Home buying in Harringay - good or bad experiences?

Replies to This Discussion

Permalink Reply by Hugh on December 7, 2013 at 15:22

"a piece"? Who for?

Permalink Reply by Steve Hatch on December 7, 2013 at 18:08

Good question Hugh.

I'd be more than happy to help Jacqueline.

I'm always keen to help any member of the media put together a well balanced and impartial piece. It also offers encouragement for all the professional agents that work so hard to make, what is often a life changing move for all involved, actually happen!

I've been a local agent (Castles) for 20 years and most local agents work extremely hard for their clients - which of course is required of us by the property ombudsman. Several of us try to get involved and support the community in various ways, as with all local businesses, it makes sense.

Prices have increased dramatically in Harringay (as they have in other neighbouring areas). This is largely due to a drastic shortage of properties, but in Harringay's case, a great location, wonderful houses/flats and our strong local community - Demand is high and unfortunately far outstrips supply.

With regard to local agents ethics and behaviours...

I think most local agents would agree when I say: We'd 'prefer more properties to sell', rather than too many buyers and not enough properties.

In the current market it's all about being fair and giving everyone an equal chance. Hence the wide use of 'open day' viewings.

From an agents point of view - It's no fun dealing with half a dozen offers on the same property as it generally equals 1 buyer and 5 disappointed potential future clients. Ultimately the final decision lies with the owner as to who they sell to. Most local agents work on a reasonable percentage (currently around 1% In our case) so choosing one buyer over an other generally has 'very little' effect on the commission.

Without going into too much detail... The owners decision generally comes down to circumstances! The owner will choose the buyer that best fits their own circumstances, deposit amount, timescales, whether or not a potential purchaser has sold their own property (and who to), all present potentially deciding factors. It's not always 'just about the money'.

This website is impartial and shows ALL the local agents and demonstrates how hard they work http://www.allagents.co.uk/castles-estate-agents/

I hope this helps, if you want a list of people that lost out - but felt they were fairly dealt with, I can probably help there as well!

Best of luck with it.
Steve@Castles

Permalink Reply by Jacq on December 8, 2013 at 11:49

Thanks so much for getting in touch and just to reassure that it's not Castles I'm trying to buy through. In my current situation, I'd much rather it had been!

My interest is more in the way local estate agents are responding to situations where offers have been accepted then values leap up a staggering amount during the process of the sale.

Estate agents represent sellers. With the dramatic price rises in the area, there must be some pressure from clients tempted by the opportunity to increase profits by pulling out of existing sales to achieve a higher price. The temptation or not to gazump and the ethics and behaviour surrounding the practice. I would love to have a chat with you to understand the estate agent perspective too.

I realise in most scenarios there would be little an estate agent can do if they receive an instruction from a seller to get a higher price but I'm interested to know whether this is now becoming widespread in Harringay and how it's being handled.

Would you be prepared to make a comment about the approach locally agents are taking towards gazumping and whether you've noticed it has started to become an issue in this area?

Many thanks
Jacqueline

Permalink Reply by Steve Hatch on December 8, 2013 at 14:56

Hi Jacqueline,

I'd be more than happy to comment.

I have a very good (current) example of this scenario. We've had to renegotiate a recent sale as the owners found that prices had shifted forward. Although their buyer (found by us) had agreed a price and naturally did not want to increase their initial offer; they appreciated the difficulty that the owner was having in finding a property.

The sale was never going to happen unless the owner could find a suitable property. As with the vast majority of sales, the emphasis was, to a degree, on circumstances over money! It's fair to say that no two buyers; or sellers are alike, making each and every sale unique.

The buyer also appreciated that; were they not to increase their offer, they'd potentially have to start looking again; at higher figures, with no guarantee that they'd find a property 'as suitable'. As it stood they had first refusal (no gazumping to add additional pressure).

It naturally put us all in a difficult position! But with some good honest and open discussions; a measure of fairness and sincere empathy, we all found a fit. The buyer paid more; but not as much as they would have, had the property been remarketed! In fact, as we near completion; the property is worth more still, so they are walking into increased equity in their 'soon to be' home.

It wasn't about the money, it was about making the move happen; ultimately that's what everyone was working towards and this is where a good estate agent earns their (usually reasonable percentage). Yes there are good agents and bad agents, but everyone can leave a review - either to warn others, or give credit where it's due.

Carefully liaising with all parties to a connected chain of sales is essential and it's generally a lack of communication that will cause a sale; or group of sales to collapse.

I'd be more than happy to go into more detail on this particular sale; especially if it helps present the mechanics of a sale in the current market from an agents perspective.

Permalink Reply by David Robson on December 9, 2013 at 14:33

I do find this response incredible - trying to put a positive spin on what is gazumping by another name.

How miss-informed was the seller not to know what the market was doing and what they'd need to move? If the offer wasn't enough they should never have accepted it.

Having seen the same thing happen to family members it is an appalling way to do business and only gives estate agents a bad name for facilitating it. (all their friends have been informed and none of them will be using the estate agent http://hortonandgarton.co.uk/ concerned in the future)

Permalink Reply by Michelle on December 7, 2013 at 18:45

Hi. I am happy to have a chat. Send me your details by PM.

Permalink Reply by Jacq on December 8, 2013 at 11:52

Ace - thank you. Just sent you my details.

Permalink Reply by Hugh on December 7, 2013 at 18:54

Thanks for that. It helps to know roughly why a questions being asked.

Permalink Reply by Finsbury Park Ranger on December 8, 2013 at 18:43

In the current market, It must be quite tempting to get an ill informed seller to go too low, only to offer that up to your buy to let friend straight away for a nice kick back.

The potential for kick backs for favours must be huge considering the sums at stake but the symbiotic relationships that would develop over time would probably be very, very hard to expose because of the huge mutual benefits that could be gained by either party.

Permalink Reply by Steve Hatch on December 8, 2013 at 21:56

I should imagine this would be fairly easy to expose with Her Majesty's Land Registry figures being publicly available.

The reality is that sellers do their research extremely well when it comes to their biggest asset; there is no shortage of online price data and it's easy to find.

The vast majority of people will also call in two or three different agents. Elderly people generally have their families dealing with the sale, whilst vulnerable people will often be protected by a solicitor, a trust, or the court of protection.

You could also suggest that it's (possibly) overwhelmingly tempting to stereotype others - fortunately; not everyone gives into temptation. There are plenty of decent people in the world and some of them are Estate Agents; Police men and women; tax inspectors; dentists and so on, we come in all sizes; colours; shapes; faiths and cultures.

I'm certainly not alone in thinking that communicating with others; listening; taking a genuine interest in people's circumstances and seeing things from their viewpoint, generally helps with negative perceptions across most walks of life.

Permalink Reply by John McMullan on December 8, 2013 at 22:27

Why is there such trouble exposing who owns various buildings on Grand Parade then?

Permalink Reply by Steve Hatch on December 8, 2013 at 23:01

Not sure John - Have you paid to have a Land Registry Ownership Search done?

It's called an LR6 search and it's £15 per property; anyone can order this online via their website.

Hope that helps.

Steve

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