Category: Sales market

southsea christmas

As 2017 comes to an end we would like to thank all our clients for their valued business throughout the year and wish everyone a Merry Christmas and a Happy New Year. This year has seen a number of changes at Dack, welcoming new members to the property management team and the opening of our Residential Sales Department.

As always, we like to take a look back at the events that impacted the property industry this year and the predictions regarding the coming changes for 2018. With further interest rate rises expected, Brexit negotiations to overcome and the cost of living escalating, the property market could see significant changes across the board.

Rental Market 2017

Lettings in 2017 was an interesting year from a tenant’s, landlord’s and agent’s perspective. With the impending proposed ban on agency fees anticipated towards the end of 2018 we are all speculating on how this will play out. It will inevitably have an impact, not just on the lettings market but the sales market too, as some landlords may begin to consider other investment opportunities. Many are assuming costs are to be passed onto the landlords and therefore down through to the tenants via increased rents but until the draft bill is published it is hard to predict what impact this will have on the market. Rest assured that we will keep you updated on any developments as they unfold.

Other regulations are making their way through Parliament next year which, both existing and future landlords should be aware of, most notably the Minimum Energy Efficiency Rating for properties.

Since writing this article there have been further development in this upcoming legislation. Where it was originally only designed to affect new or renewing fixed term tenancies after the 1st April 2018, the Government has ‘moved the goalposts’ with the scope now encompassing any statutory tenancy as well 1977 Rent act tenancies. Any property not currently meeting the minimum standard will require works to bring them up to standard. We are already working closely with a number of our landlords to assist them with potential works but if you are unsure if your property is affected, you can check the energy rating on the EPC Register

Additionally as announced within the Chancellor’s autumn budget, the Government are conducting reviews into both longer term tenancies and a review of the housing courts which will potentially bring benefits to both tenants and landlords alike, cutting through the reams of red tape associated with the housing and legal system which I think everyone can agree, is never a bad thing.

Property Sales 2017

We were proud to open our Residential Sale Department at the beginning of the year and have serviced many of our clients through to a swift completion with many more to come. It has also been an exciting year for the housing market in general. The Government have pledged to improve the house-buying process, which is music to the industries ears, and with stamp duty relief for first time buyers coming into effect we are not alone in welcoming this move. However, looking ahead to next year many are predicting an increase in supply meeting an already elevated level of demand, meaning a higher overall level of transactions. With that being said there are a number of elements of the unknown, that we, like all industries must face.

Naturally many people may be considering a move in the new year for a number of reasons, be that a change of scenery, growing family or moving for a new job. Should you be thinking of selling, take a look at our article published in May this year regarding estate agency contracts to make sure you do not get caught out. We are always available to talk through any potential move to help you make an informed decision regarding your home. Equally if you are a first time buyer and considering taking advantage of the recent stamp duty relief, our partners at MoneySprite wrote a guest article on: giving yourself the best chance of getting approved for your mortgage full of great information and well worth a read.

Should you be considering renting or selling you home and would like a general “ball park” figure for your property, use our free instant online valuation software, however for a more accurate figure, we would always advise getting one of the team out to conduct a free market appraisal. As the year comes to an end we would again, like to say a big thank you to our long stand and new clients alike in wishing them a Merry Christmas and all the best for the New Year. We are all back in the office on the 2nd of January and you know where we are if you need us.

approved mortgage loan

When you are buying a property, the biggest ingredient to your successful purchase is to get a mortgage approved, but where do you start? When do you need to think about it and what can you do to give yourself the best chance of approval?

The first step is to speak to an independent mortgage adviser, such as our recommended advisers Moneysprite Solent, they will talk to you about your aims and objectives and help to get you in a position where you know what you can borrow, but there are a few things you can do yourself to get the best out of that meeting and to get the best answer.

Firstly, be prepared!  Make sure you keep your payslips safe so you can access them quickly.  Make sure have all your accounts information if you are self employed preferably the last 2 years and request your latest 2 years SA302`s from your accountant or HMRC, and also check that proof of ID such as passports are in date and in the correct names.  These are all documents you will need to get a mortgage approved and having them at your first meeting means you will get to your answer quickly and the answer will be accurate!

Credit checks will need to be carried out to confirm  your borrowing power, but the more checks you have carried out, the more damage it can do to your mystical credit score, so access your own credit report first to see what the lender will see and bring that report along to your meeting.

Most of us have been in a situation where we’ve been declined credit. It’s not the best feeling in the world, is it?

While it can be inconvenient and embarrassing to be told that the “computer says ‘no'”, it helps to understand how credit scores work. If you know that, you can work out how to improve your credit rating.

How does a credit rating work?

Your credit score will vary between banks and building societies. That’s because they all use different methods of calculating it, based on their own analysis of your credit history. Your credit report will list your credit accounts such as store cards, credit cards, mortgage, loans, car finance, your repayment record and much more. It can make all the difference between getting the mortgage you want or getting a string of puzzling rejections.

Credit ratings are determined by a combination of:

•What you disclose in your application for credit

•What is contained in your credit file

•Any previous credit history you have with the lender you are applying with

If you’re over 18 and have ever taken out a credit card, store card, catalogue account, utility bill account, mortgage or loan (apart from a student loan), then you have a credit report, which is held securely by a credit reference agency.

A credit reference agency compiles information about your credit applications and payments and sends it on to any prospective lenders (or individuals who ask for their own report). Experian (Credit Expert) is the UK’s largest, but there are others such as Equifax and Callcredit.

The mortgage that you are applying for will only be available to you if your credit score meets or exceeds the minimum level set by the lender.

If your rating is lower than this, you may be offered borrowing at a higher interest rate, or declined it altogether. The more declines you get, the worse your credit score becomes, increasing the risk of tarnishing you with an adverse, poor or bad credit label.

7 Steps to improving your credit:

1. Check your credit file

You can view this on a free trial basis or by paying a small fee. Make sure that all the information on the report is accurate, and get it removed by contacting the lender if it isn’t. If you request your report on a free trial, and you don’t need access to it after the trial period ends, remember to cancel it by setting a calendar reminder.

2. Disassociate yourself from your financial partner

When you take out a joint mortgage or joint bank account, you become “financially linked” to the person you’ve taken it out with. If they have a bad credit rating, it could impact yours. If you have split up with your partner, husband or wife and/or the joint financial product you have taken out is no longer between you both, inform the credit reference agencies of your disassociation. If not, the other person’s financial dealings could still have an impact on your credit score.

3. Get on the electoral roll

This will improve your chances of being accepted for credit. This is because prospective lenders and credit reference agencies use this to check you are who you say you are, and you live where you say you live. Ensure your credit record shows correct address details. Living at the same address, being employed in the same job (with the same employer) and having the same bank account for a reasonable period of time will also help.

4. Close unused credit cards, store cards, direct debits and mobile contracts

Lenders may consider the amount of credit you have access to, as well as the amount of debt you owe. Close all credit accounts such as credit cards, store cards, mobile contracts and accounts that you don’t use or need anymore.

5. Don’t miss or make late repayments

Missed and late payments can stay on your credit file for up to six years. If you’ve made a late payment due to circumstances beyond your control (i.e. your direct debit wasn’t set up in time), so long as you made the payment promptly when you noticed, talk to your credit provider and see if you can get this black mark removed.

6. Pay off your debts

Pay off more than just the minimum payment. This signifies good behaviour to a prospective lender.

7. Build your credit history with a credit card

If you’ve never had credit before, it’s difficult for a lender to assess you. Consider taking out a small credit card, making a couple of purchases on it each month and then repaying the balance in full at the end with a direct debit to build a good credit history. This will show that you can responsibly manage credit.

So in essence, be as prepared as possible for your first mortgage meeting, that way you will save time and give yourself the best chance of the outcome you hoped for when it comes to being able to purchase your next home.  Our Moneysprite Solent adviser can help you with all your mortgage questions and needs, so get in touch today and get planning your purchase now!

rental

The dreaded property ‘chain’ can cause chaos – putting you in the land of the unknown. In some case you might have to wait for upwards of twelve properties to exchange and complete at the same time!

Our experienced team at Dack have valuable experience of progressing a number of complicated chains and this article looks at some of the steps you, as a buyer or seller, can take to make things run more smoothly, if you have to buy and sell at the same time.

In an ideal world, you would sell your home the minute you put it on the market and then have all the time you need to find your next dream home while your buyers wait patiently until you’re ready to move. Unfortunately, we don’t live in an ideal world and in most cases you’ll find yourself in a chain. While not uncommon, property chains can cause significant headaches, so if you’re planning to buy and sell at the same time, here is how to make sure you’re prepared.

Stage 1 – Get your property valued

Before you start making plans to buy your new home, you need to get a clear understanding of how much your current home is worth. We would be more than happy to offer a free valuation and provided you with evidence to support our value.

Stage 2 – Work out your finances

What is your budget? It is important to get your head around your finances early on in the process; How much equity do you have in your current home? Do you need a mortgage? If so, what are your repayments going to be and can you afford them.

Our advice would be to have an initial conversation with an independent mortgage broker. These initial chats are normally conducted over the phone with a follow up meeting in person.

That conversation may lead to re-mortgaging or porting your mortgage over to the new property. Either way, if you would like our adviser to give you a call please let us know. Alternatively you can see more details on our Financial Services page.

You should also bear in mind additional costs such as stamp duty and estimate the utilities for the new property, such as the council tax band. You will also need to work out your legal costs.

Stage 3 – Find a good solicitor

A good solicitor is integral to a smooth house sale and/or purchase. This is another cost which will need to be taken into account. We work closely with Independent Solicitors who have serviced a number of our clients and had nothing but positive feedback. If you would like a free, no obligation quote, please contact us. For more information please see our conveyancing page.

Stage 4 – Find a property

Once you’ve found a property you like and worked out the sums you can book a viewing. For more information see our article “What should I be asking on my viewing?”.

Consider what works, if any, you’d need to do on the property and the associated costs, consult your mortgage broker again if need be. Perhaps you have identified an issue or want to rip out that dark orange 1970s bathroom suite as soon as you move in. Once you’ve done the maths, if you’re happy it works out, you can make an offer.

Stage 5 – Maximise your negotiating power

Agents love an informed and prepared buyer or seller. While you’re perfectly entitled to put in an offer on a property when your own home is still up for sale or not even on the market, you will be in a stronger position if your property is under offer.

Coming to an agent with a property already under offer with an understanding of exactly what is going on in the chain, solicitor’s details and an Agreement In Principle (AIP) in hand will always put you in good stead. With that being said all sellers and buyers have different needs and all offers are handled on a case by case basis.

Stage 6 – Be prepared to wait

Buying and selling a property is, unfortunately, not a quick process. At Dack we focus on managing everyone’s expectations once a buyer is found. Granted we want your sale to go through as quickly as possible, but not by cutting corners.

We expect between 8 – 10 weeks for the average completion, however with a number of variables in the equation, such as the number of properties in the chain or number of potential enquiries to be raised during conveyancing, it’s not an exact science.

Our job is not over by any means once we have found a buyer; an agent proves their worth when it comes to progressing the sale, overcoming obstacles and getting you through to completion. We have a heavy focus on offer validation at the very beginning, making sure your buyer is committed and can afford your property and ensure clear communication throughout the sales process.

In the UK 1 in 3 sales fall through. This is a scary statistic and we aim to reduce this figure dramatically for our customers.

Stage 7 – Set a date

Once the conveyancing process is nearing conclusion, we can start to work towards exchange and completion dates. Exchange is the date the transaction becomes legally binding with completion being the date upon which the funds will be transferred and the keys released to the new owner. It’s important that all parties co-ordinate a completion date both up and down the chain that works for everyone. This will take some negotiation. More often than not you will need to be prepared to compromise.

In summary when buying and selling, you should:

  • Get your property valued.
  • Work out your finances
  • Find a good solicitor
  • Find a property
  • Maximise your negotiating power
  • Be prepared to wait
  • Set a date

Don’t be put off by how complicated the process sounds, it’s not a scary as it seems. It’s the role of us, the estate agent, to make your life easier and take charge of the process.

Give us a call or pop into the office for some advice and a chat if you are thinking of buying or selling.

67 Osbourne Road, Southsea, Portsmouth PO5 3LS
02392 896996
info@dackpropertymanagement.co.uk
Company number 5221689
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