Builders Secrets Exposed – Scams

Posted on May 20, 2012 by Gary

Cowboy builders and dodgy tradesmen cost UK home owners a staggering 1.5 Billion pounds last year.

Each year these rogue, and sometimes un-trained individuals ruin thousands of lives and homes and most of us, until now had to just cross our fingers and hope we had hired the right builder and we wouldn’t be just another victim.

That’s about to change though thanks to a new package that is now available online.


Builder Secrets Exposed comes in 5 parts designed to make sure you get your home improvement work done correctly, finished on time AND done at the right price.

Part 1 is an ebook written by a builder with 25 years
experience in the home improvement sector and he blows the lid on the trade secrets and dirty tricks used by cowboys and dodgy tradesmen.

Part 2 is a small works building contract that you can print off and use as when required for the rest of your life.

Part 3 is a large works building contract that is the same as above but gives more detail and allows for stage payments to be made.

Part 4 is a check list for you to print off and use when you contact your builders references. These questions are designed to uncover any problems you might have with a builder BEFORE you sign on the dotted line and it’s too late.

Part 5 is another ebook but this time about design and planning. Any problems with your planning officer, neighbours, boundaries, rights of light, even trees are all covered here.
Written to make sure you have an unfair advantage when dealing with your planning department!

Believe me, this package removes the risks involved in hiring a building contractor in the UK today.

It even shows you how to negotiate huge discounts AFTER you have received your so called “cheapest quote.”

Visit Builders Secrets Exposed and make sure your renovation or extension goes to plan.

 

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House Prices

Posted on March 4, 2012 by Gary

We all know and understand that statistics are used to prove and show anything.

However, we all know that over time property prices can and have increased. Below are four examples, from different sources that show property prices increasing over the last 30-80 years.

Property never goes in a smooth line and most people would expect the prices currently to be the same for the next 12-18 months, but we will then have been in a period since 2004/5  until now where prices have not really risen (they went up and came back down). So 6/7 years later (from 2004/5) we are at the same prices. This has been common in previous dips but is followed by rises above average.

No one has a crystal ball, but they support our belief that house prices will continue to rise in time. I would project, a 4% market growth even though the average for the last 80 years is 7.9%. This is being very conservative.

Source 1

Since 1957 property prices have risen on average 11.3% a year (source land registry)

Source 2

The Sun – Saturday 1st January 2011. Backed by The nationwide house price index.

House prices increased every single year between 2000 and 2010 except for in 2008 when they dropped 15.9%. Overall in the decade prices more than doubled.

Source 3

Press release from the Halifax at 2004, showing price changes during different governments (I don’t mind who the government was – I am interested in the rises)

Prime Minister (Term of Office) Average Annual increase within term Increase over term of office in total £10,000 house price in 1964
Harold Wilson (Oct 1964-June 1970) 6% 45% £14,500
Edward Heath (June 1970–March 1974) 24% 124% £34,281
Harold Wilson(March 1974–April 1976) 7% 15% £39,423
James Callaghan (Apr 1976-May 1979) 16% 57% £61,894
Margaret Thatcher (May 1979-Nov 1990) 12% 259% £215,303
John Major (Nov 1990-May 1997) 1% 7% £230,374
Tony Blair (May 1997 – 2004) 12% 123% £509,284
My stats (2004/5 – now) Approx 2% Approx 10% £560,212

Source 4

Daily Mail – Monday January 31st 2011. Backed with research by the Halifax.

North of England £100,000 house in 1983 South of England £100,000 house in 1983
1983-1990 107% increase £207,000 118% increase £218,000
1990-2000 19% increase £246,330 46% increase £318,280
2000-2010 102% increase £497,586 75% increase £556,990

So in the North the overall growth over 30 years is that the property has increased in value by 5 times. In the South it has been 5.5 times. 6% per year for the last 30 years.

 

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Estate Agents – Selling your Property

Posted on March 3, 2012 by Gary

When selling a house, many people often approach an estate agent to put their property on the market. However, more and more people are now choosing to sell without an estate agent, and save large fees in the process.

The Estate Agent typically offers the following:

  • Suggesting an Asking Price (not Valuation) for your propertyIt is important to realise that an Estate Agent does not value your property. A property valuation is carried out by a qualified surveyor and costs several hundred pounds. An estate agent has no qualification in house valuation and, their estimation would not be accepted by insurance companies as a basis for your buildings insurance.

    An estate agent uses their experience of similar properties in the area to suggest an asking price. As it is their “gut feel”, there is no science and you are likely to have as much of an idea as any estate agent. Always get more than one idea of an asking price – you might be surprised to find a large difference in each agent’s figures.

    Never accept an agent’s estimation at face value. An Estate Agent is in business and their aim, like most other businesses, is to maximise their profits. If you feel their estimation is too low, it might be because they want to make a quick sale so they receive their commission faster (cash is king). Estate Agents, at the end of the day, are salesmen.

    Remember that the valuation only sets the asking price. At the end of the day, your house is only worth what someone will pay for it.

  • Photographing house and producing publicity material (including house description/particulars and brochures).
  • Advertising your house in their window, through “For Sale” boards, via mail-outs and possibly the press.
  • Organising appointments for prospective buyers to view the property.

What commission do they charge?

Expect anything from 1% to 2% of the house price.

Don’t forget to add VAT at 20%. For example, a £200,000 property at 2% commission is £4,000. You need to then add another 20% (£800), which means you actually pay £4800 in total commission.

Can I negotiate the commission?

Everything in life is negotiable.

How many Estate Agents?

Choose one (a sole agent) and you’ll pay less commission. Choose two or more and commissions could double.

Can I advertise my home privately and with an Estate Agent?

Yes, indeed. If you are thinking of using an estate agent, check that their contract does not have the term “sole selling rights” (this is different from “sole agent rights“). If it does have this in, ask for it to be removed before signing. If they won’t remove it and you still wish to use an agent, find another estate agent that will.

If I sell my home with privately, do I still need to pay the Estate Agent?

No. The Office of Fair Trading state that so long as you have not signed a contract with a clause giving the agent “sole selling rights” you do not have to pay them. As a private seller, you are not an estate agent. Even if your estate agent contract specifies “sole agent rights”, you still do not have to pay them commission.

Choosing an Estate Agent

Here are some tips for choosing the right Estate Agent:

  • Where they recommended to you by someone? If not, find someone who has used them to get the inside story. Would they use them again?
  • Interview the agent before instructing. Find out if he/she has a sound local knowledge and knowledge of comparable properties in the community.
  • Does the agent have any links with the community?
  • Does he/she look you in straight in the eye?
  • Do you feel comfortable with the person (if you do not, how will the buyer feel?).
  • Do you trust the individual?
  • Will the service really be worth £3,000 plus? Or would you prefer to save the commission?
  • Could you do a better job selling your house without an estate agent (through the ‘Sold My Place’ E(ducation)-Book
  • Check to see how experienced he/she is. Remember that there are no qualifications needed in order to set up as an Estate Agent, so be very careful.
  • What are your first impressions? Do you get along well right away? Are they really sincere?
  • Will they treat you as a special customer, or will you be be just another name on the list?
  • Are they a member of the national estate agent body – NAEA (the majority are not!).
  • Do some research before valuation. This will give you a realistic idea of your home’s worth, and test their own assumption. It has been know for some agents to price a house for a quick sale, so that they earn their commission quickly, at the expense of the homeowner.

 

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Managing Your Estate Agent!

Posted on March 3, 2012 by Gary

In a lot of cases, you need to manage your Estate Agent to ensure you get the best service.

Here are some tips:

  • It is important to make clear all matters of the sale before it is completed. Never assume anything – don’t forget to talk about fixtures and fittings.
  • Save yourself and the agent time and aggravation. Only call her/him when you’ve made a definite decision to sell.
  • Confirm each stage of the sale in writing with the agent.
  • Arrange for a solicitor or conveyancer as soon as you think you might be ready to place or indeed accept an offer. If the agent recommends one, do not simply accept their recommendation. Do some research yourself.
  • Pay all your fees on time. If you do not feel the agent has earned their money, let them know and dispute what you should pay them.

Is it possible to sell my house without using an Estate Agent?

Yes, of course! You can still advertise your house to lots of prospective buyers, even online. Many people have successfully sold their house using the private sale route and saved on average £4,100. To find out more about my successful approach to advertising and selling your property quickly, Click here.

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Watch out – Estate Agents Scams have been Reported?

Posted on March 3, 2012 by Gary

Some Estate Agents have been caught and punished by the Office of Fair Trading for conning clients. In some cases this has lead to a homeowners losing thousands of pounds. A number of reported scams, including “Back-to-Back Selling”. You have a right to know about these and should make yourself familiar with them.

What is back-to-back selling? This is when an Estate Agent sells your house but has actually made a secret agreement with a “buyer” who then sells your property on for it’s real value making a huge profit (which is shared with the estate agent).

Here’s an example of a real situation which was reported by the Office of Fair trading:

Two estate agents “made a secret arrangement with a potential buyer under which the two
were to receive £5,000 each for recommending an offer of £950,000 for a property and misrepresented the details relating to the offer to the seller.

After the contracts had been exchanged, but before completion, the property was advertised for auction, with a reserve price of £1-£1.2 million. It was in fact sold for £1.2m before the auction, generating a profit of £250,000 less expenses and stamp duty.”

As the estate agent sits between the buyer and the seller, they are ultimately the only party who have all information. This position of power can be potentially abused, possibly at the expense of the buyer, seller or both parties. One common complaint is the inventing of fictitious buyers making offers to force the price up.

No wonder so many sellers get frustrated and stressed out when employing the services of an Estate Agent to sell their house – Consider a private sale… It works! :)

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Are Your Property Particulars Up To Scratch?

Posted on March 3, 2012 by Gary

Emotion plays is a big part in any buying decision for the majority of people. Certainly in my personal experience, choosing my own personal home has always involved an element of head versus heart debate.

With the vast majority of house hunters now using Internet portals and estate agents’ websites to search for a new home, the property particulars / brochure is the first big opportunity that they have to fall in love with or discard a property.

They look at the photos, floor plans, map, local area information and price.

A picture of the property (accurate or otherwise) is built in their minds within seconds – and, as we all know, first impressions count!


Are your property particulars hitting the mark?

    • Your photos aren’t big enough, or you only include the main image. The main photo should fill the width of the page and be backed up by smaller shots that highlight the key selling points.
    • The photos aren’t good enough. Use a good camera with the right lens. Tidy and de-clutter and get the lighting right. Don’t include pictures of any rooms or outside space that are hard to show in a positive light. Most people will accept that a property isn’t perfect. Use the brochure to honestly sell the best bits.
    • You don’t include a floor plan. Floor plans are now an essential element of any property brochure!
    • Your descriptions are completely factual and go into unnecessary detail. Ignore the minutiae and focus on what makes the property a great purchase. Know who you expect to sell to and market the brochure to that audience.
    • You don’t include a map, or any information about the local area. Include a short paragraph to sell the facilities on offer and distances to other nearby towns. Educate people who may not know the area as well as you do.
    • There’s no keynote. Every property has a USP. Find it and highlight it!
  • It’s not obvious how to contact the office to book a viewing. Make sure that contact details are obvious and add a call to action to the end of the brochure.

Your property brochure is one of the big selling opportunities – don’t waste it!

 

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Is this your Estate Agent experience?

Posted on February 26, 2012 by Gary

  1. Listens and responds to specific requirements, not just price and number of rooms.
  2. Responding to enquiries, answering and returning calls, actively using email and doing some of the running during the sales process.
  3. Communicates the benefits of using an estate agent, versus a private sale.
  4. Confirms and show up on time for viewings (instead of getting you to do the viewings for them)
  5. Provide interesting information, than just telling you”this is the kitchen”.
  6. Behaves like a friend, treat customers professionally. Acknowledge and welcome any foot traffic. Keep in regular contact.
  7. Qualify applicants properly and report their status accurately.
  8. Cultivate a plan B, ready for if a sale falls through.
  9. Make the effort to identify and recommend only good, reliable conveyancers and mortgage advisors.
  10. Offer advice on how to maximise the chance and value of a sale.
  11. Encourage the vendor to influence the property description.
  12. Use floor plans and indicate the total square footage.
  13. Use Google Street View.
  14. Give the size and aspect of the garden, as well as the rooms.
  15. Avoid judging people based on appearance – keep an open mind – and don’t treat them like idiots.
  16. Be honest. Provide as many (professional quality) pictures and details as possible.
  17. Avoid complacency (if you know what to do, keep doing it!).
  18. Provide weekend and out-of-hours services.
  19. Give timely and honest viewing feedback.
  20. Allow adequate time for viewings.
  21. Explain to house hunters that you will show them some properties that aren’t quite right, but this will then help you better understand the buyers priorities
  22. Educate first time buyers.
  23. Spell accurately.
  24. Empathise and be respectful.
  25. Keep property statuses up to date on your website and property portals.

If not, why don’t you just do it yourself – it isn’t expensive to do and will for sure save you thousands in fees :)

And, because no one will do a better job than you…

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Is this the worst time to be selling a House?

Posted on February 22, 2012 by Gary

Many sellers seem to be expect their house to be sat on the estate agents books for ages nowadays, and then are having to accept offers much lower than they originally hoped for.

So what can you do to make the best of it if you really need to sell?

Firstly, why do need to sell? Of course, if its work relocation to another area then you will need to move, but could you let out your home and rent or buy one in another area? Finding a tenant may be much easier than finding a buyer. With first time buyers now failing to secure a mortgage, there is a greater demand for rental properties. If you’re wanting to move because you feel your home is too small for your needs, could you possibly extend? It’s a good idea to consider all your options before putting your home on the market.

If your only option is to sell, then you need to put a realistic price on your property. At the moment people are pricing their houses too high to start with. This is only adding to the length of time they are on the market and failing to sell. If you want to have any hope of selling in a reasonable time frame then you need to price your property competitively. You now need to face the fact that property prices are very low.

Have a look on a property search website for properties similar to your own in your area and see what prices they are going for. It’s best to look for those properties that have actually sold or had an offer on them rather than looking at properties on the market, as you will then be looking at prices people have been willing to pay, rather than the prices the vendors are hoping to get. Many of these unsold properties will end up reduced before they sell, or the sellers will accept a much lower offer eventually.

You may also need to have patience. It can be stressful trying to sell a property in this current climate. However, If you need to sell quickly then you always have the option of downloading the eBook – Sold My Place. For a very small fraction of the cost of any estate agent, this material delivers to you a unique and revolutionary process that cuts out a lot of the doubt and stress associated with selling a home. It’s how I assist vendors in selling without an estate agent…

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Selling Your House – Then Do Your Homework!

Posted on February 22, 2012 by Gary

Recently I visited my sister and her family at their family home.

A lovely area close to the town centre, a private estate that is probably around 6 years old. I noticed that there were a couple of properties for sale. Upon a previous visit here I remembered there was another property for sale but the for sale board was now gone – hence either sold or off the market. I asked my sister and she suggested it was a repossession and had recently sold.

Being the intuitive person that I am, I enquired about the first property and found out that yes it had been repossessed and recently sold for around 145k. The other two properties that are very, very similar are currently on the market for 185k and, offers in the region of 189k.

Have these sellers done their homework themselves? Or yet again have they been blinded by the smooth talking sales agents in getting their property listing?? Now I am not saying they should be selling at the same as this distressed price, but just by doing some basic homework,  they could better judge the thoughts of any estate agent.

The sale of the repossession property recently, and with it being so close to these two will be in direct comparison for pricing. Any potential interest from a buyer will flag this up when a lenders valuer will investigate previously sold prices within the last six months.

Dare I say it, the lender will certainly not be looking to borrow or lend a mortgage on the current marketed prices.

This is where I see many sellers fail in their efforts in selling a house. The buck starts with the seller, by not researching their immediate locality for homes currently for sale and indeed recent sold prices. Blaming the estate agent is a nonsense! It is total laziness on the sellers part if they really believe by inviting an estate agent in to appraise their house, believing they have lots of ready buyers for this type of property and for their pricing strategy, it’s ludicrous!!

Yes it all seems to be doom and gloom regarding the property market currently, but realistically this is now the norm and not just a housing slump period. This is a serious correction of the property market which, rightly so in my opinion, is causing properties to fall back to the valuation levels pre-2008.The sooner homeowners realise this then the easier they will find it in selling their house for a realistic figure.

Ask yourself:

Why are you selling?

Do you really need to sell? and how long are you prepared to wait?

If it’s urgent for maybe job relocation, maybe consider letting for a while.  There is lots of information out there in presenting a property for sale without using an estate agent, and most of it is available online. Therefore, by just undergoing some basic research, a seller can very easily market a property and sell in a timely manner. Even if the price you eventually sell for isn’t the best you had hoped, at least you have saved thousands in potential agency fees :)

As for my sister’s neighbours and their property sale endeavours – I have already been in touch and able to assist one of them.

 

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What’s next for property in 2012?

Posted on February 20, 2012 by Gary

What's next for Britain's property market in 2012?

For a decade, investing in property looked like a dead cert. All you had to do was buy property and then sit back and watch it soar in value. But now the good times are officially over. Britain is in the grip of a full-blown house price crash. In fact this is already the worst house price crash on record, far bigger than the slump in the 1990s, with house prices back to 2004 levels (roughly where they were when Money Week first started warning our readers not to invest in property).

Between 1996 and 2007, investing in property looked like a dead cert…

All you had to do was buy property and then sit back and watch it soar in value without lifting a finger.

It was the nearest thing to free money you’ll ever see… and people got drunk on it. In fact, they got SO drunk they became deluded and thought it would never end. Then the great crash of 2008 came along and ended the property boom – just as ‘we at MoneyWeek’ had predicted.

For a while, it seemed as though prices would never stop falling. In the space of just nine months house prices lost nearly 20%. And since July 2010 house prices have again started to slip…

But even now – for the most part – it seems like prices have stabilised…

Nationwide figures show that the average price of the UK home now stands at just over £167,000, 1.2% higher than a year earlier.

So… is now time to pile right back in?

The truth is… no one, no matter what they say, can know for sure… but we have our own idea about what will happen, just like we did back in 2007…

We believe the entire rebound of the last year to be a dangerous false dawn…

…one that’s lured UK investors into more danger than they ever imagined.

Those who buy today could see the value of their investment plummet within the next 6-12 months. It’s not what politicians, lenders and house sellers want you to hear…

Warning: House prices to plummet over the next 6-12 months

But there are several factors pointing to the property crash restarting in the very near future, if it hasn’t already.

To discover the reasons why, and to get our most recent updates on the state of the UK property markets, sign up to get your 4 FREE issues of MoneyWeek here.

Plus, download immediately our latest FREE report, ‘When will house prices bottom out’ and how will you know? We reveal:

  • How much further UK property prices have left to fall
  • Why property WON’T protect your money against inflation any more
  • And above all, when the market will finally hit rock bottom

Get this special property report and your 4 FREE issues of MoneyWeek here.

SOURCE: info.moneyweek.com (Feb 2012)

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