The Property Sales People

Oh bye the way that picture shows me at almost 18 stones. I'm now 14 stone 5 pounds so I need a new picture!

Are you a potential home buyer? Have you been scared to death by reports on the TV news and in the papers about the ‘Credit Crunch’? Or did you believe it was just a new biscuit or breakfast cereal? My view is that you should be concerned, but not paralysed with fear. Having read and listened to the same news reports I decided to conduct some research with our mortgage brokers, Bright mortgage advice. I asked them to tell me what percentage of the mortgages they arranged in 2006/2007 were for 125% of the purchase price. Answer : 2.5% I asked what percentage were 100%. Answer: 5% The balance were 95% mortgage or less. OK, I’ll admit that the Nationwide have announced that they’ll only offer 90% or less from May 2008 but this really isn’t the end of the world. Let’s assume that we have to use Nationwide and let’s also assume that we really wanted 95% mortgage on the average local first time buyer purchase price of £150,000. This means that 5% is £7,500; so we need to raise another £7,5...

The Market So Far in 2008 We are now virtually at the end of February 2008 and where are we in terms of the property market? Depending on whether you choose to read one newspaper or another you could be forgiven for believing that the market was 'up' so far this year or on the verge of total collapse and you should ready yourself for repossession within the next 6 months. In fact a recent TV programme took as it's title 'Repossession, Repossession, Repossession' – no doubt a play on the maxim 'Location, Location, Location'. Well I suppose I'm only qualified to voice an opinion on Ely and district and rightly so as that's the area I operate in. I believe that this is also the key to understanding what is actually going on and what you should believe about the fate of your property price. Some years back we had a Halifax agency within our business and we were once visited by a regional guy who talked about 'micro-markets'. What he was trying to...

There is something that I'd like to share with every reader of this blog article whether they are relatively young or very old: Make a will and 100% make sure you have created a lasting power of attorney (LPA). If you own a property and have even the smallest amount of savings you owe it to your nearest and dearest to organise things so that there is as little stress as possible. If you have a partner then each appointing the other is a good idea or your children may be the right people, or a brother or sister but you never know when you will be struck down in such a way that you are not capable of running your financial affairs and personal care. The national statistics for road accidents, heart attacks, strokes etc should serve as a pointer as to why this action is necessary. You may have guessed that I'm speaking from personal experience and indeed I am. My 83 year old mother finally ended up in hospital after worrying me for some time. Her condition was brought on by a seri...

Over the course of 2007 from June onwards HIPs (Home Information Packs) have been introduced to the UK property market and now every property marketed must have one. I have always been a supporter of HIPs (unlike a lot of estate agents) but in their original ‘pure’ form with compulsory Home Condition Reports as well as the domestic energy assessment and legal documentation. The purpose of this Blog entry is not to argue the rights and wrongs but to draw the public’s attention to the Tories’ ‘Home Buying Review’. They are anti-HIP but are looking at ways of improving the current process. This is an opportunity for everyone to have their personal say about the home buying and selling process. The review is being conducted by Grant Shapps, Kirstie Allsopp (from Channel 4’s ‘Location, Location, Location’) and Owen Inskip (a chartered surveyor and former estate agent) Among the areas where views are specifically sought are: · Professionalism of estate agents: should there be a requirement f...

I would hate to appear like HBOS, Nationwide and all the others making predictions about the house sales market in that they don’t agree and have conflicting views, but I do have my own opinion! I don’t believe we’re looking at a ‘crash’ in the same way that we had in the late 1980’s and early ‘90’s. I do believe that we will find it tougher than it has been and necessary to use every marketing tool available. Agents who have been used to just taking orders will need to relearn how to work at servicing those buyers that are out there to make sure they view and buy through them. Sellers will need to be kept closely in touch with how the market is reacting to their home and advised about how it is faring. Initial marketing price will be important and will need regular review as things develop. At David Clark and Company most of us have been through poor markets before and you can rely on our best advice. Happy New Year!

Good news! The Bank of England has today reduced the bank rate by 0.25%. This is a step which in itself will have little impact on mortgages etc but it does send a positive signal to hard pressed borrowers. If nothing else it indicates light at the end of the tunnel. Many people have experienced £150 a month rises in the cost of their mortgage and this has come about because most mortgages these days are adjusted annually or are fixed rates or discounted rates. Add in to this scenario the recent hike in fuel costs – diesel locally at £1.09 per litre! and you can see why consumer demand has slowed. In my opinion interest rates have always been something of a blunt instrument when it comes to slowing down the property market. In the late 1980’s and early 90’s interest rates rose to, albeit briefly, 15%. The property market was decimated and what needed a touch on the brakes began to appear as though someone had removed the wheels. It isn’t necessary to go to this extreme. They need to be...