Buying, selling and letting - May, 2008

Beat the housing market and add value to your home

Although the outlook for the housing market is on the gloomy side, there are still buyers out there looking for the right home. And one way to make sure you make a successful sale is to present your home in its best possible condition.
In this climate many are opting to improve rather than move – but many others will still want or need to change their circumstances, so vendors are advised to make sure their home has the spec and the décor that brings in the buyers. The right improvements can add real value to a property - and often don't require a big financial outlay or months to complete.
The organisers of The Scottish Homebuilding & Renovating Show, which is at the SECC, Glasgow on 17 & 18 May, have got some great tips for anyone who is looking to improve their home with a view to selling in the near future.

Update your kitchen
One of the key rooms in your home, the kitchen can be given an effective makeover for only a modest outlay. If your carcasses are in good condition, consider adding new doors, handles and worktops. Alternatively, spray paint your existing cupboard doors to give them a fresh new look.  Remember that in a small house a new kitchen can cost as little as £1,500 to £2,000 excluding fitting.

The business of bathrooms
Replacing a coloured bathroom suite for a white one could cost you as little as £500 and will completely transform this important room. If the walls look dingy, think about re-tiling. At least one shower in the house is a must for most people today. If your bathroom is too small, create a shower room by taking space from a larger bedroom. A basic shower room need measure only 900mm wide by 2.6m if it is to include a WC and basin.

The smallest room
Most homes have scope somewhere for a downstairs loo and this will invariably add more value than it costs. Many buyers see a downstairs loo as a must-have. Consider understairs space, a section of the hall or a large cupboard. A loo needs only 1.3m2 and today's compact sanitaryware allows even the smallest space to be used effectively.

Be clever with your conservatory
A conservatory often requires no planning permission or Building Regulations approval and can be quick to build. A standard kit conservatory bought off the shelf (kits start at just £1,299) will add space and value but an integrated conservatory or sun room creating extra living space can add much more. Generally, the greater the proportional increase in floor space and the more usable the space, the more value it will add.

Aspiring to lofty heights
According to the Halifax, a loft conversion can add the most value to your home. If a property is in the right location and the project properly managed, it is possible to recoup 100% of the amount spent. As a general guide, expect to pay between £750-£1,000 per m2 - that's considerably less than the cost of the average extension. The best way to add value is to use the conversion for further bedrooms and an en-suite bathroom.

A window onto the world
Shabby windows can put buyers off before they even get to the door but don't assume that replacing windows will automatically make a difference. Windows that are the wrong style, size and character can seriously damage appeal and value, particularly in a period home. However, double glazing is essential for many buyers and will add at least as much as it costs to the value of a property so it will never be money wasted.

Kerb appeal
Improving kerb appeal costs little but can give a great return. Tidying up the garden and driveway, re-pointing brickwork or stonework, painting doors and windows and other external joinery, replacing an old garage door and repairing cladding and render are all worthwhile investments.

Maintain the structure
Structural repairs and updating services such as heating and wiring should always be top priority. Ignoring the basics such as damp, structural movement or outdated wiring is a false economy. If a property is ready to move into, you'll broaden its appeal to a larger number of buyers, increase its value and sale price. For advice on finding a builder, visit fmb.org.uk or meet them at the Homebuilding & Renovating Show

Never forget the basics
Painting and decorating is an excellent, cost-effective way of giving your home a new lease of life and can really put value on your house – but keep it neutral and  hold the purple paint.  Newly painted rooms in neutral colours appear bigger and brighter, improving your home's appeal and saleability.

Do Your homework
Get as much information as possible by buying specialist magazines. This time of year is also good for exhibitions on home improvement and property investment

If you willing to take a risk and think you have the skills to beat others at a game of skill and strategy, this is an interesting alternative to your traditional auction and might be a way to get onto the ever-elusive property ladder.

In the simplest terms, Humraz is a property auction with a difference. Participants reserve and buy seats at forthcoming auctions. The price of the seats vary depending on the value of the lot, from £10 to £100.

It is the goal of the bidder to secure the lowest unique bid by the time the auction closes. The relative status of each bid is provided so you can track where the lowest unique bid lies.

This system guarantees that the lowest unique bid for a property will be a fraction of the actual value. For example a property worth £300k will sell for less than £15k. The seller however will realise its full value through revenue gained by seat sales.

Humraz this week reported increasing interest from high-flying graduates in top city jobs who have found themselves priced-out of the UK property market.

One recently-qualified solicitor at a top London commercial law firm has reserved a seat at a forthcoming auction, citing ‘sky-high property prices and no 100% mortgages on the market’ as the principal attractions of Humraz’s unique approach.

The 26-year-old earns an excellent salary, but cannot afford to buy within commuting distance of his Square Mile office. Should his auction strategy result in him buying one of the properties currently available for booking, he plans to sell the asset to generate a sizeable deposit for a London flat.

‘Humraz is attracting a lot of bright individuals who have spotted its potential,’ says the site’s founder Asmat Monaghan. ‘Because buying something for a small fraction of its value is counter-intuitive, most people assume it’s very complex. In truth, it’s actually pretty straightforward.’

However he advises participants to try the online auction simulation or register for free to participate in one of its regular training auctions.

‘Our auctions are extremely fast-paced: they require real mental agility and skill, so not everyone grasps them immediately,’ says Monaghan. ‘That’s why we provide plenty of opportunities for anyone to get to grips with the system.’

humraz.com

 

Spending time on the important workings of a property, such as the plumbing or electrics, during the spring and summer months will help safeguard against any nasty maintenance surprises once the cold weather and rain return.                                                                               

1 Get your boiler serviced Don’t wait for the winter to set in before you have your boiler serviced. It’s easier to find an engineer during the spring/summer months and will cost less.

2 Consider upgrading your boiler Some of today’s energy efficient boilers can provide up to 30 per cent savings on gas bills. Upgrading your systems will not only create cost savings, but will also help to avoid unnecessary call outs. If you do upgrade, be sure to ask for the relevant installation certificate and try to use a company that will provide extended warranties.

3 Avoid potential flooding Take this opportunity to ensure you know where your stop cock is, and also where your main isolation valves are. This is particularly important if you have any long summer holidays booked.
4 Inspect your roof Look out for missing tiles and guttering. If you have a chimney, check the flashings are intact.
5 Clear off debris Use the spring and summer months to remove any pebbles, moss or vegetation build up from your roof and guttering.

6 Get an electric check A qualified electrician will make sure your home’s electrics are safe and in a satisfactory condition.

7 Use energy saving light bulbs Not only are they good for the environment but they cut your electricity bills too.
8 Check pipe insulation Inspect these for frost protection and heat loss. Pipes not properly insulated will either lose heat too quickly, or could be liable to burst in the colder months.

9 Cut the power Ensure you know the location of your consumer unit (fuse box) and how to isolate it in an emergency.

10 Keep drains clean Spring clean your drains from the inside and do an external check to ensure there aren’t any blockages.

>Aspect-maintenance.co.uk

Moving house is one of the most stressful things people do in their lifetimes. Here is a handy checklist to help you make it a smooth process.

• You’ll need to decide on a moving date (completion date) when exchanging
 contracts. Book a removal firm as soon as the date is agreed.

• Ask friends or relatives who have moved recently to recommend removal firms. 
 Get written quotes from a couple of different firms, and don’t necessarily go for  the cheapest. Check if the quote includes VAT and clarify if packing, loading and  unloading are all included. Some removal firms also provide useful cardboard boxes  which double up as hanging storage for clothes.

• Ensure your possessions are insured for transit. Most removal firms provide such
 Insurance but check for any exclusions, for example, anything you pack yourself may  not be covered by their insurance. If you are planning to transport any precious  items yourself, confirm that these are covered when in transit by your contents  insurance.

• Label packed boxes clearly – this will help place them in the right room, ready to
 unpack. Mark any boxes that are fragile or need to be handled with care.

• Before the big day, have a clear out - this will help reduce the load to be
 transported and is a good chance to recycle or donate unwanted items to charity.

• Get someone to look after the children/pets for the day.

• Round up all the keys to your home, including those left with neighbours, nannies  and relatives, and give them to your solicitor or estate agent.

• Pick up a form from the post office and arrange to redirect your post.

• Cancel milk and newspaper deliveries, window cleaning and gardening contracts.

• If you are moving to a different area, register with a new GP and dentist.

Petermans.co.uk

If you’re looking to sell your property quickly there are several things you can do to increase your chances – no matter what the market throws at you.
 
Be patient The market conditions may have changed from the euphoric days of the early naughties, but there is still a steady demand out there. Take into account that buyers are more cautious and want to make sure they are getting the best deal they can. The estimate for how long it takes to sell a house has almost doubled compared to the same time-frame last year, so don’t expect it all to happen in a flash.
 
Savvy up on pricing and be realistic By realistically pricing your property you will significantly increase your chances of a quick sale. Your agent will be the best person to guide you on this but you can also do your own homework. There are a huge number of websites that will allow you to check prices in your area. Don’t dismiss any low offers without thinking them through; a swift sale may save you money in the long run.

Get the basics right Get a HIP and know how to work with your estate agent to get the best from them. HIPs have been legislation for some time now and buyers will expect to see one.
It may pay you to spread the load by having a number of agents looking out for your property. Set your expectations with the agent and ensure you know where and how your house is going to be marketed. If you negotiate your fee with your agent, bear in mind that a lower fee may mean lower service.

Access matters You want as many people as possible to see your house, so give your agents a set of keys. This way, agents can show viewers around you home when you are out at work.
 
Be prepared to negotiate If your home is a perfect first-time buyer pad, offer incentives to potential purchasers. Offering a cash-back offer or including some furniture or soft furnishings can help to secure that sale.
 
First impressions do count Think about the way your house is presented both inside and out. A fresh coat of paint can make all the difference. Tidy the front of your house and clean your front door. If you have a front garden make sure it is well maintained.
The inside of your house should be as free from clutter as possible. The kitchen is always a key selling point, so ensure it is clean and that all dishes are washed and put away. Do all the small jobs you haven’t got around to, such as changing that light bulb and fixing that squeaky door.
If a potential buyer is undecided about your property, these small things could make all the difference.

Nigel Favas, managing director of Reeds Rains estate agents