A couple of weeks ago I wrote how you should do your research before buying a property to ensure you aren’t overpaying for it. I had an e-mail from a first-time landlord asking for some more information as to how to go about this, so I thought I’d share a few tips with you.
Fundamentally, a good knowledge of the market is key. This is achievable by scouring the property portals regularly or receiving e-mail alerts about new stock, thus giving you an insight into what a particular property is really worth. This is why estate agents are so good at valuing properties, as they have first-hand knowledge and daily experience of what is on the market, what properties are actually selling for and what else is available nearby that will be competing for the same potential buyers.
You can also access publicly available data to help with this too. Previous sold prices are available via the Land Registry and more easily accessed via the property portals. Rightmove and Zoopla both handily give you this information, along with when the property was first listed, on the right-hand side of a property listing. Rightmove also has a ‘market info’ tab to see suggestions (and prices) of similar properties nearby.
Consider that estate agents work for, and are paid by, the seller; so a good one should be seeking to achieve the highest price the market will bear. Sometimes though, other factors come into play that mean price isn’t the most important element for the seller - certainty and/or speed could be the priority in some circumstances. Understanding the motivation as to why someone is selling can therefore be a good thing to find out - there’s no point trying to bag a bargain from someone who is in no hurry to sell!
And remember that pricing is subjective and merely the ‘opinion’ of an agent or vendor. A case in point is an asking price with the pre-cursor ‘offers in excess of’ or ‘O.I.E.O’. That’s all well and good, and should give some indication as to what the seller is looking to achieve, but it’s still your prerogative to offer what you like. After all, how many times have you seen a property with a price tag O.I.E.O, only for it to be reduced below this figure some weeks or months later!
So, what’s a property worth? Well, ultimately it’s worth what someone’s willing to pay for it. The best thing to do is to work out the criteria you are looking for, do your research to see if the property ticks the boxes and what it’s likely to sell for, and then stick to a figure that you’re comfortable with.
For more tips about buying, selling, letting and renting in Chichester, please visit www.chipropertynews.co.uk
(This article was featured in the Chichester Observer's property section on 25th May 2018)
Clive Janes, CRJ Lettings
If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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