HELP! Should we try going with an agent???

Cheddar_2

Hi all - hope you can offer some advice

Me and my wife own an apartment in Oldham. My wife originally bought it with her friend from the developer at top price (I later bought her friend out, but that's irrelevant). It's only now that she realises the developer ripped her off.

Since our purchase, the developer had reduced the prices of all the remaining apartments. Ours was bought for £185,000 + £5,000 for an extra car parking space. Now, similar ones on the same floor (without the parking space) are up for between £150,000 and £165,000 :mad:

Anyway, to cut a long story short, we have our property on Housenetwork.co.uk, so we're purely advertising the apartment ourselves. We have gone for the fixed price option, so will have no perentage to pay Housenetwork following the sale - just the £199 + VAT.

We have had NO viewings, probably because of the high price. We had originally advertised it at £179,950... then reduced it to £174,950, and now it's £169,950. We're desperate to sell because we have a 1 year old and would like to carry on expanding our family, but there just isn't the space here

My wife is wanting to advertise with a high street estate agent, with a view to speeding up the sale. However, if it does sell, will Housenetwork still want the remainder of their fee, even though the sale originated from the high street agent? And vice versa, if we sell privately, will the agent have any rights to claim their percentage?

Please help - we need to get this apartment shifted!

http://www.housenetwork.co.uk/my_site.asp?id=acornrm&house=1

nelly_2

I really cant see a way of selling at higher price than similar places!

If you was looking at buying in that block today, what would you do?

benood

I don't know the answer but:

How about asking Housenetwork?
Perhaps check their terms and conditions?

rizla01

Unless the contract with housnetwork is a 'Sole Selling Rights' contract you are not obliged to pay them anything unless you are tied in to a 'tie-in' period in which case they could claim.

Check T&Cs

Doozergirl

I think the best way to save money is to stick with House Network and reduce your price further. It's the price that is causing you to have no viewings, not House Network. At least if you get to the right price, you will have saved on agent's fees.

You don't have a hope in hell of competing with the developer if they are selling cheaper than you are. The fact is that you pay a premium for being the first to live in a house, so your flat is actually worth less than similar brand new flats because it is now 'second hand'. The parking space, if others don't have, might bring your flat more up in line, but this is a hope, not a certainty.

What is really important is that you dress the aparment to the best standard you possibly can. Go and look at show homes and see how they do it because you have very stiff competition. Would you be prepared to post a link to the flat on House Network and see what we recommend?

We've had several people in a similar boat to you on here recently and I feel so sorry for you. It's no use now, but it's so important to view as many places as you can to check what prices are doing. It's often the case that you can buy a good two bed terrace for the same price as a two bad 'luxury apartment' and the fact is that most people will opt for the house, especially when you are outside London where the reason for choosing the flat would be that you really can't afford a house!

rizla01

Cheddar wrote: »

Hi all - hope you can offer some advice

Me and my wife own an apartment in Lancashire. My wife originally bought it with her friend from the developer at top price (I later bought her friend out, but that's irrelevant). It's only now that she realises the developer ripped her off.

Since our purchase, the developer had reduced the prices of all the remaining apartments. Ours was bought for £185,000 + £5,000 for an extra car parking space. Now, similar ones on the same floor (without the parking space) are up for between £150,000 and £165,000 :mad:

Anyway, to cut a long story short, we have our property on Housenetwork.co.uk, so we're purely advertising the apartment ourselves. We have gone for the fixed price option, so will have no perentage to pay Housenetwork following the sale - just the £199 + VAT.

We have had NO viewings, probably because of the high price. We had originally advertised it at £179,950... then reduced it to £174,950, and now it's £169,950. We're desperate to sell because we have a 1 year old and would like to carry on expanding our family, but there just isn't the space here

My wife is wanting to advertise with a high street estate agent, with a view to speeding up the sale. However, if it does sell, will Housenetwork still want the remainder of their fee, even though the sale originated from the high street agent? And vice versa, if we sell privately, will the agent have any rights to claim their percentage?

Please help - we need to get this apartment shifted!

I must say that I find it incredulous that there is a £40k difference in what you paid and what they are now selling for.

How long ago did the original price get paid?
Was it bought through a reputable agent?
I would consider contacting trading standards over this amount. don't know if they can help but SOMEONE has been a bit remiss in the original valuation.

Buying 'Off plan' usually gets a LOWER asking price but you didn't state that this was how it was purchased.

A parking lot can up the value considerably (Anything up to £10k - and even more if it is gated, with security) depending on its proximity to station/shops/ airport Etc.

Finally, are you SURE that you are comparing like for like?

Often the first ones to go have a much better aspect/outlook therefore demanding a premium. You may find floor area to be different, too.

Has the developer reduced the quality of the fittings?

Have you actually asked the developer why the massive difference.

They may give you a clue as to how and why you should market it for more money.

If you do use an agent, you would be wise to let the existing agents market it for you. They know the flats/area/ benefits and would probably have potential buyers on their books.

Doozergirl

I hope you don't mind but I had a look. That service charge is pretty high!

You're pretty much there on presentation. The outside shot is not very nice, you need a nice sunny day to retake the picture and email it over to House Network. Also, the balcony! Get a bottle of wine and some glasses on the table and retake when that is sunny also. A couple of pot plants might help also.

I think you should hire a rugdoctor and give the carpets a going over. I like your feature wall in the living room but I think you need to move the chair away from it so that things are arranged around it, or even put your shelving unit there with things set up really prettily. Personally I would also move the dining table over to where your sofa is to have a designated cooking entertaining space where you can talk to your guests through the hatch. Put flowers on the table.

I'd try to inject some more personality into the kitchen, maybe some co-ordinating accessories? It looks really nice but you want to try and get 'wow'.

The smallest bedroom I obviously know why you have set up that way, but people are going to assume it is a single room, where it will just about fit a double bed. It is very pretty though, when you have viewings you must explain that it will fit a double.

I'm getting really picky but the master bed is so nearly there, you just need to get the shot so that you're getting the cushions from the front and not the side.

It is a lovely flat and I really am being pernickity to the nth degree but when you see the show flats, you will understand why. You need to be set up like a show flat!

EDIT: I REALLY like your curtains in the master bedroom!

Doozergirl

rizla01 wrote: »

How long ago did the original price get paid?
Was it bought through a reputable agent?
I would consider contacting trading standards over this amount. don't know if they can help but SOMEONE has been a bit remiss in the original valuation.

A house is worth what someone is prepared to pay if the mortage company's surveyor agrees. There's no recourse.

rizla01 wrote: »

Finally, are you SURE that you are comparing like for like?

Often the first ones to go have a much better aspect/outlook therefore demanding a premium. You may find floor area to be different, too.

Has the developer reduced the quality of the fittings?

Bless you but you are so naive Once new builds have been sold, those little differences don't matter so much any more because there is a shortgage of supply and you can't compare them anymore. I'm sure developers make things slightly different so they can ask more money for exactly the same thing. In reality, many things make a place more saleable, not worth more money.

lynzpower

Hi there

Ive also had a nosey at what I think is your place. I used Housenetwork and was thrilled with the outcome- at the end of the day HN are only middlemen who get your property on Rm and field phone calls & organise viewings.

I know Oldham fairly well ( im from Stockport originally and used to have some family up your way there).

you wont like this, but for me I would suggst that the price is the issue.

I would say if I had that sort of money then Id be looking to spend on a fmaily home ( as by the sounds of things you are too) there are many many larger properties ( houses with gardens etc) around your price bracket.

I dont know what to suggest as clearly, you are going to struggle to sell it at that price. Whats the absolute lowest you can accept for the property?

rizla01

Doozergirl wrote: »

A house is worth what someone is prepared to pay if the mortage company's surveyor agrees. There's no recourse.



Bless you but you are so naive Once new builds have been sold, those little differences don't matter so much any more because there is a shortgage of supply and you can't compare them anymore. I'm sure developers make things slightly different so they can ask more money for exactly the same thing. In reality, many things make a place more saleable, not worth more money.

Thanks for your opinions, Dozergirl.

So Mortgage Company surveyors NEVER overvalue property, Huh? If you say so. I know of a few cases where the valuer has been SACKED by the Mortgage Company for failing in his duties.

It is the lender that has to bear the brunt of any over-valuation should the prop be re-possessed, remember. Many of these so called 'Experts' call round and ask several EA's in order to arrive at their estimation of the true value. Many others rely on instinct or experience.

South facing as opposed to North facing doesn't improve values, just saleability? I disagree.

Facing a river or open parkland as opposed to facing the town DOES improve value.

Parking spaces DO add more value.

Larger floor space DOES increase the value.

Having expensive fittings DOES add to the value AND the saleability.

I assume that you have vast experience as an EA but so, too do I and I now buy & 'do up' property for a living.

The OH is a New Homes Negotiator at present selling apartments of a similar value to this and she has been in Estate Agency for over 20 years.

Perhaps things are different up North as opposed to the leafy suburbs of Essex.

barnaby-bear

rizla01 wrote: »

Thanks for your opinions, Dozergirl.

So Mortgage Company surveyors NEVER overvalue property, Huh? If you say so. I know of a few cases where the valuer has been SACKED by the Mortgage Company for failing in his duties.

In what way did the surveyor overvalue - a property is worth what someone will pay otherwise it would be the rebuild value?

You need one mug prepared to pay and that sets the market value - the fact 99% of folks wouldn't pay that much doesn't matter as long as there are a few who will. At the time of sale people were prepared to pay that.

Just because people now aren't prepared to pay that much doesn't mean overvalued *then* - property can go up and down in value; a 10% fall on a new build in first few years sounds very likely.