Posts Tagged ‘Scotland’

RICS Website report extracts taken in January 2010

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Well done Scotland!

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Chartered surveyors are the only professionals by law able to carry out the single survey, valuation and energy report in the Home Report. A recent survey of home owners/buyers concluded that Scottish buyers and sellers are, without a doubt, benefitting from the Home Report – says RICS Scotland as the scheme passes its 1st anniversary (in December, 09).

Most properties being put on the market for sale require a Home Report by law, commissioned by and paid for by the seller. New builds are one of the few types of property that do not require a Home Report.

The average cost of a Home Report for an average property in average condition is around £430 plus vat. This is much lower than the £1000 suggested in 2008 by groups that were against the Home Report before and at its inception.

There is no doubt the Home Report has benefitted buyers and sellers over the past 12 months. The Home Report offers clarity to buyers and sellers about what the property is worth and what condition it is in right from the start and that’s what the Home Report set out to do. The Home Report was not intended to miraculously fix the housing market but as our survey of chartered surveyors shows, it has certainly not hindered the market.”

Graeme Hartley, director of RICS Scotland

These figures make clear why it is so important to have a Home Report. This simple tool, which doesn’t cost a fortune, has given would-be buyers – about to take the biggest financial leap of their lives – the best possible information upfront. And it has brought in its gift a host of other benefits. Buyers can now keep hold of their savings for deposits, without having to shell out for surveys on properties they don’t get to buy. There is also a much more clarity about the value of a house, with the virtual end to the unrealistic ‘offers-over’. For sellers it’s proving a great way to attract inquiries from potential buyers and guide them on how to prepare the property for sale. In the round, its good news for everyone.”

Alex Neil, Housing and Communities Minister

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Arts & Antiques outshines all!

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The rebound in the arts and antiques market continues to gain momentum. RICS publishes the results for the UK Arts & Antiques Survey Q4 2009.

Prices in the arts and antiques market continue to rise with silver and jewellery leading the way, whilst contemporary art came back into favour following a year of price falls, says the latest survey from RICS.

The all lot price balance continued to edge up in the final quarter of 2009, with 17% more surveyors reporting rising rather than falling prices, up from 14% in the previous quarter; this was the highest since the first three months of the year.

Silver and jewellery remain the strongest sectors with 50% and 37% of surveyors reporting rising rather than falling prices in these categories respectively. These are traditionally seen as safe havens for investors, but their continuing strength can be attributed to the increased scrappage value of precious metals towards the end of the year.

Reversing four quarters of falling prices, the contemporary art market experienced a resurgence during the final three months of 2009. The balance of surveyors reporting rising rather than falling prices was 6%, the first positive reading since Q3 2008, and up from -34 the previous quarter.

In the oil and watercolour subsector, 5% more surveyors reported rising rather than falling prices with the top end of the market fairing particular well. For lots over £50,000, the top bracket, 17% more surveyors recorded rising rather than falling prices. In contrast the balance was only 9% for contemporary arts, indicating that traditional pieces remain more popular for large investors.

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House prices continue to rise albeit at a slower pace

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House prices are on the rise albeit from a level level and geography is important – not all areas are showing increases.

In December, 30% more Chartered Surveyors reported a rise than a fall in house prices down from 35% in November. A significant majority of surveyors are still recording price increases in London, the South East, the South West and East Anglia. However, more surveyors in the North and the West Midlands are seeing falls in house prices indicating that the recovery in the market is less entrenched in some parts of the country than others.

For the seventh consecutive month, more Chartered Surveyors are reporting that the number of new instructions is increasing rather than falling. 17% more Chartered Surveyors reported a rise than a fall in new instructions. Fresh demand for property is still outstripping new supply but the gap has narrowed. 20% more surveyors stated that enquiries from potential purchasers are rising rather than falling but enquiries rose at the slowest pace since January 2009.

Other demand indicators are also losing some momentum, although they remain in positive territory. The newly agreed sales balance slipped to 22 from 24 while the sales expectations net balance dropped to 6 from 20.

Transaction levels were little changed in December. The number of sales per surveying firm is still hovering around 19 for the fourth consecutive month while the closely watched sales to stock ratio – a measure of market slack and a lead indicator of future prices- fell back slightly.

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London office availability no longer rising

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The amount of office space available to tenants in London declined for the first time in two years as the London economy started to lead the country out of recession.

Demand for business property increased in the fourth quarter of 2009 with office space and industrial property proving particularly popular but demand for retail space continued to decline.

Fourteen percent more chartered surveyors reported a rise in tenant demand, up from 8% in the previous quarter. This is the second successive rise in tenant demand and the first time that there has been an upward trend since early 2007.

Decided to SALE and/or BUY?

FIRST TIME BUYER?

PRIVATE HOUSE SALE?

What should you know and do?

If you are only buying then VIEW a prospective home, open doors and windows and have  a good poke around (do not be inhibited). Walk around the district to take in the flavour of the people etc… You could then get onto the internet to check out the Planning history of the home and if you find that what the sellers told you doesn’t match what is in the Planning Department files then ask for an explanation from the sellers. Indeed there are many self-help measures that can bring your purchase forward at low or nil cost and with only minor effort.

Sellers – how much are Estate Agents going to charge you: never agree Sole Selling Rights terms: always get a positive marketing report from your intended Agents – when will the first newspaper adverts go in, how many adverts, in what newspapers and magazines?

If you have a simple, modern home you could consider making your home the only one in your street that comes complete with a Seller Survey Report to prove it is in good condition and that you are not hiding anything. Scotland, heralded as having a “better” selling system than in England, has the Home Survey that is exactly this, a condition report with Valuation opinion to bring transparency to the deal (in England our survey products usually do not have Valuations).

If you have a Period Cottage that has been greatly improved and extended then why not include all your plans, permissions, reports, certificates, invoice receipts to prove who-did-what, when and whether warranties/guarantees exist? JPEG file uploads is all that is needed. This data will be needed by your purchasers’ Surveyor and Solicitor and so why not place it all up-front, on show for all to see? This saves time and will get the Purchasers’ Surveyor (and perhaps Loan Valuer as well) on your side – this has to be on the positive side and stacks up the chances of a successful, short-term disposal. It proves your positive and serious intentions to not cause problems or delays.

Here are some simple tips to help you onto the right track —–

1. Should a seller complete repairs before they place a home on the market? This is a difficult question but it my opinion a lot of work is done for no real gain and so the generic answer is NO. By all means do low-cost items and splash the emulsion on walls and generally smarten up the place but large expense is usually a waste of time and money. However—–
2. A few things do require serious consideration: PROinspect are great believers in getting Service Engineers to certify the function and safety of your home wiring and heating system (boiler usually).
3. Had a look at a good prospective home but something is wrong – that crack in the rear wall? Should you not bother with an offer? Should you offer to bid but make it subject to survey? OR, why not ask PROinspect to have a quick look at the problem to advise you how to proceed?
4. Found the right home and your bid has been accepted? STOP. Do not let the Sellers Agent send off a mortgage application through their rear office Financial Services adviser. Intentionally separate the loan valuation from your private survey. Why would you want your mortgage source to have the benefit of knowing the homes’ exact condition, they may decline the finance you need?
5. As we come out of recession and Lenders are still playing games with many buyers and “old rules and truisms” have disappeared and so PROinspect recommend that you get your finance arranged first and once your Solicitor says this is verified/certain then at that time, and not before, arrange your private condition survey. By all means TALK to PROinspect at any time to (1) get advice (2) get a survey product recommendation (3) survey fee quote, but do not be overly influenced by anyone acting for (paid by) the Seller.
6. If you have a private survey we would expect to recommend to you the most popular product in England, the Homebuyer Report (used to be called the Home Buyer Survey and Valuation).
7. Remember this – the majority of Agency chains are owned by Banks or Holding Companies that own banks. They recommend each other for mutual benefit disguised behind “private sounding” names nothing like the Agents name and often nothing like the banks’ name. The one thing you can be sure of is that somewhere along the line a commission is being paid OR somebody can be influential with your so-called independent Valuer or Surveyor. The standard  employed whereby potential conflicts of interest have to be declared has been set far too low by R.I.C.S., C.M.L., etc… (the controlling Bodies within Loan and Valuation/Survey industries) and this is exploited massively by the larger Companies and Group of Companies. That exploitation can often go against your best interests and so you need to protect yourself against unknown/unseen exploitation – simply call PROinspect and we will advise you (I alone own my business and I do  not pay commissions to anybody). NB – Some Estate Agents have in-house Financial Advisers and they recommend Mortgage Companies who attempt to gain your private survey work on the back of your loan valuation: do not be fooled by a short term gain in reduced fee cost: commission your survey privately well away from Loan Companies and Agency businesses.

Don’t let ignorance torpedo your purchase or sale:

Remain in the light - ignorance kills house sales

UPDATE as we enter into the CON-LIB world in England:

HIPs have been shelved for the sake of an attempt to gain popularity at a time when cost cutting is king. The EPC (Energy Performance Certificate) remains and you have a right to request and see it BEFORE you commit to a lease or purchase.

This would mean that First Time Buyers have even less information to rely upon when they purchase. It will sound hollow but the only real answer is to HAVE A PRIVATE SURVEY completed. Do not think of it as a luxury, rather a necessity. You would not buy a car without looking at it in detail and so why is property any different? Talk to us and we will advise you on the most cost effect survey product OR whether any short-cuts may be possible, in all the circumstances and your financial budget. CALL US. E-MAIL US.