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In Property This Week - 28 May

Published on 28/05/2008
Worst Housing Market Since the 1990’s

Less than 5% of homes in the UK will change hands this year, according to property research company Hometrack. This will represent the lowest level of activity in the housing market since the early 1990’s.

Hometrack says the number of people buying and selling will fall by 35%. And the Council of Mortgage Lenders predicted last week that house prices would fall by 7% by the end of 2008.




“This is the big issue at the moment” said Richard Donnelly of Hometrack. “People will be moving house on average one every 20 years.”

Even in areas where house prices are stable, the fall in transactions is hitting estate agents. In Hereford, for example, sales have fallen by two-thirds in less than a year, and three estate agents have closed down.

Davis Stubbs, senior economist at the Royal Institute of Chartered Surveyors, said it was among properties costing less than £300,000 that transactions had dropped most significantly. “This suggests that even firms who do survive will have to reduce staff and scale back investment.”


What to Expect From Professional Property Buyers In ‘08

With the current slowdown I seem to be getting a lot of people asking me how all these property companies offering a quick cash house sale operate.

The best thing I can do is give you a realistic idea of how much you'll get from a cash buying company.

To remain competitive most companies will verbally say that they offer 80-85% of what your property is worth.

This may have been true last year but with the depressed UK market I've seen an alarming increase in the number of sellers complaining that cash buyers have been reducing their offer at the last minute (i.e. trying to steal the deal).

This is the main trick that companies are using to get their foot in the door and it can waste a lot of your time.

If you are thinking of using a cash buyer, it is best to base your decision upon the fact that at the end of the day, the final cash you'll receive will be around 70% of an estate agent's suggested "asking price"...

That translates to roughly 75-80% of your property's REAL value.

So the question is: “What is the REAL VALUE of your house?”

"The real value of your property is the value a bank would put on it. It is not what an estate agent says. An estate agents opinion is frankly worthless. Unless it is backed up with comparable evidence of similar property sale prices within the last 3 months"

If your need for a guaranteed sale great enough to warrant selling for this discount there are a handful of reputable buyers out there that can put you back in control of your sale.

There are even buyers that operates on a "profit share" basis. This will enable you to achieve a few extra percent and the best deal for your property.

Be aware that there are currently some unsavoury practices out there. In particular there is one national company that is charging upfront fee for valuations. This can be as high as £600. Once they have collected your money their initial high offer mysteriously transforms into something much lower.

If you need the services of a quick cash house sale we can help you steer clear of disreputable companies and help you move on with your life.

Gavin Brazg




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