On average, transaction levels have fallen in the last couple of months.
You have probably read reports saying that both buyers and sellers are waiting for the Budget on 26th November, so are delaying their decisions.
But would it be unreasonable to say that averages hide a whole range of possibilities?
For example, one estate agency in Notting Hill has sold £70m of property. Admittedly, this included an off-market sale of a £40m house (another agent sold a house for £24m in Notting Hill last week, so the top end of the market is far from dead), but the majority of the sales were flats under £3m.
Meanwhile, their Fulham office is also doing a lot of business but the story there is very different. The flat market is relatively quiet while the house market is strong. Of course, this is just the tip of the iceberg when it comes to which types of houses and flats are selling (and for what prices) in each area.
Which just goes to show that if you are reading reports on the “London property market”, the information you are receiving is close to useless as it is far too general to give you any insight. Unfortunately, it is exactly this type of general information that the majority of buyers and sellers rely on.
What does this tell us about estate agents?
Let’s take a step back for a second because averages are also misleading when dealing with estate agents. As you may have noticed, London is swamped with agents, but they are not all equal (the same is true of any profession including buying agents!).
And your opinion of estate agents may not be particularly favourable. Here is a list of the most common complaints from buyers:
- They send you properties that are totally inappropriate
- They don’t have all the information about the property when you are on a viewing
- You don’t trust them
- They turn up late to viewings
- They try to pressurise you into making an offer
- They can be surly and aggressive
This is far from an exhaustive list and, unfortunately, these complaints are true of some agents. As a buyer this is annoying but can work in your favour, because the bad agents often have good properties that they do not market well, which is one way you can find great opportunities.
But what if you’re selling?
There are several reasons why I only advise buyers on their transactions and don’t sell property and here are tow of them: Firstly, I think both buying and selling is a conflict of interest. Secondly, I believe the good agents are very good at what they do, but it’s vital to choose the right one (I do advise my clients which are the best agents to use when they wish to sell).
Now, you may think that you would never choose one of the less capable agents, but so does everyone else, so how do so many poor agents continue to be instructed to sell properties?
Sometimes it is down to price. Owners mistakenly think that all agents are the same and they just need to have an agent list their property on a website, so they go for the person offering the lowest fee. This is a huge mistake and will almost certainly mean you will sell your property for less than you should.
And how an agent behaves when they value your home may be very different to how they actually behave with buyers. Although the more common issue is that the person who values your property may not be the same person who shows it to potential buyers. You may have simply met the most competent person at the agency, while the rest of the agents might be poorly trained, inexperienced or just not very good.
As mentioned, this is great news for buyers and is why we contact over 220 estate agents every week. You have to leave no stone unturned if you want to find the best property your money can buy. Unfortunately, that does involve speaking to people you may not necessarily like, but it has to be done.
Meanwhile, if you are selling, it is vital to choose the best agent for your style of property in your area unless you don’t mind underselling and suffering a lot of wasted time and aggravation. Please note, the big names are not always the best ones to use; quality can vary dramatically from branch to branch and there are some exceptional independent agencies.
So, if you are planning to sell a property, would it be a bad idea to find out how to choose the best agent who will not only achieve the highest price possible but do it in the timeframe that works for you?
You can request your free copy of my guide, The Seven Most Expensive Mistakes London Property Owners Make & How To Avoid Them, which shows you how I choose the best agents to sell my clients’ homes and investment properties.
Simply email me at jeremy@mercuryhomesearch.com or call 02034578855 (+442034578855 from outside the UK).
