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19/02/08 - The 10 Most Frequently Asked Questions

1.What is the property market like?

Wherever I go and whatever Pub I walk into somebody generally asks me this question.  In the majority of cases, this is a question asked out of interest only because most people are perfectly happy living in their house, can afford their mortgage and as a result it is slightly irrelevant if the property market is good or bad from their personal point of view, however the amount of interest generated in the property market by the media and news broadcast who seem to have nothing better to write about does generate a total interest in the rise and fall of property prices and indeed the volume of transactions taking place within one year.

The answer to the question is however, is that the market is never as bad as people assume that it is and certainly the hype surrounding the property market over the last six months is not wholly justified especially in the Derby and surrounding region.  It is true that over the last six months the volume of house transactions has fallen in comparison to previous years, however properties are still selling and good quality houses in good quality areas will always sell.  From the start of this year we have seen a gradual increase in the number of enquiries which in turn has lead to an increase in the number of sales and we forecast that this will continue through the year.  Everyone must remember however that Christmas time is always a quiet period for house transactions, for obvious reasons, people have other things on their mind and therefore moving house is not necessarily a priority.  Christmas however does produce a Spring time surge due to the fact that when families get together at Christmas there is this assumption that your house is too small and that you need a bigger property.

So in summary, if you have a good house to sell and you want to move, do it, there is nothing standing in your way.

2.Are prices going to fall?

The housing market is like every other market and is totally geared to supply and demand.  It is inevitable therefore that there are fluctuations both upwards and downwards as time progresses.  There is statistical evidence to show however that anyone purchasing a property and remaining in that property for several years will make money.  The key element that people forget is that if you are selling and buying in one region of the country, then the house price fall on your own property will be reflected in the one that you are buying and therefore the differential between the two prices will remain approximately the same. 

Bearing in mind that if the market is affected by demand and supply, firstly land is not being made anymore, secondly the Government have admitted that insufficient new houses are being constructed year on year and thirdly the population is not declining.  It would seem therefore logical that demand will exceed supply and therefore property prices, even if they fall in the short term, will return probably stronger.

3.How will the market affect me?

This is quite often asked by people who don’t intend to move short term but are concerned about things such as news articles on the Northern Rock and security of their mortgage and therefore their property.  If you intend to stay in your property for the next five years, then minor fluctuations in the prices of the housing market will not affect an individual in any way shape or form.  Of course there is a comfort feeling from knowing that you are living in a property which has increased in price, month on month, however currently it is clear that your money is safer in bricks and mortar than it is in stocks and shares, so as a result, if you don’t intend to move, don’t worry about the price of your house until the time comes for you to sell it, at which time you will examine the price of your house in relation to the prices of the properties that you wish to move to.

4.Will I need a Home Information Pack?

The only reason that this question is at number 4 on the list is due to the topical nature of it in the fact that it has only just been introduced by the Government.  The answer to this question is, in reality I wish I could say no, however Home Information Packs are now relevant on all properties and therefore must be provided.  A Home Information Pack has to be ordered to enable the marketing process to proceed.  In all honesty, this is perhaps one of the worst pieces of legislation affecting the housing market since I have been working in this industry and I believe that the Government realise that and if the current Government do not repeal this process I am sure that any subsequent Government after an election would do so.

Since the introduction of the Home Information Pack, we have not been asked on one single occasion to show any prospective purchaser the packs that we hold within our files.  The reason for this is that the information contained within those packs is totally irrelevant to somebody who wishes to buy a property and indeed is unhelpful.

It is my belief that in order to justify the provision of these Home Information Packs, the energy certificate that was included to try to fool everybody that the green issues made this document important.  The reality is, that buying a house is not like buying a refridgerator from one of the local stores and anybody who truly wishes to live in a Georgian property understand that it is not going to be as energy efficient as a brand new property.

5.Where should I buy a house?

The locational constraints of where you buy a house are governed by factors relating to your lifestyle for instance, if you need to be within a certain radius of your work or if schools are important to you or indeed proximity to family, friends, shopping or in some cases the location of your hobbies for walking in the peak district for example.

Once the preferred distance to all of these items are agreed, you could almost draw circles around them and where they intersect would indicate a location that would be suitable for you.  The main answer is however, that you should always buy the best quality house that you can afford in the best area available to you.  A good quality house in a poor location is cheap because it is in a poor location and as a result, any percentage increase in prices will reflect that low starting point.

6.Is there anything I should do to make my house sell better?

This is a question that is always asked when we are at somebody’s house advising them on selling and marketing.  The interesting thing is that this question is often asked by people who already live in very well maintained and very neat properties and the reason that they ask the question is that they are concerned that perhaps they have missed something which could be seen by a purchaser as being off putting.  This is therefore a question that sometimes we wish people would ask us where it is quite obvious that they haven’t maintained or in some cases cleaned the property as much as they should have done.  Firstly maintenance and therefore improvement of properties has to be done within your own budget, therefore nobody expects gold plated taps, provision for plasma screens in every room and top quality marble tiles throughout. 

Where a property has been allowed to fall into disrepair or requires complete modernisation, at that point it is too late to decorate the hallway.  In order to generate a higher price as the property will require a complete programme of works which will include decoration of the hallway once the other items have been completed.

The property must however have curb appeal.  Trim the front lawn, paint the front door, clean the windows, removal of rubbish, all simple items that can encourage people to enter the property and formulate their own opinions as opposed to driving on by.

7.Should I extend or move?

This is very much a personal decision and one which can be quite easily be made but only by the occupier of the property, not by external advisors although they will have an impact on the full process relating to the decision.

If you live in a property where you are totally satisfied with the location and which suits your lifestyle perfectly and the property can be extended, it would seem sensible to stay where you are and have an extension.  The extension should be relevant in keeping with the existing property and fulfil its aims.  For example, if you require a larger dining room the extension should ensure that this aim is achieved and not compromised.  I would always advise that a good Architect be employed to interpret your ideas and sometimes quite stunning alterations can be made to a property which transform not only the lifestyle capabilities but also ultimately the selling price when you do decide to move.

If you occupy a property where the location is not that important and where the ability to extend is compromised either by the size of the plot or any other factors, then the cost of extension will not necessarily be recouped and therefore moving should be seriously considered.  I should emphasise that this is on a case by case basis and therefore there are no carte blanch rules.

8.When should I put my house on the market?

The main marketing time in the UK for properties is between Spring and Autumn.  The start date for Spring could be the second week in February or the second week in March and the end of Autumn could be the second week in October or the third week in November depending on various conditions including weather.  Any property where the curb appeal, accessibility or general appearance internally is affected by sunlight then Spring time onwards is best.  If however your circumstances are such that you need to move during the winter months then your marketing and price may well have to reflect that there are fewer people searching at that point of time. 

9.How long will the process take?

Firstly, once you have chosen your Estate Agent, the process to actually put the property on the market should not take any longer than 48 hours unless there are any problems that restrict this.  With reference to a previous answer, that includes ordering the Home Information pack.  With regards to the selling period, this varies according to the style of property, the location and indeed the price that you are asking for it.  A competitively priced property will always sell quicker than one where an extra ten thousand is added to see what the market will bear.  To a certain extent as well, the selling process can be elongated by external factors such as the economy or local factors.

Once a buyer has been found, it is essential that the Solicitors or Conveyancer acting on your behalf perform at a sensible pace to enable the transaction to be concluded swiftly.  Delays at this stage can cause frustrated purchasers to change their minds and put you back at square one.

10.Should I have a survey on the property I want to buy?

Yes, yes, yes, yes, yes.  Buying a home is usually the biggest investment most of us make, so why buy it without knowing what you are letting yourself in for?

Properties are not only expensive to purchase, they can be expensive to maintain.  Yet many people still persist in buying a property without getting any independent advice. 

Don’t assume that if a property you are buying is new, that all is well.  There are several types of valuations and surveys that are available to you and we would gladly advise on which one is most suitable for you.  Sample copies of the reports can be seen on our website at www.boxallbrownandjones.co.uk

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