Tips..
REALISTIC PRICES - GOOD NEWS
As home owners we have become conditioned to view rises in house prices as good news.
Fuelling many dinner party stories and chat at the pub on the subject of 'I only paid £100,000 two years ago and now it's worth £150,000'.
What we tend to forget is that it's profit on paper.
Also, unless you are a property investor with a number of properties that you buy, do up and sell, rising values in property may indeed mean your home is worth more, but so is the house you will have to buy to replace it, should you decide to sell.
The recent slow down in the market may well mean that your home will not increase in value by 10% this year.
But then neither will any home you want to move to. Property has always been a good place to put your money.
Homes have increased in value consistently in the long-term since the Second World War and it's a fact of life that sometimes values will rise quickly and at other times they will slow down.
In other words, if you are thinking of selling and moving, it's still a good time to do so, for while you will need to price your own home at a sensible level, the homes out there that you are looking to move to should be equally sensibly priced.
The net result being little, if any, change.
| Q. | We have heard that the property market is difficult at the present time, should we put off our move until the market improves? |
| A. | The worst time to be buying a house is when the property market is at its best. When you make an offer you are very likely to find at least another two parties have also shown interest. The owner is not going to listen to offers and it is likely that the property will go to sealed bids.
When the market is quieter when you have found a buyer for your own property you will have a much larger choice of properties and vendors will be more amenable to your suggestions. Our message is make sure your asking price is right, as overpriced properties do not attract viewers in a harder market. |
| Q. | I have read in the papers that property prices are dropping, is that true? | A. | We live in a world of media hype. Newspaper headlines are always going to be dramatic and sensational. It is the hype that causes a loss of confidence, which in turn could bring down house prices. The truth of the matter is that when confidence is high, prices will always rise and that when confidence is low, the rises will stop and there could be a slight drop. It really does not matter, as the same will happen to all property often reducing the gap between your property and the next. All it will take will be the odd interest rate reduction to see house price on the rise again. |
| Q: | Will adding a conservatory make my house more 'saleable' and will it actually add value? |
| A: | Any extension work to your property is always coupled with the risk that you don't get it wrong and work within the parameters of the market for your road. Conservatories are often the favoured choice for homeowners looking at increasing their floor space. This may be because they tend to be cheaper than loft extensions and prove more practical for family purposes. With the increasing cost of moving, many potential buyers are influenced by whether a property has the ability to be extended. The unconverted loft offers this but is the expensive option. A conservatory not only adds to ground floor space but also brings 'the outside in' and can transform crowded and claustrophobic accommodation into brighter, more spacious living space. It is important to consider the prices other properties on your road and within your immediate area are making in order to ensure you do not push your expectations over and above the real market value. Ultimately, conservatories add floor space and will, hopefully, increase the value of a property and almost certainly increase its saleability. A house with a well built, stylish conservatory is likely to receive more interest from buyers and generate the levels of offers needed to exceed expectations. However in the end one must also remember that location, condition and level of guide price are vitally important to making your property appeal to buyers. |
| Q. | In a tougher market, how do I choose the right agent to sell my property? |
| A. | Over the last couple of years we've had a relatively easy sales market and it didn't take an expert agent to sell your property. However, the market has changed and, as we've seen over the last few months, things are starting to cool down. With this comes longer sales times, slower growth in prices and an increase in 'buyers remorse' leading to more transactions failing to exchange contracts. The market we are now entering is still a good market (we've had an amazing market) however to take advantage of it you're going to need a good agent on your side. One that understands what to do to get you the most amount of money for your greatest asset and one that has worked in all market conditions. When choosing an agent it is important to look for energy, enthusiasm, skill and professionalism. This is going to be essential in motivating any potential buyers, especially with the current negative press. Pro-activity is key here, sitting around waiting for the phone to ring doesn't get much done. Look for an agent who asserts themselves in the local market. Advertising your property to the widest possible audience is also critical, make sure you choose an agent who is active with their marketing and check out their website. Many of today's buyers are 'online' and a great website is absolutely vital. Lastly look for local know how. An agent who can display a good knowledge of the local market will understand how to get the best possible results for their clients. |
| TEN PREDICTIONS FOR 2008 |
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| 1. | House Prices Generally I expect house prices to remain steady. There definitely will be no rises and in some cases slight reductions. It will therefore be most important when selling to have a competitively priced property. |
| 2. | Interest Rates It looks certain that 2008 will see interest rates come down which will be the catalyst for the housing market to recover. |
| 3. | The Government will realise that the Home Information Packs (HIPs) were totally useless and do not speed up or help a house sale in any way whatsoever. |
| 4. | The Energy Performance Certificate (EPC) will make the public more aware of energy saving. |
| 5. | Property Advertising in local newspapers will diminish and be replaced by even better internet websites. |
| 6. | North Leeds will still be an excellent place to live and property will always be in high demand. |
| 7. | Leeds Girls High School will finally move to the North Leeds site; again strengthening the North Leeds property market. |
| 8. | There will be plenty of choice available in North Leeds in all prices, so in many ways 2008 will be a good year to move. |
9. | History tells us that the longer a move is delayed the more expensive it will be. |
| 10. | Last but not least, I predict that my football team will re-emerge in 'The Championship' this year. |