Ultimately, the market will always decide the value of a property whether it is blighted or not. An owner must be receptive to what the market is saying – if after several months on the market, viewing and offer numbers are low, a vendor must make a change.
The agent
Before looking at the price, one must look at the agent. In the internet age, some agents tend to simply advertise a property and wait for the telephone to ring. The key to success and achieving optimum value is proactivity rather than reactivity. If your agent is doing all that can be done and activity levels are still low, this will generally be due to the price. The asking price must be used as a marketing tool in order to generate interest and a good agent will provide advice on where the asking price should be pitched in order to attract the right sort of buyer. Ultimately the market will decide the value of a property through what the highest bidder is prepared to pay.
In London, we see specific blights such as if a property is tube affected or located on a particularly busy road often having an impact on value.
Renovations and improvements
Many buyers like to carry out work to a property in order to make it their own rather than somebody else’s previous house that they have moved into. A property needing renovation is often very attractive to the market. There can be a risk in carrying out substantial work before selling – it may be that the property has not been refurbished to the tastes of today’s buyers and that an incoming purchaser would look to re-do the work therefore negating any benefit in having carried out works in the first place.
With leasehold property being particularly prevalent in central London, we often advise a client to extend their lease should it be approaching the 80 year mark. If the lease falls below 80 years in length, the premium for a 90 year extension is also subject to a payment of 50% of marriage value. Inexperienced buyers can be put off by extending a lease so be ensuring the lease is nice and long, buyers will not be put off.
The right price
If a house is correctly priced and an agent is pro-active, viewing numbers should be more than satisfactory and offers forthcoming.
An agent cannot control the level of offers as of course buyers will decide what a property is worth to them however it demonstrates that an agent is working for you. When speaking to a new agent, one should ask how they go about their business, their track record and how properties are marketed. For example in central London (this is something that is not often explained to clients), we offer a share of our commission to other agent allowing them to introduce their buyers to a property through Maskells. This ensures that any buyer in the market is able to see our properties be it with an agent with whom they have been working which is in our clients’ best interests.
Personality is a key trait and upon meeting your agent, you should be reassured and genuinely believe in their ability to put your interests above theirs thus ensuring that your objectives are met.