Ask the Estate Agent

Hello everybody and welcome to episode 8 of Ask the Estate Agent Podcast. This week’s episode is answering the question, is it possible to compare different mortgage deals?

The short answer is ‘Yes’. And the good news is that there is likely to be a mortgage suitable for you amongst the hundreds out there, so lets get straight on with our top tips to assist you with your mortgage search.

As I said , there are literally hundreds of different mortgages available to buyers, and comparing them isn’t always easy as it’s not all about the figures – and it is about your life for years to come. With this big decision in mind, make sure you ask all the questions you need and that you fully understand the answers you are given.

Get your paperwork in order before you have your meeting with your broker or bank manager and prepare some questions beforehand so you don’t forget them.

To help we have put together seven key questions you should be asking:

1. The initial interest rate and when it ends.
2. What the interest rate will be after the initial period.
3. What the monthly payments will be during and after the initial period.
4. Are there penalties for leaving the deal?
5. Can I overpay each month?
6. Is there a fee if I pay my mortgage off early?
7. Are there any fees? Can I pay these upfront or are they added to the loan?

As well as these seven key questions you should also consider the following points :

Building societies and banks are all in competition to win your mortgage business, and to attract you they offer a variety of their own deals so it really is worth shopping around the whole market. Our advice is to use an independent, qualified mortgage broker who has access to as much of the lending market as possible.

Now remember there are so many different scenarios – from the amount you want to borrow, to the value of your home and the period of time you want to borrow money for. So this makes picking out the best mortgage for you and comparing like for like difficult.

Add to that whether you want to fix your payments at a set figure for several months, you’ll see how the number of options is vast. If you find you have a poor credit score, this will again change things for you. So your mortgage advisor is the key person who will assist you with comparing these variables and ultimately finding you the perfect mortgage.

So when it comes to your actual choice, low interest rates can be negated by an arrangement fee so it’s always critical to factor in the impact of an arrangement fee on the total cost of the mortgage.

And it’s not always the cheapest monthly payment that will dictate which mortgage you choose.

Lenders use a figure called the Annual Percentage Rate of Charge (APRC) to help you compare mortgages. It includes any additional fees in your mortgage deal such as valuation or redemption costs and is the total cost of credit, shown as an annual percentage.

Because all lenders calculate and express this in the same way, you can compare them using this figure. However the one aspect APRC won’t tell you is whether you meet all the eligibility criteria for that particular mortgage. When just looking at the APRC you are assuming you meet the criteria.

However buyers can fall slightly short on the amount of deposit available, income or affordability criteria, the type of property, the construction and a whole host of other criteria small print.

This again is where your mortgage advisor will come to the rescue and ensure you only look at mortgages that are right for your circumstances and that you meet the eligibility criteria.

So that concludes today’s episode giving you our top tips to consider when comparing mortgage deals. The key takeaways are our seven questions to ask your broker – These will be shown in our show notes for you to take away and use. Secondly – Compare mortgage deals using APRC – Annual Percentage Rate of Charge and lastly by no means least make use of a qualified independent mortgage advisor/broker who will guide you through the whole process.

I hope you’ve found it useful and that it’s given you a few valuable pointers to consider when your choosing the right mortgage.

Now in a future episode we will be interviewing a qualified mortgage broker who will also be doing some Q&A so if you would like your specific questions answering in that episode then please do send them into us now so we can include them in the show.

So that leaves me to just say thank you very much for listening to this episode of the Podcast, don’t forget to contact us with any questions you want answering in future episodes.

You can do this through Social Media where you can find us on twitter, instagram or facebook just by searching for Ask the Estate Agent or you can contact us through our website www.asktheestateagent.co.uk

So join us next time and if you enjoyed the show please don’t forget to subscribe and rate us on itunes, stitcher or wherever you are listening and until next time on Ask the Estate Agent it’s goodbye for now!

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Hello everybody and welcome to episode 7 of Ask the Estate Agent Podcast. This week’s episode is answering the question, why are landlords becoming Limited Companies?

Now we’ve had a number of questions around this subject so I thought I would start off with this episode just giving an overview of why landlords are changing their approach and model and a few pointers to consider. BUT I am not an accountant, financial advisor or tax expert so if you have any specific questions you would like answering after this podcast then please send them in to me and we can look at incorporating these into our interviews with these advisors which we have planned for a future episode.

So lets get straight into this weeks topic – In the past couple of years there has been an significant increase in the number if private landlords running their letting business as an incorporated limited company.

One buy-to-let lender reported that in the first three quarters of 2017, seven in ten of it’s buy-to-let mortgage applications were made via limited companies rather than individuals.

So this is certainly a growing trend!

So why is this new structure so popular? What are the benefits or drawbacks for this approach?

For the most part, this shift has been due to an ongoing change in the tax regime for landlords, which is being implemented on a phased basis from April 2017 to April 2020 known as Section 24 of the Finance Bill 2015-16.

Prior to these new tax rules, landlords could effectively claim tax relief on their mortgage interest repayments at their prevailing tax – 20% for basic-rate taxpayers, 40% for higher-rate taxpayers and 45% for additional-rate taxpayers.

When the new regime is fully in place in 2020, landlords will only be able to claim tax relief for mortgage interest at the basic rate of 20%, potentially increasing tax liabilities for higher and additional-rate taxpayers by thousands of pounds.

So what’s the appeal of the limited company structure?

Well over the same period, corporation tax rates paid by limited companies are reducing from the current 19% to 17% by April 2020. Therefore, it is to the advantage of some landlords to change their letting business to a limited company structure from this perspective alone.

While any salary and dividends drawn from the company above the relevant individual allowance will be taxed at the prevailing rate – up to 45% for salary and 38.1% for dividends – any profits retained within the company structure are taxed at the lower corporation tax rate.

Now I must emphasise again that the appropriateness of a limited company buy-to-let to each individual is hard to ascertain, as there are many questions and circumstances to consider so please speak to your accountant or financial advisor in the first instance.

We as an estate agency have seen a significant rise in this kind of financing by landlords , which does show a growing appetite for this structure which seems set to continue in the short term.

Could there be an impact on tenants?

The tax changes have already seen rent increases for some tenants in some areas, but this has often depended on whether the individual landlord shifts to a limited company structure or continues trading as an individual.

For many professional landlords with large portfolios and relatively low mortgage exposure, there may be no need to increase rents.

Those who continue to let as individuals and especially those with larger mortgages relative to their properties value, could already be feeling the bite of the changing tax rules and may have no choice other than to pass that cost onto their tenants in the form of rent increases.

These changes are also occurring when landlords are faced with the tenant fee ban and selective licensing come in to force in many areas. So certainly the combined effect of all these changes could have a significant effect on rental prices.

Could this be changing the type of landlord, not the type of homeownership?

The changing tax rules , in addition to other policy changes such as the new stamp duty surcharge on the purchase of second or subsequent properties are likely to see some single-property landlords driven out of the market all together as the costs just continue to increase.

A recent survey of over 800 landlords by specialist lender Kent Reliance indicated that in the past year landlords with fewer than five properties had not grown their portfolios, while those with ten or more homes had on average added one property to their portfolio.

While the full force of the tax changes won’t hit until April 2020, there’s already an indication it may not be achieving exactly what the government had broadly set out for the buy-to-let market, which was to shift more properties from the hands of landlords and back into private ownership.

Instead it may contribute to a shift in the market that will see a reduction in the number of smaller, more amateur landlords, but present expanding opportunities for larger, professional landlords and property investors who are able to leverage the value of their portfolios while keeping mortgage liabilities to a relative minimum.

Summary

So in summary, if you’re a landlord and this is the first time you have heard of Section 24 and these changes then please do speak to your accountant for advice. I hope you’ve found this podcast useful and I really just wanted to highlight these tax changes for any of you listeners who were unaware of the implications.

So that leaves me to just say thank you very much for listening to this episode of the Podcast, don’t forget to contact us with any questions you want answering in future episodes.

Contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So join us next time and if you enjoyed the show please don’t forget to subscribe and rate us on itunes, stitcher or wherever you are listening and until next time on Ask the Estate Agent it’s goodbye for now!

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Hello everybody and welcome to episode 6 of Ask the Estate Agent Podcast. This week’s episode is answering the question, which home improvements really add value to your home before selling?

So lets dive straight in and give you some quick and easy ways to add that all-important value.

Adding value to your home is always a smart idea but it can be confusing to know which areas have the best value impact with the least amount of investment so here are ten, quick top tips that will have that effect for you.

1. Carry out repairs, upgrades and redecorating

 All those repair jobs you never get around to completing do them now and you’ll improve your home while adding value to the property for sale.

Redecorating is the most popular home improvement and giving your home a lick or paint and doing some general maintenance can be done at a very low cost. Fresh paint in modern colours can go a long way to giving your home a new lease of life, so do not be afraid to pick up the paintbrush.

It’s also best to fix all superficial defects. While unlikely to be the clinching factor in a house sale, small problems and defects can create an impression of a house being run down or not well cared for. Things to look out for include:

• Peeling paint
• Dirty walls, especially near doors frames and around switches
• Dripping taps
• Squeaky floors, doors or stairs
• Mouldy sealant in kitchens or bathrooms
• Limescale built up on kitchen and bathroom fittings
• Badly fitted laminate flooring
• Broken lightbulbs

Bigger issues such as damp should not be covered up. It will show up on a survey and is likely to come back to haunt you later on.

1. Makeover the kitchen

Kitchens are often the focus for many buyers, so it may be the first thing they look to replace if they can’t imagine living in yours. You may not be able to afford a whole new kitchen but there are many smaller ways to improve what you already have.

For a relatively small budget painting units or replacing cupboard handles or doors are a cheaper way of refreshing kitchens. Good lighting and clutter-free, clean surfaces will make a big difference to the feel of the house

Buyers may be willing to pay more to save themselves the hassle of buying a new kitchen.

1. Update the bathroom

 In the bathroom, re-grouting, eliminating all limescale and replacing taps are a good option. Bathrooms need to be fresh and hygienic looking, so paint the walls a neutral shade, and ideally replace a shower curtain with a new one or a simple glass screen.

1. Opening up space

Opening up living space is becoming more and more popular, particularly for the kitchen and dining room. Combining the two into one large room creates a sociable space, great for the whole family to enjoy.  Remember the practicalities with this though, as many consumers still like the ‘front room philosophy’ that can be used for special occasions or to be used for privacy by the adults.

1. Smart technology, energy efficiency and security

Smart home technologies are increasingly important to buyers – just advertising the presence of fibre optic cables in your area could be enough to encourage buyers. Statement systems like multi-room music and entertainment platforms can also make a difference.

Smart technology such as Hive and Nest thermostats, which give mobile control over heating systems, is a feature worth considering. Combining this technology with a modern economical boiler will give any new buyer peace of mind when it comes to the heating and hot water services. If it moves your EPC (Energy Performance Certificate) up a band, it could add thousands to the sale price.

Incorporating home security systems such as new door bell technology that allow you to see and record people approaching your home and wifi enabled CCTV systems all add value that any new buyer would appreciate.

1. Kerb appeal

First impressions count more than ever so take a step back and look at the approach to your home.

Make sure the front boundary, gates, pathways and front gardens are well maintained and looking their best. That first impression is a make or break moment and could put buyers off before they even walk through the front door.

1. Off street parking

In some areas of the country, the ability to park close to your front door comes at a huge premium and therefore, if you have the room to add off-street parking, you are sure to increase value.

1. Double glazing

Noisy roads can impact the value of a property. Double glazing will keep the home warm and keep the noise out, even if it’s near a main road. Be aware though that if you have a listed building or are in a conservation area then there maybe restrictions or guidelines you may have to follow with an upgrade like this that effects the external look of your property. The advice is always check with your local council planning department prior to go ahead.

1. Garden appeal

An attractive, tidy, well-designed garden can add a great deal of value to a property. It is essential to trim borders, clear pathways and cut back any overgrown trees or bushes.

The garden should feel like an extra space for entertaining or relaxing, rather than an expanse of grass. An area of decking gives buyers a sense of having a bigger usable living space.

 Finally and often the most valuable improvement

1. Add more space

Adding more space to your home is essential in adding significant value to your home and examples include a loft conversion, adding a conservatory, converting a garage or installing a whole new kitchen or bathroom.

A survey by NAEA Propertymark shows that half of estate agents think that adding a bedroom – usually a loft conversion – adds the most value, while a third of agents thought a new kitchen was the best choice.

Whatever you choose to do, it is a good idea to speak to a local estate agent about the sort of features that make the most difference when selling homes in your area.

Even if you can’t afford an extension or conversion, it might be worth obtaining planning permission to do so at a later date. You would have to spend money on drawing up the designs and getting a survey, but it would remove a big element of doubt from a potential buyer’s mind if they know the council has already approved an extension.

You might also want to think about your target audience and try to reflect their needs. For example, is your house most likely to appeal to young professionals? A room could be set aside as an office or you could add an extra shower room. If young families are the most likely buyers, could you turn the adjoining garage into a playroom?

Summary

So that concludes today’s episode giving you our top ten improvements that really add value to your home. I hope you’ve found it useful and that it’s given you a few valuable pointers to consider before marketing your property or even implement now if your property is already on the market and not getting the interest you expected.

So that leaves me to just say thank you very much for listening to this episode of the Podcast.

As a listener we want your questions to answer. Whatever your worries, concerns or needs are, contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So join us next time and if you enjoyed the show please don’t forget to subscribe and rate us on itunes, stitcher or wherever you are listening and until next time on Ask the Estate Agent it’s goodbye for now!

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I’m looking to purchase a property as a buy-to-let, what things should I consider?

Hello everyone and welcome to Episode five of Ask the Estate Agent and thanks again for joining me and downloading this episode.

Today’s episode is an introduction to buy-to-let and what to initially consider when investing in property.

Now in future episodes we will be going into much more detail on various aspects of investing, different models and strategies you can try but for this initial episode I want to give an introduction to buy-to-let and the basic things you should be considering and researching before making that first investment.

So let’s jump straight in and start with number 1

1. Research the market. Bit obvious I hear you cry but this is often overlooked or not done in enough detail so here’s what to consider. If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits? Make sure buy-to-let is the investment you want. Mortgage rates are lower now , but investing in buy-to-let means tying up capital in a property that may fall in value. Make sure you speak to a specialist Letting Agent who has experience in your area who can give you the best advice on achievable rental values and type of tenants you can expect.                If you know someone who has entered the buy-to-let market, ask them about their experiences.

1. Choose a promising area. Promising does not mean expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons. Where in your town has a special appeal? If you are in a commuter belt, where has good transport links? Where are the good schools for young families? Where do the students want to live? How far away are local amenities?

1. Know your figures. Before you think about looking around properties sit down with a pen and paper and write down the cost of properties you are looking at and the rent you are likely to get. Traditionally buy-to-let lenders want rent to cover 125% of the mortgage repayments. Most also look for a 15% to 25% deposit, or even larger, for rates that are considerably above residential mortgage deals. All these measures are to protect against falling prices. The best rate buy-to-let mortgages often come with large arrangement fees so these also need to be considered. As well as mortgage affordability you should also calculate the investment yield of the property. The yield of a property tells you how much of an annual return you are likely to get on your investment. It is calculated by expressing a years rental income as a percentage of how much the property cost. So you take the annual rental income and divide by the property purchase cost. Then multiply this by 100 to give you the gross yield percentage.

Bear in mind that this is the gross yield so doesn’t take into account any expenditures or cost or maintaining the investment such as management fees, maintenance costs, allowance for voids.

This is calculated by taking the annual rent minus the annual costs which equals your annual profit. You then divide this figure by the purchase price and multiple by 100 to give you your net yield as a percentage.

As a guide you can compare this against other forms of investment such as interest rate received on your savings. Interest received from investing in shares etc.

As a guide UK residential properties typically achieve a gross yield of between 3-7% depending upon the area of the UK the property is located.

1. Shop the mortgage market. Do not just walk into your bank and building society and ask for a mortgage. It sounds obvious, but people who do this when they need a financial product are one of the reasons why banks make millions in profit. If you are looking for advice consider using a specialist buy-to-let mortgage broker. Looking for an independent broker that can access as much of the market as possible will ensure you have the best choice of mortgages to choose from.

1. Know your target tenant. Instead of imagining whether you would like to live in your investment property, put yourself in the shoes of your target tenant. Who are they and what do they want? If they are students, it needs to be easy to clean and comfortable but not luxurious. If they are young professionals it should be modern and stylish but not overbearing. If it is a family they will have plenty of their own belongings and need a blank canvas and possibly a garage.

1. Consider looking further afield. Most buy-to-let investors look for properties near where they live. But your town may not be the best investment. The advantage of a property close by is being able to keep an eye on it, but if you will be employing an agent anyway they should do that for you. Cast your net wider and look at towns with good commuter links, that are popular with families or have sizeable employers.

1. Don’t be over ambitious. We have all read the stories about buy-to-let millionaires and their huge portfolios. But the days of double-digit house price rises are gone, so now it’s invest for income rather than short-term capital growth.

Rent should be the key return for buy-to-let. Most buy-to-let mortgages are done on an interest-only basis, so the amount borrowed will not be paid off over time. If you can get a rental return substantially over the mortgage payments, then once you have built up a good emergency fund, you can start saving or investing any extra cash.

Once mortgage, costs and tax are taken into account, you will want the rent to build up over time and then potentially be able to use it as a deposit for further investments, or to pay off the mortgage at the end of its term. This means you will have benefited from the income from rent, paid off the mortgage and hold the property’s full capital value.

1. Haggle over price. As a buy-to-let investor you have the same advantage as a first-time buyer when it comes to negotiating a discount. If you are not reliant on selling a property to buy another, then you are not part of a chain and represent less of a risk of a sale falling through. This can be a sizeable asset when negotiating a discount.

1. Be aware of the risks. Before you make any investment you should always investigate the negative aspects as well as the positive. House prices can fall as well as rise so plan for all eventualities. Even in popular areas properties can sit empty. One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for two months of the year – this gives a substantial buffer. Homes often need repairing and things can go wrong. If you do not have enough in the bank to cover a major repair to your property, such as a new boiler, do not invest yet.

1. Consider how hands-on you want to be. Buying a property is only the first step. Will you rent it out yourself or get an agent to do it for you? Agents will charge you a management fee, but will deal with any problems and have a good network of plumbers, electricians and other workers if things go wrong. You can make more money by renting the property out yourself but be prepared to give up weekends and evenings on viewings, advertising and repairs. The question will come down to how much you value your time.

So that’s all ten points to get you started on your journey as a Landlord. In future episodes we will be going into much more detail on various sides of investing and managing property but in the meantime if you have any questions at all that you would like answering at this stage of your journey then please do get in touch with us.

You can do this through Social Media or our website by following the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So that leaves me to just say thank you very much for listening to this episode of the Podcast and if you enjoyed the show please don’t forget to subscribe and rate us on itunes, stitcher or wherever you are listening and until next time on Ask the Estate Agent it’s goodbye for now!

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When it comes to selling your home, preparation and doing your homework early on will definitely help to make the whole process run more smoothly.

As well as the time and effort it takes to market your property and prepare it for viewings, there are also a number of legal and financial considerations you should prepare as early on in the process as possible.

When people think about preparing their house for sale, they often think about just the physical aspects such as de-cluttering, DIY and decorating in order to attract potential buyers, however finding the buyer and agreeing the offer is only one part of the sale process and very few people consider how to prepare the property legally for the remaining part of the sale process.

So here are a few essential points to consider before listing your property for sale.

1. Choose your agent wisely. Once you are certain you want to move – and are emotionally and financially ready – choose your agent wisely. Instruct an agent with a good reputation, a proven track record in your area and whom you feel will market your home to the best of their ability. Coupled with this always look for an agency that is a member of a redress scheme such as the Property Ombudsman Scheme and the Office of Fair Trading this means that they abide by a code of practice and are held accountable for the standard of service they deliver.

1. Look through the eyes of your buyer. Step back and look at your home through the eyes of a potential buyer. Make the most of your space, make sure the house is clean and tidy; focus on de-cluttering, giving windows and doors a lick of paint if needed, and pay some attention to your outdoor space; cutting the lawn and getting rid of any unsightly weeds. Remember first impressions really do count!

1. Highlight the selling points. Be sure to highlight, and pass on to your agent, details of any outstanding features that first attracted you to the home. Or if you’ve made any upgrades or improvements that are unique and add value then again highlight these to your agent. Your agent will then work this information into the property details and make sure your property is presenting all its selling points and wow factors from the beginning. This could include hidden storage areas, converted loft space outdoor and BBQ areas.

So the three points so far are what many of you may already have considered in preparing your property physically for the sale. But the following points are not so widely discussed and in many cases are left until an offer is agreed. By leaving these till later on in the sale process undoubtedly adds significant time to getting to that all important sale completion.

So here are the top legal and financial points to consider to speed up your property sale.

1. Draw up an inventory of items that you are including or not including in the sale of the house as early on in the process as possible, for example curtain poles, light fittings and fitted furniture. This will help to avoid any confusion later down the line and time delays whilst this is being carried out.

1. Gather any documents you have that relate to the property, no matter how trivial you think they are. Buyers will expect to see all documents relating to every aspect of the property. By not being able to provide these quickly could result in delays at the crucial point, so do the hard work early on and gather these together at the start. For example, windows installed after 1 April 2002 need FENSA certificates, and any remedial works as cavity wall insulation should have associated guarantees and paperwork.

Linked to tip number five is:

1. Certification. In addition, building work that has been carried out on the property will result in you needing to produce building regulations and planning permissions, as well as the relevant completion certificate for the work. Also by law, an EPC (Energy Performance Certificate), giving information on how to make your home more energy efficient and reduce carbon dioxide emissions, needs to be provided in order to market your property for sale and you Estate Agent will be able to assist you with this at the beginning of the marketing process.

1. Start the Conveyancing early. This is the last legal hurdle. Put simply, it is the act of legally transferring a property from one person to another and has, by law, to be carried out by a solicitor or licensed conveyancer. At my Estate Agency our conveyancing solicitors can open the file at the start of the marketing process and prepare all the necessary documentation to reduce the time from offer to exchange. – Remember the longer the conveyancing process takes, the more chance there is that the sale could fall through.                     Having the relevant information available at the marketing stage also allows your agent to show this information to buyers, which will not only help them make informed decisions, but also demonstrate that they are dealing with a serious and organised seller.

1. Financially plan ahead. A move to a new home may take its toll financially, but it may be wise to think about home insurance, finding the right mortgage and future financial planning at the beginning of the process so that you can budget accordingly.

So in summary. If you are considering selling your property then take the time to discuss the whole process with your Estate Agent and Solicitor/Conveyancer and pre prepare all the elements we’ve discussed today.

It’s reported that the average time from sale agreed to contracts exchanged is between 14-16 weeks with less than 5% of sellers actually being aware of this statistic and often believing it’s much faster!

So having all these points done at the beginning of the process will allow you and your Solicitor to move significantly quicker once a sale is agreed and this will help to reduce any possibility of the sale process stalling or even falling through during the conveyancing process.

So that concludes todays episode answering the question – How can I speed up the sale of my property? I hope you’ve found it useful and that it’s given you a few points to take away and plan before putting your property on the market.

So that leaves me to just say thank you very much for listening to this episode of the Podcast, don’t forget to contact us with any questions you want answering in future episodes. Through the contact links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

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How can I check my property is priced correctly?

Hello everyone and welcome to Episode 3 of Ask the Estate Agent and I just wanted to start today with a huge thank you to all our listeners out there!

We have received some incredible feedback from our first two episodes, some fantastic reviews and also lots of questions for us to answer in future episodes which is fantastic, so again a massive thank you to all of you listening!

Remember this free resource is all about answering your questions and helping you on your property journey so if there is a particular question or issue that you are currently facing in property then please do get in touch so we can answer these for you in future episodes. All the links of how to contact us will be mentioned at the end of today’s show and featured in the show notes for you to access whenever you like soooo let’s get on with today’s show!

Today’s show is about one of the most important, talked about and often confusing subjects within property and thats property pricing!

We have received a huge array of questions around pricing your property for sale. Everything from – How do I accurately price my property for today’s market? How can I check my estate agents pricing? What’s the problem with overpricing my property? And even are there different strategies with pricing to achieve the highest price.

So in this episode I want to cover the essential points of how an Estate Agent accurately values your property and then cover the issues with overpricing, some strategies and then some key things to avoid when pricing your property for sale.

So let’s get stuck in!

Firstly I’ll highlight four key areas that your Estate Agent will assess when valuing your property then we’ll go over a few tops tips and points to remember.

1. Price History

Very first thing to consider is the price history of the particular property. Land Registry is the main source for this information where we can see how many times the property has been sold, what the completion dates were and what price the property was actually sold for. NOT the marketing price the actual price paid!

1. Market performance since those sales

Using the price history and last sale prices we can take into account how the market has performed since it was last sold, has the market in that area (region specific) risen or declined and by what percentage.

You can also see what similar neighbouring properties have sold for recently so again a very useful guide to what you could ask for your property.

1. Current Market comparables

What is currently on the market and what are the asking prices, Sold STC – break down to price per sq foot and apply to your property square footage.

Finally looking at comparable properties in the area, similar size, style and what it offers.

Against those comparables you then assess does your property have any differentiating factors to them. Both negative and positive. Has one property been extended or perhaps has better views, double garage, is one gated etc.

All these factors will adjust the asking price.

1. Market Demand

Once you have thoroughly assessed the comparable properties on the market you then need to assess the current market demand for your kind of property.

How long have similar properties been on the market. Are they sticking and therefore potentially over priced or do they have some aspect that is putting buyers off. This is what your agent will be researching and something you can assess as well by using the online portals.

Different properties are in often in demand at different times, so it’s important to look at how many properties of your type are on the market and how many are showing as recently sold.

I would also advice getting other agents opinions on the market and whether similar properties are selling quickly or not and at what price.

The more information you can gather the more accurate you will be with your pricing strategy.

After assessing all these four areas:

1. Price History
2. Market performance since those sales
3. Current market comparables
4. Market Demand

You will now have a very accurate idea of your property price in the current market.

One cavette which you must never forget! Even using all that data the price can never be 100% certain. Why? Cause the market is the market. Which is constantly changing day by day as it’s influenced by dozens of factors such as politics, monetary policy, bank lending, local incidents etc.

That’s why its absolutely critical to be constantly evaluating your properties performance once it’s on the market as demand and supply is changing every day and factors that influence house prices such as politics, interest rates, etc can dramatically change things very quickly.

The price is what somebody is prepared at any one time but nobody wants to overpay so be careful not to overprice.

Overpricing

If the market is rising then you can afford to aim slightly higher in price to the last comparable property sold. This is a way of testing that rising market and seeing if you can benefit from the increase.

If the market is stable or declining then stick to what the data and comparables is telling you. If you don’t have any interest within a few weeks and the market is declining then you do need to move quickly to re-check and potentially change the price in order to sell quickly.

Finally don’t forget that if your buyer is using a mortgage to purchase your property then the lender will ask a surveyor to carryout a very similar process to ascertain that they are lending at the correct level and value. By using the process I’ve discussed then any surveyor should come out with the same value by using the market data and prices and your agent can also show the comparables and data they used to value the property.

Over value and you will come unstuck as it may lead to buyers not being able to secure the mortgage they needed and cause the asking price to be re-negotiated downwards or even the sale to fall through.

So in summary

Always be realistic and stick to the facts and data being supplied by the market and you can’t go wrong.

Never take your eye off the ball and allow the property to stagnate on the market at an old price. All this data is publically available such as time on market, price reductions etc so not being pro-active with your property pricing will damage your chances of getting the sale you want.

So that concludes todays episode on property pricing. I hope you’ve found it useful and that it’s given you a few pointers to take away and either consider before marketing your property or even implement now if your property is already on the market.

So that leaves me to just say thank you very much for listening to this episode of the Podcast, don’t forget to contact us with any questions you want answering in future episodes.

You can do this through Social Media where you can find us on twitter, instagram or facebook just by searching for Ask the Estate Agent or you can contact us through our website ask the estate agent.co.uk.

So join us next time and if you enjoyed the show please don’t forget to subscribe and rate us on itunes, stitcher or wherever you are listening and until next time on Ask the Estate Agent it’s goodbye for now!

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Searching for your next property? Get the most out of every viewing with these top tips.

1. Know what you want before you view.

Set your budget

Be clear on your property requirements, the space, type of property, garage, garden, location, etc

This way you wont waste your time being shown properties that don’t meet your requirements.

2. Have an open mind.

Be prepared to look past how the current owner lives, furnishings etc.

3. Have a second pair of eyes.

Take a friend, family member for a second opinion. Remember they may not fully understand your requirements or your vision so don’t be afraid to disagree but use the opinion to question things and consider the property from another angle. You may just well come across something you completely missed.

4. Give yourself plenty of time to take everything in. 30 minutes I would expect to me a minimum for viewing the inside of a property and 30 minutes outside.

Second view if required.

5. Ask plenty of questions, about the property, the local area and even as to why the vendor is selling

6. Look for tell tale signs of issues such as damp, cracking etc. – This will help you determine what kind of survey you will instruct

7. Explore the neighbourhood.

Walk the local area.

How far away is the nearest shop.

8. Be realistic – Its unlikely you will find a property that 100% matches your exact requirements and that is 100% in the condition you would like. Know the elements that are a must have.

9. Be polite and courteous – remember you are in somebodies home and could even be viewing with the homeowner present so be polite and courteous and a good impression can be formed. This may lead to more information being provided as conversation flows more easily and may also benefit you should it come down to a multiple offers situation.

As a listener we want your questions to answer. Whatever your worries, concerns or needs are, contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

We hope you find this resource useful and that helps to educate as well as dispel any myths or uncertainty around getting on the property ladder or making that next move.

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and bye for now.

Hosted on Acast. See acast.com/privacy for more information.

An introduction to Ask the Estate Agent and what we have planned!

Hello everyone and welcome to the very first episode of Ask the Estate Agent Podcast.

I’m extremely excited to begin this journey with you today and after months and months of planning, I just wanted to take this opportunity in episode 1 to give you some of the background and a bit of an overview of what we will be covering over the coming months.

Firstly I’m your host David Thomas and I’m the founding Director of Liberty Gate Estate Agency. As well as myself hosting my colleagues will also be getting involved from time to time, covering various specialities and subjects so we will be mixing things up over the coming episodes for you.

So as somebody who has a passion for property and I’ve been directly involved in the property industry for over a decade, I’ve enjoyed learning everything from investing, letting, managing, selling and ultimately running Estate Agencies to help others. But I’ve long felt that much of the information you the listener need to make the best decisions is very fragmented, confusing at times and not readily available when you really need it.

So through this podcast and our Alexa skill ( which we will tell you more about in future episodes) I want to lift the lid and de-mistify the property market and give you all the information you need to make the best decisions when negotiating your next move.

We’ll be providing weekly content to give you the knowledge and inspiration to take the next steps on your property journey and this will include market updates, top tips on buying, selling, renting and investing in property from expert estate agents and through interviews with market specialists covering every sector and specialism you may come across.

As a listener we want your questions to answer. Whatever your worries, concerns or needs are, contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

We hope you find this resource useful and that it helps to educate, as well as dispel any myths or uncertainty around getting on the property ladder or making that next move.

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and bye for now.

Your host David Thomas

Ask the Estate Agent Podcast : © 2018 Liberty Gate Estates Ltd

Hosted on Acast. See acast.com/privacy for more information.