At a time when many agents are complaining about the lack of new
instructions and surveyors are finding huge gaps appearing in their
Home Report diaries I am delighted to report some good news. At
Hunters Residential we sold more properties last week than we have
during any week in 2011 and 3 of them sold within 1 week of going
on the market so clearly there are still buyers out
there!! Whilst I would love to suggest that this is
clear evidence of a recovery for the property market, realistically
I accept that it is more likely to be part of a final flourish as
we move towards what has traditionally been the quiet time of the
year as far as property sales are concerned.
Every year around this time we will be speaking to our
clients about how best to prepare for the winter months.
Should they continue to market their property
throughout, should they temporarily withdraw it from the
market or are there other options available? Let's be clear on one
thing - there is not a right or a wrong answer to those questions
and what suits one seller may not the best course of action for
another.
In a market that continues to fall there is certainly an
argument for staying on the market. Sadly no-one is predicting a
rise in average prices for some time to come so, in simple terms,
the sooner you sell the better. Our own recent experience confirms
that there are buyers out there keen to conclude a purchase before
the end of the year but if you aren't advertising your property for
sale it is unlikely that you are going to be attracting their
attention. So Option 1 is to keep marketing in the hope that
the right buyer might appear on the scene.
If you decide to take your property off the market how will this
affect your Home Report? The legislation states that the Home
Report should be no more than 12 weeks old when the house is put on
the market and that is generally accepted as the shelf life of the
Report. However a house for sale which has a Home Report can
be taken off the market for 28 days without needing a new Home
Report. So with that in mind some sellers prefer to temporarily
remove their property from the market during December,
traditionally the quietest month of the year for viewers.
For those sellers with vacant properties the real concern is
about how to cover costs such as council tax and utility bills and
how to ensure that no frost damage occurs during the coldest
periods. With that in mind many may turn to the short term rental
market. Clearly this is not the route most sellers would have
originally planned to go down but it can be a workable alternative.
Having a secure tenant in situ on a 6 month short assured tenancy
may be better than 6 months of extras bills to pay or burst pipes
to fix.
However reluctant landlords must be willing to listen to
professional advice when it comes to renting out their property.
The existing decor and furniture may look fine in the sales
particulars but more often than not to secure a tenant neutral
decor and minimal furnishings are required. It's very
important to decide what type of tenant you want in your property
and then prepare the property for that market. Spending one
month's rent kicking the property into shape is better than having
the property empty throughout the winter and beyond.
And remember, becoming a landlord is not just as simple as
dropping the keys off with your local property manager or sticking
an advert in the local newsagent's window. The legislation that
landlords must abide by is onerous and ignoring it on the grounds
that this is a temporary arrangement until the selling market picks
up could land you in a lot of trouble should problems arise during
a tenancy. Gas safety and electric certificates must be
obtained, smoke detectors must be installed and an Energy
Performance Certificates produced. Landlords must also register
with the Landlord Registration scheme run by the local authority.
Any professional letting agent should be able to take care of your
registrations and certificates.
It is important that tenancies are set up correctly. Once a
suitable tenant is found, appropriate references must be taken, AT5
forms and Lease documents must be signed by both parties and an
inventory must be completed and agreed before a tenancy commences.
Routine inspections need to be arranged and carried out to ensure
that tenants are not letting the property deteriorate. You should
instruct a solicitor to handle these matters for you.
I suggest that you start planning now and speak to us to
establish what route you should go down. I would be happy to
provide advice and assistance if required.
