disturb them too much.
I kept my temper (just) but did ask them through gritted teeth why it had taken 12 weeks to come to this conclusion!
I have politely asked them NOT to contact us again as I would not be able to recommend them as reliable buyers to any of my vendor contacts.
Why oh why did our beloved government spend millions on the introduction of Home Information Packs which are of no interest whatsoever to buyers and do little if anything to aid the process of buying and selling, when they could have taken steps to dramatically simplify the conveyancing process.