John H wrote: ↑23 Jan 2019 09:31
I put my house on the market. The estate agent was so careless they damaged my prospects of a sale. They are an estate agent well known in Sydenham which claims a level of success I cannot substantiate.
My four bedroom above average sized Victorian semi was described, by them, as a three bedroom terraced house.
Their valuation was around what one might expect for such a house. I have independently had my house valued at a substantially greater figure.
I moved to another estate agent who performed better but again seemed constrained by the commission needs of its employees. These unqualified people simply want to move property quickly and they seem to believe CHEAP sells. In my view it does not.
With the second agent I received a number of viewings but the people they turned up with were clearly not in a position to afford a house of this quality. They were selling to the wrong market.
The market is slow. There are certain levels within the market where houses will not sell at present. The incompetence of estate agents and the absence of alternative avenues to sell (private treaty) have disappeared with the collapse of local newspapers. There is nowhere for the private seller to advertise. The various property sites operate as cartels and shut out the private seller.
There are a number of factors affecting the market BUT the property market has shown over the decades how it is able to adjust to any kind of situation. At present there is sheer panic in the "buy to let" market and this is having an effect. The removal of the "buy to let" phenomenon is something to celebrate. Anyone and everyone knows that a "buy to let" property in your immediate vicinity has a detrimental effect on the value of your property. Buy to let properties are generally neglected and attract people who are not interested in preserving the quality of their surroundings.
Sydenham will be a hot spot once a few of the many factors hindering sales have been resolved. Once Project fear is out of the way and once the slack created by the "buy to let" collapse has disappeared and with wages now increasing faster than pricces then it is only a matter of time before the market recovers.
Stability, taking a point from the above posts, is created by balance between supply and demand. If Brexit results in fewer newcomers to the market then that will stablise the market. If, as appears to be happening, the first time buyer returns to the market then there will be a demand stimulus BUT the absence of vast numbers of people arriving with housing needs is likely to have a far greater effect.
By next year I believe the property market will have stabilised and begun to show signs of increasing prices at a modest rate. That is the ideal. It will remain true until the property market is moved out of equilibrium, again, by some ill-judged political act.
Out of interest, did you manage to sell your property in the end?
I'd agree with you to a certain extent on your opinion of the BTL market, but as a landlord of a few properties I'd like to stick up for my tenants somewhat as they have all treated their houses and surroundings with respect and care.
I have found a tenants attitudes tend to reflect the input of the landlord. If you look after your properties and keep up a certain standard of maintenance and appearance, tenants tend to behave in the same way. Conversely if a landlord is absent or shows a lack of interest when things go wrong, then why should the tenant care?
Some people simply cannot afford the huge deposits required to purchase a property in the areas which they wish to live in. Letting offers them the chance to do so.
I don't beleive the removal of the Buy to Let industry is something to be celebrated, instead more regulation is needed and more recognition for good landlords.
We can vet prospective tenants to the bone before we accept them, I would like to see it work the other way too.
On topic of this post though, from my experience there are lot of properties currently on the market that are well overvalued, and often you see big price reductions on them over the months. Sydenham, Penge and parts of Anerley good areas to buy in for whatever the reason though.