2
Feb
Reading Between The Lines
Nick Churton from Mayfair Office looks at press reporting on the
current property market and finds that there is more going on than
the papers would have us believe.
The press always have lots to say about the property market. But
let’s take a look at what they aren’t saying.
The press are not saying that there is some good market
activity, but that it is a very price sensitive buyers’
market. They may be saying that prices are falling. But they are
not saying that some of those asking prices overshot the buoyant
market of several years ago and have been left high and dry by the
pre-Brexit world that we live in at present. Prices haven’t
come down as much in many areas as expectations became too
high.
The press may tell us that fewer people are moving around the
country. That could be true but what the media are not saying is
that more people seem to be on the move within their own local
communities.
So what does this all mean for sellers today? It means that if
the pricing is right the property will sell. But it means that
sales may well end up in a chain of interdependent local sales. Is
this necessarily a bad thing? No. It is how things were done before
lenders got overly picky and the only buyers for a few years were
the ones with cash. We do not live in that world any longer.
Now property sales depend more than ever on the skill of an
estate agent to price correctly. Also the best agents know their
local area intimately. They will know who wants to move and where
they want to move to. They will have the talent to tie together all
the strands and layers of a multi-home transaction and orchestrate
a successful outcome.
So if you are thinking of selling in the next few months here
are three very important questions you might like to ask an estate
agent you’re thinking of hiring to help you with the
sale:
I am prepared to take good advice about the value of my
property. But why do you think that the price you have suggested is
the right one? If an agent can’t demonstrate to you how they
have arrived at this figure, how on earth can they be expected to
convince a buyer?
How long have you personally worked in the local area? One or
two years is not very long. Four or five is better and ten plus is
really good because then they will have experienced a full market
cycle, and also will know everyone in the area.
Tell me about your office back up? If they don’t have one
then better steer clear. If they are a one-man-band and are out
talking to sellers all day, who is speaking to the buyers? What
happens when they are on holiday or are ill? Who is dealing with
solicitors, surveyors, valuers, and lenders? Some firms may be
cheap but it is for a reason.
How do you charge? Is it fee - no sale or no sale - no fee? Some
companies nowadays simply charge an up-front fee to put a property
on the internet but thereafter have no commercial interest in the
outcome. On the other hand estate agents market property first and
only charge a fee on a successful sale - so they remain fully
invested in the transaction until completion. There is a big
difference.
Above all, remember that selling houses isn’t about
getting over the start line it is about getting over the finishing
line.