Spring/Early Summer 2011
Vendors are being cautious about exposing their properties to market. Dare I say it, but some are also being rather optimistic about the prices they want as well...
There is an OK amount of stock available mid market, but this isn't everywhere and I have often found it difficult to offer real choice to Searchwells clients from just open market properties.
At the higher end of the market - over £1.25m - there's not as much openly available stock being marketed as both we and estate agents would hope. And, at the very top end - over £2.5m - very little available indeed.
As mentioned in the opening paragraph, some prices are too optimistic. In these cases if the prices are too far out, I have not shown clients the properties. Always being able to find committed sellers for our committed buyers has been something of an occasional problem this year.
However, all is not lost! Those who want or need to move will settle on a fair price if a good buyer comes along - even at the top end of the market. Off markets that are fairly priced will sell if the buyer is able to move to exchange quickly and can prove that finance is in place. Our contacts both in estate agencies and also via other sources have also proved invaluable in suggesting possible off market properties to me when they are sent our client briefs. If these routes are also exhausted in the hunt, then we still have other ways and means up our sleeves too!
A fair price is still vital - even with the lack of supply in the marketplace. If a buyer needs finance, then to get the mortgage through to exchange, a valuation must achieve the agreed asking price (or very close). So, our Searchwells due diligence with regard to each property our client's like, is vital. Additionally, another sticking point in today's market is acquiring full insurance for the property. Again, this is something we also research thoroughly before an offer is made.
Supply issues are therefore one of the main reasons our clients decide to proceed with a professional finder (that and lack of available time + area knowledge). I can see this continuing for the rest of this year - maybe up until Spring 2012. I also forsee that property prices will remain relatively flat until then as well. I might add here the usual caveat which is that the very best properties will always sell well as there are enough determined buyers in the marketplace to ensure that they do - you as a buyer simply need to be sure that you get to view these properties!
Please don't hesitate to call me should you wish to talk further about anything to do with a property purchase or sale. It's never a problem to talk!
Leonora
(call 07974 358144 - any day of the week up until 10pm! Or, e-mail me on leonora@searchwells.com)