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Property People Blog

Why should I hire an Estate Agent?
Posted: March 26, 2014

In an age of technology and instant information, many fields that were traditionally ruled by experts are now considered to be “do-it-yourself” jobs – photography, taxes, and travel agents, to name a few. Estate agents seem to have joined this group, as home owners search for short cuts in their transactions, and self-teach themselves information about the market, finances, and real estate. However, though this approach might seem cheaper, in the long run it might cost more in energy, time, and even money. Here are three reasons you should consider using a real estate agent.

1. Fielding the Market

Hiring an estate agent means not having to worry about hunting down sellers who are unlisted or difficult to reach. An estate agent is familiar with the market and knows how to contact the owners or agents of homes that meet your criteria. They save you time in trying to call and set up appointments with sellers, and screen them to ensure that the property would be suitable.

If you are selling your home, an estate agent will field calls and weed out the serious buyers. An agent will set up appointments for you and keep track of your interested buyers. If you are busy and don't have time to organize your time and call back potential buyers, it might be best to have an estate agent handle the process for you. Also they will be available to do the viewings 6 days a week, where as you may find it difficult to fit them around your schedule and other peoples.

2. Negotiating takes experience

Dealing directly with a seller might sound easier, but the reality is that there might easily be clashes over timing, house décor, and more. A real estate agent can express your desires to the seller without making it personal – for example if you want the homeowner to upgrade their interior before making the purchase, your agent can express your contempt without insulting the homeowner’s taste. And if the homeowner does get insulted, it will be a frustration directed towards the agent, not you. Any bad blood between buyer and seller can kill a deal.

An estate agent has experience and training in dealing with difficult sellers, and knows how to handle difficult negotiations without hurting a sale. This will help you get the house you want with the features you desire.

3. Working with contracts requires expertise

Let's face it; paperwork is a pain. Wading through documents and figuring out mortgages and finances can be tedious and difficult work. If you are selling, an estate agent understands what conditions need to be in the contract to make a smooth sale. If you are buying, an agent also knows what conditions to look for in a sale. For example, when buying a home with a mortgage, you need to make financing a part of the contract – otherwise if your mortgage claim isn't approved, you could lose your deposit on the home, or even be sued.

Estate agents understand the nuances of contracts, as they have worked with them and have experience creating and amending them.
**These were three reasons you might consider using an estate agent to save time, money, and heartache. Next time you want to represent yourself on the housing market, stop and think that if you get into a sticky situation, it would really pay to have a professional around.

By Natalie Elms. Senior Sales & Lettings Negotiator at Property People. Estate agents in Wimbledon Park


Tags: choosing an estate agent, benefits of hiring an estate agent, why should I use an estate agent, estate agents in south west London, Estate agents in Wimbledon Park, estate agents in southfields, lettings agent in Wimbledon, reliable letting agent, house prices increase, getting most out of your house selling, better property marketing, efficient property selling, property negotiating

Gazumping & Gazundering
Posted: March 21, 2014

Gazumping


Every property buyer’s nightmare is called Gazumping.
Gazumping is the situation whereby a seller accepts an offer on their property but at the last minute a higher bid from another buyer causes them to change their mind. The initial buyer is put in a difficult and stressful situation, and left at a crossroads of whether they should increase their offer to surpass the current highest bidder or admit defeat and withdraw altogether. Gazumping occurs mostly in a market that has more buyers than properties available for sale, and therefore due to the product of supply and demand this can cause bidding wars.

The challenge with gazumping is that without the exchange of contracts, the sale is not made legal and therefore the seller or buyer has the power to withdraw whenever he so desired. Estate agents are legally obligated to tell vendors of all the bids on the property for sale, even when the agents have accepted an offer.

How to avoid Gazumping

  • Never delay sales because the faster the sale the less chance for seller to withdraw.

  • Try and get a seller whose agent has a policy on gazumping wherever possible.

  • Always be in touch regularly with the vendors or agents to give them an impression you are highly interested in the property. Doing this will reduce the chances of them considering other offers.

  • Perhaps decide on having a pre-contract agreement. This prevents you from losing out in the course of the bargaining. This agreement is when both you and the seller agree to pay a percentage of the purchase price to a stakeholder and the exchange will be for a specified period.

  • Request for an exclusivity treaty with the seller from your lawyer and this will provide you the exclusive right to the house as long there is contract exchange. Although the seller is usually paid a fee as benefit.

  • Always insist the particular house should be delisted from the open market immediately your bid or offer has been accepted. This will prevent other interested buyers to make bids again.

  • Let the seller and agent know you’re still very much interested in the house if you are eventually gazumped. Request that you are contacted if the new buyer withdraws.


  • Gazundering


    Equal but opposite, a seller’s nightmare.

    In simple words, it is the opposite of gazumping. This involves the reduction of the offer you made on a property after the acceptance of your initial bid. Gazundering comes to play in the process of contract negotiations and it is before exchange of contracts has been done. Note that it is when an exchange of contracts has occurred that a sale is legally sealed. If the seller refuses the price this could break the chain of transactions going through simultaneously.

    Gazundering occurs in markets that has the number of sellers superseding the number of buyers. It can also be as a result of decline in the prices of properties in a particular area. When buyers are reducing their prices most of the time, it commonly goes with a threat of pulling out if the sellers disagree with the reduction of price. This now puts vendors in a complicated situation. Since vendors are habitually buyers, they can therefore risk their own purchase if their sales subside, and therefore the chain is broken.

    How to avoid Gazundering

  • Never delay sales because the faster the sale the less chance for buyers to review their biddings.

  • Deliberate on having a pre-contract agreement. This prevents you from losing in the course of the bargaining. This agreement is when both you and the buyer agree to pay a percentage of the purchase price to a stakeholder and the exchange will be for a specified period.

  • Fix an asking price that is accurate; because the longer it takes you to sell your house, the more the chances of you accepting a lower price.

  • Always be open about any problems with the property. Doing this will prevent the buyer from using any defects as an excuse to reduce the bidding price at a later date.

  • Be sensible and create a counter-offer because there are two sides with negotiating.



  • At Property People we believe in honesty, integrity and transparency. We work hard behind the scenes to ensure that a sales process goes smoothly, that all parties are kept in constant communication and if there are any obstacles we try to clear the way as quickly as possible. You will see from our testimonials page that our buyers and sellers have had a fantastic experience in all our past transactions. Each a success story in its own right. Once a sales process starts, it’s very rare that we let it reboot because of some unforeseen complication.

    If you are in South West London and are looking for the peace of mind that comes with using honest, hardworking estate agents, call Natalie at Property People to discuss your requirements. I will work tirelessly to find you a buyer and see the sale through to completion. Call me on 020 8946 7171 or email me at natalie@property-people.co.uk. As the house prices have increased by 12-20% over the last year to March 2014, there has never been a better time to put your property on the market and unlock its maximum value.

    By Natalie Elms. Senior Sales & Lettings Negotiator at Property People. Estate agents in Wimbledon Park


    Tags: Gazumping, Gazundering, property buying headaches, estate agents in south west London, Estate agents in Wimbledon Park, estate agents in southfields, lettings agent in Wimbledon, reliable letting agent, house prices increase,







    

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