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Buying Tips After A Market Collapse

Buying Hints & Tips

Home buyers are in a key position when house prices are dropping or when there is a property market collapse. Sellers are willing to settle for lower offers and there is a larger choice of properties.

These top tips will help guarantee buyers take advantage of a buyers’ market:

· Make sure you do your research. Find out as much as you can in regards to the property as well as the sellers. At viewings ask questions. Why are the owners selling? What are their timescales? Do they have to sell quickly? Perhaps also ask other estate agents about the property. There can be hidden stories surrounding the purposes for the selling that can considerably boost your chances of getting a lower price.

· Never get too attached to a single property. Desperately wanting one property puts negotiating power back in the hands of the seller. Have a few properties in mind and assure the seller and their agent understands you’ve got numerous alternatives.

· Uncover more regarding the price. Asking prices may very well be way more than the sum a seller will accept when house prices are dropping countrywide. Question the agent as well as the seller to justify the cost. What’s it based on? Probing questions can undermine the seller’s confidence in their asking price.

· Time is on your side. Never be bullied into making a decision. In a house price slump or property market crash, buyers possess the option to play the long game. Make multiple viewings prior to making an offer. This builds a bond and makes the seller want you more. Negotiating starts as soon as you view a property not as soon as the first offer is made.

· Look for discounts. If the seller still would like more than your offer try asking for discounts or other incentives. These could involve paying stamp duty or for new carpets and fittings.

Negotiating In A Property Boom

Buying Hints & Tips

When prices soar, so does the power of the home seller in the housing market. At its peak a property price boom can mean offers are accepted on properties within hours of coming onto the market. It is a time when asking prices aren’t just met but often exceeded in the best areas.

It is a time that buyers dread. These tips will help buyers make the best of negotiating during a house price boom:

• Assess the local market. The house price boom could be mixed. While in some areas, certain residences may be flying off estate agents’ shelves, in other areas people could still have problems selling. Discover the regions where prices are still low. Possibly there are too many flats for sale. If so take into consideration a flat as an alternative to a house.

• Steer clear of sealed envelopes and bidding wars. In a sellers’ market estate agents will attempt several tricks to make sure their clients gain the maximum value from a house price boom. These include joint viewings to heighten the atmosphere of competitiveness. The worst case scenario is a sealed envelope technique, in which many different buyers make an offer which they think will seal the deal. This can regularly end up way more than the asking price.

• Establish relationships. In a sellers’ market a buyer has to stand out. Not just in terms of being in a position to meet an asking price, but to appear more favourable to the seller. First time buyers and those that have already sold a home are appealing to a seller. They speed up a sale and by not being in a chain the risk of a deal falling through is reduced.

• Be prepared for disappointment. It is vital to not pin your hopes on a single property.

• Stick to your guns. Don’t be tempted to borrow more than you’ll be able afford. Set yourself a maximum figure you are able to go to and stick to it. During a house price boom some people can take on too much debt.

• Think about purchasing at an auction, where prices may be more affordable. However be prepared to carry out a good deal of work on a house marketed at an auction, as properties that come up are often in need of renovation.

• Be aware, prices do not go up forever.

Choosing A Property Manager

Choosing An Agent

Now you have an investment property the subsequent step is to look for an individual to take over its management. Do some investigation and list questions you would like to ask when interviewing potential property management companies. Short list a couple companies that interest you.

 

Call them to ask questions then, if you’re still interested; make an appointment to visit in person. Visiting in person gives you an idea of how they conduct their business and you can meet up with the individuals who will represent your interests. Here are the top five questions to ask when you interview a property manager.

 

1. Does the Company have a Devoted Management Team?

 

You want to know whether the property management company offers a comprehensive service or if it is just a side line for an estate agent. Who and how will your property be managed. How many staff are in the office? Who will manage you and your tenants if staff leave or are sick?

 

2. Does the Company Owner/Director get Involved in the Business?

 

Most property management companies are divided in two – selling property and managing property. Generally the company director is involved on the sales side as it is the high profit area of the business and a property manager will take care of leasing. If the company director is involved with the property management arm of the business, you may find they take it more seriously than others.

 

3. How well do they know the Rental Business?

 

Verify with the property manager how long they’ve personally been handling property management. Just because you happen to be speaking to a well known property company does not necessarily mean their staff have a great deal of experience. It also does not mean they provide top quality customer support.

 

Some property managers start out working in a property office as the office person and work their way up. Some shift into property management and the rest into sales. Other property managers have specifically selected property management as their profession.

 

4. How long has the Property Manager worked for the Firm?

 

You need a property manager that is stable in their employment, and who will take looking after your interests seriously. There is a great deal of pressure involved in property management, that has a high turnover of staff. In six months time, you want to be talking to the same person to create a business relationship that understands your needs and the property. This is a good reason to look for a property manager committed to it as a career.

 

5. What Area does the Company Service?

 

You are correct to think about companies that have expert local knowledge but, if you intend on buying more houses in the future, how far does their expertise reach?

 

You do have a choice – either hire a property management company in each geographic area or find one that covers a wider area to take on all your properties.

 

6. How do they Conduct Property Inspections?

 

This is actually an important one – the last thing you need is for a property manager to just hand out your keys to potential tenants. Too much can go wrong. You want to know that the property manager will give good customer service and personally take potential tenants to inspect your property. Or, they may hold open houses at certain times. This provides them with a chance to get to know a possible tenant better.

 

7. How many Properties does the Company Manage?

 

You want to know how many properties the property manager manages personally. Some may have 200 or more. If they do, I wonder how they can offer you and your tenants top customer service. Others may have only up to 150 but charge more for their service. This may be a better option to get peace of mind and, ultimately, make a good return on your investment property.

 

8. Does the Company’s Staff Work Six Days a Week?

 

You want a property management company that can show your properties when it is convenient for the tenant. After all, you want tenants that can pay the rent so that means that most will be at work during normal business hours; unless it is a commercial property for rent. In the world of internet advertising, enquiries come in 24 hours a day. This comes down to their availability and ability to deal with maintenance issues as well.

 

9. Does the Property Manager Check New Tenant’s Credentials?

 

It is important to ask how the property management company checks out the credentials of short listed prospects. You need to reassure yourself they check people’s credit and rental history, and their past and present employment.

 

All prospective tenants must be screened carefully. Does your property manager have adequate access to information for this purpose? Do they provide you with a written report that backs up their claims when handing over short listed prospective tenants?

Buying Property In France

Property Abroad

Investing in a property or second home in France is gaining popularity, but it is often a challenge and there are various potential pitfalls to think about. The principal pitfall being one of LANGUAGE and UNDERSTANDING. It would make sense to obtain the assistance of a bi-lingual selling agent who is a respectable specialist from the outset, somebody who’s familiar with the quirks of French law in order to minimise your risk through all stages of the buying process.

 

So where do you begin?

 

After deciding upon a property in France you want to make an offer on, the estate agent will normally ask you to sign a “Promesse de Vente” or “Compromis de Vente”. In French legislation, the “Promesse de Vente” is an undertaking from the vendor to sell to the purchaser and the “Compromis de Vente” is a contract between the buyer and seller (I.E. an agreement to sell on behalf of the seller and an agreement to buy on behalf of the buyer). In both cases there is a 10% deposit required and a date for completion of the sale is set (which is normally 60 days). Following the signing of the “Promesse de Vente” and the “Compromis de Vente”, there is a 7 day cooling off period for the purchaser, during which time the purchaser may withdraw from the agreement and recuperate any deposit paid, without having the need to justify cause. After this time, the seller is bound by contract to sell to the purchaser and the purchaser won’t be able to withdraw except under specified circumstances.

 

When buying property in France its well worth noting that “Promesse de Vente” and “Compromis de Vente” do not incorporate property surveys, so these must be undertaken before making an offer.

 

For this reason, when buying property in France, the buyer is completely protected from Gazumping, an issue which can be infuriating for home buyers in England.

 

The conditional clauses contained in both agreements generally act in favour of the buyer, whereby they can withdraw from the purchase if planning permissions or other factors are considered obstacles. Additionally if the buyer has a loan refused they may also withdraw from the sale with a full refund of deposit.

 

In France conveyancing is carried out by Notaires who oversee the signing of the agreements and additionally hold the deposit payments. For this reason, it makes sense to appoint your own personal Notaire as there is no extra cost involved as notarial fees are laid down by the Government.

 

During the 60 days preceding completion your Notaire will carry out all the required searches and acquire a certificate from the Bureau des Hypotheques (the French equivalent of the land registry) which establish whether there are any outstanding liabilities or debt against the property. Such as in the event the sale proceeds are not adequate to clear the mortgage, the sale will be stopped as well as the purchaser’s deposit refunded.

 

In France, Estate agent costs are normally included in the asking price of a property and are consequently paid by the seller. They’re typically 5% for houses or apartments.

 

The buyer pays legal costs and Notaire fees plus stamp duty and registration fees. The fees are laid down by Government legislation. Typically legal costs can be around 6% of the sale price and getting a mortgage with a French bank will mean registering with the Bureau des Hypotheques and will cost approximately 1% of the mortgage value.

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