Part 1 of 12 – The Basics – ESTATE AGENTS – Getting into home-ownership or property investment
The Basics – Part 1 of 12 – ESTATE AGENTS
Before I start explaining how to buy your first home, become a landlord or how to become a property developer, you’ll need to understand some of the basics first, otherwise, you’re likely to find the whole process confusing and perhaps stressful, especially when using unorthodox strategies to buy a home or property investment, typically for those with a lack of funds and/or good credit rating.
Throughout your property journey, you’re going to encounter a number of different professionals, which ones will depend on whether you intend on becoming a homeowner, landlord or property developer. I’m going to start off with ESTATE AGENTS. Takes one to know one…
ESTATE AGENTS
Estate Agents market properties for sale on behalf of sellers (vendors) in exchange for a sales commission, typically on a no sale, no fee basis. An on-line breed of agent has entered the house selling arena as of late, some of which charge a fee upfront, irrespective of whether they sell the property. Typically, an online agent is cheaper but they have no incentive to sell and it’s been proven; on average, that it’ll cost vendors more to sell with an online agent, because they tend to achieve less for the property. Like all industries, there are good and bad. Finding an experienced agent isn’t enough, you need an experienced and knowledgeable agent that’s proactive and up to date on all legislation, together-with access and the know-how of the latest marketing techniques.
You need to deal with both good and bad agents in order to maximise your opportunities. The grades and qualifications bar is set very low to become an estate agent in the UK which is why it’s plagued with the ubiquitous stereotype. If you want the best property deals from them, then treat them with respect, keep in regular contact and tell them what they want to hear in some instances.
Most want to know that you are serious and that you have the ability to complete a purchase swiftly. This is so they can get paid as quickly as possible. If you don’t have the money and/or the credit to be able to purchase a home or property investment in the traditional manner and you are intending on adopting one of the unorthodox strategies to enter the property arena, then you’re wasting your time and energy trying to explain your proposed methods to most of them. If they don’t understand it; which is likely, then they don’t want to know. You just need to submit an offer amount, in certain strategic ways, and then either try and arrange to meet the seller directly and/or converse your proposed strategy to them via your solicitors.
If you’re intending on buying, controlling or selling a leasehold property, then agent selection could make a significant difference to how the deal ends up. Leasehold is a minefield compared to freehold and there are many other specialist property types, such as HMO’s, commercial, land, mixed-use, etc etc, that should be dealt with by experts in these fields in order to maximise performance.
It also makes a big difference to deal with an agent that has a broad knowledge of the interconnecting industries, such as mortgages, conveyancing, tax, investment, strategy, planning and development.
You’ll be surprised how much VALUE you will gain from selecting an expert level estate agent over the alternative.
Watch out for our next post on MORTGAGE BROKERS.
David Giles – Partner
