estate agents
How to Sell Your Ex-Council Property
Last week we published an article on buying ex-council property and the savings that can be made, but what about selling your ex-council property?
Selling ex-council property can be a little tricky for a number of reasons. Firstly, it can be difficult for prospective buyers to find the funds to buy ex-council properties. And secondly, first time buyers are thin on the ground right now and this is the market your property will appeal the most to.
Whilst there are many resources online for helping people to buy a new home there seems to be a real shortage to help those trying to sell their home. Here are a few things to bear in mind when selling an ex-council property.
- Ex-council properties are usually priced for a lot less than those built privately. Depending on the location and type of property, your ex-council house could sell for up to 40% less than comparable properties in the same region. However, this is only a rule of thumb and this isn’t always the case.
- Most prospective buyers of ex-council properties are first time buyers, investors or people on a tighter budget. Think about this when trying to sell your property as it’s important to know who your potential buyers are.
- The market is slow right now and will make selling your property that much harder. However, everything depends on your location, the property itself and how many potential buyers you can attract.
- Just like a private house sale, ex-council properties require a valuation. However, ex-council house valuations aren’t always so straightforward as they can be located in estates where the majority of properties are still owned by the council.
If you are just starting out in the house selling process there are many resources available to help you. Just remember that selling an ex-council house requires the same attention as selling a private house. It’s always advisable to hire the services on an estate agent and you’ll find most have invaluable expertise when it comes to selling ex-council houses and flats.
A good agent will steer you through the process ensuring your house is listed and advertised in the best possible light. They can even show prospective buyers around your home if you are unsure of how to do this or you are uncomfortable doing so. The great thing about hiring an estate agent is that they can handle the selling process for you ensuring all the great points of your home are highlighted. An estate agent also has the required knowledge to give your house a fair valuation given the state of your property, the location and other similar properties in the area.
If you have sold a property in the past then perhaps you might want to get more involved in the process or even selling privately if you are brave enough!
Of course, supply and demand for ex-council properties varies, but if your property is well priced you may find you sell your home quite quickly.
This is especially true in London and other major cities. Here there is always high demand from buy to let investors and in major cities there is already a market so you should be able to find lots of resources to help you sell your ex-council property.
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Welsh Local Authority Causes Anger by Opening Estate Agency
Competition is rife in the estate agency industry, but you never expect to face competition from your local authority. Imagine the surprise amongst Welsh estate agents then when a Welsh council decided to be the first local authority to launch their own estate agency. And then imagine how that surprise turned to anger.
Irritated estate agents have forwarded their complaints about Neath Port Talbot council to First Minister Carwyn Jones and other public figures with senior status.
Neath Port Talbot however have steadfastly defended their position and plan to let and market houses for sale in Wales. Trading under the name of Property Bay Wales, the council has launched a website although right now they are only advertising one property.
Steve Kidwell, the council’s coordinator for housing regeneration and renewal, said “Property Bay Wales trades within the open market in the same way as any other private company and does not require funding from the council. All running costs are funded by trading income. Although it does not cost the council anything, all income it generates through its services are recycled by the council into local council services.”
Mr Kidwell went on to add “It is fair to say that the estate agency is at an incubation stage. Assuming that it develops further, there are a number of markets that we are currently interested in other than that of a traditional estate agency service – for example, online “virtual” services.
“This is because we do not have a traditional shop front agency and much of our work is online, targeting disadvantaged groups that cannot move home as they are unable to afford the traditional sale fees. We can also provide a service for clients who specifically prefer a local authority approach.
“The company aims to apply core local authority principles, offering a customer-centred approach and value for money. There is no doubt given the current financial climate that it’s a competitive market, but difficult times require creative solutions.”
Local estate agents see the scheme differently and have branded it as a waste of taxpayer’s money. There is also frustration about the money being given to the council as business rates and that it is funding their new venture into the property market.
Another Port Talbot estate agent, Peter Morgan,, said: “Whatever the council says, it is able to undercut established estate agents because it is using its own offices and doesn’t have the expense of operating on the high street. Their standard fee is £895 plus VAT – I wouldn’t get out of bed for that,” he said.
“It leaves a very bad taste in the mouth.”
Many estate agents are expecting the latest venture to fail. Cardiff-based estate agent Kevin Francis, of the Royal Institution of Chartered Surveyors Wales, said: “There’s an awful lot more to selling property than just advertising homes on a website.
“I haven’t heard of a local authority setting up its own estate agency before, but supermarkets have tried and failed. Superficially selling property sounds like a good and easy way to make money, but there are many potential pitfalls and it is by no means as easy as it sounds.”
A spokesman for the National Association of Estate Agents said: “So far as we are aware, this is the first time a local authority has launched an estate agency of its own. Our view would be that whoever works for an estate agency should have qualifications that are appropriate for the industry.”
So, what do you think? Should local authorities be allowed to get in on the action or keep their noses out? Is it a case of healthy competition or being priced out of the market? We’ll be keeping a close eye on this one and report back!
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Going Going Gone!
If you are thinking of buying a property at auction it’s a great time to do so. There are a huge amount of opportunities on the market right now and more and more people are turning to auctions in order to sell a property quickly or snap up a bargain. The slow market and increasing number of houses being repossessed has resulted in a dramatic surge in auction sales and it’s good know the advantages as well as the risks involved with buying a property this way.
Where to Look
You can find out about local and national auctions through estate agents, newspapers, and our online property auctions directory. Many auctions are also advertised by the roadside so look out for signs advertising local auctions. If you are buying in a new area it is a good idea to do some research before you decide which auctions to attend. There is plenty of information online that can assist you so that you don’t make any hasty decisions.
On the Day of Auction
Before you head off to the auction house, it’s a good idea to call up to make sure any property you are interested in bidding on has not already been sold or has been withdrawn. You should also ensure you have your deposit to hand – many auction houses accept cash or cheques, but it’s best to check beforehand. You will normally need 2 forms of identification in order to register.
Once you have been issued with your bidding number you’re ready to get started. If you are interested in a particular lot it’s important to stay calm once bidding commences. You should already have a maximum price that you are prepared to pay for the property and make sure you stick to this figure. Many people get carried away by the bidding process and have bid well over the odds as a result. It’s a good idea to gauge interest in the property before you start bidding yourself.
All lots up for auction will have a reserve price which is the minimum price the sells is prepared to accept on a property. This figure is not disclosed, but if bidding doesn’t reach this figure the property owner may well decide not to sell on the day for anything less. However, the guide price (that is the price the property is expected to sell for) should give you a rough idea of what the reserve price may be and hopefully this figure is in line with what you are prepared to pay. Otherwise you may be in for some touch negotiations with the buyer or lose out on the property completely.
Tips for Bidding at Auction
Buying or selling a property at auction has a host of benefits and is becoming more and more popular across the UK. As long as you stick to the golden rules below you should find the process enjoyable and very rewarding.
- Always research the property you are interested in fully
- Make sure you have your finances in order and the required deposit (usually 10%)
- Get to the auction house early to register and take stock of the environment
- When bidding commences, don’t get carried away – remember your budget!
- Bidding can be intimidating so try to stay calm and focused
More information on property auctions in the UK can be found in the resources section on The Big Property
List website.
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Record Rise in Complaints Against Estate Agents
The Property Ombudsman received a record number of complaints last year against estate agents. The number of complaints raised in 2010 was the most the office has received since it was first established 20 years ago. The previous peak was in 2008.
In total, there have been 1338 new cases raised; a number which the Property Ombudsman, Christopher Hamer, said was unacceptably high especially when property transactions were well below the normal levels. He also blamed this dramatic rise on an increase in the number of disputes involving property sales.
The number of disputes was split quite equally between letting agents (672) and estate agents (646) whilst the rest of the reported complaints were related to the management of residential leaseholds, home information packs, and problems with advertising and marketing.
Agents operating in the South East of England received the most complaints accounting for approximately 26% of the total complaints raised.
Mr Hamer has called for the Government to impose stricter measures and improved protection for landlords and tenants so they do not become a victim of the practices performed by rogue letting agents. Letting agents, unlike estate agents, are not required to belong to an ombudsman scheme.
The figure reported by the Property Ombudsman shows a 40% rise in complaints since the office first opened its doors. So why the sudden increase and what are people complaining about? Quite worryingly, the Property Ombudsman has admitted it is “baffled” by the sudden sharp rise, but that one obvious explanation could be the current slump in the market. Seasonal factors may also play a part in these figures – general business in the housing market tends to slow down during the build-up to Christmas before picking up pace again in the New Year.
Desperate times call for desperate measures and this could also be a key factor in the number of complaints raised. Many of the complaint cases released by the Property Ombudsman cite problems with underhand marketing, issues with estate agents taking commission even when they had been dis-instructed, and issues with the small print in contracts.
However, what should become clear is that the number of successful transactions far outweighs the number of complaints and there are a decent number of estate agents who are focused on doing a good job. It’s simply a case of avoiding those agents who take shortcuts or who fail to deliver a good service. A good estate agent will explain their contract to you, explain the fees payable and tell you exactly how they are going to market your property. There are of course complaints that never reach the Property Ombudsman as they have been resolved by the estate agent themselves and it’s always a good idea to raise any concerns early on in proceedings.
If you feel you do need to make a complaint against your estate agent, the Property Ombudsman offers independent, impartial and free advice to members of the public who are not happy with the services provided by their estate agent.
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Mary Portas on Estate Agents
Mary wants to start a revolution in the world of estate agents begins the Channel Four introduction to Mary Portas’ latest episode in her Secret Shopper series. Good luck Mary is what I say, many have set out on that path. Including most estate agents.
Despite the cliches and common gripes of buyers and sellers, Estate Agents play a valuable role in the transaction of houses.
Sure there are good ones and bad ones, like any industry, and no they’re not as heavily regulated and qualified as members of the Royal Institution of Chartered Surveyors, but they get houses sold.
The show airs tonight (9 Feb 2011) at 9pm and judging by previous episodes in the series we’re in for some punchy scenes as Mary tells another small businessman how it is. Estate Agents come in for a lot of flack in general and I don’t expect tonight to be any different.
A few cliches to listen out for:
‘buying a house is the biggest decision/ biggest investment you’ll make in your life’
‘sellers always think their house is worth more than it is’
‘there’s another buyer interested but for£2k more then the seller will accept your offer’
I like Mary. She says it how it is, but not everyone likes that and she has a very combative communication style – perfect for making small business owners hop up and down and get defensive (or reclusive – like one restaurant owner I seem to remember). I don’t think many Estate Agents would want her coming round to tell them what to do. But her ideas, passion – yes please.
If you watched the show last night let us know your thoughts and opinions in the comments below.
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Ed Mead is carrying the Olympic torch (not literally)
For many who spent the tail end of last year trying to predict this year it must have seemed a doddle compared to forecasting now. Suddenly the press, and even me, are beginning to sense that although the year may be a dreadful dirge, it does look as if prices in London will end the year higher than they started. This is not saying a whole lot but from where I’m sitting there are occasional deals being done that simply beggar belief, whereas if you wander out of London, particularly in a Northerly direction, the stories are of a very different nature as the press are keen to let us know.
Sadly all commentators agree that volumes will be a victim this year, and many fear this malaise will continue into next year which is depressing. But hang on a minute next year is Olympic year isn’t it? We’re all supposed to feel good about that, and I’ve even registered for tickets as any self respecting Londoner should, but will it be enough to dispel the fog.
One thing everyone forecast, and the auspices loom good, is that rental numbers will increase in London next year because of the 2012 Olympics being here. With perhaps the worst area for sales currently being small flats, no demand from first time buyers still, it’s very likely, and beginning to be the case, that buy to let investors are beginning to lick their lips and dive in. I sat in a meeting with some heavyweight agents yesterday and all the ones I spoke to said if they had money they’d be buying investment property now. The fact that they can’t shows the general level of nervousness and lack of income in the estate agency game at the moment, but perhaps whilst many top end agents gloat about how many £5m plus properties are selling those who deal at the bottom end might just be about to get their own timely boost.
Ed Mead is a regular contributor to The Big Property List blog. An Estate Agent for over 30 years, he has been writing and commentating on the market for over half of that as the Sunday Times Property Expert and The Agent Provocateur for the Telegraph. He sits on the Board of The Property Ombudsman Ltd, has a regular LBC slot, and is happy to say it as it is.
Other places you can find him online are the Douglas & Gordon blog and Twitter
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2011 property market…early signs?
Frankly there wasn’t much appetite or excitement for predicting what might happen in 2011. It’s a mug’s game at the best of times and most of us in the business have been so worn down by the last few months of 2010 that anything would be better. So are the first signs good?
Well it depends again on who you are and what constitutes good. If you’re an estate agent the chances are it’s not looking overly good right now. More of the same grind with no sellers and a frustrated bunch of buyers who have good mortgage offers but nothing to buy.
If you’re a property owner in London chances are you’d be feeling happy with that as the lack of supply is creating the same effect as a strong demand, ie it’s keeping house prices up. Indeed for really good quality property this year is looking very good for values.
But is that what the market needs or wants? For all the people jumping up and down delighted at any woes affecting estate agents it’s worth reiterating that estate agents are the bellwethers of the wider economy. If agents are going bust (and they have been, with 40% of individual agents out of work since 2008), and companies likely to this year, then it means the entire industry that depends on property: building, decorating, soft furnishings, surveying, solicitors, movers etc etc are all in trouble. If people aren’t spending on property the chances are they aren’t spending elsewhere. That’s a universal truth whether you like it or not.
So there’s nothing much more to say as it’s early, and things may yet get busier, but if they were going to get busier I’d be seeing more sellers looking to get their properties valued now with a view to taking on the Spring market. I cannot grasp why sellers aren’t going for it with historical low rates for buyers likely to have bottomed out and price gains from the unexpected bounce last year still crystallised, and perhaps looking as if they may slip later this year. Perhaps we’re back in that dreadful spiral that potential sellers can’t find anything and so aren’t bothering to go to the market.
As usual when these situations arise it’s difficult to see who’ll blink first, and with buyers very reluctant to pay the asking prices some desperate agents are putting on property, I think it’ll be sellers who’ll blink and go to the market, the only question is can the cleverer ones avoid a possible lemming like rush later in the year.
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Light Relief: The 5 funniest Estate Agent video clips
As the festive season truly gets under way I thought I’d share this compilation of the funniest Estate Agent video clips from You Tube that have had us clutching our sides with tears rolling down our cheeks this morning.
and this was our favourite…
2. Man Stroke Woman – Estate Agent Haunted House sketch
4. The Catherine Tate Show – Drunk estate agent
You can see the whole list on our You Tube channel here.
And finally to leave you with a quote and a thought for christmas:
“Laugh at yourself and at life. Not in the spirit of derision…but as a remedy, a miracle drug…freeing your mind to think clearly toward the solution that is certain to come. Never take yourself too seriously.” Og Mandino (Author of The Greatest Salesman in the World’, 1968)
Merry Christmas to one and all from The Big Property List.
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Would a Rose by any other name smell so sweet?
It amused me a few weeks ago to read about an estate agent in Brighton who had sent his staff on a poetry course to inspire their descriptions and liven up particulars. At the other end of the scale one estate agent has been well known for his brutal honesty ; with prose such as ‘Dear God, it’s difficult to imagine a more disgusting house than this’. Too far?
This week a description from Your Move for a 2 bed flat for sale in Dumfries caught my eye when the description included reference to a ‘box room’.
Surely they mean cosy, snug, tidily proportioned. I must admit I quite like things called as they are. You can call it a handheld earth removal tool but when I see it, I’ll know it’s a spade.
I’d definately buy a house from someone like this, and knowing that, I’d probably sell a house with someone like this.
Check The Big Property List for other houses and flats for sale in Dumfries from Your Move and other Estate agents.
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House Prices: London may continue to confound
For years it’s been said that what starts in London spreads out to the rest of the country. Whether that’s been true in the past or not those of us who live in London recognize now perhaps that there’s a disconnect between us and the rest. Resentment outside the Capital towards those of us that live and work here has always been rife, but having been convinced we were all in this together I’m beginning to think that the London housing market might just be different, and lucky, enough to avoid some of the larger slowdowns affecting those living elsewhere.
Photo by Diliff
The first thing that needs to be defined though is what constitutes a slowdown. It’s been increasingly easy over the last few years to be smug about London property and it’s been the smiles on faces of these London homeowners that have perhaps been in the crosshairs of those looking to have a pop at us. We’ve been lucky in Great Britain, a quirk of geographical fate has determined that not only are we an island but also on the Greenwich Meridian. This means, and has done for centuries, that we’ve been politically and economically stable, and has meant that whichever part of the world is doing well, and there’s usually at least one, those who’ve benefited financially tend to want to have a place somewhere in London. Over the last few years pretty much everyone has hence why values have gone beserk.
But a slow down, or a poor market, can de defined in two ways: prices and sales volumes. What has perhaps surprised many is the resilience of Greater London in the maintenance of those prices, but what’s bad for the economy as a whole is what’s maintaining those prices, low volumes. And it’s going to get worse, or better, depending on how you look at it. Some agents are reporting record numbers of sellers withdrawing from the market. It’s tempting to ask why, the recently deserting foreigners, having taken advantage over the last three years of a weak Pound, now appear to be coming back because they fear for the future of their currency and are wanting to buy whilst their exchange rate remains relatively, for them, advantageous.
Those of us who work in London are more likely to earn relatively well, have deposits and thus access to historically low mortgages, so it’s likely demand will remain relatively strong. So why are sellers abandoning ship when more buyers are chasing their properties. Taking off the market for Christmas always was a waste of time, and at the moment there’s an odd feel that’s unlikely to be as positive at the beginning of next year when perhaps more sellers will come to the market.
So, if you’re the kind of person who watches prices, London may well continue to confound. As someone who recognizes the importance of volumes to the wider economy I fear that this market is disappearing up it’s own b***side.
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Ed Mead is a regular contributor to The Big Property List blog. He has been an estate agent for over 30 years, and has been writing and commentating on the market for over half of that as the Sunday Times Property Expert and The Agent Provocateur for the Telegraph. He sits on the Board of The Property Ombudsman Ltd, has a regular LBC slot, and is happy to say it as it is.
Other places you can find Ed online are:
Douglas & Gordon blog
Ed Mead on Twitter
