Posts with tag: estate agents

Top Tips to make sure your Property Offer is Accepted

Published On: September 11, 2017 at 8:16 am

Tags: buying a property,estate agents,first time buyers,home movers,moving home

Falling in love with a dream property is something that most homebuyers will experience, but there is always a risk that your property offer won’t be accepted and you’ll lose out.

NAEA Propertymark (the National Association of Estate Agents) has a few simple tips that you can follow to help you secure your perfect property, whether you’re a landlord, home mover or first time buyer…

Katie Griffin, the President of NAEA Propertymark, says: “Finding your dream property is no mean feat, but, when you do eventually find it, the biggest task is keeping hold of it. It’s really important to try and connect with the seller or agents involved, but keep a clear head and make a strong case for why the seller should choose you. An ideal buyer will show that they have done their homework, are clear about how quickly they can move and that they are taking the process seriously.”

Become an expert

Top Tips to make sure your Property Offer is Accepted

Before you place a property offer, do your homework so that you can go into the process comfortable and confident. There is lots of information available on the internet about the home buying process and the local area, so take advantage. Look into what similar properties in the area have sold for, so that you’re confident the price you’ve offered is the right one.

Get your finances in order

Confirm that you can get a mortgage and have enough money for a full deposit before you start your search; there’s nothing worse than falling in love with a property you can’t afford. Estate agents must verify your ID before solicitors are instructed, so remember to take in your passport and a utility bill, to provide your proof of funds. Estate agents shouldn’t accept an offer without confirmation that the prospective buyer has their finances in place.

Make your position clear

First time buyers with no chain make for attractive buyers. Your seller may be looking to move as soon as possible and, if you’re in a good position, you should make that clear, as it will make you more attractive than other potential buyers.

Build relationships

Building a relationship with your estate agent will help to ensure that you’re getting the best possible advice regarding your purchase. Try to go into their offices rather than having a phone call, and sit down with them face-to-face to discuss your requirements.

Act quickly

Vendors are busy and don’t want to deal with time-wasters. If you like the look of a property, don’t dawdle – be the first to book a viewing. Being proactive is one way to show the seller that you’re a serious contender.

Find the right price

Although a bit of negotiating is to be expected, don’t go too low. This can cause tension with the vendor, and you may end up losing the property altogether if someone else offers a higher bid. You should also try to avoid round numbers, to prevent making the same bid as someone else.

Protect your purchase

Once your property offer has been accepted, ask for the home to be taken off the market straightaway. This can minimise the chances of additional offers coming in over and above yours, and finding that you’ve been trumped.

If you or someone you know is planning to make a property offer in the near future, make sure they stick to these top tips!

Homeowners have Already Paid £303.6m in High Street Estate Agent Fees in 2017

Published On: September 8, 2017 at 9:36 am

Author: Em Morley

Categories: Property News

Tags: estate agents,high street estate agents,online estate agents,property sales

Homeowners in England and Wales have already forked out £303.6m in high street estate agent fees in 2017 so far.

This is the finding of the latest study by online estate agent eMoov.co.uk, which found that the average high street estate agent has already lowered its standard fee from 1.6% plus VAT to 1.3% including VAT, due to the growth of the online sector.

Using this lower fee, eMoov has looked at the number of properties that have completed so far this year and what they have sold for, before applying the 1.3% charge to see how much homeowners have paid to sell their properties in 2017 so far.

The agent also accounted for the online share, which currently makes up 5.51% of the market, removing this from the total fees charged.

The research shows that, so far in 2017, £26 billion worth of property has already been sold, equating to £303.6m in high street estate agent fees.

Homeowners have Already Paid £303.6m in High Street Estate Agent Fees in 2017

As expected, the higher price of London properties means that the capital has experienced the greatest amount of fees paid (£70,146,490) so far this year, and this is no doubt higher given that the average fee in London is much higher than 1.3% including VAT.

The South East and East of England are also home to some of the highest fees paid, with Surrey (£13,303,190), Essex (£10,250,462) and Kent (£9,404,396) also seeing millions of pounds paid in commission. Greater Manchester is home to the fifth highest amount (£9,094,250).

The top ten is completed by Hertfordshire (£9,093,068), Hampshire (£8,964,127), the West Midlands (£7,473,729), West Yorkshire (£6,726,050) and West Sussex (£6,369,375).

The Founder and CEO of eMoov, Russell Quirk, comments: “Despite the high street sector being pressured to lower their commission to an average fee of 1.3% including VAT, due to growing competition by online and hybrid agents, this research demonstrates the eye-watering amount of money that’s still being paid due to the outdated practice of charging based on a property’s value.

“Of course, not all agents charge as much, but there are many agents that will still charge more and, with hybrid and online agents charging a fixed fee with a now proven service track record, it remains to be seen why you should pay more to sell your house because it is of a higher value.”

He continues: “The only silver lining to this research is that, in years gone by, this figure would have been a lot higher. Although the online and hybrid sector still only accounts for 5.51% of the market, it still represents a considerable saving and one that is only set to keep increasing as we take more market share.”

Property Redress Scheme Membership Up by 33%

Published On: August 16, 2017 at 9:46 am

Author: Em Morley

Categories: Property News

Tags: complaints,disputes,estate agents,letting agents,redress scheme

Property Redress Scheme Membership Up by 33%

Property Redress Scheme membership rose by 33% in the year from 2015 to 2016, shows its 2016 Annual Report.

The research also highlights a 40% increase in formal complaint notifications, which may be a result of the rise in members.

At the end of 2016, a total of 5,259 agent offices (31% sales and 79% lettings) had Property Redress Scheme membership, with a further 227 property professionals – such as inventory clerks – choosing to join the scheme to promote best practice within their organisations.

Total Property Redress Scheme membership currently stands at more than 7,000, with almost 700 UK Association of Letting Agents (UKALA) members now having access to Property Redress Scheme membership, following the announcement of a formal partnership in October 2016.

As well as growth in membership, the annual report also shows that the Property Redress Scheme has seen a 40% increase in formal complaint notifications. In the report, the Head of Redress at the organisation, Sean Hooker, acknowledges that this can be partly attributed to overall growth of the scheme, but he believes it also indicates an upward trend in consumer awareness of the complaint process.

The most common causes for complaints were property management (29%), deposits (27%) and problems with rent (15%). Service and fees both resulted in 6% of complaints. Tenants made the majority of complaints (51%), while 35% were made by landlords, 8% by leaseholders, 3% by buyers and just 1% by sellers.

The Property Redress Scheme awarded a total of £152,819 in compensation, with the average amount awarded being £375.27.

Hooker comments: “Although formal complaints have risen, so too has the number of complaints resolved at the early stages of our process. Around 40% of our cases are resolved at recommendation stage and 99% are dealt with in less than 90 days from receiving the initial complaint through to a decision.

“We continuously look at improvement and initiatives to increase the effectiveness and delivery of our service. We hope that the most recent introduction of our online complaint system will further reduce the average time to complaint resolution.”

Have you considered Property Redress Scheme membership?

One in Five High-Street Estate Agents at Risk of Going Bust

Published On: August 3, 2017 at 9:42 am

Author: Em Morley

Categories: Property News

Tags: estate agents,high street estate agent,letting agents,online estate agent

One in five high-street estate agents in the UK are at risk of going bust following a surge in online alternatives, a new study has found.

Almost 5,000 high-street estate agents are showing signs of “financial distress”, reports accountancy firm Moore Stephens.

One in Five High-Street Estate Agents at Risk of Going Bust

Traditional firms are likely to have higher property and staff costs, and are struggling to compete with low-cost, fixed fee online estate agents, the report claims.

The research also indicates that the growth in property websites has undermined the role of estate agents.

Moore Stephens’ Mike Finch says: “Traditional high-street estate agents’ profit margins are being squeezed from both sides, from cut-price online competitors to their larger counterparts on the high-street, who are forcing them to up their spending or give up the race.

“Many areas across the UK are over-saturated with estate agents, and competition is becoming too much for some smaller businesses.”

The study follows a slump in profits announced last week by two of the UK’s largest high-street estate agents.

Countrywide – the UK’s biggest listed estate agent – said that pre-tax profits for the six months to June were £447,000 – down from £24.3m in the same period last year.

Revenue and profits at Foxtons also dropped in the first half of the year, as the London-focused agent pointed to “unprecedented” economic and political uncertainty hitting the property market.

The group said that revenue fell by 15% to £58.5m in the six months to 30^th June, with pre-tax profits plummeting by 64%, from £10.5m to £3.8m.

A separate study has found that planning applications for new shops have dropped to an eight-year low, amid continued growth of e-commerce.

There were 6,525 applications in England in the year to March – almost half the number in 2008-09, and down by 11% on 2014-15, according to Lendy, which provides property finance and development loans.

Greater Manchester recorded the greatest decline in retail planning applications last year, it reports.

Liam Brooke, of the firm, adds: “The continued softness in the retail property market shows no sign of abating. Retailers are shunning and shutting bricks and mortar shops.

“The Government needs to find a way to encourage retailers to give the high streets a face lift. Big brands are continuing to shift their focus towards their online services.”

Landlords, have you considered using an online estate/letting agent?

Proportion of Properties Sold Subject to Contract Hits Seven-Year High

Published On: July 17, 2017 at 10:00 am

Author: Em Morley

Categories: Property News

Tags: estate agents,homebuyers,property market,property sales

Almost half of estate agency stock has been sold subject to contract so far this year, as buyer demand continues to outweigh supply, Rightmove has reported.

Proportion of Properties Sold Subject to Contract Hits Seven-Year High

The property portal claims that the strength of buyer demand and lack of properties coming onto the market has resulted in more than 45% of agents’ stock being sold subject to contract – the highest proportion recorded by Rightmove for seven years.

The average asking price remained at a “virtual standstill” in July – up by just 0.1% to £317,421. This compares to a 0.4% monthly decline recorded in June, and is up by 2.8% on an annual basis.

The number of agreed sales in June rose by 4.6% year-on-year, while the number of sellers was up by 7.6%.

Meanwhile, average housing stock per agent was flat, at 60 in June, while the average time to sell increased by one day, to 60, which is two days longer than the same time last year.

The Director of Rightmove, Miles Shipside, comments: “Prices are in the summer doldrums. Sellers coming to market at this time of year have to price more keenly, as the traditionally bubblier spring selling season is over and prospective buyers are distracted by their own summer holiday plans.

“A year on from the shock referendum result and subsequent dent in activity levels, the fundamentals remain strong. Low unemployment, low interest rates, strong demand and historic undersupply of homes are mitigating any wobbles in confidence and, as a result, nearly half the properties on the market – over 45% – have sold signs slapped across them.”

The Founder and CEO of online estate agent eMoov, Russell Quirk, adds: “Encouraging signs that seller interest at least has picked back up following June’s election. Although the current parliamentary situation is far from strong and stable, we’re already seeing election blues sidelined and the market return to a semblance of normality now that some of the dust of political uncertainty has started to settle.

“We saw a similar hangover from the EU referendum, in which the market took a good month or so before kicking back into action. It is likely that, should these figures ring true, we could see a reverse in the cooling price trends reported over the last month or so, but heightened seller activity must be matched on the buyers’ side of the market in order for this to happen, otherwise, we could see the reverse.”

He concludes: “After all, Rightmove’s data is based largely on listed stock and asking prices, and is just a mere toe dip into the UK property market pool, and it doesn’t necessarily portray the overall temperature of the market, as a sale agreed doesn’t guarantee it will be completed.”

Government to Introduce new Anti-Money Laundering Watchdog

Published On: March 16, 2017 at 10:53 am

Author: Em Morley

Categories: Finance News

Tags: estate agents,finance,money laundering,property buyers

The Government is set to introduce a new anti-money laundering watchdog to close loopholes used by criminals, in a wider clampdown on money laundering and terrorist financing.

Government to Introduce new Anti-Money Laundering Watchdog

It plans to launch the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) – a new group that will sit within the Financial Conduct Authority (FCA) – by the start of next year. It comes as the Government moves to introduce new, stricter money laundering regulations that it said would ensure the UK meets the latest global standards.

The aim is for OPBAS to remove the inconsistencies and gaps between the numerous different guidelines that govern anti-money laundering efforts and other measures tackling financial crime.

Alongside HM Revenue & Customs (HMRC), the FCA and the Gambling Commission, there are a further 22 accountancy and legal trade bodies that supervise and issue rules to fight money laundering across various sectors.

The Treasury is worried that the abundance of guidelines has opened loopholes that are being exploited by criminals, an issue it hopes to combat with OPBAS. Ministers have proposed that the new watchdog will have the power to fine supervisors if the new anti-money laundering regulations are breached.

The new watchdog will also seek to simplify the anti-money laundering rules that apply to different industries.

The Economic Secretary to the Treasury, Simon Kirby, says the new regulations and watchdog “will bring the UK’s anti-money laundering regime into line with the latest international standards and ensure consistently high standards of supervision across all sectors, sending a strong message that money laundering and terrorist financing should not and will not be tolerated”.

The Chief Executive of NAEA Propertymark, Mark Hayward, comments on the plans: “It’s good news that the consultation on money laundering has finally appeared. When the legislation comes into force, it’s vital the sector acts to implement the changes.

“The Government has announced that purchasers are now included in the application of customer due diligence, so additional checks will need to be made by sales agents and auctioneers, which will be complicated by the fact that buyers are sometimes at arm’s length and there’s not necessarily a face-to-face relationship.”

He adds: “However, further clarity will be required as to at what point the purchaser becomes a purchaser, and this is an issue we will be seeking guidance on.”

The Government’s consultation is open until 12^th April 2017. Get involved here: https://www.gov.uk/government/consultations/money-laundering-regulations-2017