Selling Property

Homeowners often believe that they can cut legitimate corners with their home whether it comes to builders, solicitors or estate agents. However, what are they losing sight of and why shouldn’t they do this?

Don’t Cut Corners with your Home!

Full transcript below:

Alex: When it comes to our homes we form such an emotional connection and for many of us we work very hard over numerous years to be able to afford the property in the first place so when it comes to selling our beloved home, many homeowners lose sight that it’s our most sizeable financial asset. So why do some choose to cut a corner? It defies all logic to instruct a conveyancing solicitor because they were cheap, or an estate agent who will sell your home for £50 for the same reason, or have that extension done because the builder could get lower-quality materials. My absolute top tip is to never cut a corner when it comes to your home. It is the one asset that has been historically proven to be the safest investment you can make over the medium to long term. So, if you’re going to add value with an extension get it done to the appropriate standard. A cheap estate agent or solicitor will only cost you down the line. Value for money does not mean the cheapest or indeed the most expensive deal, it’s about getting the job done for the best result at the right price. As with everything in life you get what you pay for, so don’t make it at the expense of your most valuable asset.

It’s an age-old question – who should show people round when selling your home? Should you do it, as you know your home best, and you’re familiar the local area? Or is it better to leave it to the estate agent who has no emotional ties to the house? Should the buyer ever meet the owner and if so when? Property consultant Alex Goldstein discusses this issue and shares his advice on this often debated topic.

Property expert Alex Goldstein discusses how to manage a buyer in a hurry when you are not sure you’ll be ready. It is this months’s property hospital question from listener James for the Alex Goldstein Property Show.

How to Manage a Buyer in a Hurry

Full transcript below:

Alex: The property hospital is all about me answering your property concerns and demystifying the process. Now this week I’m answering a question from James, who’s got this to say.

James: Hi Alex, my house sale is under offer and going well and we’re moving quickly in the right direction and the purchasers in a great position, chain free and cash and it’s put me under pressure to exchange and only leave me a couple of weeks until completion. How do I manage this situation and how can I pack up my home in the mean time?

Alex: James, appreciate the question. Now if you’ve got a buyer that is clearly in a strong position and enthusiastic about exchanging, then it is well worth keeping them onside. Shake their hand gleefully and honestly, run for the hills, in other words get them signed up ASAP so you’ve got the security that you’re deal has gone through. Up until the point of exchange transaction is virtually meaningless. Now if you’re worried about the relatively tight timeframe and packing up your home, don’t worry. Many home removal companies offer a home packing service, you literally don’t need to do anything, and their team come in, wrap, pack your entire house and you can even ask them to unpack at your new home. Surprisingly I have to say it really isn’t a huge amount more money and really worth outsourcing this fairly tedious task. I hope this helps.

You see a property that you’d like to buy that is being sold through an estate agent in town. Do you assume that you should ask the same estate agent to sell your own property? Should you use the same estate agent twice? Property consultant Alex Goldstein discusses the issues with doing this and reveals that there is another way to approach it.

Using The Same Estate Agent To Buy And Sell

Full transcript below:

Alex: The property hospital is all about me answering your property questions and concerns when it comes to your experiences in property. Now this week I’m actually answering a question from Helena who’s got this to say.

Helena: An estate agent has launched a property on the market that I really like but I need to sell mine. I’m strongly considering instructing that same estate agent to sell my property, so I can secure the one I want. What do you think?

Alex: Helena, please be careful. Instructing an estate agent in the sale of your own home just because they’re handling the sale of a property you would like to purchase is not actually the right way to go about it. Now many think in this situation it will mean yourself and the agent can sort of engineer a bit of a situation so that they sell your home and then you get to buy this other property but it’s really not the case nowadays. Of course, the agents going to love to sell your home, they’re sales people after all, however your reasoning for choosing them isn’t quite right. Now remember an agent is legally bound to report any offers or interests on a property right up until the point of exchange to that homeowner. Now, say what would happen if a cash buyer liked the same property as you. The estate agent would have to report it to the vendor. That purchaser is in a much stronger position than yourself and would in all likelihood secure that property. The estate agent would not be allowed to hold back this cash buyers offer just because you were there too, albeit you would certainly be noted as an interested party. It may be that this agent is the best option when it comes to selling your own home, however when you instruct an agent to sell your home you must base it on more than just the fact they’re selling this other property you would like to buy. Consider company viewings, marketing, editorial, additional office exposure, front of office staff, getting under offer to the exchange procedure, the list really does go on. The idea of having some form of leverage over the agent or indeed the other homeowner really isn’t the case nowadays due to the legal standards set within the estate agency sector. Once you’ve taken this element out of your thinking, the right answer and your reasoning for wishing to come onto the market will become clear. Do give me a call if you would like to talk it through further.

Knowing the inside track on the property market and how to differentiate between estate agents will be critical to selling your home in a post-Covid market. Listen to my live talk on how to choose an estate agent now!

How to Choose an Estate Agent

Full transcript below:

So thank you for joining me and this is very much a talk on how to choose an estate agent in what is a tougher market, potentially what will be a different market and very much in conjunction with agents here to help. So really appreciate their support as always. So as everyone knows yeah sure we’re in uncharted times but there are a lot of reasons I have to say to still stay positive. It was predicted in the property industry that we would see a surge in market activity following the general election and the Brexit result and sure enough, in February, this was just prior to lockdown, the UK had the highest number of mortgage approvals since January 2014. It was shy of about 74, 000, so a proven surge then and i predicted, along with a lot of other commentators that the same was going to happen again in a post-Covid market and when it was slightly more behind us. Now this was proven on Wednesday when the property sector was more released and the right move reported, again, these figures are incredible right? We’ve reported a 45% increase in website activity. 70% increase in inquiries and over 2 000 properties were newly launched within five hours of trading. So that is quite some staggering figures and some real positive news out there. But look, don’t get me wrong, the market is of course going to be different. It’s likely to be tougher and there’s going to be a bit of turbulence along the way, however, as I sit here, there are some key areas that you’ve got to get right. If your sale is going to go with a bang. We’ve had a tougher market now for a while it’s likely to continue and this afternoon in a pretty short, sharp and to the point discussion I just wanted to outline what I feel are the key criteria to look at when deciding to choose an agent to sell your home. How to differentiate between them what the vendor needs to know and how to ensure that you’ve got the best team around you. So prior to this and even more so now, many of the frontline values and estate agency practices were under a huge amount of pressure to perform and I used to be that side of the fence and it means sometimes that you’re incentivized to list a property rather than to necessarily sell it. The agents are motivated rightly or wrongly by targets, KPIs and spreadsheets and this can sometimes cause a conflict between giving what is the right advice and getting the instruction, and it’s a very, very fine line. And I’m not saying for a moment that this is a bad thing I’m merely saying that it’s something to be mindful of. So, look, who am I? Very briefly. A why do I feel that I can make these points?

So, as I’ve alluded to, I am a former estate agent myself, but I used to be with some of the biggest names in the country and other consultancy practices for about 18 years. I’ve now got my own business and I give them the inside track on the estate agency and property sector when it comes to buying and selling their homes. Bit more unusual, I’ve actually got a footing in London and the London home county markets and the current consensus I feel is that the vast majority of buyers and indeed sellers just want to get on with it. Lives have been put on hold and yeah sure the market is a bit mixed. We’ve seen a huge surge at the moment but there are some key agency cornerstones that you need to master to ensure that your sale is going to go with a bang and then make sure you’re ready for these, so as I see it, the key points. The first one and the moment is experience because as with any business sector out there, yeah of course there are always the rogues out there but you need to ensure that your agent has earned their time working at the agency, coalface if you will, for a good number of years selling property. It’s bizarre speaking with the clients first thing this morning it’s just not the same as insurance and it’s one if not the only emotional purchase we ever make. And rarely is it with more money or more associated emotion. So, look if you haven’t been there before as an agent, you’re never going to be able to gauge a situation and more importantly, actually nip situations in the bud before they actually occur. The best thing is to check out your agent on LinkedIn to get a true feel for their experience. If they’ve hopped across numerous sectors, over the week, over the years. They’re just not going to have the battle-hardened skills to deal with a given situation nor get the best figure from a would-be purchaser. And I do mean battle hardened. We’ve been through a lot in property in recent times, recession, Brexit and all of that you need to have been there and done it and got the t-shirt in order to give the best possible advice and get the very best out of any given situation. So that’s the first point.

Second point, again a lot of people overlook this and I’m at a loss as to why but, the front of house team. So, these are the key individuals back in the estate agency office and they should be your primary focus when choosing your agent not the valuer who’s pitching for your business, sat in your sitting room. Those are the salespeople but equally so is the front of house team because they are the first individuals to speak with interested parties, deal with walk-in inquiries, telephone inquiries. They need to be able to talk fluently enthusiastically and knowledgeably about your home. It’s be more likely therefore that you’re going to secure viewings and it gives viewers confidence in the agent as well so that they in turn can get the best out of them. Make sure that you ask those on the front end, the front of house team, to see your home themselves. Even if it’s virtually, of course at the moment, before it goes onto the market because if they’ve seen it, as with everything in sales, if you’ve seen it you can talk about it more confidently and from a position of strength.

Next point on the front of house team is just to also ask how is your sale going to be handled once you go under offer. And to be clear, selling a property is actually the easy bit. You’ve got to keep that window from going under offer to exchange as tight as you possibly can. You need a designated sales progressor as they’re called and again one who’s got the experience. I like to think of these people like little Yorkshire terriers because they go after all the parties, they push them very hard to get the deals over the line and they never give up. They constantly nip away, and they really are amazing people, but they are worth their weight in gold. And again, make sure you’ve got a good one on your side.

The next point is viewings. So of course, we’re in uncharted times. It’s still a moveable face on how best to conduct these and currently agents um they’re not necessarily allowed to accompany unless there’s very strict guidelines in place and the doors need to be all opened up and social distancing in place so again it’s not what it was. However, prior to lockdown and we will eventually come back to this. Is that I’d always say be wary of agents who can ask you to conduct the vast majority of the viewings because as I see it it’s slightly a lazy estate agency and it’s not necessarily again in your best interest as vendor. Showing potential buyers around a property is an art and the most experienced agents know exactly what the viewers are looking for and how to get the best out of them. So one of the little tricks I used to do is that you’re showing someone a property and they make an enthused comment about, I don’t know the breakfast kitchen so what do you do you finish the viewing in the breakfast kitchen. So, the last thing they actually remember is the breakfast kitchen. It’s little things like that you don’t want. Just a simple door opener so it’s a key but important point you as the vendor. Again, it’s different at the moment sure but make sure you’re not in the background. You can’t be in ear shot because you want the genuine feedback and that is so valuable um and important. And yep I agree virtual viewings are in place and I am going to come back to these in a moment. As I mentioned at the start, I’ve had a very good question in advance about this and the virtual viewings. Again, we just need to talk through.

The next point is marketing so look before you choose an agent mystery. Shop them. Always, always investigate their marketing collateral. How well are you treated as a buyer? For example, do the front of house team know their stuff do they ask you the right questions? Because an instant fail for me is when you call them up and the agent says I’ll just get the brochure and check. You’ve already got the brochure so what’s the point. Look through the brochure examples. Check they’re all well designed presented and outstanding photography and I do mean outstanding. Brief descriptions, floor plans and site plans as well where relevant. Game check for typos. Are all the descriptions amazingly similar because if it’s a copy and paste job, you may just want to part ways with them. Take of course a look at their web portal presence, right move and on the market social media activity, videos editorial and PR coverage. It all counts, and it really is not just about online presence. Check and ask your agent how many proceedable cash buyers could they instantly pick up the phone to. It’s a good sort of test as to how straight talking your agent is because as I said, if they say any more than about a dozen. Um yeah, they may be uh wishful thinking.

Perhaps the next point, again guide price. Common tactic as I think we’re all aware, but you don’t necessarily appreciate it when the agent is around your home is a common tactic shown by, I have to say the less scrupulous agents to secure your business is to suggest a guide price where it’s got you planning your next holiday in the Bahamas. Go with your gut feel. If it sounds too good to be true what do you know, it usually is. Buyers are very well researched nowadays, and your guide price needs to be realistic and, on the fence, because if it is, you’re going to get the interest. If you don’t and you over pitch it, you’re going to be one of those properties that languishes in the market too long and you’re going to have to regularly reduce your price and it just sends the whole wrong message to the market and the whole thing becomes stagnant. I think a lot of people don’t fully appreciate this creates a far greater problem because it unnecessarily adds to your digital footprint. Your online history, all these websites record your market activity and you can never delete it and it’s something just to be aware of. You need to critically trust the agent who gives you a realistic guide price but please never ever instruct an agent who just quotes the highest price. It’s much more than that.

The next point on how to choose an estate agent, the last point actually will be slightly taboo, it’s commission. It’s fees. It’s a bit of a false economy to strong-arm the agent into a low fee or just to go with a cheap agent because you might congratulate and high-five yourself for securing a better fee than anyone else but here’s the important thing, ask yourself if the agent is on a low fee, how incentivised are they going to be to put in the effort to sell your home? Not a lot because the small percentage that you might pay in addition for a better agent is a small drop in the ocean compared to the extra thousands. They’re motivated now to secure you at the negotiation stage. You need to remember estate agents are often rewarded by their commission. That is their reward and if you take that and you whip the carpet from under their feet. They’re instantly disincentivized and they’d much rather look after another property that they’re going to get rewarded for it. Makes sense? I’m not saying go drastically overpay for your agent but again it comes to the guide price element. On the fence you know what the standard market rate is that’s what you should be aiming to pay um as well.

So, look, overall, from this talk how to choose an estate agent it’s experience, it’s the front of house team, it’s viewings, marketing guide price and fees but they’ve all got their respective roles to play. It’s how they all merge together with the appointed agent that is critical. In today’s very rapidly changing market and look personally for me my highlights are it’s got to be attention to detail. And experience that’s that word has just cropped up in so many of the points that i’ve gone through. Experience and again the front of house team. Those are the things that are actually going to pay dividends.

So I hope that’s been of use and that’s my take on estate agents. I mentioned at the beginning a very good question about the whole virtual viewing arrangements at the moment. And my take on it um as I see it, and this is new territory. I think for everyone it’s a great tool don’t get me wrong. But I don’t see it as an advantage to have them freely available by putting them on Rightmove and everywhere else because as I see it, have you thought about the security risk they pose? You’ve got potential high value items and you’ve got a very clear guide around your home. So, what I’m saying is by all means, advertise the fact that you’ve got one and it’s available, but it needs to be, as quite a few of the good agents are doing, accompanied online by the agent, i.e. the agent has the video tour on their screen sharing with the interested party who’s been pre-qualified and vetted but it’s the agent that retains that file. The agent holds that video and that way the agent can go and chase up potential interest and again get the best out of them. If you have one of these videos or indeed, your property online, who are these people looking at your video? Who are these people looking at right move? Yes, an agent may say we’ve had 200 hits this week but at the end of the day right move doesn’t know that information. You cannot as an agent go and follow them up and that’s why I always say less is more. Put less information online, have potentially interested parties engage with the agent to say you didn’t tell about x can you tell me more about why? They’ve then rung and engage with the agent. The agent gets all their details. Give them the answer and more importantly go and follow them up. So, as I said, virtual viewings certainly have their place. It’s early days but again to have it freely available on all these websites. I’m not sure that’s necessarily the way forward at the moment because you need to tightly control who’s viewing it and go after them as well.

And look if there’s any other questions, feel free to get hold of me or indeed have a word, the website is alexgoldstein.co.uk and really hope that’s been of use to everyone. No doubt see you soon. Thanks again.

Full transcript below:

Alex: Believe it or not UK estate agents are actually the cheapest in the world. America for example is 10% for your agent, Australia it’s 4% and in Ireland it’s 3%. The general average for the UK is between 1% and 2, something like that. Whilst it may feel great to you to squeeze an agent right down on his commission and get a deal, at the end of the day is that agent going to be motivated for you? Is he really going to be pushing to get you that extra £5-10,000 on that accepted offer, probably not. If he’s on a very mediocre fee I can tell you now, he’ll just want it straight off his books, so you instantly damage your sale. My advice to a lot of clients is to strike a sensible chord, have a commission right on the fence, if you feel it worthwhile do an incentivised, a staggered fee, so that you know that your agent is truly motivated in your best interests.

When you deal with estate agents, how do you stay at the front of their mind so that you are the first person they think of? Join property expert Alex Goldstein in this educational discussion

How to stay front of mind with an estate agent

Full transcript below:

Linda: Alex, I’m on the market with an estate agent at the moment and things are ticking along but how can I continue to get the best out of them and ensure that they’re always pushing my property?

Alex: Linda, great question. One of the best things you can actually do is get the front-of-house team or the office-based staff to view your home. The more staff that have seen it, the more they’re going to remember it and they’re then going to mention it to the buyers out there. The other thing is, I think you need to stay in touch with your agent but do keep it brief each time. Remember agents are salespeople and they’re often short of time, so having a 30-minute telephone call is just going to clog them up and let’s face it, I would much rather they were using that 30 minutes on the phone selling your property. So, really keep it short and sweet with the communication, that’s the key. Again, on that point, remember estate agency is of course, it’s a people business, so therefore be nice as I know you would be, but people always go out of their way to help anyone that’s great to get on with and keep a solid personable rapport with the agent. Really, the ultimate tip and trick here, stay front of mind with your agent, go and buy them some cake and seriously I do mean that, pop by the bakers, get them a selection of cakes in a box and drop by the office and say that you were thinking of them. So, when they’re eating them, and the other office staff are asking where these cakes come from, they’re discussing you and your home, and again in other words you are front of their minds and you’re being a great client and therefore they will continue to go above and beyond for you. I really hope this helps.

When it comes for the time to sell your property, most homeowners get themselves in an absolute spin and it’s not surprising.

They get so many thoughts and advice from different sources. It doesn’t matter whether it’s the meet, or it’s online and it’s suppler and it’s their algorithms, or it’s the television and it’s Phil and Kristie of “Location, Location, Location”, or it’s friends and family, or it’s three or four estate agents, it sends you in absolute circles. So how do you actually cut through all of that and choose the best estate agent for your property and your needs? Now if you listen to Phil and Kristie for example, they always say well go with an agent that’s got the greatest online exposure. That’s where it’s at and that’s, yes admittedly, is where about 90% of all property searches start. But are they possibly missing the point?

A lot of property owners really feel themselves left with three choices at the end of the day when they’ve seen their agents. Do you, first of all, go with the agent that’s given you the highest guide price? The one that’s given you the lowest fee? Or of course, the one that’s given you the best sale speak and best presentation? And often clients go for a combination of these and they think that they’ve actually got all their bases covered. But at the end of the day, they haven’t. And they fail to overlook…sorry, they fail to look into the most important factor, and that actually is the estate agent’s front-of-house team. At the end of the day, the people selling your property are sat in the estate agent’s office. It’s nothing really to do with the chap that sat in your kitchen, talking you through everything. Of course he’ll be in the office and taking a few of the calls, but it’s his sales team, his sales force back at base that are really driving your sale. So my advice to clients is to get those other staff members around your property. They’ve seen it in real terms and they can sell it effectively.

Are you fed up with estate agents having had the initial pushy salesmanship and then having to constantly chase them for viewing feedback and to remain proactive? There is another way and this video explains all.

Sell Your Home With A Property Expert Guide

Hello, I’m Alex Goldstein from Alex Goldstein Property Consultants. Are you fed up with estate agents? Do you initially get the pushy salesman approach, and then it’s left up to you to constantly chase them for viewing feedback? And, it’s over to you to spoon-feed them to remain proactive? Wouldn’t it be great if there were someone like TV’s Phil Spencer who could step in, and stand by your side, and guide you through what is one of life’s most stressful experiences? I’ve been in the property sector now for 15 years working for some of the UK’s most renowned estate agents, so I know what you should and should not do. Wouldn’t it also be great if you didn’t actually have to pay anything for this service, as my fee is taken out of the appointed agent’s commission? I look forward to working with you, and give me a call so we can chat through the options available to you.

Property Consultant Selling Services – How can I help?

Full transcript below:

Selling your home can be a stressful experience, filled with uncertainty and mixed emotions while an abundance of estate agents are all vying for your business. So how can you be certain you’re making the right choices when deciding about one of your most important assets. You might be confused as to which estate agent to choose to sell your home and are wondering whether to go with the one who gave you the highest valuation or the one who charges the lowest fee. Are you thinking it’s better to go with an online or hybrid agent? Maybe you think that all estate agents say the same and do the same and are only interested in their profit margins rather than your best interests. Or are you one of those people who’s struggling to sell, and you just don’t know why. Perhaps you’re going through a truly difficult time such as divorce or bereavement and the thought of having to overcome yet another hurdle just seems a bit too much at the moment. If any of this rings a bell with you then I’m here to help. This service comes at no extra cost to you as my fee is taken out of the appointed agents standard commission. Now, I’ve worked for over 15 years in the property sector and in a former life an estate agent myself for some of the most prestigious names in the industry like Knight Frank, Cluttons and Strutt and Parker, so you can be assured that my advice comes from an established history of helping clients just like you. Think of me as your personal right-hand man, guiding you through the perils and pitfalls of estate agency and giving you an experienced insiders take on it all. From the outset my aim is to be your unrivalled advantage when selling your home. I’m on hand and contactable seven days a week, so if you’re worried about something at any point, just give me a call and I’ll help sort it out swiftly without any hassle to you. I hope this video has been of use but if you’ve got any more questions or queries just give me a call or drop me a email.