Agent Q&A: Desmond Sylvester, Bective Leslie Marsh
Who are you?
Desmond Sylvester, Financial Director at Bective Leslie Marsh
(020 7221 0099/ds@bectivelesliemarsh.co.uk).
How long have you been in the Ladbroke Grove area?
Thirteen happy years.
How would you describe your neighbourhood in three words?
Diverse, colourful and expensive.
Describe your working day…
The accounts department, based in our head office on Ladbroke Grove, has a really buzzy atmosphere. We oversee all of the office finances and work closely with the other branches to keep payments coming in and going out.
Which are your favourite cafes and restaurants?
Ruby & Sequoia on All Saints Road is a great place to go for dinner and drinks. The food is good – high quality and not too fussy.
Which are your favourite shops?
Portobello Market is an obvious favourite, as it has a little bit of everything. And I like Tonic on Portobello Road – a really funky clothes shop.
Where do you go for a drink after work?
The Elgin pub on the corner of Ladbroke Grove and Elgin Crescent is really convenient or Market bar which has a great Thai restaurant.
How do you get about?
I’m a fair-weather cyclist, but more often I get around in one of the company Honda Hybrids.
Tell us something about the area we might not know…
Ladbroke Grove Tube station is being redeveloped to have two entrances, which will relieve congestion during busy periods.
Tell us something about your business we might not know…
At BLM we have 50 members of staff across our six branches of which 25 are female and 25 are male!
How to sell a property in a recession
Glentree Estates offer some advice for making a sale in difficult market conditions.
In a recessionary market, where there is likely to be a surplus of supply, it is essential that your property is seen to be more attractive and desirable than any other in the area. To do this, there are several ways of maximising the opportunities:
CHOOSE YOUR AGENCY CAREFULLY One committed agent, who is predominant in the area, is far better than two or three agents covering a wider patch who are less likely to give their all because they are spread more thinly. ‘Take the agent’s advice on value but beware estate agents giving you a ramped up value in order to gain the instruction,’ says Trevor Abrahmsohn of Glentree.
PRICE This is the most likely sticking point of a sale of any commodity, let alone a house or flat. In bull markets, price is less critical, but in a recessionary market it is the key to success. In this situation, when budgets are much more fixed, you want the gap between buyer’s and vendor’s expectations to be as bridgeable as possible. Most buyers start off with a budget, which is probably 10%-20% less than the figure they will end up paying. However, if the asking price is 20% higher than the value, then there will be a gap of up to 40%, which will deter even serious buyers from looking at your property. ‘The classic sign of overpricing is that prospective purchasers walk in and walk out without making an offer,’ says Abrahmsohn. Either put the house on the market at a realistic price or ask for offers in excess of a certain sum, which ideally should 85% of the price you actually want. If the price is too high, a buyer will not come at all; but if it is lower – when he or she comes to see the house, ‘the door to their emotional heart is a little bit open,’ he says. ‘Once the house starts to work on them, they may decide they can put in a higher offer and when they realise they may never find this sort of property again, perhaps raise it again. I would rather have a buyer on the hook, who I can nurture and produce a sale at even 80% of my price, than no buyer at all.’
YOU CANNOT UNDERSELL YOUR PROPERTY If your house is properly advertised and marketed, you cannot undersell it even if it is initially marketed at a low price. ‘You should have more than one buyer because the price is keen. Then you can play one against the other until you arrive at the price you are happy with,’ says Abrahmsohn. If you only have one buyer, you can always say no to a low offer.
DON’T RESIST A SALE BOARD People don’t understand the power of the board. Without a sale board, you are missing 30% of the market. ‘This is made up of latent purchasers, who haven’t registered with an agent and don’t read relevant publications because they haven’t quite got to that position yet. But they might consider buying, if they walk past your house and see a sale board,’ says Abrahmsohn. ‘With no board up, they wouldn’t even know it was for sale.’ A board also indicates a serious vendor and once you have agreed a price, the board again comes into its own. ‘The period between offer and exchange is very vulnerable. If a board is up, it helps keep the pressure on the purchaser to do the deal,’ he says.
How green is your flat?
‘From 1st October another EU directive hits the UK,’ says Fiona Guthrie of Plaza Estates. ‘All property being marketed for rental must have a valid Energy Performance Certificate (EPC) which must be shown to the potential tenant prior to the first viewing.
‘The idea is that tenants will choose a property to rent if it is more energy efficient. With escalating utility costs currently in the headlines this may be attractive. However, the reality in central London is different. Most energy-saving factors are probably beyond a typical Landlord’s control. For a flat owner, especially in larger buildings, loft insulation is generally the freeholders responsibility. Many buildings are in conservation areas and have restrictions on types of windows which cannot be changed to something more modern because they are drafty. Many blocks of flats have communal heating – the individual flat owners cannot control it at all. Sadly, many of these radiators are not adjustable resulting in frustrated occupiers leaving windows open to try to cool the temperature. EPCs do not include block heating systems at all which are definitely not energy efficient..
As agents we are diligently advising our clients and arranging for EPCs to be carried out so that our clients comply with the new law.
We do need to conserve energy and be more energy efficient but this type of blanket legislation covering all property is surely not the answer.
Facts:
- All residential property being marketed for rental must have a valid EPC by 1st October 2008 and it must be shown to all potential tenants prior to the 1st viewing.
- Cost approximately £80 to £120 + VAT carried out by an accredited Domestic Energy Assessor.
- Each EPC is valid for 10 years.
- Tax allowances are possible on some improvements.
- EPCs are not required for tenancy renewals.
- Recommendations highlighted by the Assessor do not have to be carried out.
