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How to Really Buy a Property
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Who can I trust when buying a property?

Answer

Unfortunately no one as everyone involved has different agendas from the agent who want to earn commission to the surveyor who may lack confidence or be unfamiliar with the area. Even your solicitor may not want you to buy. See the Who to Trust When Buying a Property and The Media and Property Prices.

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How to Really Buy a Property

"... the simple issue of supply and demand is expected to get worse. As of 2004 the Greater London Housing Authority commission estimated that there was a shortfall of around 250,000 homes in the capital. That figure is expected to rise to over a million by 2020. In October 2012 the Future Homes commission concluded the UK as a whole needed 300,000 - 330,000 new homes every year. And how many were built in 2012? Just..."
"... no time since 1975 have more homes been in demand and so few built. 2015 offers a glimmer of hope but at 155,080 new dwellings completed this still remains half the volume required according to the Future Homes commission. We also need to factor into this the effects of migration to the..."

"... always that the individual negotiator is usually paid on commission and they know they are more likely to get that payment (i.e. get a property to exchange) from a buyer who is prepared, focused and listening than someone who thinks they are fantastic and knows it all. The latter will often end up on an endless and fruitless..."
"... an example a negotiator may be registering ten new people by 'phone every day and getting two emails from applicants who want details sent in the post because they are thinking of moving in the next three months. Who do you think he will spend time with? This is also the reason why so many potential buyers never receive the details they request. Its not excuse making, it is simply the reality of a market where you are dealing with people paid on commission for what they sell...."

"... it may be an even better deal with another. Different financial advisers are paid different commissions on the various products which, although they shouldn't, can tend to make them push you gently towards products most profitable for them. If you are offered financial advise by an Agent..."

"... put it another way if the Estate Agent is being paid 2% of the sale fee and the negotiator is getting 10% of that then on a £240,000 flat the negotiator is going to be paid £480. If you have offered £235,000 and the negotiator is trying to get you to the asking price he is not trying to get £10 (the commission he would earn on the extra £5,000), he is trying to make sure you do not get..."

"... differently from the reality To put it another way: The buyer does not trust the agent because they believe the agent is only trying to get the sale through in order to earn some commission (see Working With Estate Agents) The buyer does trust their solicitor even though, in most..."
"... people are fully aware that estate agents work on commission - no sales, no income - and so their motivation is almost always clear. Get the sale through. If they achieve this they will have no risk of any legal action unless you can prove they mislead you or withheld important information that was also no bought to light in the legal..."

"... their staff the wrong way; Why sales fail more at some agents than others; Big agents, small agents and the right agents; The different types of commission a vendor pays; What a property on the market with a number of agents tells you about the property; Why vendors change..."
"... sale completes. The key is not always how much you are going to pay the agent, but to find out if that money will be well spent. - Types of commission - The first step is to be sure that the staff are motivated to sell. For this reason avoid agents that operate a "pooled commission". In..."
"... first step is to be sure that the staff are motivated to sell. For this reason avoid agents that operate a "pooled commission". In this situation the fee goes into a central pot and then a percentage of that is shared between every negotiator who works there, whether or not they were involved in that particular transaction. The result is that the moment one negotiator has interest in your property the other negotiators lay off, knowing they will get a percentage of the deal. To them this is a simpler option than coming out at eight in the evening with an alternative buyer even if they might offer you an extra five or ten thousand pounds. That alternative buyer may be desperate to buy your property and more financially sound but they will never be told about..."
"... commission paid to a negotiator not on pooled commission is usually between ten and twenty percent of the fee the agent is charging. As such negotiating a low fee is not always as clever as you might think. If you feel very pleased with yourself for having bargained with a dozen agents and finally found one you could twist down to 1% consider..."
"... The fee on a £250,000 flat at 1% would be £2,500 of which a negotiator on 10% commission would get £250. If you pay 2% the negotiator gets £500. Which property do you think the negotiators will work harder on, not only to sell, but to ensure the agreed sale progresses to exchange? If..."
"... agency. There are three other scenarios that any vendor should be aware of, at least one of which should be avoided: Joint Sole Agency Split commission Multiple Agency - Joint Sole Agency - This is a fallacy and a very glossy way of saying you are on with two agents. You are either..."
"... advertising the words "joint sole" can be used to make the property sound exclusive in some other way than having to say "multiple". - Split commission - This will often happen without the vendor knowing it and works something like this: You instruct Agent A to market your property..."
"... after deciding they are the best to represent you. Agent A calls Agent B and offers to lend him your keys on the understanding that if agent B sells the property Agent A will still get part of the commission, and often vice versa. You come home one night to find agent B showing someone..."
"... A will justify this scenario by telling you that you have the benefit of two agents or more for the price of one but there are downsides. Firstly, if the commission is being split on a regular basis then by definition the staff must be poorly paid, with all the problems that have been covered earlier. Secondly, you have no idea who actually has keys and an agent you may have decided to avoid is actually on the..."
"... has keys and an agent you may have decided to avoid is actually on the case. Split commissions are most often found in very small agents where they do not have the staff or resources to market effectively. - Multiple Agency - Most agents will try to make you feel bad about going on..."
"... enough the latter part of that sentence is exactly why you should be going on with someone else. A higher fee means their staff will get paid more if they sell your property and neither agency wants to have their nose rubbed in it when the other agent gets you an offer. More motivated staff, more commission on offer and an adversarial environment are all more likely to get you the best possible price and hence why you will find most professional developers and investors almost always use two or three..."
"... have not had many viewings - If the negotiators are motivated and the agent is solid then the staff will be busy. They will know that poorly qualified applicants result in lots of viewings but very little business. If the staff are paid on commission they will want to stay focused on only taking the right people to the right properties. A classic case is the vendor who has a two bedroom flat where the second bedroom is very small. A bad agent will drag every two double bedroom applicant round there and then tell you the feedback is that the second bedroom is too small. A good agent will ask the applicant, at registration, why they need the second bedroom. If it is too rent out they will discount your property. Much fewer but much more focused..."

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Author of How to Really Buy a Property

I'm Tim Hill, Author of How to Really Buy a Property. I'm a property buyer, seller, landlord, tenant and I've been an agent in hundreds of transactions. I own a property portfolio across Europe but that doesn't mean I think you should to!

This book is my collective knowledge and experience that I have gained working within the property market of England and Wales for over a decade. I've written it so that you can benefit from what I have learnt whether you are a first time buyer or a budding buy-to-let investor.

There are no gimmicks here and no get rich quick schemes - just practical no nonsense advice so you can buy the property you want at the best price with the least stress.

Download the Free Preview copy right now. I won't be asking for your email so I can bombard your inbox with 'special offers' and 'discounts' because I know most people who read the Free Preview buy the full copy. See for yourself!