Preparing to Sell
The frenzy of COVID driven purchases of houses in PrimeCentral London or second homes in the Home Counties hassubsided as the impact of the pandemic and the dreadedlockdowns begin to fade into a distant memory. In recentmonths there has been a notable swing in demand backtowards apartments in PCL, particularly for those withexternal amenity space, on-site leisure facilities or adequatespace for home working.
Bird Charles Surveyors Ltd have found that the demand forhouses and flats in PCL is robust, particularly for propertiesabove the £5 million threshold. We have seen a good level ofmarket activity within the W1 and SW1 postcodes which areleading the way for PCL properties, followed closely by SW3,SW6, W2 and W8 areas.
Overall transactions however remain subdued in this post-pandemic World, and this is no doubt partially attributableto Global inflation rates; 12 consecutive interest rate hikesby the Bank of England; and an on-going cost of living crisis.Whilst there remain cash buyers within the PCL market, theimpact of rising living and borrowing costs is clearlycontinuing to have an impact particularly for those whorequire a level of additional funding and this has helpedestablish a buyers’ market.
Although available stock in PCL remains relatively low,property values have remained static over the last 2-3 yearsand they look to remain this way over the next 12 months orso. Whilst Global and Domestic inflation rates appear to bereducing, and there is a prospect of Bank of England interestrate rises easing over the next couple of months, it will besome time until inflation rates and interest rates fall to amore palatable and comfortable level.
The impact of the Global and Domestic economicsituation is that buyers are becoming increasinglyconfident in making significantly reduced offers onavailable properties. According to Lonres data, buyersare successfully negotiating between 8% and 10% offinitial asking prices in the main PCL postcodes andaround 50% of properties remain unsold after 6months.
Within Mayfair specifically, average discountsof 14% have been achieved off original asking pricesand up to 50% of houses remain on the market after 12months. Despite these facts, annual transactions inMayfair are up by nearly 24% on this time last year,with 30% of houses and 50% of flats selling within 6months.
Data available from Which and Lonres also indicatesthat around 30% of agreed sales do not progress tocompletion. The principal reasons for a sale fallingthrough include changes to a buyer’s financialposition, a change of heart, a collapsing chain and ofcourse the results of a property survey.
Whilst a vendor cannot protect themselves against unexpected changes to a purchaser’s finances or a collapsingchain, they can take steps to mitigate the impact that a survey report might have on a buyer. They can also takepositive steps to help avoid a client having a change of heart.
A vendor’s survey, undertaken by a chartered and highly recommended surveyor, prior to the marketing of aresidential premises, could make a significant difference in the successful sale of the property. Commissioning avendor’s survey will provide crucial forewarning of issues that might arise during the conveyancing process thatcould otherwise stall or sabotage a sale proceeding to completion.
A buyer may only view a property on one or two occasions and spend no more than 1 hour in total viewing the homethey intend to buy. PCL properties are typically dressed for sale and may appear to be the dream property, but asurvey may yet uncover all manner of issues that can cause a buyer to think twice or pull out of a sale all together.
The condition of a roof; damp issues; structural movement;unauthorised alterations; old or failing installed services; andinaccurate lease or title plans are amongst some issues that a buyerwill likely be unaware of when they submit an offer on a property. Forapartments, the implications of the Building Safety Act 2022 and FireSafety (England) Regulations 2022 may not have been appreciated bya buyer and the impact of these new requirements could also unsettlea prospective purchaser. A vendor may well be oblivious of thepotential matters affecting their home that could be critical to thesuccessful sale of the property or otherwise lead to significant pricechipping off the asking price.
By commissioning a vendor’s survey, those issues that might nototherwise be discovered until a survey is undertaken can be realisedand either addressed or managed in advance of a sale. Repairingdefects, obtaining retrospective consents for unauthorised works andensuring all necessary certificates and servicing documents are up-to-date will help remove one of the major stumbling blocks to asuccessful sale. This process also ensures that the vendor’s legal teamcan assemble all relevant documents and certificates for their salespack in a timely fashion and they will be better placed to respond tonormal property enquiries and additional enquiries from their legal counterparts.
‘Taking the time to prepare a house for sale is critical to its successin realising its maximum potential value and reducing delays intransactions, or worse, seeing the property stagnate on the market.
A property that has few or no major issues to address is less likelyto result in a buyer’s change of heart and will help drive a salethrough, especially when supported by an excellent sales team andlegal team. Similarly, a property that is priced realistically toreflect known issues that a vendor may not wish to address, willalso help the success of a sale.’
Peter Bird MRICS
Director of Bird Charles Surveyors Ltd
If you or your client are looking to sell a property, especially a listed building, a vendor’ssurvey will be a powerful tool to aid the success of your sale in a timely manner and at a premium value.
For further information on our unique vendor surveys and the extent of the inspection andreport contact us today.
info@birdcharles.com
0203 667 3102