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It
seems like everywhere you go someone has a horror
story about moving house. It is true to say that
the system and sometimes the professionals responsible
for administering the process often have a part
to play in the delays and complications. However
few buyers and sellers ever turn the focus upon
themselves and analyse their part in any delays
which they may experience all too often the emotion
of the moment takes over.
The
regulations under which Estate Agents, Building
Societies and Solicitors now have to work have
been tightened up significantly. As a consequence
they now require more information about the property
and the people than ever before. In many cases,
while some of the issues which delay transactions
may seem trivial, there is now no way round them.
In fact some may say that the situation will get
considerably worse with the proposed introduction
of Seller's Packs.
However,
it need not be a horror story! We have listed
here a few straightforward but essential steps
to take when buying and selling. If you are serious
about moving house they will help you to ensure
that you give yourself the very best chance of
a smooth transaction with the minimum of delay
and stress.
This
information has been designed as a simple guide
only and is not intended to be all embracing or
definitive.
- Establish
the likely selling price and saleability of
your property. How do you choose a good Estate
Agent? In essence this should be a company that
has a good reputation, obviously deals with
the type of property that you have and one that
has a staff with whom you can feel you can work
with and trust. They should be able to demonstrate
a good all round local knowledge, have a strong
marketing profile and leave you with the feeling
that they will be working in your best interests.
A few useful tips. Why not visit the Agent's
Offices and meet the staff. Make sure you choose
an Estate Agent that belongs to a professional
body such as the Royal Institution of Chartered
Surveyors, the National Association of Estate
Agents and who is a member of the Ombudsman
Scheme for Estate Agents.
- Remember
that you are about to embark upon the sale of
what is probably your most expensive and prized
asset. If ever there is a time to seek out a
true professional, it is now. Many people make
the mistake of choosing the Estate Agent who
offers the cheapest fee. Usually such Estate
Agents are weak negotiators, or when it comes
to the negotiation for the ultimate price for
your property they are just as likely to stop
short in that quest for fear they may not secure
the sale, just as they did when they negotiated
their fee with you!
- Once
you have chosen the Estate Agent with whom you
can feel you can work and trust, you must be
truthful and disclose to them your desired objectives
and timescales. It is only by knowing your objectives
in detail that your Estate Agent can work effectively
with you to achieve your goal. However delicate
the reason or need for your move, it is important
that your Estate Agent is informed. If you fee
that you cannot trust them with such information
you will have chosen the wrong Estate Agent.
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They
should advise you on a range of prices: a base
price below which the property should not be sold,
a likely achievable price and a recommended asking
price geared to the outline you have given them
with your timing.
If
you choose a figure greater than the Agent's recommended
price and it does not achieve a sale within your
required timescale, listen to the Estate Agent
and the feedback they give you. Leaving your property
on the market at an inflated figure can be damaging
to its appeal and saleability. Your Agent will
take photographs, prepare details and present
you with an agreement that outlines their terms
and conditions together with your obligations.
It is essential that the necessary paperwork is
returned to your Estate Agent promptly, as failure
to do so may delay the marketing of your home. |
Many
intending purchasers are unclear of what they
want, why they want it, where they want it, when
they want it, how much they can pay for it or
how to go about it! Many Estate Agents are unknowledgeable,
unskilled and insufficiently interested to help
the customers.
It
may surprise you to know that an estimated 80%
of people who register with Estate Agents do not
buy a property! There are two groups of people
responsible for such statistics, potential buyers
themselves and the Estate Agents.
The
result is an apathetic miss-mash in which only
the toughest of potential buyers or those with
serious needs or desires ever see the process
through. So as a buyer what should you do?
- Seek
out lively energetic Estate Agents who will
take a real interest in you as a buyer.
- If
you need a mortgage check out how much you can
afford taking into account Stamp Duty and other
costs involved not forgetting the 'exchange
of contract' deposit usually 5% of the agreed
purchase price.
- If
you have a property to sell check how much it
is worth and how saleable it is. It is ludicrous
to go searching without dealing with the above.
You will waste a lot of your own time not to
mention that of other people. We have already
outlined above how to establish the value of
your home.
Good
Estate Agents will be able to offer you expert
advice and as with selling a home many members
of the public are very reluctant to divulge sufficient
information to the Estate Agent to allow them
to help effectively. In return many Estate Agents
cannot be bothered to ask and so no one goes anywhere.
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Good
Estate Agents will ask you searching questions.
This will stimulate your thinking process about
various issues that you may now have considered.
Unless you have a very specific requirement, be
flexible and open minded about viewing the properties
offered to you. Good Agents have an intuition
about real buyers. There are many people living
in properties today that they would never have
dreamed of buying until they came into contact
with a "Good Estate Agent".
The
main reason for this is that many people are blind
to the potential opportunities and options available
to them with regard to property. Working closely
with good agents who are experts at what they
do will result in the right property being found
much more quickly than you imagined. It is fact
that few people actually buy the style of property
they set looking for in the first place!
The
criticism of many Estate Agents is that they "give
up" on buyers. Some do but to be fair more
often than not buyers "give up" on the
Estate Agents. If you were to look at the applicant
records of many Estate Agents you would see follow
up dates, which read 'no reply', 'no reply', 'left
message', 'no reply', 'left message'. There are
only so many hours in the day!
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Obviously
Estate Agents are appointed by and work for the
Seller. Their job is to achieve the best price
they can for that seller - their client.
This
concept often puts buyers entirely on the wrong
foot as they are guarded with the information
they are prepared to divulge to the Estate Agent,
in particular with regard to the real price band
in which they searching and are able to afford.
In
simple terms no Estate Agent can force you to
pay a particular price for a property. Ultimately
you will pay what you believe a property is worth
and which you are able to afford. Many, many buyers
lose out in the negotiation stage because they
simply do not have the confidence that what their
Agent is saying is fair and reasonable.
Although
the Seller is the person who pays the Agent's
fees, it is of equal importance that as the buyer
you have trust and confidence in the Agent with
whom you are negotiating. Remember the Agent does
not act as principal and is not the person who
makes the final decision on price. The Seller
of the property is the person who makes that final
decision. As the Buyer you make the decision as
to what it is you want. Good Estate Agents will
always treat you fairly and be conscious that
if you buy from them that you will become a resident
in their town and therefore may be a future customer!
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Once
you have agreed to buy or sell a property swift
action is required to instruct professionals.
A good Agent should be able to recommend local
Solicitors, Surveyors and independent Financial
Advisors.
Matching
Vendor and Purchaser and negotiating the sale
price is only half the work of a good Estate Agent.
Liaising with the professionals involved to ensure
that the transaction proceeds as smoothly as it
should do is one of the most fundamental jobs
of a good Agent.
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Typically
the biggest problem which causes delay and extra
stress in all sales transactions is the lack of
communication. At any stage there are many people
engaged in the sale and purchase of a property,
especially if there is a chain. When people do
not communicate they do not share information.
This can lead to potential complications, delays
and disappointment is increased.
As
you can see from the above buying a house involves
a little more than selling, especially if your
purchase is dependent upon a sale and a mortgage,
but for both buying and selling all the basics
of making the process as smooth and trouble free
as possible are the same - i.e. early preparation,
close liaison with your Estate Agent, Financial
Advisor, Solicitor and Surveyor.
There
is absolutely no substitute for seeking out positive
professionals who are experts in their respective
field who, with your help, will achieve your objectives.
By
taking this route your journey through the property
sale and purchase process should be less troublesome
and without question more effectual. If you live
in an area covered by our Offices we would be
delighted to have the privilege and opportunity
of assisting you, and if you live outside our
area please do not hesitate to give us a call
for a recommendation or advice regarding Agents
in your own area.
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