Are Part-Exchange Homes a Good Idea?

If you’re buying a new build and struggling to sell a current property to fund the purchase, part exchange (PX) could provide a solution. But how does it work and is it a good deal? In this beginner’s guide to part-exchange, we’ll provide all the information you need to decide if it’s the right choice for you.

What Is Part-Exchange (PX)?

A part exchange house scheme enables a buyer to purchase a new-build home before selling their current property. The property developer buys the homeowner’s current property and deducts its value from the price of the new house. 

Part exchange is a great option for people who want to move quickly, are struggling to sell their existing property or simply wish to avoid the hassle of selling their home. The developer benefits too as they have a guaranteed buyer for one of their properties. 

 

How Does Part-Exchange Work?

Many of the big-name new-build property developers offer PX as it boosts their reputation for customer service and helps them to attract more customers. Each developer will have their own process, but the fundamental steps are the same, regardless of which developer you choose to purchase from.

Once you’ve found a house you’d like to buy with a new-build developer that offers PX, your current home will be valued. Standard practice is to complete two independent valuations. Some developers will only offer PX to buyers whose current home is no more than 70% of the value of the new-build property. If there is less than 30% difference between the value of the two properties, the sale becomes unprofitable for the developer. This is why — in general — PX is popular with homeowners looking to move up the property ladder.

The developer will make the homeowner an initial offer based on the valuations and subject to a survey. If all parties are happy to continue, the homeowner secures a mortgage and instructs a solicitor to complete the sale. Some developers will require a reservation fee to secure your preferred plot when the offer is accepted.

Once the proceeds of the sale are safely in your bank account, which typically takes around four to six weeks, you can purchase the new property.

 

Is PX a Good Idea?

Part-exchange is only available to people buying a new-build property. It’s generally most suited to buyers who are seeking to upgrade to a more expensive home. There are various pros and cons to PX and whether it is a good idea depends on the individual circumstances and priorities of the buyer. 

 

Pros

 

• Security. When both parties have agreed to the transaction and signed on the dotted line, the sale is guaranteed. Unlike traditional house sales, where the buyer can pull out up to the day of exchange, there is no risk of the sale falling through last minute. 

 

• Speed. It takes an average of 50 days to find a buyer in the UK and a further 12 weeks to complete the sale. Almost half of all house sales fall through before completion. Opting for a part-exchange house means no waiting for the right buyer and a simpler, expedited sales process.

 

• Avoid Estate Agency Fees. The average agent fee reached 1.53% in 2019 and homeowners in prime locations can be charged as much as 3.97%. There are no such fees or commission to pay for part-exchange houses, which could save you hundreds or even thousands of pounds. 

 

• No Property Chain. One of the biggest headaches of traditional house buying in the UK is the dreaded property chain collapse. This occurs when multiple house sales rely upon one another and if one person pulls out, the chain falls apart. There is no risk of this with PX as there is no chain. The sale agreement is between you and the developer only.

 

• Less Stress and Disruption. When homeowners put their property on the market, they can endure months of viewings and disruption. Not to mention the constant stress over finding a buyer. Part-exchange removes all this hassle. There are no viewings and you know exactly where you are in the sale process.

 

 

Cons

• Lower Offer. Property developers are in business to make a profit, so it stands to reason that their offer on a PX home may be less than the market value. The independent valuations aim to offer a “selling price” rather than an “asking price”. If you’re determined to get top dollar for your home, PX may not be for you (although bear in mind the money saved on estate agents fees, mortgage repayments etc.).

 

• PX Is Not Guaranteed. Even if a developer advertises a PX scheme, your home must still meet certain criteria to be eligible. Many developers will not accept properties with a short lease left to run, for example. And as mentioned previously, a minimum 30% difference between the value of your current home and that of the new property is often required.

 

• Diminishing Returns of New-Builds. New-build properties start to depreciate the moment you move in. Unlike some older properties, which can retain or even increase their value over many years, a new-build may be worth less when you come to sell it than the price you purchased it for. 

 

To PX or Not to PX?

Part-exchange can be an excellent solution for homeowners who have their eye on their dream home and need to move fast. It’s simple, straightforward, secure — and much quicker than putting a property on the market and hoping for the best. However, it’s not for everyone. Some homes will not be eligible for part-exchange schemes and it’s not the right choice for sellers who have ambitious sale figures in mind. Review the pros and cons, speak to the developer and make the choice that is right for you. PX could be the perfect way to sell your home in a slow market.

 

About the Author: Chris Hodgkinson is the Managing Director of HBB Solutions. Chris is passionate about the property sector, he loves making deals and he is focused on building the business in an ethical, fair and sustainable way.

The post Are Part-Exchange Homes a Good Idea? appeared first on Home Truths.

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Are Part-Exchange Homes a Good Idea?

Are Part-Exchange Homes a Good Idea?

 

If you’re buying a new build and struggling to sell a current property to fund the purchase, part exchange (PX) could provide a solution. But how does it work and is it a good deal? In this beginner’s guide to part-exchange, we’ll provide all the information you need to decide if it’s the right choice for you.

 

What Is Part-Exchange (PX)?

 

A part exchange house scheme enables a buyer to purchase a new-build home before selling their current property. The property developer buys the homeowner’s current property and deducts its value from the price of the new house. 

 

Part exchange is a great option for people who want to move quickly, are struggling to sell their existing property or simply wish to avoid the hassle of selling their home. The developer benefits too as they have a guaranteed buyer for one of their properties. 

 

How Does Part-Exchange Work?

 

Many of the big-name new-build property developers offer PX as it boosts their reputation for customer service and helps them to attract more customers. Each developer will have their own process, but the fundamental steps are the same, regardless of which developer you choose to purchase from.

 

Once you’ve found a house you’d like to buy with a new-build developer that offers PX, your current home will be valued. Standard practice is to complete two independent valuations. Some developers will only offer PX to buyers whose current home is no more than 70% of the value of the new-build property. If there is less than 30% difference between the value of the two properties, the sale becomes unprofitable for the developer. This is why — in general — PX is popular with homeowners looking to move up the property ladder. 

 

The developer will make the homeowner an initial offer based on the valuations and subject to a survey. If all parties are happy to continue, the homeowner secures a mortgage and instructs a solicitor to complete the sale. Some developers will require a reservation fee to secure your preferred plot when the offer is accepted. 

 

Once the proceeds of the sale are safely in your bank account, which typically takes around four to six weeks, you can purchase the new property.

 

Is PX a Good Idea?

 

Part-exchange is only available to people buying a new-build property. It’s generally most suited to buyers who are seeking to upgrade to a more expensive home. There are various pros and cons to PX and whether it is a good idea depends on the individual circumstances and priorities of the buyer. 

 

Pros

 

• Security. When both parties have agreed to the transaction and signed on the dotted line, the sale is guaranteed. Unlike traditional house sales, where the buyer can pull out up to the day of exchange, there is no risk of the sale falling through last minute. 

 

 

 

• Speed. It takes an average of 50 days to find a buyer in the UK and a further 12 weeks to complete the sale. Almost half of all house sales fall through before completion. Opting for a part-exchange house means no waiting for the right buyer and a simpler, expedited sales process.

 

 

 

• Avoid Estate Agency Fees. The average agent fee reached 1.53% in 2019 and homeowners in prime locations can be charged as much as 3.97%. There are no such fees or commission to pay for part-exchange houses, which could save you hundreds or even thousands of pounds. 

 

 

• No Property Chain. One of the biggest headaches of traditional house buying in the UK is the dreaded property chain collapse. This occurs when multiple house sales rely upon one another and if one person pulls out, the chain falls apart. There is no risk of this with PX as there is no chain. The sale agreement is between you and the developer only.

 

 

• Less Stress and Disruption. When homeowners put their property on the market, they can endure months of viewings and disruption. Not to mention the constant stress over finding a buyer. Part-exchange removes all this hassle. There are no viewings and you know exactly where you are in the sale process.

 

 

 

Cons

• Lower Offer. Property developers are in business to make a profit, so it stands to reason that their offer on a PX home may be less than the market value. The independent valuations aim to offer a “selling price” rather than an “asking price”. If you’re determined to get top dollar for your home, PX may not be for you (although bear in mind the money saved on estate agents fees, mortgage repayments etc.).

 

 

• PX Is Not Guaranteed. Even if a developer advertises a PX scheme, your home must still meet certain criteria to be eligible. Many developers will not accept properties with a short lease left to run, for example. And as mentioned previously, a minimum 30% difference between the value of your current home and that of the new property is often required.

 

 

 

• Diminishing Returns of New-Builds. New-build properties start to depreciate the moment you move in. Unlike some older properties, which can retain or even increase their value over many years, a new-build may be worth less when you come to sell it than the price you purchased it for. 

 

 

To PX or Not to PX?

Part-exchange can be an excellent solution for homeowners who have their eye on their dream home and need to move fast. It’s simple, straightforward, secure — and much quicker than putting a property on the market and hoping for the best. However, it’s not for everyone. Some homes will not be eligible for part-exchange schemes and it’s not the right choice for sellers who have ambitious sale figures in mind. Review the pros and cons, speak to the developer and make the choice that is right for you. PX could be the perfect way to sell your home in a slow market.

 

 

About the Author: Chris Hodgkinson is the Managing Director of HBB Solutions. Chris is passionate about the property sector, he loves making deals and he is focused on building the business in an ethical, fair and sustainable way.

The post Are Part-Exchange Homes a Good Idea? appeared first on Home Truths.

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Are Part-Exchange Homes a Good Idea?

Are Part-Exchange Homes a Good Idea?

 

If you’re buying a new build and struggling to sell a current property to fund the purchase, part exchange (PX) could provide a solution. But how does it work and is it a good deal? In this beginner’s guide to part-exchange, we’ll provide all the information you need to decide if it’s the right choice for you.

 

What Is Part-Exchange (PX)?

 

A part exchange house scheme enables a buyer to purchase a new-build home before selling their current property. The property developer buys the homeowner’s current property and deducts its value from the price of the new house. 

 

Part exchange is a great option for people who want to move quickly, are struggling to sell their existing property or simply wish to avoid the hassle of selling their home. The developer benefits too as they have a guaranteed buyer for one of their properties. 

 

How Does Part-Exchange Work?

 

Many of the big-name new-build property developers offer PX as it boosts their reputation for customer service and helps them to attract more customers. Each developer will have their own process, but the fundamental steps are the same, regardless of which developer you choose to purchase from.

 

Once you’ve found a house you’d like to buy with a new-build developer that offers PX, your current home will be valued. Standard practice is to complete two independent valuations. Some developers will only offer PX to buyers whose current home is no more than 70% of the value of the new-build property. If there is less than 30% difference between the value of the two properties, the sale becomes unprofitable for the developer. This is why — in general — PX is popular with homeowners looking to move up the property ladder. 

 

The developer will make the homeowner an initial offer based on the valuations and subject to a survey. If all parties are happy to continue, the homeowner secures a mortgage and instructs a solicitor to complete the sale. Some developers will require a reservation fee to secure your preferred plot when the offer is accepted. 

 

Once the proceeds of the sale are safely in your bank account, which typically takes around four to six weeks, you can purchase the new property.

 

Is PX a Good Idea?

 

Part-exchange is only available to people buying a new-build property. It’s generally most suited to buyers who are seeking to upgrade to a more expensive home. There are various pros and cons to PX and whether it is a good idea depends on the individual circumstances and priorities of the buyer. 

 

Pros

 

• Security. When both parties have agreed to the transaction and signed on the dotted line, the sale is guaranteed. Unlike traditional house sales, where the buyer can pull out up to the day of exchange, there is no risk of the sale falling through last minute. 

 

 

 

• Speed. It takes an average of 50 days to find a buyer in the UK and a further 12 weeks to complete the sale. Almost half of all house sales fall through before completion. Opting for a part-exchange house means no waiting for the right buyer and a simpler, expedited sales process.

 

 

 

• Avoid Estate Agency Fees. The average agent fee reached 1.53% in 2019 and homeowners in prime locations can be charged as much as 3.97%. There are no such fees or commission to pay for part-exchange houses, which could save you hundreds or even thousands of pounds. 

 

 

• No Property Chain. One of the biggest headaches of traditional house buying in the UK is the dreaded property chain collapse. This occurs when multiple house sales rely upon one another and if one person pulls out, the chain falls apart. There is no risk of this with PX as there is no chain. The sale agreement is between you and the developer only.

 

 

• Less Stress and Disruption. When homeowners put their property on the market, they can endure months of viewings and disruption. Not to mention the constant stress over finding a buyer. Part-exchange removes all this hassle. There are no viewings and you know exactly where you are in the sale process.

 

 

 

Cons

• Lower Offer. Property developers are in business to make a profit, so it stands to reason that their offer on a PX home may be less than the market value. The independent valuations aim to offer a “selling price” rather than an “asking price”. If you’re determined to get top dollar for your home, PX may not be for you (although bear in mind the money saved on estate agents fees, mortgage repayments etc.).

 

 

• PX Is Not Guaranteed. Even if a developer advertises a PX scheme, your home must still meet certain criteria to be eligible. Many developers will not accept properties with a short lease left to run, for example. And as mentioned previously, a minimum 30% difference between the value of your current home and that of the new property is often required.

 

 

 

• Diminishing Returns of New-Builds. New-build properties start to depreciate the moment you move in. Unlike some older properties, which can retain or even increase their value over many years, a new-build may be worth less when you come to sell it than the price you purchased it for. 

 

 

To PX or Not to PX?

Part-exchange can be an excellent solution for homeowners who have their eye on their dream home and need to move fast. It’s simple, straightforward, secure — and much quicker than putting a property on the market and hoping for the best. However, it’s not for everyone. Some homes will not be eligible for part-exchange schemes and it’s not the right choice for sellers who have ambitious sale figures in mind. Review the pros and cons, speak to the developer and make the choice that is right for you. PX could be the perfect way to sell your home in a slow market.

 

 

About the Author: Chris Hodgkinson is the Managing Director of HBB Solutions. Chris is passionate about the property sector, he loves making deals and he is focused on building the business in an ethical, fair and sustainable way.

The post Are Part-Exchange Homes a Good Idea? appeared first on Home Truths.

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How many estate agents does it take to sell a house?

I often get asked the question, “Should I use more than one estate agent to sell my house?” Once upon a time, this strategy made perfect sense.  After all, before properties were advertised on the internet, how else could you make sure that buyers across different geographical areas would see your home, if you didn’t use two, three or more agents to market it?

But then came the property portals, and everything changed.  Almost all buyers (93% at last count) look online to find their home, often browsing a couple of portals, then simply call the relevant agent to book a viewing on a home they like.

What’s the point in being listed twice like this?

So is there any point these days in instructing more than one agent? The short answer is ‘no’.  If a buyer spies your home listed several times online, at best it’s annoying, and at worst it’s misleading, because if the agents involved have used different photographs and descriptions to advertise the property, a buyer could be forgiven for thinking that the adverts belong to different houses.

And doesn’t this look like a different property? It’s not!

When a buyer enters a search criterion on one of the property portals like Rightmove, properties appear in a list, in descending price order, ie with the more expensive houses showing first.  Any properties that are marketed at exactly the same price will appear in a random order, to be fair and not favour any particular agent. However, one agent I know gets around this rule by adding a pound to his prices, so that his properties will show first, and therefore you’ll see property prices like £300,001 from him!

Another factor to bear in mind, is how does it look to a buyer if you as the seller have instructed several agents? Desperate perhaps? In need of an urgent sale?  This could have the effect of generating some very low offers from those buyers looking for a bargain, whilst genuine buyers may stay away completely, fearful of being stuck with a property that they themselves can’t sell when the time comes.

Finally, there’s the question of cost.  If you instruct more than one agent, depending on the type of agency agreement you have, you’ll either pay the standard agency fee, but only to one of the agents; sometimes called ‘winner takes all’. Or else you’ll pay a higher fee, and it’ll be split between the two agents, typically 2/3:1/3 or else 50/50. The average uplift for a joint agency agreement is around 25%, meaning that if the average fee in your area is 1.5%, you will be paying 2% – 2.25% for a joint agreement.  This could be an extra £2250 on a £300,000 house – not an inconsiderable amount, particularly if it doesn’t actually net you any higher a sale price.

So my advice is to pick one agent, show them your loyalty and let them do their job. Don’t agree to a long contract, and if after say, 3 months, you’re not getting the interest in your home you had hoped for, drop your price, or find another agent and improve your marketing. Or all three….

Happy selling!

Sam

The post How many estate agents does it take to sell a house? appeared first on Home Truths.

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How many estate agents does it take to sell a house?

I often get asked the question, “Should I use more than one estate agent to sell my house?” Once upon a time, this strategy made perfect sense.  After all, before properties were advertised on the internet, how else could you make sure that buyers across different geographical areas would see your home, if you didn’t use two, three or more agents to market it?

But then came the property portals, and everything changed.  Almost all buyers (93% at last count) look online to find their home, often browsing a couple of portals, then simply call the relevant agent to book a viewing on a home they like.

What’s the point in being listed twice like this?

So is there any point these days in instructing more than one agent? The short answer is ‘no’.  If a buyer spies your home listed several times online, at best it’s annoying, and at worst it’s misleading, because if the agents involved have used different photographs and descriptions to advertise the property, a buyer could be forgiven for thinking that the adverts belong to different houses.

And doesn’t this look like a different property? It’s not!

When a buyer enters a search criterion on one of the property portals like Rightmove, properties appear in a list, in descending price order, ie with the more expensive houses showing first.  Any properties that are marketed at exactly the same price will appear in a random order, to be fair and not favour any particular agent. However, one agent I know gets around this rule by adding a pound to his prices, so that his properties will show first, and therefore you’ll see property prices like £300,001 from him!

Another factor to bear in mind, is how does it look to a buyer if you as the seller have instructed several agents? Desperate perhaps? In need of an urgent sale?  This could have the effect of generating some very low offers from those buyers looking for a bargain, whilst genuine buyers may stay away completely, fearful of being stuck with a property that they themselves can’t sell when the time comes.

Finally, there’s the question of cost.  If you instruct more than one agent, depending on the type of agency agreement you have, you’ll either pay the standard agency fee, but only to one of the agents; sometimes called ‘winner takes all’. Or else you’ll pay a higher fee, and it’ll be split between the two agents, typically 2/3:1/3 or else 50/50. The average uplift for a joint agency agreement is around 25%, meaning that if the average fee in your area is 1.5%, you will be paying 2% – 2.25% for a joint agreement.  This could be an extra £2250 on a £300,000 house – not an inconsiderable amount, particularly if it doesn’t actually net you any higher a sale price.

So my advice is to pick one agent, show them your loyalty and let them do their job. Don’t agree to a long contract, and if after say, 3 months, you’re not getting the interest in your home you had hoped for, drop your price, or find another agent and improve your marketing. Or all three….

Happy selling!

Sam

The post How many estate agents does it take to sell a house? appeared first on Home Truths.

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via IFTTT

How many estate agents does it take to sell a house?

I often get asked the question, “Should I use more than one estate agent to sell my house?” Once upon a time, this strategy made perfect sense.  After all, before properties were advertised on the internet, how else could you make sure that buyers across different geographical areas would see your home, if you didn’t use two, three or more agents to market it?

But then came the property portals, and everything changed.  Almost all buyers (93% at last count) look online to find their home, often browsing a couple of portals, then simply call the relevant agent to book a viewing on a home they like.

What’s the point in being listed twice like this?

So is there any point these days in instructing more than one agent? The short answer is ‘no’.  If a buyer spies your home listed several times online, at best it’s annoying, and at worst it’s misleading, because if the agents involved have used different photographs and descriptions to advertise the property, a buyer could be forgiven for thinking that the adverts belong to different houses.

And doesn’t this look like a different property? It’s not!

When a buyer enters a search criterion on one of the property portals like Rightmove, properties appear in a list, in descending price order, ie with the more expensive houses showing first.  Any properties that are marketed at exactly the same price will appear in a random order, to be fair and not favour any particular agent. However, one agent I know gets around this rule by adding a pound to his prices, so that his properties will show first, and therefore you’ll see property prices like £300,001 from him!

Another factor to bear in mind, is how does it look to a buyer if you as the seller have instructed several agents? Desperate perhaps? In need of an urgent sale?  This could have the effect of generating some very low offers from those buyers looking for a bargain, whilst genuine buyers may stay away completely, fearful of being stuck with a property that they themselves can’t sell when the time comes.

Finally, there’s the question of cost.  If you instruct more than one agent, depending on the type of agency agreement you have, you’ll either pay the standard agency fee, but only to one of the agents; sometimes called ‘winner takes all’. Or else you’ll pay a higher fee, and it’ll be split between the two agents, typically 2/3:1/3 or else 50/50. The average uplift for a joint agency agreement is around 25%, meaning that if the average fee in your area is 1.5%, you will be paying 2% – 2.25% for a joint agreement.  This could be an extra £2250 on a £300,000 house – not an inconsiderable amount, particularly if it doesn’t actually net you any higher a sale price.

So my advice is to pick one agent, show them your loyalty and let them do their job. Don’t agree to a long contract, and if after say, 3 months, you’re not getting the interest in your home you had hoped for, drop your price, or find another agent and improve your marketing. Or all three….

Happy selling!

Sam

The post How many estate agents does it take to sell a house? appeared first on Home Truths.

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What Venetian baristas can teach us about choosing the right estate agent

Feeling a little lost looking for the right estate agent? All you need is a trip to Venice and a good coffee!

Selling your home can be an emotional and tiring slog, perhaps even onerous at times. But it doesn’t have to be that way. There is such a thing as an enjoyable selling experience, and all you have to do is choose the right estate agent. Read our guide to sell your home and keep your sanity too!

Let’s take a break from house talk, and enjoy a walk through the streets of Venice; after a little sightseeing, you pause at an independent coffee house to enjoy the views of the square. You enjoy the Italian barista’s stories, and they introduce you to the coffee bean farmers sat opposite. They listen as you describe your ideal coffee, and ask about your favourite foods and wines.

The barista leaves you momentarily to enjoy the surroundings, before treating you to your own customised coffee blend. It’s brewed and roasted to your exact liking. The personalised dusting that lays on top is impressively artful, and their efforts are appreciated. They smile as you taste, because they know they’ve got it just right, and watching people enjoy their coffee brings them happiness too. Their experience means that they get every note just right, and the warm crema topping spoils your taste buds.

You make your way back to the airport, but before you board the plane, you fancy one last Italian coffee. There’s plenty of choice, but none particularly catch your eye. So Cafe Nero will do. The cafe offers convenient and cheap refreshments, and the noisy bustle inside is a nice nod to the popularity of the chain. The waitress smiles, and waits for you to place your order. The menu offers a reasonable yet generic selection, but with a growing queue behind, you quickly default to your usual latte.

Personalisation goes as far as a flavoured syrup, before a button is pressed and the end liquid passes through the machine. The ‘to-go-cup’ is promptly popped on the end counter, and in a sea of cardboard blue, you ask the waitress to point out which is yours. Efficient, polite service, but unforgettable all the same. And the coffee? It’s good. You peel off the plastic lid to see a templated bean dusting. It’s trying to be the independent barista, but it’s just not. You don’t finish the cup, but it’s served its purpose. You board the plane, and head back to the UK.

So, on your trip to Italy, you enjoyed two Italian coffees. Each quenched your thirst, but only one made an everlasting impression. And only one experience gave you a story that you’ll share with your friends.

Choosing the right estate agent is exactly the same. Some agents have perfected the art of convenience and speed. Their service is almost templated, and for homes that fall into a particular mould, it can work. Take new builds for example. Developments are plentiful and scattered throughout the UK, and the homes are marketed at the Joneses. Prices generally fall in the lower brackets, and there isn’t too much variant in house styles.

These homes are functional and affordable, but they aren’t unique; so selling these home with a templated marketing service makes sense. But when you see a home with true personality and character, the convenient ‘one-shoe-fits-all’ approach just doesn’t, well, fit. That’s because when a home really is unique, it needs unique marketing too.

If that means that your home calls for a bespoke brochure, or you need the helping hands of a home stylist, your estate agent should have a team of professionals to hand. When they sit down to pen a marketing strategy with you, it should feel unique. Because if every effort is made to approach buyers differently, and to show them all the wonderful features of your home, people will want to step inside to experience it themselves.

So, perhaps you don’t need that trip to Venice after all. Because you may just find a team that can give you a unique experience back home. Make sure you choose the team that will indulge you with an extra special coffee, though.

Happy selling!

Sam

The post What Venetian baristas can teach us about choosing the right estate agent appeared first on Home Truths.

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What Venetian baristas can teach us about choosing the right estate agent

Feeling a little lost looking for the right estate agent? All you need is a trip to Venice and a good coffee!

Selling your home can be an emotional and tiring slog, perhaps even onerous at times. But it doesn’t have to be that way. There is such a thing as an enjoyable selling experience, and all you have to do is choose the right estate agent. Read our guide to sell your home and keep your sanity too!

Let’s take a break from house talk, and enjoy a walk through the streets of Venice; after a little sightseeing, you pause at an independent coffee house to enjoy the views of the square. You enjoy the Italian barista’s stories, and they introduce you to the coffee bean farmers sat opposite. They listen as you describe your ideal coffee, and ask about your favourite foods and wines.

The barista leaves you momentarily to enjoy the surroundings, before treating you to your own customised coffee blend. It’s brewed and roasted to your exact liking. The personalised dusting that lays on top is impressively artful, and their efforts are appreciated. They smile as you taste, because they know they’ve got it just right, and watching people enjoy their coffee brings them happiness too. Their experience means that they get every note just right, and the warm crema topping spoils your taste buds.

You make your way back to the airport, but before you board the plane, you fancy one last Italian coffee. There’s plenty of choice, but none particularly catch your eye. So Cafe Nero will do. The cafe offers convenient and cheap refreshments, and the noisy bustle inside is a nice nod to the popularity of the chain. The waitress smiles, and waits for you to place your order. The menu offers a reasonable yet generic selection, but with a growing queue behind, you quickly default to your usual latte.

Personalisation goes as far as a flavoured syrup, before a button is pressed and the end liquid passes through the machine. The ‘to-go-cup’ is promptly popped on the end counter, and in a sea of cardboard blue, you ask the waitress to point out which is yours. Efficient, polite service, but unforgettable all the same. And the coffee? It’s good. You peel off the plastic lid to see a templated bean dusting. It’s trying to be the independent barista, but it’s just not. You don’t finish the cup, but it’s served its purpose. You board the plane, and head back to the UK.

So, on your trip to Italy, you enjoyed two Italian coffees. Each quenched your thirst, but only one made an everlasting impression. And only one experience gave you a story that you’ll share with your friends.

Choosing the right estate agent is exactly the same. Some agents have perfected the art of convenience and speed. Their service is almost templated, and for homes that fall into a particular mould, it can work. Take new builds for example. Developments are plentiful and scattered throughout the UK, and the homes are marketed at the Joneses. Prices generally fall in the lower brackets, and there isn’t too much variant in house styles.

These homes are functional and affordable, but they aren’t unique; so selling these home with a templated marketing service makes sense. But when you see a home with true personality and character, the convenient ‘one-shoe-fits-all’ approach just doesn’t, well, fit. That’s because when a home really is unique, it needs unique marketing too.

If that means that your home calls for a bespoke brochure, or you need the helping hands of a home stylist, your estate agent should have a team of professionals to hand. When they sit down to pen a marketing strategy with you, it should feel unique. Because if every effort is made to approach buyers differently, and to show them all the wonderful features of your home, people will want to step inside to experience it themselves.

So, perhaps you don’t need that trip to Venice after all. Because you may just find a team that can give you a unique experience back home. Make sure you choose the team that will indulge you with an extra special coffee, though.

Happy selling!

Sam

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What Venetian baristas can teach us about choosing the right estate agent

Feeling a little lost looking for the right estate agent? All you need is a trip to Venice and a good coffee!

Selling your home can be an emotional and tiring slog, perhaps even onerous at times. But it doesn’t have to be that way. There is such a thing as an enjoyable selling experience, and all you have to do is choose the right estate agent. Read our guide to sell your home and keep your sanity too!

Let’s take a break from house talk, and enjoy a walk through the streets of Venice; after a little sightseeing, you pause at an independent coffee house to enjoy the views of the square. You enjoy the Italian barista’s stories, and they introduce you to the coffee bean farmers sat opposite. They listen as you describe your ideal coffee, and ask about your favourite foods and wines.

The barista leaves you momentarily to enjoy the surroundings, before treating you to your own customised coffee blend. It’s brewed and roasted to your exact liking. The personalised dusting that lays on top is impressively artful, and their efforts are appreciated. They smile as you taste, because they know they’ve got it just right, and watching people enjoy their coffee brings them happiness too. Their experience means that they get every note just right, and the warm crema topping spoils your taste buds.

You make your way back to the airport, but before you board the plane, you fancy one last Italian coffee. There’s plenty of choice, but none particularly catch your eye. So Cafe Nero will do. The cafe offers convenient and cheap refreshments, and the noisy bustle inside is a nice nod to the popularity of the chain. The waitress smiles, and waits for you to place your order. The menu offers a reasonable yet generic selection, but with a growing queue behind, you quickly default to your usual latte.

Personalisation goes as far as a flavoured syrup, before a button is pressed and the end liquid passes through the machine. The ‘to-go-cup’ is promptly popped on the end counter, and in a sea of cardboard blue, you ask the waitress to point out which is yours. Efficient, polite service, but unforgettable all the same. And the coffee? It’s good. You peel off the plastic lid to see a templated bean dusting. It’s trying to be the independent barista, but it’s just not. You don’t finish the cup, but it’s served its purpose. You board the plane, and head back to the UK.

So, on your trip to Italy, you enjoyed two Italian coffees. Each quenched your thirst, but only one made an everlasting impression. And only one experience gave you a story that you’ll share with your friends.

Choosing the right estate agent is exactly the same. Some agents have perfected the art of convenience and speed. Their service is almost templated, and for homes that fall into a particular mould, it can work. Take new builds for example. Developments are plentiful and scattered throughout the UK, and the homes are marketed at the Joneses. Prices generally fall in the lower brackets, and there isn’t too much variant in house styles.

These homes are functional and affordable, but they aren’t unique; so selling these home with a templated marketing service makes sense. But when you see a home with true personality and character, the convenient ‘one-shoe-fits-all’ approach just doesn’t, well, fit. That’s because when a home really is unique, it needs unique marketing too.

If that means that your home calls for a bespoke brochure, or you need the helping hands of a home stylist, your estate agent should have a team of professionals to hand. When they sit down to pen a marketing strategy with you, it should feel unique. Because if every effort is made to approach buyers differently, and to show them all the wonderful features of your home, people will want to step inside to experience it themselves.

So, perhaps you don’t need that trip to Venice after all. Because you may just find a team that can give you a unique experience back home. Make sure you choose the team that will indulge you with an extra special coffee, though.

Happy selling!

Sam

The post What Venetian baristas can teach us about choosing the right estate agent appeared first on Home Truths.

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The Dos and Don’ts of dropping your asking price when your house won’t sell

If you have had your house on the market for some time without success, dropping your asking price may seem an inevitable, if undesirable, next step.  Your estate agent will often suggest this move if they have run out of ideas, motivation and most importantly, confidence in your asking price.

But is dropping your asking price really the answer to selling your home more effectively?

It’s true that for some properties, reducing the asking price can generate new interest from buyers who would have been previously unable to afford your home.  It’s also a step that for some sellers, is unfortunately necessary, if they have an urgent move, for example, or are facing repossession.

However, with many houses – particularly premium homes – dropping your asking price is not always the answer, and in fact it can even harm your chances of selling your house effectively.

I’ve compiled these DOs and DON’Ts of dropping your asking price to help you get the result you want and move on with your life:

DON’T drop your asking price by less than 10%

– Or it just won’t make any difference to the interest you get. Buyers will usually look at homes 10% either side of their budget anyway so you’ll need to reduce by at least that to get noticed by a new set of buyers.

DO ask your agent why you need to reduce

– Your property was originally valued based on sound research and by an expert in the industry.  What’s changed? Understanding whether your agent misjudged the market, or the demand has changed for houses like yours, will help you make the right decision to either reduce or to stick it out.

DON’T keep making small drops in price

–  A price drop can cause suspicion among buyers, who may wonder what’s wrong with it?  Why have you lowered the asking price?  A buyer may not want to risk buying a house that seems to be falling in value. Each drop can signify a red flag to a buyer, so make your drop big and impactful, but make it just once.

DO drop to the next Rightmove price banding

– You can find these by going to www.rightmove.co.uk and entering a search. The list of price bandings that comes up is your guide as to the price your house should be marketed at. For example, there’s no point at having an asking price of £399,999 when the Rightmove banding is £400,000. You can read more about this subject here.

DON’T try to break the ceiling for your road or area

– Not only does this make buyers jittery, it will also make your surveyor nervous, too. Unless you really can’t avoid it, try to price your home at less than the highest price sold in your neighbourhood.

DO ask your agent the right questions before you drop your price

– If you’re feeling pressure from your agent to reduce, or you have a moving deadline looming and can’t afford to drop your price, ask your agency what else could be done to secure that sale, other than reducing your asking price. Have a review with them and look at your marketing critically. Could it be improved? A new twilight image or drone shot could show your home in a whole new light and generate new interest from motivated buyers.

DON’T give your buyers an excuse to make a low offer

– Make sure your home is wonderfully presented, with every room polished and attractive, otherwise you’re literally leaving money on the table. Home staging can add thousands to your asking price and making a few small changes now can help you reap the rewards when you do get an offer.

DO give yourself some negotiation room – but not too much

–  On average, you can expect to achieve around 95% of your asking price, with 5% lost in the negotiations with your buyer. This will depend on other factors of course, like how fast your local market is moving, the confidence in the housing market while you’re selling and how long your home has been on the market. Taking 95% as a benchmark, losing 5% of a £400,000 asking price means you will eventually receive £380,000 on completion. But if you reduce the asking price to £375,000 say, you’ll only get £356,250; quite a drop. Not only have you reduced by £25,000, you’ll also have lost an additional £23,750 in negotiations, putting your total ‘lost’ sale monies at £46,750, a significant loss of 12% of your original asking price.

DON’T forget to analyse your price per square foot

– it’s a far more accurate way to value a house than other methods. If your agent hasn’t already done this for you, make a spreadsheet of the other properties for sale and sold in your area and calculate the price per square foot of each, then compare it to yours. Read more about this way of valuing here – Price per square foot – a more accurate way to value

When your home hasn’t sold and you’re wondering if it’s the asking price to blame, use the above DOs and DON’Ts as a checklist to see if you’re doing everything you can to get your house sold. If your price per square foot is about right and you’re not trying to break the price ceiling for your area, and your home is presented in the best way possible, and you have time to wait it out, then have confidence in your asking price. Because if you don’t, no one else will

Happy selling

Sam

The post The Dos and Don’ts of dropping your asking price when your house won’t sell appeared first on Home Truths.

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The Dos and Don’ts of dropping your asking price when your house won’t sell

If you have had your house on the market for some time without success, dropping your asking price may seem an inevitable, if undesirable, next step.  Your estate agent will often suggest this move if they have run out of ideas, motivation and most importantly, confidence in your asking price.

But is dropping your asking price really the answer to selling your home more effectively?

It’s true that for some properties, reducing the asking price can generate new interest from buyers who would have been previously unable to afford your home.  It’s also a step that for some sellers, is unfortunately necessary, if they have an urgent move, for example, or are facing repossession.

However, with many houses – particularly premium homes – dropping your asking price is not always the answer, and in fact it can even harm your chances of selling your house effectively.

I’ve compiled these DOs and DON’Ts of dropping your asking price to help you get the result you want and move on with your life:

DON’T drop your asking price by less than 10%

– Or it just won’t make any difference to the interest you get. Buyers will usually look at homes 10% either side of their budget anyway so you’ll need to reduce by at least that to get noticed by a new set of buyers.

DO ask your agent why you need to reduce

– Your property was originally valued based on sound research and by an expert in the industry.  What’s changed? Understanding whether your agent misjudged the market, or the demand has changed for houses like yours, will help you make the right decision to either reduce or to stick it out.

DON’T keep making small drops in price

–  A price drop can cause suspicion among buyers, who may wonder what’s wrong with it?  Why have you lowered the asking price?  A buyer may not want to risk buying a house that seems to be falling in value. Each drop can signify a red flag to a buyer, so make your drop big and impactful, but make it just once.

DO drop to the next Rightmove price banding

– You can find these by going to www.rightmove.co.uk and entering a search. The list of price bandings that comes up is your guide as to the price your house should be marketed at. For example, there’s no point at having an asking price of £399,999 when the Rightmove banding is £400,000. You can read more about this subject here.

DON’T try to break the ceiling for your road or area

– Not only does this make buyers jittery, it will also make your surveyor nervous, too. Unless you really can’t avoid it, try to price your home at less than the highest price sold in your neighbourhood.

DO ask your agent the right questions before you drop your price

– If you’re feeling pressure from your agent to reduce, or you have a moving deadline looming and can’t afford to drop your price, ask your agency what else could be done to secure that sale, other than reducing your asking price. Have a review with them and look at your marketing critically. Could it be improved? A new twilight image or drone shot could show your home in a whole new light and generate new interest from motivated buyers.

DON’T give your buyers an excuse to make a low offer

– Make sure your home is wonderfully presented, with every room polished and attractive, otherwise you’re literally leaving money on the table. Home staging can add thousands to your asking price and making a few small changes now can help you reap the rewards when you do get an offer.

DO give yourself some negotiation room – but not too much

–  On average, you can expect to achieve around 95% of your asking price, with 5% lost in the negotiations with your buyer. This will depend on other factors of course, like how fast your local market is moving, the confidence in the housing market while you’re selling and how long your home has been on the market. Taking 95% as a benchmark, losing 5% of a £400,000 asking price means you will eventually receive £380,000 on completion. But if you reduce the asking price to £375,000 say, you’ll only get £356,250; quite a drop. Not only have you reduced by £25,000, you’ll also have lost an additional £23,750 in negotiations, putting your total ‘lost’ sale monies at £46,750, a significant loss of 12% of your original asking price.

DON’T forget to analyse your price per square foot

– it’s a far more accurate way to value a house than other methods. If your agent hasn’t already done this for you, make a spreadsheet of the other properties for sale and sold in your area and calculate the price per square foot of each, then compare it to yours. Read more about this way of valuing here – Price per square foot – a more accurate way to value

When your home hasn’t sold and you’re wondering if it’s the asking price to blame, use the above DOs and DON’Ts as a checklist to see if you’re doing everything you can to get your house sold. If your price per square foot is about right and you’re not trying to break the price ceiling for your area, and your home is presented in the best way possible, and you have time to wait it out, then have confidence in your asking price. Because if you don’t, no one else will

Happy selling

Sam

The post The Dos and Don’ts of dropping your asking price when your house won’t sell appeared first on Home Truths.

from Home Truths http://bit.ly/30Ldqof
via IFTTT

The Dos and Don’ts of dropping your asking price when your house won’t sell

If you have had your house on the market for some time without success, dropping your asking price may seem an inevitable, if undesirable, next step.  Your estate agent will often suggest this move if they have run out of ideas, motivation and most importantly, confidence in your asking price.

But is dropping your asking price really the answer to selling your home more effectively?

It’s true that for some properties, reducing the asking price can generate new interest from buyers who would have been previously unable to afford your home.  It’s also a step that for some sellers, is unfortunately necessary, if they have an urgent move, for example, or are facing repossession.

However, with many houses – particularly premium homes – dropping your asking price is not always the answer, and in fact it can even harm your chances of selling your house effectively.

I’ve compiled these DOs and DON’Ts of dropping your asking price to help you get the result you want and move on with your life:

DON’T drop your asking price by less than 10%

– Or it just won’t make any difference to the interest you get. Buyers will usually look at homes 10% either side of their budget anyway so you’ll need to reduce by at least that to get noticed by a new set of buyers.

DO ask your agent why you need to reduce

– Your property was originally valued based on sound research and by an expert in the industry.  What’s changed? Understanding whether your agent misjudged the market, or the demand has changed for houses like yours, will help you make the right decision to either reduce or to stick it out.

DON’T keep making small drops in price

–  A price drop can cause suspicion among buyers, who may wonder what’s wrong with it?  Why have you lowered the asking price?  A buyer may not want to risk buying a house that seems to be falling in value. Each drop can signify a red flag to a buyer, so make your drop big and impactful, but make it just once.

DO drop to the next Rightmove price banding

– You can find these by going to www.rightmove.co.uk and entering a search. The list of price bandings that comes up is your guide as to the price your house should be marketed at. For example, there’s no point at having an asking price of £399,999 when the Rightmove banding is £400,000. You can read more about this subject here.

DON’T try to break the ceiling for your road or area

– Not only does this make buyers jittery, it will also make your surveyor nervous, too. Unless you really can’t avoid it, try to price your home at less than the highest price sold in your neighbourhood.

DO ask your agent the right questions before you drop your price

– If you’re feeling pressure from your agent to reduce, or you have a moving deadline looming and can’t afford to drop your price, ask your agency what else could be done to secure that sale, other than reducing your asking price. Have a review with them and look at your marketing critically. Could it be improved? A new twilight image or drone shot could show your home in a whole new light and generate new interest from motivated buyers.

DON’T give your buyers an excuse to make a low offer

– Make sure your home is wonderfully presented, with every room polished and attractive, otherwise you’re literally leaving money on the table. Home staging can add thousands to your asking price and making a few small changes now can help you reap the rewards when you do get an offer.

DO give yourself some negotiation room – but not too much

–  On average, you can expect to achieve around 95% of your asking price, with 5% lost in the negotiations with your buyer. This will depend on other factors of course, like how fast your local market is moving, the confidence in the housing market while you’re selling and how long your home has been on the market. Taking 95% as a benchmark, losing 5% of a £400,000 asking price means you will eventually receive £380,000 on completion. But if you reduce the asking price to £375,000 say, you’ll only get £356,250; quite a drop. Not only have you reduced by £25,000, you’ll also have lost an additional £23,750 in negotiations, putting your total ‘lost’ sale monies at £46,750, a significant loss of 12% of your original asking price.

DON’T forget to analyse your price per square foot

– it’s a far more accurate way to value a house than other methods. If your agent hasn’t already done this for you, make a spreadsheet of the other properties for sale and sold in your area and calculate the price per square foot of each, then compare it to yours. Read more about this way of valuing here – Price per square foot – a more accurate way to value

When your home hasn’t sold and you’re wondering if it’s the asking price to blame, use the above DOs and DON’Ts as a checklist to see if you’re doing everything you can to get your house sold. If your price per square foot is about right and you’re not trying to break the price ceiling for your area, and your home is presented in the best way possible, and you have time to wait it out, then have confidence in your asking price. Because if you don’t, no one else will

Happy selling

Sam

The post The Dos and Don’ts of dropping your asking price when your house won’t sell appeared first on Home Truths.

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