Move 2 You

In the last post we started to look at the housing market and how we feel more secure by following the commonly accepted wisdom of the ‘the market’

One of the causes of our inclination to follow the herd when it comes to the housing market is the way we think about the market.

In previous posts we’ve discussed the concept of the “Housing Ladder”.

We strive (or we’re told we should strive!) to climb it – bigger and better. We invest so much time, effort, money and worry trying climb the ladder by moving to larger more expensive houses and by capitalising on the price increases we have enjoyed in our homes.

But the problem about thinking of the market as a ladder is that it leads to us becoming fixated on what is happening to house prices. We worry about them. And this is the reason why we can’t help reading about house prices, talking about house prices.

But should we be as fixated on house prices as we are?

Doesn’t our fixation on prices work against us, particularly when prices are not shooting upwards, by paralysing us with fear?

Think about it.

If prices rise we feel good about it and we are keen to make a move up to the next rung. Buyers are easy to come by and all is good.

But when prices fall or stagnate the story is different. Nobody wants to move, worried that they won’t make as much on their property as they feel they ought to or could have done a few months back.

And if everyone acts in this way the market grinds to a halt.

But what if we think about the market as an escalator and not a ladder?

Those of us that are home owners should think of ourselves as being on the Housing Escalator rather than the Housing Ladder. This escalator can move upwards or downwards in its own right carrying everyone with it.

In other words when house prices move up they move up for everyone – ie the escalator moves upwards taking us with it. And when prices fall they fall for everyone – ie the escalator moves downwards. But relative to each other we all move together.

And this is the really key point here; everyone is moving together on this great big housing escalator and because price rises or falls are all happening to us all we are all keeping our positions on the escalator. And unless you want to get off the escalator completely this should give us all some sort of comfort in uncertain times.

Now that we have challenged our view of the housing market we also need to look at how we make our move up and down the escalator; ie how we sell and buy property.

Selling a house in the UK property market can be an extremely frustrating process as too many people know only too well. But more than that it is a very hit and miss process as well.

Worse still it it’s been this way for a long time and if we all continue to act in a herd-like way it will be this way for a long time to come.

It is like a conspiracy and no-one wants it to change. The Estate Agents generally do just fine the way things are (ok it’s a bit tough for them at the moment), the solicitors do ok, the government collects its taxes and we, the home owners, well we just plod along selling our houses in the same old way.

Think about it – as a seller you are completely reliant on a buyer chancing upon your property amongst all the others that are out there.

So even before the pain of the move has started (i.e. the saga of the negotiation, the surveys , hoping the chain won’t collapse, exchanging contracts and all the rest of it) you are leaving your house sale completely in the hands of fate!

i.e Will the right buyer actually find my property or not?

The way the market works at the moment, if you’re selling you just sit there passively and wait for someone to come and make you an offer!

But what is to say that buyers will find your property amongst all the others? The answer is that it is largely luck. You are being what we call an Accidental Seller.

Think about it; all the houses on the market are being advertised and promoted in much the same way. There is nothing to make any one of them stand out from the others.

What does this matter you say? Houses get sold so surely things must work ok?

Well maybe when the market is buoyant. But what about when things are not so good?

Yes we all use estate agents, but they are passive as well. Sure they will advertise your property in their window, produce a nice brochure and ensure your home ends up on one of the property websites, but all of this is still the same old game – it is waiting for a buyer to take action and to find your property in and amongst all the others they and every other estate agent have on their books.

As sellers we need to think of the market in a different way and more importantly ACT in a different way.

And by this we mean:

• You need to access as many potential buyers as possible and not just those that are actively searching for property at that moment in time but also those who are interested but not active in the market.
• You have to work out from all those potential buyers which ones are more likely to be interested in buying your property.
• You need to begin a conversation with this group of more likely buyers in an attempt to persuade them to make an offer on your home.

If you can do all of these things then you really are becoming proactive and taking control and as such you are much more likely to sell your house.

There is no other topic more guaranteed to get people talking in this country than what is happening to house prices; ok maybe the weather.

When the market moves in the right direction we feel good and we feel more wealthy. And when prices fall like they have done over the last year or so we worry a lot about what the consequences might be and we feel harder up.

It’s in the DNA of the nation. We are a nation of home owners and where we live and what we do with our houses tells others a lot about who we are. We add decking to our gardens, we carry out loft extensions, we knock down walls, build conservatories, our home is an integral part of the lifestyles we lead. It matters to us.

On the one hand just take a look at the TV schedule in an average week. Even now with all the turmoil in the economy there are programmes on every day about people buying and selling houses or developing properties or doing properties up …. if there is an angle on the housing market then there is a programme being made about it.

And on the other hand in the broader press we have been hit with so many stories over the last year about about how much money we are losing on our houses.

Why is this?

Because we read it! We lap it up!

And what do you think is the effect of these headlines on the average man in the street, with a house and a mortgage?

Well it makes us worried doesn’t it? Of course it does. That’s because it is a natural reaction to hearing bad news. But more than that, we start to hesitate about what we should do with our homes. Those of us that want to move put plans on hold, deciding to see what happens to prices before committing to a move.

And this becomes a self fulfilling prophecy and this is where we have been in the last 12 months or so. We are told that house prices are going to fall, so fewer of us are in the market for a new house – i.e. demand falls and guess what – prices fall to compensate.

Now clearly there have been some real problems in the market, no-one can deny that. We have seen for example a massive reduction in availability of finance due to the credit crunch.

But even with this the doom and gloom that is spread just adds to our woes. We develop a “herd mentality”. We feel safe if we act as a group – it is an instinct that goes back as long as we have been walking the face of this earth. If everyone else is doing something then it must be the right thing to do.

Can you see how much of what we do is all about psychology? Our mind drives our actions and if everyone feels bad about the market we feel bad about it as well.

Sometimes the right thing to do is to ignore the widely held belief, to take some control back and to act in your own best interests based upon your own individual circumstances.

What is the market after all?

It is just a collection of individuals buying and selling. So if you want to sell your home and you do manage to find a buyer who will offer you the price you want would you still sit tight and refuse to act just because that was the perceived right thing to do?

Of course not.

That’s all for now but check back here soon for more about why the way we see the housing market is all wrong.

• First of all do your research. Speak to people you know and find out what people are saying about the agents around where you live / or are moving to. Research them on the web and try and find out some facts about each of them; for example how many properties they have on their books, how many they are selling, how long on average houses remain on their books before being sold.
• Go and see all the agents you have decided upon and talk to them. Ask them about their experience and get a feel for what they know about the market and what it is happening in it. Ask them about their professional qualifications. It won’t necessarily make them a better agent but the fact they have taken the time to get qualified might give you some reassurance that they will do their best for you and in the right way.
• Go with your instincts. If you don’t feel comfortable with an agent then they are not right for you. Make sure you find out which agent will be running with your property and spend some time with that person. Do they want your business? Will they put the time and energy into selling your property into that you want them to. This is mostly gut feel and you need to go with your instincts.
• Don’t necessarily go with the cheapest agent. The fees that an agent charges are of course important but the professionalism of the agents and their desire to work on your behalf are also important. Go for the agent that gives you the best across all these areas. Ultimately you need to select an agent that you trust and one that you are sure is working on your behalf. There are estate agents who charge as low as 0.5% who can provide a better service than those 4x more expensive ie 2%. National chains will often be harder to negotiate with on fee levels.
• Spend time investigating exactly what activity the agents carryout in marketing your property. Take a look at the brochures they produce, ask them about their database of buyers, see if they can name buyers that are looking for properties like yours. Ask what other activities they carry out. Listing with online property portals is a given now, but see if they have any more imaginative ideas in terms of generating interest in your property. If you have ideas that are a little different make sure your agent is able to act on them and to put them into practice.
• Do some mystery shopping. Phone up or get a friend to call saying your interested in a particular property. Get a feel for how well the agent deals with your enquiry, how helpful they are and their level of professionalism. Agents that respect your time and don’t make you feel like a number will probably be better at doing the real work; selling your property.
• Discuss the market with each agent you are considering. Through your discussion make sure that your estate agent understands what you want from the sale of your property. You will need to choose an agent whose view of what your property is worth matches your own. Of course if you are provided with a lower valuation you may getting an honest valuation and not a figure that the agent thinks you want to hear.
• Choose an agent that has first rate negotiation skills. This could translate into a higher sale price.
• Look for an agent who is continuing to perform well and expanding due to success. An agent that is performing well is selling lots of properties.
• Examine the contract closely and fully understand what you are committing to. You must be happy with the contract so make sure you discuss and clauses in it that you are not comfortable with it or do not understand. You should not sign contracts you are not happy with. Overly restrictive contracts are not to be entered into lightly. Flexible contracts can indicate that the estate agent is confident about providing satisfaction to the client. Find out if the contract is a ’sole agency’ or ‘multiple agency’ contract? Multiple agency contracts are where you get several agents to sell your property, the one who sells the property gets the commission. Multiple agency contracts will most likely involve higher fees.

I hope this helps those of you that are about to embark on the sale of your home. Don’t forget that the move2you website is a tool that can be used in conjunction with an agent.

One of the key benefits of the site is the ability to use it to find people that are looking for properties just like yours. The site works like a dating site for property and as soon as you have a match with a prospective buyer you can use the site to make contact with them safely and annonymously. You can at any stage choose to get an agent involved or deal with it the sale yourself (maybe in a future post we could look at the pro’s and con’s of private selling versus using an estate agent).

Take care.

This article is the first of a number that will be published over the coming weeks looking at what you can do to both decrease the time it takes to sell your house and to get the best possible price.

Preparing your house for sale is always important. When the market is buoyant you are competing for buyers with everyone else and when the market is down, like it is now, you are trying to encourage buyers to make an offer and to maximise the price you get.

The golden rule, as anyone who sells for a living knows, is to put yourself into the mind of the buyer.

So in the case of selling a property, ask yourself what does someone who is looking around your home want to see? What will make them want to put an offer in and give you the price you are looking for?

Well below is a long list of really useful tips that you can put into practice if you are about to put your home on the market.

• Firstly go and view some other houses already on the market and see how the ‘competition’ are doing it, good or bad. Learn from what you see! How did you feel when you pulled up to the property, as you walked through the garden and then as you walked through the door? First impressions count.
• Be clean & tidy – I’m talking about the house of course … but also you as the seller!
• De-clutter – leave the house as a blank canvas for the potential buyer to picture all the wonderful creative things they can do with it once they move in.
• The outside of the house matters as much as the inside – first impressions count so remove that broken down washing machine from the front lawn and take it down the
• In fact go one step further and keep not only the house and garden but also the surrounding street absolutely spotless. Make sure you trim hedges an mow lawns, pick up litter etc.
• Use good, generous lighting inside that displays your home in the best possible.
• Remove highly personal artefacts (ornaments / posters etc) that may clash with other people’s views and tastes.
• Get an honest opinion from a friend. Sometimes we can become blind to the weaknesses of our own house.
• A lick of paint on dirty interior walls will always make a massive difference.
• Deep clean dirty carpets so they look like new and remove those nasty odours.
• Think about getting rid of pets temporarily, not everyone likes animals and their smells. Then again some people love animals – your call on this one.
• Have the house viewed at its brightest time of day … if you can.
• Have the house viewed at the quietest time of day …if necessary and if you can.
• Make sure any building / DIY projects are complete (shelves, tiles etc) and tidied away.
• Leave fresh flowers out, it makes the house feel like a home.
• If it’s you doing the viewings then show the house when there are as few of you there as possible and certianly not over dinner. The house will feel bigger if it is not full of people, dirty dishes and noise.
• Present rooms as bedrooms rather than a toy room / study etc – and market as such (ie a 3 bed house rather than a 2 bed with possible 3^rd).
• Let the agent manage the viewing rather than do it yourself – most buyers feel more comfortable this way. Having said this make sure your agent actually sells your property and doesn’t just open the door and let the prospective buyer in. You are paying them a hefty fee after all.

There are lots of tips here, most of them are on a similar theme – one of making a fantastic first impression for your buyer and putting them in the right frame of mind to make you the offer you want.

Hope this helps. Going forward there will be many more posts packed full of tips on how to sell quickly and at the right price.

Until then… take care.

Ok, back again.

We were talking about HIPs in the last post. The fact that you need to spend £300 to test the demand for your house. It’s the law and there isn’t much we can do about it.

As much as we don’t like it and as much as we want it to change you do need a HIP if you want to market your property.

But what about reducing the risk of the gamble? What if you just want to test the market (like you used to) to see if there is any demand for your property before you actively market it as being ‘for sale’?

Wouldn’t it be great if you could instantly see the demand for your property, before you made the decision to pay the £300 for a HIP. If demand was poor wouldn’t it be good to know this before you write the cheque?

Well …… now you can!

Ok it’s a bit of a plug but we’d like to talk you through the move2you website, a website that lets you test the water first without any need to pay for a HIP.

Property websites are nothing new of course, we are all used to searching for properties when we think about moving. These websites don’t help the seller of course - they are just the online equivalent of putting your property in an estate agent’s window.

But this isn’t the reason for the post. As we talked about last time the problem right now is being able to test the market and see if your property is going to generate any interest at a price you are happy with before parting with a substantial amount of your hard earned cash.

This is where this site comes in. . It’s simple: it’s a bit like a dating site for your house. It matches people’s interests with people’s houses and then you take it from there.

A dating website puts people together – it takes information about what kind of person they are (age, job, hobbies, interests, looks etc.) and matches that with what other people are looking for (because they’ve told the website they’re interested in people who are … i.e. “this” age, with “this” personality, “these” interests etc.)

Move2you does the same thing, but for houses.

You let the website know that you’re interested in “this” kind of house, in “this” price range, in “this” road, village/town/city, with “these” characteristics.

And owners let the website know that they own “this” type of house, in “this” price-range with “these” characteristics.

And here’s where it’s different from other property websites – not only does it match owners with people looking, it also gives them the ability to “post a virtual note to them” – anonymously (unless you want to give your name).

So …. The site tells you who might want to “move2you”

And …. you can log an interest in someone else’s area or street to say “I might want to move2you” helping them see the demand for their property.

The really, really neat thing about this site is that you don’t need to be marketing your house to use the site - you could be “just interested” to see how many people want to live in your place. That’s why you don’t need to pay for a HIP - because the move2you website matches interests with properties even if they’re not on the market.

Of course if the demand is good and you do want to move, then you can take things forward.

So what does this mean for you? Well:

• You don’t need to gamble on a HIP.
• You can instantly see the demand in your place before you put it on the market.
• You can safely contact genuine potential buyers.
• You can sell your house by finding buyers directly.

And if you’re buying a house as well

• You can be the first to find out if a place you like is about to come on the market.
• You can safely contact genuine potential sellers.
• You can increase the chance of securing your dream house by getting in there first.

Sounds great doesn’t it? Well this is what you need to do to get started:

Well the first thing you need to do is register for free at www.move2you.co.uk

Then you add your interests – i.e. the locations you would be interested in moving to. This helps to create the demand.

Then you add your own property so you can see the demand.

This is when the matching process starts and you get the information that may help you find your buyer, and your next place. It could save you a packet too.

And what’s more, you can contact potential buyers safely and anonymously to see if they really are interested. If they are then it is up to you how you take it forward.

Seeing the level of demand for your property can be accessed for free. Don’t forget to do this the traditional way you need to register with an estate agent and then pay your £300 just for the privilege of seeing if anyone wants to buy your home.

Find out for free, or gamble £300. I hope you agree, that’s not too hard a decision!

Have you seen or heard the news about the housing market recently? Did you hear that famous phrase “green shoots” used to describe a slight upturn in house prices?

Well, don’t be fooled into thinking that everything’s suddenly going to turn round and be hunky-dory! As much as we’d all like there to be a swing to upward prices, that’s still some way off.

But there are signs of change … some estate agents are saying that there they’re getting more instructions now. Some are saying that sales volumes are rising.

All well and good.

But we all know that there are real, deep-rooted and fundamental reasons why it’s still going to be a while before it becomes easier to buy and sell your house – so moving house now is still going to be more difficult than it was a couple of years ago.

And one of the main things that’s holding back the market?

The massive reduction in the availability of mortgages.

Oh, and not only are there fewer mortgage options around than a couple of years ago, the banks are now so worried about the risk of lending that they’re making it about as hard as they can to qualify for a mortgage.

And if people can’t get mortgages then they can’t move house.

And the whole market slows up.

Well … over the last few months we’ve been on a fact-finding mission … we’ve been researching not only what’s really going on with house prices and with volumes, but also we’ve been uncovering ways that we can all beat the system … secrets that we’ve discovered that will raise your chances of getting the (right) mortgage you need (or anyone else in your housing chain needs – so it’ll be in your interest to spread this news around.)

Here’s the background:

(a) from 1997 – 2001 house prices were climbing steadily, and credit availability was carefully controlled, with interest rates at a consistent level;

(b) from 2002 – 2006 house prices started shooting upwards, and credit availability became much more freely available (fewer constraints) and interest rates were on a downwards path, and looking consistent;

(c) from 2007 the game changed – prices started declining and credit availability all but dried up … despite interest rates falling yet further.

So we have 3 factors – house prices, credit availability and interest rates. In the crazy years up until 2007 all 3 were working together to create – what is now clear to anyone who looks – a market that looked fantastic (if you were on the property ladder already), but that was built on sand … and heading for a fall.

The response to that fall is curious – properties are now cheaper than they’ve been for years, and interest rates are similarly cheap … normally these would be conditions that drive the market relentlessly upwards.

But here’s the rub – the availability of credit (i.e. mortgages) is sparse, and people’s confidence is low, so we have a bit of stagnation.

So with that background explanation we can now reveal what’s going to be coming up on this site – it’ll be packed with tools, tips, techniques and secrets that – at the very least – will arm you with what you need to know so you can buy the house you want … and make sure you’re selling to the right kind of buyer.

Because … despite what we all read in the press … people do still want to move house … they just lack some tools and ammunition to be able to do it.

Here’s a taste of what’s coming up:

• 7 different ways to raise the deposit you need (even if you think you can’t)
• How to give yourself the best chance of getting a mortgage (how to beat them at their own game)
• 11 mistakes to avoid that will stop you getting the right mortgage for you
• A secret way of moving into the house you want with no deposit
• The latest rates and deals – and conditions you need to be VERY wary of
• What the “clever people” (who are designing up & coming mortgage products) think will happen to mortgage rates – and it’s not what you think!

So, that’s a small sample of what’s coming up in the days and weeks ahead.

And there’s a whole lot more than just mortgages too. (More on that to follow!)

We’ve been researching what works … and now we’re ready to share it with you … so you can move house successfully.

We look forward to sharing this with you! See you back here tomorrow! (Don’t forget you can use the RSS facility so “we come to you”, it just makes it a bit easier for you to keep updated.)

And if you have any comments to add, please feel free in the forms attached here!

See you soon.

Chris

Sorry, did I say “house price UP”? That can’t be right can it?

Well take a look at this:

No, not the shocking news that Fern’s wore a Star Wars frock. It’s the other bit of shocking news that they’re shouting out.

Pretty authoritative don’t you think? What, you don’t believe the Daily Express?

Well, that’s the Express’s take on data released by Halifax yesterday, who report that house prices rose by 1.9% in January, compared with December’s figures.

So that’s it then … we’re all saved and everything’s going to be OK.

Well, err … it depends you believe, really. You see last week Nationwide reported that house prices for January fell a further 1.3%. They also said that fears about job losses were putting people off buying homes.

So there we have it – prices down by 1.3% or up by 1.9%. You choose!

Well, don’t be fooled by what you read in the papers. You see, they will report on “the market”, and they’ll be reporting on “the average” house, or on properties that sold “in January”.

But those aren’t your property. You’re not selling “the market”. You might be thinking of buying or selling A house in A street in A town / city. And what happens to the price of your property is only dependent on one thing.

The price that Your Buyer is willing to pay for it.

So what affects that price? Not surprisingly, it’s the amount of supply and demand for similar properties.

Now … how much demand is there for your property? How can you find out?

Two ways …

(a) pay £300-ish for a HIP and start to market your property (using an agent, or DIY), and wait and see if anyone takes the bait.

Or …

(b) have a look on www.move2you.co.uk to see the level of demand for your property, street, area or town/city, even if you’re not on the market.

It’s like finding a date for your property – move2you matches your property with what people have said they want. And you can contact those people safely, securely and anonymously to see if they’re really serious.

All before paying for a HIP or going to any marketing effort.

If you’ve already claimed your free account, see the latest demand for your place.

If you haven’t already looked, then claim your free account and see the demand straight away.

Go on … it’s free. What’s your place really worth?

All the best

Chris

So the Bank of England lowered interest rates to an all time low, just 1.5% the lowest rate since records began 315 years ago.

So now we have the debate about who benefits, who loses. If you’re trying to sell your house at the moment this should make your property that much more affordable to potential buyers.

That is of course if the banks pass the rate cuts on and if they ease up a bit on their lending criteria.

The best rates at the moment are reserved for those who lay down a 40% deposit; yep that’s right, 40%. Fat chance. That puts the best rates out of reach for the vast majority of buyers. And for the rest you need an impeccable credit rating to be approved for one of their other deals.

So the rate cuts are good for those that have a tracker without some clause that means the banks don’t have to pass the cut on, but if we don’t see an increase in the number of mortgages approved we aren’t going to see a recovery in the housing market any time soon.

Of course there are buyers out there, it is just that much harder to find them at the moment. If you’ve spent money on a HIP and you’re ready and waiting to show buyers around your freshly spruced up property you are going to be waiting a long time.

There is something you can do to help yourself. You can use the UK’s first property matching service that puts buyers and sellers in touch.

move2you.co.uk instantly lets you see how much interest there is for places that match yours - for FREE. It rates the quality of these matches and enables you to contact these potential buyers. If they contact you back you could be on your way to selling your property!

Sound good? It’s got to be worth checking out. It’s completely complimentary to any activity your estate agent may be carrying out on your behalf and the more people that use it the better it will be for everyone using it.

Until next time.

Well, another “helpful” move by the government today … they’ve now removed the 28 day grace period to get a HIP before selling your house.

That’s right - at a time when the housing market is in the doldrums (”under extreme pressure”) it is now necessary for a seller to spend money on a HIP before marketing even starts.

Well, here’s the good news … with move2you there’s no need for a HIP! Radio 5Live had an article today saying that there’s no way at the moment for a seller to “test the market” before actually deciding to sell.

Their conclusion was, indeed “no”, there isn’t a way of testing the market.

Well you know - and we know - that’s not actually the case. With move2you, for the first time, you have access to a unique service for selling your house - precisely the ability to “test the market” before really deciding to sell.

So sign up (for free), put in your address, and see who has matching interest in your house / road / area / town.

And see the quality of that interest.

Contact those buyers anonymously and safely to check if they really are interested.

And if they are - fantastic! You can take it from there.

And if not - then you’ve just found out some useful information before spending money on a HIP.

So why wouldn’t you?! And why wouldn’t all your friends?!

Spread the word and get everyone you know to sign up (for free). Even if they’re not thinking of selling …

- they may just want to know the demand in their place;

- they may know people who are interested in moving …

… which helps everyone.

Good luck. We look forward to hearing from you!

Chris

Has anyone else noticed that there seems to be a bit of a surge in the number of houses on the market at the moment? This is purely anecdotal but in my home town at least there has definitely been a increase in for sale signs around and about the place.

There could be a number of reasons for this.

Maybe sellers are beginning to believe that prices have fallen as low as they are going to go.

Perhaps they are beginning to get fed up with hanging around and just want to get on with things.

Or maybe houses are stacking up because no-one is buying them!

There could be many reasons of course whatever the reason one thing is clear; they aren’t shifting. If you stick you home on the market it won’t be selling anytime soon.

Buyers are just not in the buying mood.

And the mixed messages coming from the Treasury about Stamp Duty really don’t help, we need to encourage buyers not put them off.

The fact of the matter is that sellers can’t pin their future success in the Housing Market on help from the government, the Bank of England in terms of Interest Rates or anyone else for that matter.

Sellers need to take back as much control as they can. I make no apologies to repeating this message time and time again in these posts, but it is important.

If you want to sell your house and you want to make a move then you need to do everything you can to ensure it happens. You can’t sit back and hope – if you do it will cost you time and money.

If you want to sell you property, do everything you can to find a buyer, don’t leave it to chance. Otherwise you’ll have that ‘For Sale’ sign outside your house for many months to come.