The Rise of the Property Tourist

They say Easter Weekend is the ultimate weekend for viewing/selling property, I'm not sure what makes this weekend so magical, but the extra 2 days holiday do seem to encourage people to get out and see houses.  It does make me wonder though, are these serious buyers or is viewing property the new cheap day out?

I know people view new build show homes out of curiosity and perhaps boredom, but have we reached a time where they view 'used' homes too?  I fear this might be the case, having wasted a lot of time on "property tourists" over the years, I advise my clients to be cautious about who views their property.  

I once came across as estate agent who wouldn't allow anyone to view without seeing (and copying) documents of either available cash, proof of mortgage or sale in progress of their current home, this was a little much and ended up putting buyers off.

I personally go for the middle ground, asking sensible questions about their position, but wouldn't demand proof until they wanted to put an offer forward.  My experience is that if someone is serious about viewing a property, they will tell you how fantastic their position is, and silence tells a different story.  There are also a few checks that can be done, the internet is a fantastic tool for finding out all sorts of things, for example, take their current address and a quick check on rightmove will tell you if it is on the market, under offer or not on at all. You will also see the value of their home and although it isn't exact, this will give a good guide as to whether your property is the next logical step on the ladder for them.  This is really why I advise using an agent, its easier for them to ask these questions and do the checks without putting you in an awkward position.  

Etiquette for viewing a house (UK)

After a particularly unpleasant viewing, I have been thinking about the etiquette of viewing a house.  At the moment it might be argued that most buyers are just grateful for an offer and how the buyer behaves doesn't matter, but this won't always be the case.  Sometimes, 2 or more similar offers are made and the behaviour is the only factor that separates the winning offer and the losing bid.

I am not claiming to be an etiquette expert by any means, but I have done many many viewings, as buyer and vendor over the years.

The lady viewing recently did many things to annoy me, (probably unintentionally) starting with being late, yes sometimes it can't be helped, but apologise, it diffuses the negative feelings someone may be harbouring.  I've given up my time to be there too.

Within 3 steps inside the door, she asked how long it had been on the market, a good thing to know, but ask the agent, all it told me immediately was that she was looking for reasons to reduce the price.  She then asked me which direction it was facing and 'tutted' when she found out it didn't have a south facing garden.  Allow me to introduce maps, you can work out the direction of the property.  Especially on google maps where you can learn all sorts of other things about the location.  I'd even advise driving past before making an appointment to view, which I always do.

From my point of view as a vendor, if she puts in an acceptable offer, I have to think to myself, if the viewing was this difficult, what will the conveyancing process be like? Will she find more things to pick at, demand insurance for, and potentially pull out at the last minute having had my property off the market from genuine buyers for months?  My answer is probably and so I very much doubt I would accept an offer even without others in the immediate picture.

So my advice for viewing property...

1.  Do your research before booking a viewing, ask the agent questions. (I will write another post about how to research)

2.  If the agent is accompanying the viewing, you can be slightly more honest, but don't forget that anything you say may be fed back to the vendor.

3.  Remember if the vendor is showing you round, that they will be listening to everything you say, so save your negatives for the journey home. 

4.  It is either someones home, with their taste and things they love, or the result of hard work of a developer, so they will have feelings, and probably be easily insulted.  Be polite, even if it isn't your taste or style.

5.  The sorts of questions to ask a vendor are, council tax band, freehold or leasehold, ground rent, service charge and any other details commonly missed from the brochure.  They are never going to tell you that its a bad area or the neighbours are terrible, so don't waste time asking.  Also avoid security questions at this point, you may have no intention of committing a crime, but you can unintentionally make the vendor feel very nervous!

6.  On a second viewing, when you are showing a more serious interest, it is acceptable to ask more detailed questions about cost of energy bills, any warranties that will be transferred and security.  

7.  Be on time, or call to let them know that you are running a few minutes late and that you are sorry.

My final point is a huge pet hate of mine....

When talking about purchasing a house, the term CASH BUYER means that you have the money in your pocket (ok, the bank) and can certainly be available for completion in 4-6 weeks.  For CASH BUYER read CHAIN FREE AND CASH IMMEDIATELY AVAILABLE - which could include a mortgage you have already agreed.  

I have had many people tell me they are a cash buyer when what they really mean is once they sell their house they will use the equity to buy this one, but their house might not sell for months or years.  

Cowboy Builders

I love a good stereotype, I love playing up to a stereotype and I love to break a stereotype.

I have to confess that looking nothing like a stereotypical property developer has its good points.  I have what I call the 'Honesty Test' with potential tradespeople, where I play dumb and see if they give me a sensible quote and explanation of the job or try to take advantage of the 'dumb blonde'.  Its also quite good fun!!

I recently came across a shining example of 'the dumb blonde won't know that we are cutting corners' by a flooring company I was using for the first time.  I had spoken to various people at the company and was quite happy with them initially as they had a fair price and good knowledge, that was until the fitters turned up.  

They arrived to screed the concrete floor in the utility, their method was to pour a tub of "self levelling" screed near the middle and leave it for the weekend.  

So when they returned on Monday morning, I explained that they would be sorting it out immediately.....the responses...."thats how it should look", followed by "our trowels can't reach the sides", "you don't really need it to go to the edges" and something along the lines of "its level enough".  

"our trowels can't reach the sides"

"its level enough" 

- perhaps this photo doesn't quite do it justice but it really did resemble a solid model of a rough sea.

Funny how saving themselves about 30 minutes and £20 cost them a lot of potential future work.  I will always try my best to buy locally, but sometimes, local businesses just don't help themselves.

I'll never know if this was because they thought they could get away with it or because they genuinely thought it was acceptable, I can't help thinking it was because the 'dumb blonde' wouldn't notice and it meant getting home earlier on a Friday.

So the morals of this story are:

I'm blonde, not stupid

Support local, but only if they deserve your support

And avoid letting anyone do work on a Friday afternoon

Just a lick of paint

Well its been a busy couple of months, this bungalow renovation was finished last year but it's taken me until now to update the blog!

This has been a very frustrating project for a number of reasons, the main frustration is that it looks like its just had 'a lick of paint' not a lot of time, money and effort put in! A prime example of this 'lick of paint' is the lounge.

  

This is the lounge before and after, and I agree, on the surface it looks like not much has happened, but most of the walls have been back to brick, before being re-plastered, rewired, the radiator repositioned, decorated and a new fire and surround installed. Also, a new light fitting and new carpet (with underlay - no idea why people think its ok to lay a carpet without - but thats a rant for another time)

When this went on the market I had a couple come round to view it, pretending to be interested, who after about 5 minutes told me very bluntly that they knew how much I'd paid and were just looking for ideas so they could do the same "without the developer profit".  

Now I'm not a charity, but I'm also not, or likely to be, a millionaire!  I do a proper job, I don't cut corners and I will spend the money necessary to  do the job properly.  My properties won't start to fall apart in 6 months or a year, and I know that because I only buy quality materials and have professional tradesmen and that all comes at a price.  

I blame Homes Under the Hammer, now I love that show, but £5000 for a whole renovation?

 Buying a whole kitchen including appliances for £500? Really? Did it fall off the back of a lorry? Will it last longer than 10 minutes?

Thats before I start on legal fees, stamp duty, estate agent fees to sell it on, utilities, skips, insurance, the list goes on and on and amounts to thousands.

Beginnng to look a lot like christmas

Its Christmas Eve! Possibly my favourite day of the year, so I thought I would share some of my Christmas decorations.

Our first attempt at a house, we went with chocolate (I don't like gingerbread!) and I think it's pretty cute.  The white chocolate took a very long time to set, but we got there in the end.

I'd love to take credit for being an artistic genius but this was just a mould from Lakeland.

The rest of the decorations, I have a traditional red and gold tree in the main living room, a little hint of a Disney mouse, a purple and silver theme in the dining room and a glittery wreath on the front door.

All artificial, because I'm so soppy, I get emotional about the poor trees growing for so long to decorate my house for a month.  Plus, pre-lit trees save so much time and stress!

Merry Chirstmas!

How important is quality?

I am always willing to listen to advice, but there is one piece of advice which I have been ignoring. 

Using cheap kitchen, bathroom, fire and flooring in a project would of course save a lot on the budget, but would it sell as quickly?

I believe that in this market, where buyers have so many properties to pick from, that quality fittings are the difference between a quick sale and a property staying on the market.

The market I target is an older market who have probably owned a few properties over the years, and know what they are looking for.  I'm not saying that first time buyers aren't interested in quality but they possibly don't know what to look for, I know I didn't as a first time buyer.

I hate the thought of my buyer tearing out something that I put so much thought and money into, not just from a profit point of view but also because it is so painfully wasteful.

But am I being overly cautious? For example, I put in high efficiency gas fires (low bills) with slide controls (easier use) which both come at a premium, but is it worth it?

It certainly doesn't add value, but does it help to sell the properties, I think so.  

At the end of the day, I won't ever please everyone, but I feel like quality fittings show that the whole project has been done to a high standard.  If the kitchen isn't good quality, then what else might not have been done to a high standard?

Buy to Let v Buy to Sell

This is a topic that has been cropping up a lot for me lately.  I currently only buy to sell, I have rented properties in the past and found the income (or lack of) really didn't make up for the time and stress.  I think I might just have been unlucky with bad tenants and bad letting agents, but thats a post for another time when my blood pressure is lower!

As with anything there are pros and cons.  

For me, the pros are that I buy, I get in and renovate in usually 6 to 10 weeks (I'm a mum first and do this part time so it could be quicker) and then get it on the market. So far, I have always received offers within the first week of it being on the market, the problem is converting the offer into completion, but it always gets there in the end.

I have come across a problem where buyers struggle to get a mortgage because I have owned the property for less than 6 months.  However, there are some lenders who don't have this rule. (Yet another example of rules to make developing more difficult than it needs to be)

Both selling and renting have their financial risks, a rental income is not guaranteed, the cost of damage is unpredictable, but it is likely over a long term that the overall value of the property will increase.  With selling, its a quick turnaround for (in my case) a moderate income, where all the value comes from the purchase price and the work carried out, rather than the market.

At the moment, where being a mum is my priority, buying to sell is the right choice for me.  I choose 'low risk' properties where I am confident of a quick turnaround and a swift sale.  When my daughter is in school and I can dedicate more time to it I will take on higher risk projects, for higher return.  Buy to let would be too slow as an income at the moment, but ask me again in a few years!!