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I IIssue:Januarie
2007 I Editor: Berry Everitt I |
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Your Area Specialist:
Chas Everitt International
sales agents have all the latest market information
regarding local property values at their fingertips
– and are committed to the highest standards of
personal service when it comes to selling your home.
In addition, the Chas Everitt International Property
Group offers you, the homeowner, the best possible exposure
for your property in both national and international
markets. So if you are thinking of selling your home,
call your nearest Chas Everitt International office
today for the name of your local area specialist - or
visit www.chaseveritt.com
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Every month the Property
Signpost Newsletter will be issued to all our
subscribers, filled with real estate information to
help you make an informed decision, whether you are
buying or selling a property.
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Contents
1. Welcome
by publisher
2. Homebuyers:
Keep an eye out for beauties in disguise
3. Sellers:
Don’t start the process unless you’re sure
4. Tenants:
Stay sharp even in a competitive market
5. Homeowners:
Keeping up the roof over your head
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1.
Welcome by publisher
We do of course wish you all a wonderful
2007 … but since the second week of January,
we’ve hardly had time to even think about the
“Happy New Year” because business has
been so brisk.
Our showhouses have been drawing up to 40 potential
buyers and the offers to purchase have been coming
in at a cracking pace, revealing a strong - and evidently
growing - demand trend in the market.
Indeed, it seems as though many people who might have
been wavering at the end of last year following a
fourth interest rate rise have returned from their
holidays not only refreshed but filled with new resolve
to acquire the properties they want – and that
this determination will underpin the house price increases
of around 15 percent that most economists are predicting
Having said that, though, there is significantly more
caution among buyers about affordability given the
possibility of higher inflation and further interest
rate rises this year, and most are steering clear
of buying to the limit of their financial capacity.
At the same time, there is definitely more inventory
for them to choose from, so homeowners who are similarly
resolved now to sell should be prepared to negotiate
– and more importantly, to seek the advice of
our experienced, professional agents when it comes
to “reading” the market before setting
an asking price.
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2.
Homebuyers:
Keep an eye out for beauties in disguise
Buyers who can spot a Cinderella property in a good
area stand to make a royal profit when the time comes
to resell – if they are willing to roll up their
sleeves and tackle a spot of home renovation.
Homes that have been neglected but are structurally
sound are prime candidates for makeovers that will
make them fit better with the overall tone of the
neighbourhood. And buyers with the imagination to
see them as belles of the ball when they are still
in rags may well find fairy tales coming true.
Bargain hunters should of course steer clear of properties
needing extensive and expensive renovations such as
propping up poor foundations, re-roofing, complete
re-wiring or plumbing replacements. Such costly operations
are usually outside the ambit of most DIY-enthusiasts
and if specialists have to be contracted to do the
work, much of the potential profit flies out the window.
But homes that have been marked down because they
need painting or because the garden has gone to seed
are definitely worth a second and even third look.
Setting a neglected garden to rights may easily be
done within a season, and just mowing an overgrown
lawn, trimming hedges, pruning trees and a bit of
weeding will make an immediate impact. Painting the
house should also be relatively inexpensive if owners
do the work themselves.
Other easy-to-fix faults include worn and shabby floor
surfaces or carpeting that can usually be treated
or replaced at a reasonable cost, and old-fashioned
light fittings. Indeed, new light fittings are probably
among the least expensive and most profitable home
improvements one can make.
Finally, homes with single bathrooms offer a big profit
opportunity since second bathrooms will generally
add double the cost of the renovation to the value
of the house. This is especially true if a second
bathroom can be fitted into the existing layout of
the home and connected to existing plumbing.
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3.
Sellers:
Don’t start the process unless you’re sure.
Homeowners who find themselves in a
bit of a financial squeeze now because of the recent
interest rate increases should think twice before they
react by putting their homes on the market.
For a start, the substantial rise in home prices over
the past few years means there is a good chance that
even a smaller home could cost them more than the total
outstanding on their existing bonds. Then of course
additional expenditure such as transfer costs on a new
property and relocation costs must also be taken into
account.
Secondly, they need to be really sure that there is
no other course open to them and that they seriously
want to sell, because giving an agent a mandate just
so they can gauge the likely response from the market
could easily get them into even deeper financial hot
water.
Many mandates, especially sole mandates, contain a provision
to protect agents against “frivolous” sellers
who are just “testing the water” and besides,
the courts have held that a seller who refuses an offer
at the full price, or on the terms laid down in a mandate,
may be obliged to pay the agent damages equal to the
commission that would have been earned through a successful
sale.
The implication is that agents who spend time and money
to market properties in good faith should be paid for
their services if they find a willing and able buyer
as a result – even if the owner then changes his
mind about selling.
Homeowners trying to balance their budgets are thus
advised to carefully assess the current market and to
ask a reliable estate agent what price they could reasonably
expect to get for their home before hastily awarding
a mandate.
And if they have already awarded
a mandate but change their minds about selling, they
should inform their agents immediately in order to limit
the potential financial damage all round.
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4.
Tenants:
Stay sharp even in a competitive market
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The queues - and competition - for
good rental property are likely to grow if interest
rates keep rising – but prospective tenants
should still look before they leap into signing a
lease.
There is of course no substitute for thorough research
when looking for a new home, but if they are being
pressed for a decision, tenants should be able to
avoid the worst pitfalls by using the following pointers:
- Go to a viewing armed with a carefully
thought out checklist of features in a property
that you find non-negotiable, for instance, good
security, safe parking, laundry facilities, storage
space, a working lift.
- Be ruthless. If the property does
not meet your very basic criteria, do not consider
it, no matter how well located or cheap it is. Matches
between tenants and rental property are rarely made
in heaven, but there are some compromises not worth
making.
- If you are viewing several properties,
make a note of any additional positive features
each of them has, such as proximity to public transport
or a pretty view, and of any drawbacks such as traffic
noise, so you can easily compare them and make your
choice.
- When you are ready to commit, check
that the lease contract spells out clearly the obligations
of both tenant and landlord, including when the
rent is due and what the landlord’s maintenance
responsibilities are.
- Before you sign the contract, make
sure how long it will remain effective and find
out what penalties you will incur if you terminate
before the expiry date.
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5. Homeowners:
Keeping up the roof over your head
Heavy storms and high
winds this summer have sent many households scurrying
for buckets because their roofs have suddenly sprung
leaks, and roof repair experts are reporting an unusually
busy “season”.
Indeed, many contractors are booked up for weeks ahead
now, giving those homeowners confronted with leaking
roofs little choice but to grin and bear it while trying
to limit the damage themselves – and once again
underlining the benefits of preventative maintenance.
In short, the time to take care of your roof is while
you are still snug and dry, and when you have time to
inspect it thoroughly for any loose tiles, flapping
corrugated sheets, weathered water-proofing and rusted
or blocked gutters that could lead to leaks.
Then, if you do need to call in a roofing contractor,
it won’t be in an emergency situation and you
will be able to make the necessary checks to ensure
that you are dealing with a reputable, reliable company.
If you are new to an area, it is a good idea to seek
advice from the estate agent who sold you the property.
Neighbours and friends may also be able to refer you
to a trustworthy contractor.
In all cases, however, you should establish how long
the company has been in business, ask for recent references
and check what type of guarantee is offered on workmanship
and materials.
You should also insist that contractors supply a written
quote that itemises what work will be done at what cost,
and when it should be completed. It is also useful to
negotiate that payment will only be made as the work
progresses and that a certain amount will be held back
in the event of unsatisfactory work. And lastly, you
need to be sure that the contractor has insurance to
cover injuries to workmen on your premises.
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