What can I do to be taken seriously as a buyer ?

Here are 6 simple steps

1) Find out how much you can afford.
Visit an independent mortgage advisor and confirm how much mortgage you can afford ?
Work out how much deposit you can raise and what the costs will be including solicitor fees and stamp duty.
Remember that there will be utility bills to pay so build those into your calculations.

2) Make contact with an estate agent.
There is only so much you can do on the internet and a good agent can help you sort "The wood from the trees" and help you find you your perfect home a lot quicker.
Let them have all the information you can. What price bracket you are looking in,how much deposit you have and just as importantly what type of property you are looking for.
Make a list of how many rooms you want, the preferred areas, local amenities and anything else that is important to you.
The more you tell the agent the easier it will be for them to find the best property for you.

3) Arrange to view.
Make appointments to view your chosen properties and keep them, if you cannot make an appointment let the agent know.
Take a list of questions with you, such as, what is the area like, how is the property heated ? How much is the Council tax and what are the neighbours like ?
It is important to find out as much as possible so you can make the right decisions.
Make notes after viewing and review them later.

4) Keep in touch.
Let the agent know if your requirements change, you may decide after seeing some properties that you need an extra bedroom or a bigger kitchen.
Your agent may have a more suitable property but not shown you it yet, as they think it is not what you want.

5) Sell your property first.
The best way to cut out disappointment is to place your property on the market and get interest before you find the home of your dreams.

6) Make an offer.
When you have found the property you want make a formal offer through the agent.
Let them know how much deposit you have and the details of your mortgage.
Before you offer make sure you have carefully considered everything, does it meet all your criteria ?
Is it large enough for you now and in the future, is it in the right location ?
If you want to be considered as a serious buyer, the last thing you want to be doing, is making offers and then withdrawing them because you have changed your mind.
When the offer is excepted you will need to chose and instruct a solicitor to deal with the transaction.


Good luck with your house hunting, if you have any other questions please ask

Out all day Wednesday 28th see another answer Thursday. What is the best way to sell in the current market?

If you are going to sell in the current market, it is so important to have the right approach, so you can maximise the amount of interest from the very best purchasers.
There is no such thing as one size fits all. Most people put their property on the market, leave it and hope for the best.
You need to find an agent that will take a far more individual, innovative and proactive approach.
Here are some of the ways we help our clients move in any market.
Offers in excess
Is one of the best ways of obtaining the maximum amount of interest in your property.
It encourages the best place purchasers to view your home and quite often achieves more than one offer.
Which results in potential purchasers out bidding each other.
Part exchange
Any well connected agent will have a system to identify potential home swaps, such as a retired couple wanting to down size,with a young family looking to expand.
Often it can be easier to exchange properties rather than a normal sale and purchase.
Auction
Offers speed, simplicity and certainty.
If you require an exchange of contracts and completion 20 working days later
because your are going abroad or moving to start a new career.
Then auction may be the solution, providing you are able to agree to a realistic reserve,typically 15/20 % below the market value.
Remember a purchaser is legally bound to complete once the gavel has gone down.
Open house
Can produce an added excitement amongst potential purchasers as they all veiw on a given day within a limited 1/2 hour period.
This also avoids the hassle of having to keep the property tidy and arranging individual appointments.
Renting
Is an alternative solution to consider.
Rent your property and rent somewhere you want to move to.
It may be a compromise but it allows you to get the full value of your home when the market is more favourable.

Make your agent be creative in moving you.

I am looking at buy to let. What advice can you give me?

There are lots of things to consider if you are thinking of becoming a landlord. Here are my top tips :

1) Before making an offer, you need to have an accurate idea of the rental value and the work you need to do to maximise your rent. Then you can make a well informed offer, a common mistake first time landlords make is to offer before they have all the relevant information.This means they often come unstuck, end up re offering and as a result lose credibility.

2) Never rent to relatives, friends or work colleagues,without a written contract, proper referencing and a deposit.It sounds harsh but I hear of more tenancy's going wrong when relatives are involved than any other.

3) If you considering buying more than one property it is important to have a balanced portfolio between house, flats and also areas. This is because different types of properties rent well at different times. So you do not want to be exposed to the market with all your eggs in one basket.

4) Be careful what repairs you carry out, for instance a tenant will not want to replace a broken pane of glass and it could put them off renting.If you are replacing a kitchen make sure the draws have metal runners.

I have only been on the market a couple of days, I’ve had one viewing and they have made an offer. Does this mean my property was undervalued?

I can understand why you might think so. In fact, you probably won’t be surprised to learn that this is one of the commonest issues that people raise. Which is interesting, when you think about it. After all, if something is offered for sale – particularly given the current state of things - and it’s snapped up straight away, then it would normally be reasonable to assume that the seller would be absolutely delighted! But instead – this being the property market, and human nature being what it is - it’s immediately tempting to believe that we could all have got a higher price.

And of course, that may be true, even with the way the market is at the moment - although to be frank it’s pretty unlikely. But in any case, that does not necessarily mean that your agent has somehow been at fault. After all, the whole point of pitching the asking price at a particular level is to attract buyers - not drive them away! Besides, it is generally accepted that most properties attract the maximum amount of buyer interest during their first 2 weeks on the market. Finally, let’s not lose sight of the fact that you are under no obligation whatsoever to accept this - or any other - offer.

Taking all this into consideration, I would suggest that your agent has actually done a pretty good job – not only with the valuation, but by skillfully filtering your potential buyer from his or her existing mailing list, and knowing that they were looking for a property like yours.

The real key question here is, how close is the offer to your asking price? Use the fact that this is the first viewing to play hard ball. Perhaps ask your agent to negotiate and/or clarify the buyer’s bona fides. And don't agree to take your home off the market immediately. You don’t have to do so, as long as you make your intentions clear, and it’s always possible that this buyer may disappear back into the woodwork just as quickly as he or she popped out. But at the same time, be careful – you don’t want to drive this buyer away, because in the current climate they might just be the only one you get.

My alleged cash buyer actually has a property to sell. How can this sort of thing happen, and what can I do?

Actually you’d be surprised just how easily this sort of thing can happen - and how frequently.

The simple fact is that people often describe themselves as cash buyers when in reality they aren’t. Sometimes, particularly in a raging bull market (remember them?), this may be a deliberate ploy to try and hoodwink the seller into accepting a particular offer. More often, however, it’s a simple matter of ignorance. So, for example, some people will claim to be cash buyers when what they really mean is that they won’t need to borrow any additional money to fund the purchase - once they have sold their existing property! Others may indeed have the cash – but it may be tied up in savings accounts that require anything up to 6 months’ notice or more before it can be accessed. The same often goes for people who claim to have sufficient funds to put down a large deposit.

The simple fact is that a genuine, non-dependent cash buyer is just that: someone with sufficient funds ready and waiting to make the purchase - without having to sell anything else first. If the money is held in an account that requires an extended period of notice before it can be released, then this notice needs to be given straight away – and you will have to decide for yourself whether you are willing to wait for that length of time.

Of course, establishing the true financial position of would-be buyers is an integral part of the agent’s role. Any reputable, professional agent worth his or her salt would have asked all the right questions at the outset.

The fact that this has happened to you therefore suggests to me either that your agent didn’t do a very thorough job, or that you tried to sell your property yourself, without using an agent at all. Either way, of course, you’re perfectly at liberty to cancel your acceptance of this person’s offer and put your home back on the market again. Nevertheless, with serious buyers currently about as rare as hens’ teeth, I would think twice before doing so.

Accompanied viewing; why have a dog and bark yourself?

Many clients put their properties on the market with an agent and then insist on showing perspective purchasers around themselves.
Some customers tell me it s because their agent refuses to do them, my advice to anyone in that situation is, change your agent fast.
Showing someone a property with a view to selling it is a skill your chosen agent should possess.
A good agent does this sort of thing all the time; they should have the necessary experience to present the property in the best way.
Agents also enjoy a degree of professional detachment and objectivity, which purchasers not only respect but feel more comfortable with.
When the owner is there people often feel uncomfortable to ask questions, have a really good look around or pass comment, in case they offend them.
Remember they have come to see your house not meet you.
If you feel there are particular points about the property that would appeal to a buyer, then you should make your agent aware of them. It is also common sense to make sure all valuables are put out of sight and the house is tidy.
Then you should leave every thing to the agent do not hover around in the background take yourself out and if you have children or pets take them with you.

What are the dangers of over valuing your property for sale?

Some agents are currently over valuing properties by as much as £20,000 to £30,000 in my area. They are doing this because they are desperate to get properties on the market.

The problem is, it unrealistically raises the seller’s expectations of what price they may achieve. Which means the client might start looking for properties in the wrong price bracket or worse still lose the property they have set their heart on.

Also this approach can be very frustrating, as the best placed purchasers will not be interested in viewing the property. This is because most buyers become expert in the price range they are looking to buy in, so an over priced property stands out like a sore thumb to them.

Another problem is, the only way interest is going to be created is by reducing the price. This disappoints the seller and does not look good to the buying public, especially if it is done too many times.

So how can you avoid falling into this trap? Firstly only use an agent that backs up their valuations with comparable sales data, so they prove to you what is selling, at what price and what has happened to the market since that sale. Secondly try a sales technique we have used for years,“Offers in excess “this works well and often achieves a higher sale price.
It also shows the best price achievable in any market.

It is always tempting to place your property on the market at a high price and see what happens but the agent that does that is doing you no favours.

I was surprised to learn that there seems to be quite a discrepancy between the market and insured value of my home. Why is this ?

The market value of a property, and the value that is put on it for insurance purposes, are two very different things. Market value obviously reflects the price someone is prepared to pay for your home, while insured value is based on a calculation of what it would actually cost to rebuild it to the same specification in the event of something like a major fire. Even in the current market, the former is almost always higher – primarily because the insured value doesn’t take into account the value of the land on which a property sits. Consequently, this discrepancy shouldn’t really be a concern.

Whether or not the insured value is actually correct is another matter altogether, however. Generally speaking, insurance companies increase their valuations annually in line with inflation – but that won’t necessarily reflect the true cost of labour and materials at any given time. Besides, they may have got their sums wrong in the first place. Then again, you may have significantly extended or improved your home over the years, and unless you make a point of telling your insurers, they won’t have taken that into account.

As a general rule, I would advise you to check the insured value yourself every 2-3 years. Do this by multiplying the total area of your home in square feet or metres (frontage x depth if it’s a flat or bungalow, or frontage x depth x the number of floors if it’s a house) by the appropriate rebuilding cost per square foot or square metre. These costs are published by the Royal Institute of Chartered Surveyors, and should be available from any qualified surveyor. They will tend to vary, depending on things like the age of the property or whether it is detached, semi or terraced.

Once you’ve done your calculations, compare the result with the insurer’s valuation, and if you’re not happy, ask them to make the necessary adjustment. It might mean you pay a slightly higher premium, but it’s a small price to pay for peace of mind.

When will lenders start lending more?

One of the main problems with the property market still, is the availability of mortgages for well positioned purchasers. Despite all the quantitative easing by the government, banks and building societies are still reluctant to lend.
If first time buyers with sensible deposits of 5% or 10% and 3 times income, could more readily obtain funding, on sensible terms the property market would come back to life in an orderly way.
This would encourage more homeowners to place their properties on the market, so the supply and demand balance would be restored.
When is this likely to happen,?
One clue is in interest rates. No not the rate mortgages are offered at but the relationship between the Bank of England base rate and the LIBOR rate ( London inter bank offer rate ) The more these two rates move apart the less likely lenders are to have the funds to lend those realistic mortgages. This is because it is costing them more to borrow the money on the wholesale market, so they have to find ways of making profits from expensive funds.
Once banks start trusting each other again, so the strong banks with funds start lending to the others, money will start to flow again.
This confidence between the banks is reflected in base and LIBOR rates moving closer. So a simple way to monitor potential property market activity is to track these two rates.
As they converge you will see more sensible mortgages being offered to well placed first time buyers something that needs to happen to enable the buying and selling process to start .
While they remain further apart and if you have funds available now is a good time to invest in property.
I must stress this is just one factor to take into account and others need to be weighed up when considering purchasing.
If you have a question on property buying in this market please feel free to contact me by posting a comment.

Is selling at auction a realistic option?

That rather depends on what you are selling. For instance, the auction system of competitive face-to-face bidding can often be used to advantage in the case of unusual or “non-standard” properties, where their very uniqueness makes it much more difficult to arrive at an accurate market valuation in the usual way.

Auctions tend to be where investors and those with pre-arranged finance go to buy, for example, repossessions, or short-lease properties, commercial investments, land or homes requiring a lot of remedial work.

Since completion normally follows in 20 working days, auctions are also particularly suitable where a quick sale is required. May be because you are moving abroad, face repossession, or are committed to using the monies elsewhere.

What a roomful of canny investors and assorted bargain-hunters probably will not get you, however, is the best possible price for your typical, well-maintained three-bed semi. After all, that’s not what they’re there for.

If you genuinely want to look at the auction option, then ask the advice of a reputable agent who specialises in auctions. If they feel you would be better off going down the traditional route, then they will tell you – after all, it certainly is not in their professional interest to be left with a lot of unsold properties which failed to reach their reserve price.

Generally, guide prices are set at about 20 / 25 % below the open market value to attract the right buyers to the room. Then the competitive bidding process takes over and very often properties sell significantly higher than their reserves.

Both sellers and buyers will incur fees and a 10 % deposit is payable on the day, for those that are successfully bidders

To re cap, auctions can provide a fast, certain and exciting way to sell for the right type of residential and commercial properties but as always seek professional advice before committing.

What’s the difference between a valuation, a HomeBuyer’s Report, a Home Condition Report, and a full structural survey?

First, let’s deal with the Home Condition Report, or HCR, which is fundamentally different from the others in as much as it is commissioned and paid for by the seller. The HCR was originally intended to be one of the cornerstones of the new Home Information Pack, but was eventually dropped – or made optional, which amounts to the same thing. In practice, you are highly unlikely to encounter one. The Government still says that it may reintroduce a compulsory HCR if circumstances favour it, but no-one is holding their breath.

As for the other three…all lenders require a basic valuation to help them determine whether a property is actually worth the money you have agreed to fork out for it. They commission it, but you pay for it – unless they offer to waive the fee as part of their mortgage offer.

The Homebuyer’s Report is an intermediate-level survey. Concise and easy to read, it is designed to highlight any urgent repairs that may be required, and any other areas of immediate concern.

Top of the range is the Full Structural Survey – otherwise known as the Building Survey. This combines a comprehensive technical assessment of the property’s current condition with detailed guidance on any repairs required and future maintenance.

Costs vary, but the basic building society valuation is naturally the cheapest. Not surprisingly, therefore - even though it is done for the lender’s benefit, and its prime purpose is merely to establish that the property in question represents sufficient collateral for the loan - the majority of buyers tend to rely on this.

But is this really advisable? After all, buying a home represents the single biggest investment most of us ever make.

I firmly believe it is common sense to spend a bit more in order to be better informed before we commit ourselves to such a momentous decision. In all but the most exceptional cases, a Homebuyer’s Report should be perfectly adequate. 'This can often be done by the lender’s surveyor at the same time as he or she performs the valuation, so it needn’t involve any more hassle for you - although of course, you can always commission a survey independently.

Q. I live in a semi-detached house. What rights do I have with regards to having work done on the party wall?

Strictly speaking, this is really one for a solicitor. That said, my understanding is that you basically own half the thickness of any party wall - so as far as minor, everyday things are concerned, like drilling into it to install fixings for kitchen cabinets or shelves, or even cutting into it to install electrical wiring and sockets, you are in essence free to do what you like, as long as you don’t do it in the middle of the night! That said, it is of course no more than common courtesy to let your neighbours know before you start.

Major structural work, on the other hand, is a rather different kettle of fish. This is governed by the Party Wall Act, 1996, which enshrines your right to do things like cutting into the wall to take one end of an RSJ, or slicing all the way through it in order to install a new damp course. If necessary, you can even demolish the whole thing and completely rebuild it! However…you must inform the owners of the adjoining property, in writing, not less than two months ahead of the planned start date, and they must give their written consent within 14 days of receipt.

The Act also stipulates that any work done should not cause undue inconvenience for your neighbours. In addition, it makes you legally responsible for providing suitable protection for buildings and property during the course of the work, and for compensating your neighbours in the event of any incidental damage.

In return, your neighbours are legally bound to allow free access to their property as necessary for the proper completion of the work.

Finally, while my understanding is that a neighbour can’t actually stop you from exercising your rights under the Act, failure to do things by the book could trigger a lengthy and potentially costly dispute. And disputes can happen all too easily, since all the neighbour need do to trigger one is to withhold his or her written consent. That’s why I would strongly urge you to seek proper legal advice before doing anything too drastic.