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Would you haggle on a house price? We reveal the do’s and don’ts of negotiating

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Many Britons could be at risk of paying over the odds on their house purchases, with 30 per cent of homeowners saying they did not negotiate at all on the price of their current property.

A huge stumbling block for many was their lack of knowledge, with more than one in five confessing that they didn’t know how to negotiate according to research by Barclays. 

It also revealed that homeowners aged between 25 and 34 experienced the most anxiety and stress when trying to haggle down the price of their home, compared to those aged 65-plus who said they were much more comfortable with the process.

UK home buyers often feel too embarrassed to negotiate on price, according to Barclays

UK home buyers often feel too embarrassed to negotiate on price, according to Barclays

Fear of losing the property, impatience with the buying process and embarrassment over negotiating were all cited as common reasons why home buyers refrained from haggling.

Some admitted they had found the thought of negotiating to be intimidating or scary, whilst others were concerned about upsetting the seller.

‘Our research has found that a considerable number of Britons lack the skills or confidence needed to negotiate successfully on the price of their home,’ said Rob Smith, head of behavioural science at Barclays.

‘We are more likely to negotiate on a used car than we are on a property, highlighting the unique emotional nature of one of the biggest purchases people make in their lifetime.

‘Understandably, the process can feel daunting – particularly if you fear losing out on your dream home. But a successful negotiation can result in extra money to bolster your family finances or invest back into your home.’

How you can get negotiation-ready

1. First and foremost, do your research to determine how the property compares to similar homes for sale in the area.

‘I advise looking at a number of properties before offering,’ says Nigel Bishop, a property search consultant at Recoco. ‘The more properties you see in a given area, the better sense you’ll get of what you should be paying.’

It is also possible to get a sense of current prices in the area by looking online.

‘Look on the online portals such as Rightmove or Zoopla, and look at sold prices over the past two years within the postcode you are looking to buy in. This will give you a greater feel for what the price should be,’ says Bishop.

2. Don’t be afraid to ask the seller’s estate agent prying questions about how long the property has been on the market, why the vendor is selling and whether they already have their next home secured.

‘Ask the estate agent what the sellers’ motivations are and try and make your offer accommodate them,’ says buying agent Henry Pryor.

‘Find out whether the seller needs a quick sale, and if they have had any other interest or offers.

‘If there have been other offers, find out whether these were unacceptable because the buyer wasn’t able to proceed, or because they just didn’t offer enough.

Finding out what other local properties are selling for is a good starting point for negotiations

Finding out what other local properties are selling for is a good starting point for negotiations

‘Agents will often say, “We have had two offers that have been turned down” – but won’t tell you what the reason was unless asked.’

3. If you want to negotiate, it is important to ensure you are in a position where you can actually proceed with a purchase.

‘Make sure you either have already agreed the sale of your own property, or that you have a mortgage agreement in principle,’ says Bishop.

Who are the UK’s most confident negotiators?

Residents of the port cities of Plymouth and Bristol are Britain’s most confident negotiators with 51 percent and 42 per cent backing their respective haggling skills according to Barclays. 

But residents of Edinburgh and Nottingham are the least confident in their ability to strike a deal, with only 24 per cent and 29 per cent confident in driving down property prices.

‘The key to any property negotiation is to prove you can proceed and, if you can’t, I would suggest you hang back from any property until you can.’

4. Decide what the maximum is that you are prepared to pay and don’t allow yourself to be bullied by the estate agent.

‘Even if you won the lottery last weekend, the fact that you can afford to pay more doesn’t mean that you have to,’ says Pryor.

‘The estate agent’s job is to pick your pocket until you say no, so the sooner you tell them that this is your limit, the quicker they will turn on the seller and force them to come down to your level.’

5. It can be unwise to insult the seller with an outrageously cheeky offer, so it is best to be realistic when offering under the asking price.

‘Typically, about 10-15 per cent under the asking price is an acceptable place to start,’ says Bishop, ‘but there is a danger of offering too low.

‘If you insult the seller with a very low offer, you might find they lose their trust in you as a credible buyer.’

‘You can also alienate the estate agents because, in the future, when you ask to look at another property, they will see you coming and be less responsive or helpful.’

6. Remember, you can re-negotiate until the exchange of contracts.

‘Because of the way we sell homes in England, you can actually re-negotiate or withdraw at any time without penalty before you have exchanged contracts,’ says Pryor.

‘But it is always better to have done all your homework before you get into paying costs or making a legal commitment.’

If any structural issues are picked up in the survey, this might give you a reason to re-negotiate

If any structural issues are picked up in the survey, this might give you a reason to re-negotiate

A common reason why you might want to re-negotiate after having an initial offer accepted is if the building survey throws up costly maintenance issues. 

Bishop adds: ‘If a surveyor comes back and says you will need a new roof in 10 years, then get a quote and re-negotiate.’

7. Finally, don’t get too carried away by the negotiation itself and remember this is about you, your home and your life.

‘Negotiation is a psychological game and some people want to feel like they have won,’ says Bishop.

‘There are some vendors who, no matter what you offer, will want more: so just have the maximum figure in mind that you’re prepared to offer, and don’t allow yourself to get carried away.’

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Detached homes see average values up £60k during the pandemic says Halifax

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The pandemic property boom has been driven by a surge in demand for larger homes, new research has revealed.

The average value of a detached home in Britain has risen at almost twice the rate for flats, according to the data from Halifax and IHS Markit.

Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since March 2020.

Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since the March 2020

Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since the March 2020

It compares to an increase of around 9 per cent for a typical flat during the same period, where values have risen on average £13,325 to an average of £158,992.

At the same time, the average price of a terrace property has risen 15 per cent or £27,715 to £213,798, while semi-detached also rose 15 per cent or £36,841 to £280,090.

HOUSE PRICES BY PROPERTY TYPE
All Houses All Buyers UK Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 15.40% 9.10% 14.90% 15.10% 16.60%
Price Change (since Mar ’20) £33,820 £13,325 £27,715 £36,841 £60,556
Average price Dec 2021 £276,091 £158,992 £213,798 £280,090 £425,177
Source: Halifax/IHS Markit        

The data also highlighted the widening of the gaps between each type of home, with flat owners expected to spend an extra £54,806 to upsize to a typical terrace house, compared to £40,416 in March 2020.

At the same time, those currently in a terrace would need a further £66,292 to own a semi-detached home, compared to £57,166 in March 2020.

Meanwhile, home movers hoping to switch from a semi-detached to a detached property need an additional £145,087, compared to £121,371 in March 2020.

REGIONAL HOUSE PRICE CHANGES BY TYPE
% Change (since Mar ’20) All Flat Terraced Semi-Detached Detached
East of England 13.00% 7.40% 14.20% 14.80% 14.30%
Northern Ireland 14.30% -2.40% 15.20% 16.70% 13.40%
South West 18.40% 10.90% 19.00% 19.50% 20.20%
London 6.40% 0.70% 6.80% 7.60% 12.40%
Scotland 12.10% 9.60% 14.20% 13.70% 16.30%
West Midlands 14.60% 7.10% 12.60% 15.50% 17.40%
East Midlands 15.50% 12.10% 16.50% 17.50% 19.00%
North West 18.20% 13.40% 18.80% 17.00% 21.90%
Wales 21.90% 11.70% 25.10% 21.20% 24.40%
North East 14.40% 14.30% 19.80% 11.80% 15.50%
South East 13.10% 7.40% 13.70% 13.80% 15.40%
Yorkshire 16.50% 4.30% 15.40% 17.00% 18.30%
Source:  Halifax/IHS Markit        

Wales and the North West saw the greatest increase in detached home prices, up 24.4 per cent and 21.9 per cent respectively.

The most expensive detached homes are in London, at an average £910,568. The 12.4 per cent increase is almost double the average of all property types in the capital.

Russell Galley, managing director, Halifax, said: ‘Record numbers of moves have been taking place throughout the pandemic, with the demand for detached homes now greater than for any other property type, meaning the competition for those looking to buy an often larger property is fierce.

‘As employers began to crystalise longer-term plans for home and hybrid working, buyers have been able to consider homes further afield as the need to commute falls away, with properties previously considered too remote now giving families extras like garden rooms and home offices.

This trend means Wales, with its beautiful countryside and lower relative property prices, saw the strongest growth in detached homes over the past two years.’

REGIONAL HOUSE PRICES BY PROPERTY TYPE DURING THE PANDEMIC
East of England All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 13.00% 7.40% 14.20% 14.80% 14.30%
Price Change (since Mar ’20) £36,767 £13,340 £34,669 £45,351 £63,141
Average Price Dec 2021 £319,447 £192,721 £279,087 £352,699 £505,379
Northern Ireland All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 14.30% -2.40% 15.20% 16.70% 13.40%
Price Change (since Mar ’20) £21,448 -£2,327 £14,027 £22,012 £25,600
Average Price Dec 2021 £170,946 £94,922 £106,105 £153,917 £217,226
South West All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 18.40% 10.90% 19.00% 19.50% 20.20%
Price Change (since Mar ’20) £44,773 £17,038 £38,716 £49,973 £76,380
Average Price Dec 2021 £287,774 £173,502 £242,285 £306,171 £454,133
London All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 6.40% 0.70% 6.80% 7.60% 12.40%
Price Change (since Mar ’20) £31,724 £2,657 £33,159 £44,891 £100,525
Average Price Dec 2021 £525,351 £371,744 £520,359 £635,422 £910,568
Scotland All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 12.10% 9.60% 14.20% 13.70% 16.30%
Price Change (since Mar ’20) £20,795 £9,789 £18,433 £23,357 £39,783
Average Price Dec 2021 £192,988 £112,075 £148,224 £193,975 £283,214
West Mids All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 14.60% 7.10% 12.60% 15.50% 17.40%
Price Change (since Mar ’20) £29,778 £8,625 £20,532 £33,265 £57,685
Average Price Dec 2021 £234,263 £129,851 £184,061 £247,881 £389,553
East Midlands All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 15.50% 12.10% 16.50% 17.50% 19.00%
Price Change (since Mar ’20) £30,275 £13,536 £24,346 £33,919 £57,186
Average Price Dec 2021 £225,106 £125,563 £171,686 £227,336 £358,441
North West All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 18.20% 13.40% 18.80% 17.00% 21.90%
Price Change (since Mar ’20) £32,591 £14,070 £24,426 £31,917 £63,229
Average Price Dec 2021 £211,954 £118,979 £154,308 £219,294 £351,887
Wales All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 21.90% 11.70% 25.10% 21.20% 24.40%
Price Change (since Mar ’20) £36,917 £11,570 £30,111 £34,639 £62,688
Average Price Dec 2021 £205,579 £110,318 £149,966 £197,768 £319,492
North East All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 14.40% 14.30% 19.80% 11.80% 15.50%
Price Change (since Mar ’20) £20,162 £11,527 £20,071 £17,666 £37,373
Average Price Dec 2021 £159,694 £92,214 £121,187 £166,876 £278,863
South East All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 13.10% 7.40% 13.70% 13.80% 15.40%
Price Change (since Mar ’20) £43,298 £15,502 £38,704 £49,203 £78,220
Average Price Dec 2021 £374,454 £223,610 £320,944 £404,648 £586,781
Yorkshire All Flat Terraced Semi-Detached Detached
% Change (since Mar ’20) 16.50% 4.30% 15.40% 17.00% 18.30%
Price Change (since Mar ’20) £27,192 £4,708 £19,442 £29,624 £50,192
Average Price Dec 2021 £192,210 £114,535 £146,081 £203,805 £324,581
Source: Halifax/IHS Markit         

North London estate agent Jeremy Leaf said: ’Soaring demand for detached homes is not surprising as we are seeing buyers prepared to stretch themselves to purchase properties which they regard as for the longer term, rather than settling for smaller houses or flats. 

These buyers are often using money saved during lockdown by not going on holiday or other spending, to contribute towards their deposit. They are also taking advantage of continuing low interest rates even though the threat of higher repayments and inflation is looming.

‘Detached homes have long been the pinnacle in terms of what people aim for when buying property. They are popular because they offer flexibility, privacy, control and independence, which isn’t always the case with semi-detached or terraced properties where there is an element of shared space or boundaries, increasing the risk of conflict.

‘Price growth has been strongest in Wales because often affordability is greater in those markets in the first place. We have noticed the drift from the centre of towns and cities to the suburbs, country and coastal areas as people get more accustomed to hybrid working and not having to spend as much time in the centre. They are looking for higher-quality outside space and the ability to work comfortably from home.’

Separate research by Coutts found that demand has also been high for luxury leafy lodgings in the capital.

It said that sales for super prime homes worth £10million or more jumped from 56 in 2020 to 106 in 2021.

Peter Flavel, of Coutts, said: ‘For many investors these prime and super prime properties provide the opportunity to put funds into assets that offer the space they need as hybrid living continues to influence lifestyle choices.’

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Lisa Smith travelled to Turkey to study under Isis propagandist, court told

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Lisa Smith, a former Defence Forces member who denies membership of Islamic State (Isis), travelled to Turkey to become a student of a famous Islamic convert who wrote Isis propaganda, the Special Criminal Court has heard.

Michael O’Higgins SC, for Ms Smith, read out a message exchange in 2013 between his client and an American Islamic scholar John Georgelas, who was living in Egypt at the time.

Counsel said Mr Georgelas asked Ms Smith to travel to Egypt to study under him and said he would pay her to help his wife, Tania Joya, take care of their children.

Ms Smith replied: “I wouldn’t dream of accepting any money for looking after your children. If I can get the benefit of your knowledge as your student that would be more than enough payment for me.”

Mr Georgelas left Egypt with Ms Joya and arranged to meet Ms Smith in Turkey.

Ms Joya, giving evidence for a second day, told Mr O’Higgins that her husband was clever and manipulative and in 2013 was communicating with Ms Smith every day over the internet.

She said he was a respected scholar who could “overwhelm” people with his knowledge of scripture. She told Sean Gillane SC, for the prosecution, that Georgelas wrote for magazines Dabiq and Rumiyah that publish Isis propaganda

Ms Smith (39), from Dundalk, Co Louth, has pleaded not guilty to membership of an unlawful terrorist group, Islamic State, between October 28th, 2015 and December 1st, 2019. She has also pleaded not guilty to financing terrorism by sending €800 in assistance, via a Western Union money transfer, to a named man on May 6th, 2015.

Her trial is continuing in front of Mr Justice Tony Hunt, Judge Gerard Griffin and Judge Cormac Dunne at the three-judge, non-jury court.

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Rioja Estates and TORG International partner for two outlet village projects

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TORG International has partnered with leading UK outlet developer Rioja Estates for the development of two new outlets in Sweden and the UK, Malmo Designer Village and Grantham Designer Outlet Village. Both schemes have already secured planning consent, with Grantham being under construction with the opening scheduled for Autumn 2023. The Malmo outlet is expected to open in Summer 2025.

 

Conveniently located in close proximity to the Danish border, Malmo Designer Village benefits from a significant catchment area. The scheme is expected to rank in the top 25% of outlet centres in Europe in terms of traffic and is predicted to generate above-average sales density.

 

Grantham Designer Outlet Village is located on the country’s third most travelled motorway, the A1 connecting London with Northern England, and is projected to attract 3.5 million visitors annually. A lack of retail competition in the immediate area means that Grantham Designer Outlet Village will achieve significantly greater penetration of its catchment than the UK outlet industry average of 3%, namely for Phase One 7.7% and for Phase Two 8.5%.

 

Says Robert van den Heuvel, Partner Development & Leasing TORG International: “It was at Mapic 2021 that we established this new collaboration with Giles Membrey and his team at Rioja Estates, whom we have known for many years. We were impressed by the quality of their two latest developments in Sweden and the UK and are therefore delighted to be able to share our enthusiasm with the tenant community and industry at large.“

 

Adds Barbara Horatz, Partner Marketing & Retail TORG International: “We feel that both developments meet all the key criteria for a successful future outlet – the strategic location on a major motorway axis, important catchment, strong tourism potential, significant size, qualitative and sustainable architecture. There are not many strategic spots left in Europe for outlet developments and we definitely consider Malmo and Grantham as two of them.”

 

Concludes Giles Membrey: “We see Malmo and Grantham as the beginning of a great collaboration for our two companies –  there are many more opportunities for joint outlet developments that we see ahead of us and that we are already discussing, be it in Europe or in any of the other major markets globally.”

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