Tag: George Berry

George Berry, Residential Area Manager, looks at why realistic pricing is key to selling your house in today’s market.

Listen to the market

Why do shops and retail outlets have sales on and off throughout the year? The simple answer is to sell stock that has been lingering and make room for new stock.

So, flipping that question on its head, why didn’t it sell at its full price to start with? The most common answer is that buyers could not justify the price of the items and only when they were reduced, saw them as good value for money.

With disposable income being low due to the cost of living being high, every penny counts. Items in sales look far better value and more people can afford them. This increase in demand means people feel they will lose out and as a result make quicker decisions to buy.

The same principle applies to the housing market. If a property is not selling, then it is for largely two reasons. It either has compromises that are putting buyers off or they cannot justify the price. The higher the price, the more significant those compromises become.

Properties are our homes and our biggest investment. They are where memories are made, both good and bad, and as a result there is a lot of emotion in the mix. This is what causes an issue.

Detach from emotion

We naturally all want the maximum we can get for our homes when selling to enable us to have more flexibility with onward plans. However, when detaching from emotion, we all know something is only really worth what someone will pay. In a tough market where a lot of supply and demand is hampered by mortgage rates, affordability and  incomplete chains, this can cause problems agreeing sales.

Retailers reduce prices because it will be the make or break of their business. They need sales and money in. If vendors are able to take a more commercial view when selling their homes and look more objectively at the bigger picture, then they will achieve better results.

Be flexible

The key is listening to the market rather than being rigid on what they want to hear. We agreed a sale this week where the buyer floated a lower level and wanted us to discuss with the sellers before submitting a formal offer. The vendors’ response was: “well of course that seems fair, we all need to take an offer”.

In a high-end boutique, one-off garments can command ultra-high prices and buyers will ultimately pay for the exclusivity. That is also the case for certain properties that are so exclusive. They can only appeal to ‘high net worth’ buyers. The issue is, most of our homes do not fall into this category so it is wrong to keep prices unrealistically high in the hope that someone will pay over its market worth. Most buyers are ordinary folk like us with limited supplies of money so they will only pay what they can afford.

I hear it so often on valuations or in conversations: “I don’t want to reduce my price as it makes it look like there is something wrong with the house.” This is not the case at all and mindsets over reductions being a stigma need to change. There is no science to confirm prices other than letting the market determine them. As agents we look at comparables to give a guide but ultimately the market will decide.

If you want to sell, listen to the market and be prepared to reduce. Remember that if you are dropping the likelihood is your onward purchase will also drop as it is all relative. If you can’t afford to take less then what the market deems it is worth then you really should give serious thought to whether you need to sell now. If you can’t then take it off the market as you will only be left frustrated.

This article first appeared in the Diss Express.

George Berry, Residential Area Manager asks should you sell first or buy first?

The wonderful rhetorical question of: “chicken or the egg, what came first?” is synonymous with the moving home process. I hear you asking yourselves, where on earth is he going with this? When we sit discussing homes and think we may want to make a move, the first thing we do is hit the portals, either to see what is available or alternatively what our own homes may be worth. Having made the decision to move, this then leads on to the bigger question: do we sell our house first or do we look for our perfect new home first? Hence, the chicken and egg analogy. 

Of course, both scenarios pose issues, hence the dilemma. If we sell first but can’t find, then what do we do? ‘We can’t rent as we have animals’ and ‘it will be dead money and we cannot afford to do that’ are two comments I often hear. Alternatively, ‘if I find my perfect home but haven’t sold, will I lose it because I can’t proceed?’. It is a really tricky conundrum. However, I do feel there is a solution and that involves transparency and openness. 

My advice and especially in a challenging market, is always try and get a buyer on your property first. However, ensure your agent makes it very clear to buyers that it is subject to you finding a property. If your property is the dream home of that buyer, they will be patient and be prepared to wait. If it emerges down the line that you need to find, then that will be where things go wrong. Buyers are far more prepared to be patient and work with you if you respect them and are open and  honest from the start.

I am a firm believer in fate and when you have secured a buyer, then start looking and more often then not, the right house for you will appear. I would not advise trying to view houses if you are not on the market. You will not be taken seriously as a buyer as you are not showing any commitment. The selling process is stressful and many owners spend a great deal of time getting their homes ready for a viewing. If you are not on the market, then most owners will see it as a waste of time and in many cases not allow the viewing in the first place.

Another scenario affected by the ‘chicken and egg’ is the selling of probate properties. In this case emotions are heightened for obvious reasons so getting the right advice is crucial. I often hear executors saying they will not launch till probate has come through as it can take a long time. Or I get told ‘I understand I can’t sell until probate has been granted’. It is correct that you can’t exchange until probate has been granted but you can market the property and agree a sale. The conveyance process can take place too but will just press pause until probate has come through. 

It would always be my advice to commence marketing as soon as you are emotionally ready and run it in tandem with the probate application. Again, if potential buyers are made aware that probate is awaited and they know that when they offer they are far more likely to be patient. If you wait until probate comes through, then you may miss a big chunk of the marketing window and the market conditions may have deteriorated by the time you come  to  launch. As executors of an estate, you have the responsibility to get the best price, please listen to the agents when they feel the right time to launch is and don’t just assume it should be when you have the probate certificate.

So, in essence my advice is to lead the process with marketing your home first and then let the search follow. That way, you will not be disappointed if your dream home comes to the market and you can’t secure it.

This article first appeared in the Diss Express.

George Berry, Residential Area Manager, looks at the post Christmas rush to Rightmove and how the pressures of the season prompt us to reassess our homes and lives. 

It is madness that after all the frenetic run up to Christmas, parties and hosting and not to mention the expenditure, that it ends abruptly on Boxing Day. It is the day that Rightmove witnesses its biggest web traffic of the year.

What does that tell us? Either people are bored and escape into the dream world of a new home search or the tensions of rarely dedicated time with each other makes us re-evaluate our lives. It is a sorry state of affairs that divorce lawyers complete the vast majority of their annual target in January.

We all get caught up on the treadmill that is our lives and it takes real effort to get off it. However, maybe we need to pause and change our annual festive patterns to alter the potential path of the fate. For instance, if we went on holiday rather than have Christmas at home, stresses and strains may dissipate. In addition, the sheer commercialism of all the gifts may be reduced to focus on time with loved ones rather than be suffocated by wrapping paper and Sellotape.

Do you need some space?

Not only does hosting the volume of family and friends test even the strongest of relationships but it puts pressure on the spatial abilities of our homes. Room swapping, inflatable beds and blankets on sofas can also be a big driver to Rightmove to suggest the need for more space.

With family together, it is often a time for big plans and big conversations and the reality of situations becomes apparent. Maybe it is an elderly relative showing signs they can no longer be independent or a boomerang child and their partner craving their own space but unable to get on the property ladder. Is it any wonder we are seeing a rise and return of multi-generations pooling resources and buying one property with annexe accommodation to provide for these changing needs?

So, as we make plans for the forthcoming year and new resolutions it is a perfect chance to focus. Will a new house move really paper over the cracks or do we need to look at the mirror and address the issues and concerns closer to home first?

Do you need to move at all?

Maybe redecorating, decluttering, re-configuring furniture or even room uses may make a start and it might become apparent that that a home move is not even required. A potential garage conversion or extension may provide for the additional space that the festivities highlighted was needed.

The grass of a new home may initially appear greener and whilst for many the reality may well be the case we must not rule out that our existing home may be able to solve our needs. With careful consideration and planning it may also increase the value. Of course, there may come a time when a move is required and we may need to upsize but as mortgage rates increase and living costs rise, the probability is higher that the next move will be a downsize. If only to buy time before we can potentially upsize again.

When the economy is tough and the purse strings strained it is a perfect chance to evaluate what we really need. Combine this with the festive period, as we all clamber around shops for presents and then post-Christmas bargains, the one thing we all lack but costs nothing is time.

Spending time with family and friends costs far less but gives so much more. It is a perfect chance to have a new year, a new you and maybe not necessarily a new home.

This article first appeared in the Diss Express.

George Berry, Residential Area Manager looks at the importance of your guide price when selling a home and what buyers and sellers can do to achieve the best results. 

When selling a house, the higher the guide price, the more significant comprises become. When the property market is buoyant, people are more likely to overlook compromises for fear of escalating prices and missing out. However, as soon as the market starts tightening the compromises loom larger.  

Therefore, it is crucial when setting a guide price to not be too greedy. Show a buyer you are mindful of the flaws and you have factored them into the pricing. Buyers will appreciate this and it will give you a far stronger hand when they try to negotiate. 

There is no getting away from the fact that the market is challenging. Agents that say otherwise are trying to dupe you and you will only be left disappointed by overpromising and under- delivering.  

Unlocking the market 

There are many people wanting to move but so much of the market is held up but the reliance upon linked transactions and dependant buyers. Many of those are struggling to sell for two reasons.

Firstly, many buyers are struggling with mortgage affordability and the second is overpricing.

I have never witnessed the country and property market come to a pause in the anticipation of a budget like we have just seen. It goes to show how instantly reactive we have become and that is because every pound in our pocket counts and those available pounds are dwindling with tax levels and the cost of living being so high.

If interest rates drop and mortgage rates follow, then we will hopefully see the market start to unlock as this will give more buyers the confidence and funds to move. 

What are buyers looking for? 

These are some key factors that may help protect the value of your home if the market is tough.

For some time, it has been widely known that there is a ‘Waitrose Effect’. Research by Property Solvers in 2022  showed properties in locations serviced by a Waitrose had higher values than those without. There will be exceptions to the rule for other reasons but generally it is deemed if the location is acceptable for Waitrose then it is a solid area to invest.

Transport links are very important. They always play a pivotal role so when you are selling it will give you a wider buying audience. Towns that have commuting stations will prove to be more resilient as they will appeal to buyers moving into the area. Easy access to Norwich or Diss station is a strong pull for those needing to get to London, or Attleborough and Wymondham for those needing Cambridge. 

Schools are hugely significant. Many families will base their entire search around a school catchment. When looking for a school, parents look at Ofsted ratings so it is logical to assume that when looking for a house the school may dictate the location. Therefore if you buy a house because of a good school nearby then your buyers will do the same when you sell. 

These three factors are just a handful of things that can give you a wider pool of buyers but also protect the value and saleability of your home.  

If you live in areas where you do not have these, please don’t worry. It just means your home may have to work a bit harder in a tougher market. You can help this.  

Presentation affects price 

There is a direct correlation between price and presentation and if you ensure first impressions are excellent and  your home is well-presented, you will put yourself in a far stronger position versus those near you on the market.  

That just leaves sensible guide prices. Even in the tough market we are in, we are seeing competition being  generated if the guides are attractive. Work with what you have to make it the best it can be and you will ultimately achieve the best result. 

This article first appeared in the Diss Express.

Durrants Residential Area Manager, George Berry, explains why looking at both the sale of your home together with the purchase of your next one can help you navigate the property market. 

Look at the bigger picture when selling your home

Can you have the mindset of a buyer and mindset of a seller at the same time in the property market?
As a buyer, you want to get the best value you can and buy a property for the least amount possible. As a seller, you want to achieve the highest possible price within the market conditions. It is easy to see that these two stances are polar opposites. So where does this lead?

The buyer and seller stance

Those that choose the seller stance focus solely on selling and maximising value without looking at the next purchase. They tend to be prepared to break the chain and go into rented to make themselves stronger buyers.

Those that take the buyer stance and focus on seeking their new home can often weaken their position. If they fall in love with a property but are not in a position to proceed themselves, then any offer is unlikely to be accepted.

It also weakens their negotiating power as a seller is less likely to give a reduction if they are not in a strong position. If you opt for this route, you could potentially find your dream home but left heartbroken if the stars don’t align for everything to fall into place.

In a challenging market, how do we move forward in a way to ensure we are in the strongest position on both sides? It is worth looking at the bigger picture.

Reality is key

Many start the sales process with a view of what they think their house is worth. Agents then may have a mixed opinion on what the value is. I would suggest the agent that speaks to you candidly about the market and the reality of the situation is going to be the most sensible. It might not be what you want to hear but it will be honest.

You will never undersell a property and this is really important to remember. If the guide proves to be on the lighter side, it will generate increased viewings leading to multiple offers and in turn a higher price being achieved. If you base your search on your lower figure, then it will only be a bonus if you achieve more for your property.

What happens more often is vendors are told big figures by agents. In some cases, the vendors drive the guide prices themselves. All that happens is the market confirms it is too high and either you will have limited or no viewings at all. You then have to reduce, potentially more than once. The end result will be receiving offers for less than if you had started at a lower level.

If you take this approach and look at the same time for a purchase, you are likely to be left very disappointed. You may have to accept less for yours meaning you cannot afford to buy your dream home.

Manage expectations

It is an agent’s job to manage expectations. A good agent will then meet and surpass expectations. However, it is vitally important that your expectations are sensible from the start and that you can listen to advice. An agent can’t control the market but they can control how you are looked after and that starts with honesty.

If you take the view that everything is relative you can have the same mindset. If you have to take a drop in price it is likely that your purchase will have to do the same.

If everyone had this stance then the market would be a lot smoother with far more potential sales unlocked that are being prevented due to stubbornness.

We all want everything, and often all at once, but that isn’t realistic. However, you can have more if you focus on your sale and purchase together within the bigger picture rather than isolated incidences.

This article fist appeared in the Diss Express.