Confessions of an estate agent - 101 to be exact
Photo: BEN KIRCHNER
Greene & Co’s Managing Director David Pollock, and author of a new property guide, gives Christopher Middleton his top tips for buying and selling.
For many of us, buying or selling a house is war – both psychological and financial. We don’t so much purchase a house, as prise it out of the hands of the people who own it. We don’t so much sell a house, as surrender it to invaders. And right up until the last minute, the deal can be sabotaged by an act of panic or greed on either side.
“The whole business is a mass of contradictions,” says David Pollock, a north London estate agent who has been selling houses for the past 34 years. “The dynamic of people, money and property is fraught with emotion. That said, there is nearly always a key to a successful resolution, and that’s being able to see the situation from the other person’s point of view.”
And it’s not just hot air. “David is one of those rare breeds in his profession that actually makes an effort to understand the needs of both the buyer and the seller,” says Harry Handelsman of the Manhattan Loft Corporation.
“He succeeds because he looks at everyone’s position in the deal,” adds John Hitchcox, chairman of the upmarket developers Yoo. “As a result, he finds the best outcome for everyone.”
Cast in the role of peacemaker, then, Pollock has set out to bring Buyer and Seller tribes still closer together, by writing an outspoken, new book entitled 101 Things Your Estate Agent Should Tell You.
Read the full article in the Telegraph Property Section www.telegraph.co.uk/property/propertyadvice/8611016/Confessions-of-an-estate-agent.html
You can pick up a copy of ‘101 things an estate agent should tell you when buying or selling a property’ on Amazon now www.amazon.co.uk/Things-Estate-Should-Selling-Property/dp/0956734103
David Pollock, Greene & Co. Managing Director
Buying is 16% more cost-effective than renting in London
Renting a home in Britain is currently 9.7% more expensive than owning on average. And it is cheaper to buy instead of rent in four in five of the 50 largest towns and cities across the country, according to the latest research from leading property website Zoopla.co.uk.
The research looks at the current asking prices and rents of two-bedroom flats around the country and assumes interest-only mortgage payments of 5% p.a. to provide a comparison to the cost of renting.
Even in London, which has by far the highest property prices in the country and where the average 2 bedroom flat is going for £431,366, buying is still 16% more cost-effective than renting. With average rents at £2,137 per month in the capital versus an average cost of a 5% interest-only mortgage at £1,797 per month, renters pay an extra £4,080 annually compared to owners.
Nicholas Leeming, business development director of Zoopla.co.uk, commented: “The relative cost of renting as opposed to buying has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat. Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past 3 years as a result of being unable to get a mortgage. With current house prices and interest rates where they are and with rents on the rise, for those who can get a mortgage, there may never have been a better time to buy.”
With rental prices increasing all over the city, it appears to be more cost effective to look into getting a mortgage again. Check out properties for sale in the area you are currently renting in - buying your next home might be cheaper than you think.
Source: www.zoopla.co.uk
Is now the right time to sell?
There are many conflicting reports on the future of the London property market. The 2011 Rightmove House Index Report shows the beginning of 2011 to be much the same as 2010 with a slight increase in the house prices in the London area. However The Guardian reported on Saturday that house prices are to fall by 20% over the next two years.
Smart vendors are contacting us now for valuations on their properties to have a good idea of where they stand in the market should they decide to sell before the market dips.
Homeowners should brace themselves for a “short, sharp shock”, with house prices set to fall by up to 20% over the next two years as rising unemployment and public spending cuts take their toll, experts are warning.
“Prices are trending slowly downwards at the moment, but our view is that this is really the start of the second leg of the correction, and we expect prices to fall significantly further,” said Paul Diggle, property economist at consultancy Capital Economics.
He calculates that the average home remains up to 20% overvalued by historical standards – and with the mortgage market still tight and unemployment rising, 2011 could bring prices crashing back to earth.
The impact of any downturn is likely to vary across the country. Miles Shipside of property website Rightmove said prices in each area would be driven by the fortunes of the local population, with the worst-hit places likely to be those where public sector layoffs are worst.
“Forced sales will be the issue, so it depends on the make-up of your area – the level of unemployment and financial hardship,” he said.
The gentle alarm has been sounded, and for those who are already pondering the idea of selling their property – now really might be the best time,
For more information contact your local Greene & Co.
Source
http://www.guardian.co.uk/money/2011/feb/19/house-price-fall-20-per-cent
Rising swap rates put pressure on fixed deals
A number of lenders have pulled their existing fixed rates as the cost of funding has gone up. Although the Base rate has today stayed at 0.5%, the conclusion that we can draw from this is that a rise will be happening sooner rather than later. For all your clients who are dithering about putting offers in, this is invaluable information as we could be coming to the end of historically cheap access to borrowing.
Rising swap rates put pressure on fixed deals
Recent increases in swap rates are starting to force up the price of fixed rate mortgages, say industry experts.
Since November 2010, two-year swap rates have increased from 1.31% to 1.72% and five-year swaps have gone from 2.18% to 2.82% in the same period.
Last week two-year swap rates were 1.62% and five-year swaps 2.75%.
David Hollingworth, director of communications at London & Country, says: “Swap rates have fluctuated over the last two years, but of late they have been on an upward trend.
“We have already seen evidence of lenders increasing their fixed rate mortgages because of swap rates and the sharper fixed deals are under threat.”
But Hollingworth adds that although swap rates play a part in lenders’ pricing they also look at other factors when setting fixed rates.
Alan Cleary, managing director of Precise Mortgages, says two-year swap rates have risen substantially in the past few months as a rise in the base rate looks more likely.
He says: “We are getting closer to a rate rise with every base rate decision and this is starting to affect the price of swap rates.
“Fixed rates, especially two-year rates, are on their way up and borrowers should look to fix now.”
Industry consultant Mehrdad Yousefi says high inflation is worrying the money markets and pushing up swap rates.
But he says: “Over the next four weeks fixed rate deals will cost more but it remains to be seen whether this will continue throughout the year.
“In the second half of the year when the base rate starts to rise, swap rates will start to predict the next base rate could start to rise and products will certainly become more expensive.”
Halifax raised the rates on its two-year fixes by 0.2% today and blamed the increased cost of funding and swap markets.
How do you fancy designing your own apartment?
Wow, take a look at what Union Developments are offering you if you buy an off plan apartment at Grange Garden before the end of the year. You get to meet with your own personal architect and create your own unique home.
They provide the four walls; the expert architect advises on the interior layout, soecification, colour and finish and and you tell them how the pieces fit together.
HIPS - going going gone
Today HIP’s have been suspended which means that people who wish to sell their property no longer need to provide these. This comes as a great relief to many agents, our Managing Director, David Pollock has given us his opinion on this change
“Like most agents, we are delighted to see HIP’s get abolished. In our opinion, they have been an absolute disaster on two fronts. Firstly, they took away any spontaneity in the market, if someone was thinking about selling and just wanted to test out the reaction that putting their property on the market would get, to see if there are buyers out there for it, etc, it would cost them £300 to get the HIP done first.
Secondly, no one ever truly bought into using them, ranging from solicitors to buyers to sellers to agents. There will be no tears shed here about their demise”
House Prices Rising
The housing market seems to be going from strength to strength at the moment. Asking prices have risen for 11 consecutive months with and increase last month of 0.7%. The average entry level price for a house is approximately £155,242. If you are looking to buy a house for the first time now could be a good time to get hunting as prices are going to continue to increase, and although stamp duty does not apply on purchases under £250,000 for first time buyers they still need to have a significant deposit to get into the market.
An article from find a property ““The building blocks are present for a sustained recovery, but we do need lenders to step up to the plate and free the purse strings for first-time buyers. That will not only help the buyers themselves, but also the market overall and the wider economy.””
It could also be good to look into a property for investment purposes as there is currently a huge demand for rental properties in many areas of London, which means there are people out there looking right now! But this is not something you should enter into lightly. A huge amount of research is required to find the right investment property however there are many avenues which can help you along the way. Getting your finances in shape is also one of the keys to getting started with property investments, as depending on how long you keep the property expenses will vary.
To read more about the topics above click on the link below
http://www.findaproperty.com/displaystory.aspx?edid=00&salerent=0&storyid=23504
Open Days – having great success!
One of the best ways to check out a property you are interested in is at an open day. This is also a great way to speak to the agents and find out what you need to know about the property. Greene and Co West Hampstead has had lots of success with their open days and believe they are one the best ways to show off a property on the market.
Stephen Matthews Director of our West Hampstead shop said “It is a very good way of generating multiple offers and interest”
An article from the ezinearticles.com/Do-Open-Houses says “The biggest beneficiary of a public open house is often the agent holding the house open. Open houses give agents an opportunity to meet prospective home buyers and sellers face-to-face in a relatively non-threatening environment. An open house can be a source of future business leads for the agent.”
Its not only beneficial to the seller to have most of the viewings on one day but it is also takes the hassle away from the buyer have to schedule after work viewings – really the days are a win win for everyone!
Stamp Duty – good news for first home buyers
Good news for people who are looking to buy their first home this week, with the government announcing that first home buyers who purchase property under £250,000 will be exempt from paying stamp duty. This is a great benefit for first home buyers and it will be a great saving which they could possibly now add to their deposit or it will simply allow more people who may not have previously been able to enter the market to purchase a home of their own.
David Smith from the Times commented that “Alistair Darling’s Robin Hood coup in last week’s budget was the two-year stamp-duty holiday for first-time buyers of homes up to £250,000, paid for by a permanent increase in the duty to 5% on £1m-plus properties. Clearly, there will be mixed feelings about this.
Despite the skepticism, stamp-duty holidays work, as previous experience has shown. Provided the bureaucracy can identify who is a genuine first-time buyer — a divorced wife or husband who was previously a joint owner will not count — this should give the market a boost, which is why the housing industry has welcomed it.”
Stephen Brown, Director of our Crouch End shop has said that “if we start seeing banks lend more then this will be a nice saving. Hopefully the stamp duty saving should be good for first home buyers as this will give more money to their deposit.”
Either way you look at it this will help more people purchase their first home which is a good thing!
The FindaProperty.com house prices and affordability index
Some interesting news from FindaProperty.com’s October affordability index - house prices are rising, but affordability for first time buyers is deteriorating…
“It’s never easy to get on the housing ladder but until the summer we had been seeing a gradual narrowing of the affordability gap. This has led to a definite pick-up in first time buyer activity as people have taken advantage of improved affordability and the stamp duty exemption on properties priced under £175,000. With prices now rising and affordability tightening again it becomes even more important that the Government retain this beyond its end date of December 31st.” Michael Flynn, Director of FindaProperty.com offers his opinion on the findings.
Rightmove releases new iPhone application
Rightmove make finding your new home even easier! You can simply download their app to your iPhone and start your search from there.
What would you like to see in the blog?
We’re opening up our blog to customers. We feel it’s really important to get your feedback (good or bad), comments and opinions too. Have you got any questions on the market? Any tips you can offer? What’s your outlook on the market? Do you live locally and can offer any comments about the local area?
We are really open to suggestions and want to make this blog just as much about what you want to hear as well as what we’ve already started doing.
Email me on blog@greene.co.uk
Where do you want to live?
Just found this cool little tool on Nestoria. It can help you find the prefect area to live in based on your communte to work. This can be a particular concern, especially for Londoners, and getting to work in the easiest and quickest way is a big consideration when looking for a new home.
It merges Nestoria’s property listings with average travel times by train and tube, which means you can see the locations and the properties for sale or rent in the areas that match with your work location. It also shows you the average property prices in that area.
It can open your eyes to possibilities you hadn’t considered before. Why not give it a go: Where can I live?
New development in Queens Park, NW6 - fab apartments, great location, reasonable price
Yes, another swanky development under our belts, this time in sought after Queens Park. I was in Queens Park this weekend actually, topping up my tan in the local park. Not only does Queens Park have a quiet suburban feel to it, with lots of families and leafy roads, it’s not that far from West Hampstead, Maida Vale and Notting Hill. This part of town is ridiculously well connected to the rest of London, so if you need to travel a bit further for work or just to do a bit of cheeky clothes shopping, you can pretty much get all over the place.
All that aside, I actually found a fish and chip shop in Queens Park this weekend. Now, I know it’s a bit naughty but there is a serious lack of proper fish and chips shops in London!
Ahem, back to the apartments….they’re simply stunning with integrated kitchens, en-suite bathrooms and balconies.
Have a closer look at one of the apartments here. (The prices and number of bedrooms range from a studio @ 250,000 upwards)
Swanky new apartments for sale in Maida Vale
I don’t normally mention what properties we have for sale, but we’ve instructed on some seriously stunning developments recently. Not only are these apartments state of the art, desirable and a bit funky, they’re in one of the lovliest parts of London and the price tag aint half bad either! I actually don’t live to far from Maida Vale and I love it. Just down the road is Little Venice. Next time we get a scorcher on the weekend, get yourself down there and go for a stroll along the canal…you can even take a canal ride all the way to Camden, if you fancy a bit more hustle and bustle (ooh and maybe a bit of celeb spotting).
Anyway - just gone off on a bit of a tangent! Look at these pics, they speak for themselves…some of the apartment features include solid wooden floors, intelligent lighting systems, Villeroy & Boch Bathrooms, feature gas fire places and decked terraces. Ooh forgot to mention - they’re not far from Notting Hill too - what more can you ask for?
Find out more details on Fermoy building here.
Maida Vale defies the downturn
Have a look at the article from The London Paper.
19% leap in mortgage approvals
http://news.uk.msn.com/uk/article.aspx?cp-documentid=15538579
So, mortgage approvals are on the up…could this mean buyers are flooding back to the market? Well, I don’t think we should be too hasty, but things did take a bit of a turn for the better this February. Just having a quick look at our figures, our offer rate is up 43% in Febraury, compared to the previous month and our exchanges have increased by 10%. I think the figures speak for themselves, things are picking up.
Personally, I think it’s a really great time to buy right now and if I was in such a position I would definitely be snapping up a nifty little pad for a bargain price. Then just hold tight and watch it’s value go up again in a few years. What do you think?
Confused about mortgages?
Do you know the difference between fixed, discount and tracker 
mortgages? It’s all a bit of a mine field, especially if you’re a first time buyer!
The money saving expert is a great website that gives you plenty of tips on saving money and explains things in simple terms. Have a look at their tips on picking the right mortgage for you. It also features a calculator which can help you decide whether to ditch your fix rate mortgage.
If you’re still confused, I’m sure the friendly Financial Services team and Greene & Co, would be happy to give you some FREE advise. Visit their website. enquiries@greenefs.co.uk” target=”_blank”>Email them or give them a call on 020 7328 3280.
House price trends
Just stumbled across this website about house trends. You can view the latest property prices and statistics and compare property prices by borough…it’s quite a useful tool if you’re looking to buy or sell at the moment. Have a look at the house trends website here.
To buy or not to buy…that is the question
It’s a hot topic right now, regardless of whether you’re looking to buy or not! All of a sudden everyone is fascinated about the housing market…maybe it’s all that media we’re getting. So, our esteemed MD Daivd Pollock, has put together some reasons for and against, read on and make your own mind up!
I’ve been asked time after time recently from friends, clients and applicants “Is now the time to buy or should I wait?” My answer is always the same… “It depends on your personal circumstances!”
How do you know when it’s the right time for you to buy a property? One day you think it’s a great opportunity to “bag a bargain”, the next day the press tell you that prices are set to continue dropping for another six months.
Of course, no one has a crystal ball when it comes to forecasting and we wouldn’t be so presumptuous as to suggest that this kind of economic climate is a great time for everyone to purchase… but we do have an opinion and we do see what is happening in the property sphere every day.
Reasons to buy…
- You are paying rent. It makes much more sense whilst the market is low, to be paying a mortgage (even if you club together with a mate).
- 75%-90% mortgages (subject to status) are available. If you don’t believe me, call Simon Redler, the MD of our Financial Services Company on 020 7328 3280.
- You are moving up price wise. It is the differential that counts. Say you are moving from a £200,000 home to a £300,000 home and the market has dropped 20%. Now, instead of having to find £100,000 to move up, now you only have to find £80,000.
- Remember, everyone speculates on the market conditions - nobody can ring a bell when the market is at the bottom.
- Property is in true terms, a minimum of 20% cheaper than a year ago. This is more than the papers tell us. Does it mean the market is closer to the bottom than people think?
- Our phones are starting to ring again with developers and investors looking to buy a bargain.
- Research says that we are far off target on the number of new homes needed in London. (See report in link here http://www.guardian.co.uk/politics/2008/nov/20/boris-london)
- More choice on products / homes as there are more available.
- Interest rates are low and therefore more affordable.
- Exchange rates are favourable to overseas investors looking to purchase again in the area, which could lead to higher demand and higher prices.
- It is time to bag a bargain.
- Properties are a home first, then an investment.
- Lack of competition for flats means you can buy at a more competitive level.
- Refurbishment costs are down as builders seek more work.
Reasons not to buy:
- You are moving side wards or down price-wise and are in no hurry.
- The market may drop further.
- You are not secure with your job or earnings and would therefore be foolish to take on a commitment.
- You only plan to be in your new home for a year or so. With the cost of stamp duty and the state of the market, you should stay where you are.
- There is so much supply of properties on for people looking to rent as well as sell, that rents could well drop further.
- Lack of sentiment.
Of course, the choice is yours as to whether you agree that now is a good time to buy. But if you want facts - current property prices in “true terms” then give us a call.
