How much should I pay the estate agent?
Estate Agent’ fees vary enormously, and add thousands of pounds to the cost of selling a home. It is difficult to avoid estate agent fees, but understanding them can help you haggle successfully and save you serious money
The basics
Estate Agents charge a percentage fee, which can be anywhere between 0.75% and 3.5% of the price you sell your home. A survey for Which? found the national average was 1.8%
Occasionally, particularly for cheaper properties, estate agents charge a set fee, which can end up as a high percentage of the total property cost. Fees usually exclude VAT, which is currently 20%. So a 1% fee is 1.2% inc VAT, or £10,200 on a £1million home or £5,100 on a £500,000 home.
An estate agent is required by law to tell you what is included in the fee. Such as does it include preparing the property details, advertising costs and For Sale boards. Ideally, you should not face any added costs.
More expensive estate agents are not necessarily better. There are regional variations, with estate agent fees higher usually in London than elsewhere (even though properties are also far more expensive).
It isn’t very British to haggle, but in a market where sellers are in short supply, you will probably find estate agent surprisingly willing to cut their fees to get properties on their books. If you are going for sole agency, you should aim for a fee of 1%.
Estate agents often ask for 2% or 2.5% for being sole agent, since they know that most sellers won’t try to haggle. But that doesn’t mean they aren’t open to negotiation. Go back to the more expensive agents, and tell them the others are offering lower fees. Tell them that you are expecting to pay only 1% for your £1million luxury home.
Small estate agents are often more flexible on negotiating commission downwards than large chains, which often operate nationwide policies. Estate agents who are trying to win business to increase their market share in an area will probably be more open to negotiation than the leading estate agent.
If you insist on putting the property on at an unrealistically high price, the estate agent is likely to be less willing to accept a lower fee because it will be harder to sell. If you achieve 1% you can be pleased with yourself, you might have to settle for higher fees.
Sometimes estate agents agree to a sliding scale of commission, to give them a big incentive to sell the property at a higher price. This more closely aligns their interests with yours, getting around the problem that agents are often just keen to get the sale, even at a low price, so they can move on to selling the next property to earn another commission.
You will probably have to offer the estate agent a sliding scale, as they are unlikely to suggest it themselves.
For example, if you think your home is worth about £300,000, you could suggest:
1% fee if they sell your home for under £275,000
1.25% if they sell it between £275,000 and £299,999
1.5% if they sell it between £300,000 and £325,000
1.75% if they sell it for over £325,000
You could suggest the sliding scale if you think an agent is insisting on too high fees. In the example above, if an agent is insisting on 1.75%, you could agree to that but only if they sell it above £325,000
When should I pay the estate agent?
Sales commissions normally become due when contracts are exchanged. Fees for marketing materials etc are payable in advance and are non-refundable in many cases. Be careful that you’re not paying an over inflated price for marketing brochures, premium listings etc. You’ll be amazed what it does to the final sales commission percentage.
Tuesday 28 October 2014
What defines a luxury home?
Many estate agents firmly believe that they know what defines a luxury home and will bombard the public with adverts that promote us to indulge in opulence and promise that the property will make you feel pampered and living the life of luxury. While the glossy brochures and virtual tours may impress many, you often find that the features offered don’t justify the exorbitant price tag of a luxury home.
In our opinion, there six key and essential features that define luxury.
Living space
Generous living space is the primary requirement of any well-designed home. Luxury homes must offer spacious living rooms as well as four or more bedrooms with an open floor plan. Each room would ideally have under floor heating, air-conditioning, premium branded fittings and the obligatory in-home entertainment system. The number of bedrooms in a project should equal the number of available car parking spaces on the driveway.
A grand entrance hall and a well designed lobby is a must. The ceiling is also equally important, as height adds to the overall spaciousness. Some interior designers will focus on one or two pieces of furniture or spaces that make a statement. Often the entrance is the focal point of the home along with the kitchen. Some designers also state that the “luxury feel” is severely compromised if the floor-to-ceiling height is less than 12 feet. Also, homes with a low ceiling do not lend themselves optimally for interior design choices.
Attention to detail in every aspect is a must. From the door knobs, the electric switches, the paint or the kind of lighting are key components to setting your home apart from the rest.
Add-ons
The location is the second, and some would say important, consideration. Local amenities available in the complex are important too. Limitations in the size of the driveway, the number of parking spaces, a narrow road outside the home, heavy traffic congestion when heading home every day, don’t add up to luxury.
Unless you’re looking for solitude and are willing to compromise ease of entry etc for security and a quiet life, you must look for something with easy access to major routes and airports etc.
Add ons such as a state-of-the-art gymnasium, temperature-controlled swimming pool with body jets, saunas, home offices etc are all on the wane. Luxury home owners are more than likely to look for a hot tub, orangery, in-home cinema, games room, wine cellar and extra garage space than a swimming pool that they’ll rarely use.
Exclusivity
One key must-have in a luxury home above all is exclusivity. Luxury is an individual and highly subjective matter, but when it comes to owning a luxury home, no one wants to have the same home as the next door neighbours. Luxury projects typically have a limited inventory so that the elitist factor is maintained. We found a small number of developers in the UK that offer homes that are for sale by invitation only and each property is designed by potential purchasers.
Unique value
More utilitarian home owners may see technology as a value-add on. High-speed internet connectivity with fibre optics, home automation systems and smart homes are now firmly on the menu. This includes wi-fi enabled homes with one-touch control of ambient light, climate control and security with video phones. A luxury home remains pristine if well maintained and so finding the right home cleaning service and or house keeper is also essential.
Security
Another consideration that’s over looked often is home security. High value homes attract attention from those that see them as an easy target. Over the past few years high profile sports people have been robbed at home or burgled and it makes you question their security arrangements. More and more luxury home owners are moving away from panic buttons and safe rooms and into close protection officers and the ultimate deterrent the K9 bodyguard.
Your style
The luxury home reflects its owners style. Designer features that do not match your personality and definition of lifestyle will make you feel out of place. So you may want to check on the customisation that can be done to suit your lifestyles. Every room should reflect you and your family, be useful and not just a piece to fill a space.
Rich pickings
Price is often seen as the biggest luxury but does a home costing £5 million automatically become a luxury home. Certainly not in London but maybe in that safe haven for footballers, Alderley Edge in Cheshire. A home of that price would be the height of luxury and good taste.
There is no magic price that is a threshold for luxury homes. Just watching Grand Design or The Renovation Man will bear testament to that.
At the moment a prime location for luxury homes is Surrey. Is it because of the close proximity of Chelsea FC’s training ground or the ease of transport into London? Unlike in the past luxury is now extending to suburbs and weekend homes away from the city. Holiday homes by the beach or a river, with views of back-water or hills are popular choices for luxury property. Apartment complexes are increasingly viewed as luxury too. They offer open space, living space and the privacy of an independent home with a host of other amenities.
For us a luxury property is one that has been custom built. From the initial design of the floor plan, the discussion over materials, key features, amenities all designed exclusively for you. But often, luxury homes follow certain common design features that are appreciated by the buyers in the segment and customised to suit your unique tastes and needs.
In our opinion, there six key and essential features that define luxury.
Living space
Generous living space is the primary requirement of any well-designed home. Luxury homes must offer spacious living rooms as well as four or more bedrooms with an open floor plan. Each room would ideally have under floor heating, air-conditioning, premium branded fittings and the obligatory in-home entertainment system. The number of bedrooms in a project should equal the number of available car parking spaces on the driveway.
A grand entrance hall and a well designed lobby is a must. The ceiling is also equally important, as height adds to the overall spaciousness. Some interior designers will focus on one or two pieces of furniture or spaces that make a statement. Often the entrance is the focal point of the home along with the kitchen. Some designers also state that the “luxury feel” is severely compromised if the floor-to-ceiling height is less than 12 feet. Also, homes with a low ceiling do not lend themselves optimally for interior design choices.
Attention to detail in every aspect is a must. From the door knobs, the electric switches, the paint or the kind of lighting are key components to setting your home apart from the rest.
Add-ons
The location is the second, and some would say important, consideration. Local amenities available in the complex are important too. Limitations in the size of the driveway, the number of parking spaces, a narrow road outside the home, heavy traffic congestion when heading home every day, don’t add up to luxury.
Unless you’re looking for solitude and are willing to compromise ease of entry etc for security and a quiet life, you must look for something with easy access to major routes and airports etc.
Add ons such as a state-of-the-art gymnasium, temperature-controlled swimming pool with body jets, saunas, home offices etc are all on the wane. Luxury home owners are more than likely to look for a hot tub, orangery, in-home cinema, games room, wine cellar and extra garage space than a swimming pool that they’ll rarely use.
Exclusivity
One key must-have in a luxury home above all is exclusivity. Luxury is an individual and highly subjective matter, but when it comes to owning a luxury home, no one wants to have the same home as the next door neighbours. Luxury projects typically have a limited inventory so that the elitist factor is maintained. We found a small number of developers in the UK that offer homes that are for sale by invitation only and each property is designed by potential purchasers.
Unique value
More utilitarian home owners may see technology as a value-add on. High-speed internet connectivity with fibre optics, home automation systems and smart homes are now firmly on the menu. This includes wi-fi enabled homes with one-touch control of ambient light, climate control and security with video phones. A luxury home remains pristine if well maintained and so finding the right home cleaning service and or house keeper is also essential.
Security
Another consideration that’s over looked often is home security. High value homes attract attention from those that see them as an easy target. Over the past few years high profile sports people have been robbed at home or burgled and it makes you question their security arrangements. More and more luxury home owners are moving away from panic buttons and safe rooms and into close protection officers and the ultimate deterrent the K9 bodyguard.
Your style
The luxury home reflects its owners style. Designer features that do not match your personality and definition of lifestyle will make you feel out of place. So you may want to check on the customisation that can be done to suit your lifestyles. Every room should reflect you and your family, be useful and not just a piece to fill a space.
Rich pickings
Price is often seen as the biggest luxury but does a home costing £5 million automatically become a luxury home. Certainly not in London but maybe in that safe haven for footballers, Alderley Edge in Cheshire. A home of that price would be the height of luxury and good taste.
There is no magic price that is a threshold for luxury homes. Just watching Grand Design or The Renovation Man will bear testament to that.
At the moment a prime location for luxury homes is Surrey. Is it because of the close proximity of Chelsea FC’s training ground or the ease of transport into London? Unlike in the past luxury is now extending to suburbs and weekend homes away from the city. Holiday homes by the beach or a river, with views of back-water or hills are popular choices for luxury property. Apartment complexes are increasingly viewed as luxury too. They offer open space, living space and the privacy of an independent home with a host of other amenities.
For us a luxury property is one that has been custom built. From the initial design of the floor plan, the discussion over materials, key features, amenities all designed exclusively for you. But often, luxury homes follow certain common design features that are appreciated by the buyers in the segment and customised to suit your unique tastes and needs.
Do I really need an interior designer?
As a landlord your first priority will always be to get the best return on your investment. That means that any money you spend on your property will need to be returned to you in terms of increased rent yield and this makes perfect sense. However it is this factor which may put you off deciding to hire an interior designer to improve your property. You probably think you can carry out the work yourself and save a fortune. This might be true but there are any reasons why having a designer at your beck and call is not only a good idea, it is a great one.
An interior designer will take away all of the decision making, hassle and time involved when dealing with builders, shopping for supplies and working out what to buy. A designer will take over and leave you to shop for your next investment property.
An interior designer will be able to look at your needs and interpret them into a style which will exactly match your budget to those needs. This is a difficult thing to achieve without being a professional with plenty of experience.
Interior designers are full of interesting ideas which may be very different to what you might have thought of on your own. They will be able to advise on the best ways to make the most of awkward spaces, design tricks and tips and new products on the market which will fit your needs.
Interior designers have contacts which you probably don’t – they will know the best builders, the most reliable plumbers and the trendiest garden designers. They have the ability and the means to make your house look amazing.
An interior designer is a professional – in the same way that you would hire a solicitor to sort out your mortgage, a lettings agent to find your tenants and a financial advisor to take care of your investments, an interior designer is yet another person in your arsenal to help you reach your goals. Let the professionals do their job while you do yours.
Never underestimate how much an interior designer can add to your property and the amounts people will be willing to pay to live in an environment which has been designed with them in mind.
An interior designer will take away all of the decision making, hassle and time involved when dealing with builders, shopping for supplies and working out what to buy. A designer will take over and leave you to shop for your next investment property.
An interior designer will be able to look at your needs and interpret them into a style which will exactly match your budget to those needs. This is a difficult thing to achieve without being a professional with plenty of experience.
Interior designers are full of interesting ideas which may be very different to what you might have thought of on your own. They will be able to advise on the best ways to make the most of awkward spaces, design tricks and tips and new products on the market which will fit your needs.
Interior designers have contacts which you probably don’t – they will know the best builders, the most reliable plumbers and the trendiest garden designers. They have the ability and the means to make your house look amazing.
An interior designer is a professional – in the same way that you would hire a solicitor to sort out your mortgage, a lettings agent to find your tenants and a financial advisor to take care of your investments, an interior designer is yet another person in your arsenal to help you reach your goals. Let the professionals do their job while you do yours.
Never underestimate how much an interior designer can add to your property and the amounts people will be willing to pay to live in an environment which has been designed with them in mind.
Why buying a wreck can reap rewards
Why buying a wreck can reap rewards
Landlords have demands on their time which most of us simply do not appreciate. If you own several properties it can be difficult to juggle the finding of new tenants, keeping up with maintenance and cleaning while also keeping on top of your finances and tax. Even for those landlords with a single property, finding the time to look after it while working at another job can be draining on your time and resources.
Even a house wreck can be a great investment.
So, if you have considered buying a run down property, you may have been put off by the inevitable time, money and effort it will take to turn that wreck into the perfect rental vehicle. However there are plenty of ways you can turn someone else’s DIY disaster into your dream investment. All it takes is being clever about the choices you make.
Try to buy your new property at auction and get it for the lowest possible price. You will need some left over money to carry out the required renovation work.
Check the property first and try to find one which needs mainly cosmetic work rather than huge changes – unless you are looking to rent your property out at the luxury end of the market and are willing to invest a little more.
Get in touch with estate agents in your desired area and tell them what you are looking for. They will contact you before anyone else so you can get in quick with a decent offer.
Once acquired, do not waste any time in getting your new house up to scratch. The longer it takes to get the work done, the more money this investment will be draining before tenants can move in.
Get some help from property experts. An interior designer will be able to help you make the right choices for your property in terms of how it looks. Britain's Best Home can provide the right people to take this workload off your hands and provide the right builders, architects, designers and contractors to make it all go smoothly.
Take advantage of companies like Britain's Best Home to help you find the best possible tenants for your property. They will secure the best price so that your investment will be more than worthwhile.
Using your time wisely is so important as a business owner, which is why taking advantage of professionals should always be your number one priority.
Remember that the key to being successful in property is buying cheap, renovating once and getting in the best tenants.
Home Security Systems: A Must-Have These Days
Most of us have alarms on our cars out of fear that it will get stolen when we are not using it. But we often leave our homes empty for hours every day and yet many of us do not have Home Security Systems to prevent intruders. The repercussions of having your home burgled are far worse than that of losing your car – the fear of the person returning, the mess and damage caused, the loss of treasured possessions and the difficulty of getting a conviction or finding your stolen items. It is clear that a home alarm or Home Security Systems is essential for peace of mind and your tenants will welcome the extra touch and will even pay more for a CCTV and alarm system especially if it can be used remotely.
There are a number of different types of burglar alarms and many are very simple, cheap and effective. However, if you wish you can certainly choose the higher end of the market and get improved security and service.
A simple alarm
This will cost just a few hundred pounds and will sound an alarm should someone enter your property. This method relies on your neighbours hearing the alarm and calling the tenant or you and also calling the police. This doesn’t always happen although the noise may scare the burglar off.
Monitored alarms
This will alert your security company should the alarm go off. They will then call the key holder to see if they require assistance and will call the emergency services if required. This will cost an extra few hundred per year plus a maintenance contract to keep the alarm working correctly.
Police response alarm
The alarm can be linked to the police who will attend if they are able. Unfortunately paying the extra fee required for this service will not guarantee that they will attend your property as they will prioritise their calls. The call handler with the police will decide if the call is urgent or not. False alarms will also cause the home-owner to be struck off the police register and they will no longer attend.
Phone alert alarm
It is possible to have an alarm system which will call the key holder should it go off. This can happen for a one-off fee of around £200 and will allow the tenants to call a neighbour who can investigate before the police are called.
Other security systems
For better peace of mind your property could have CCTV cameras installed which will record when they detect movement or the alarm is triggered. These systems can also be monitored via a computer anywhere in the world, allowing the tenant to watch what is happening and call the appropriate emergency services. Outdoor lighting is also an important security feature along with an entry phone perhaps with a camera for those in apartments.
There are a number of different types of burglar alarms and many are very simple, cheap and effective. However, if you wish you can certainly choose the higher end of the market and get improved security and service.
A simple alarm
This will cost just a few hundred pounds and will sound an alarm should someone enter your property. This method relies on your neighbours hearing the alarm and calling the tenant or you and also calling the police. This doesn’t always happen although the noise may scare the burglar off.
Monitored alarms
This will alert your security company should the alarm go off. They will then call the key holder to see if they require assistance and will call the emergency services if required. This will cost an extra few hundred per year plus a maintenance contract to keep the alarm working correctly.
Police response alarm
The alarm can be linked to the police who will attend if they are able. Unfortunately paying the extra fee required for this service will not guarantee that they will attend your property as they will prioritise their calls. The call handler with the police will decide if the call is urgent or not. False alarms will also cause the home-owner to be struck off the police register and they will no longer attend.
Phone alert alarm
It is possible to have an alarm system which will call the key holder should it go off. This can happen for a one-off fee of around £200 and will allow the tenants to call a neighbour who can investigate before the police are called.
Other security systems
For better peace of mind your property could have CCTV cameras installed which will record when they detect movement or the alarm is triggered. These systems can also be monitored via a computer anywhere in the world, allowing the tenant to watch what is happening and call the appropriate emergency services. Outdoor lighting is also an important security feature along with an entry phone perhaps with a camera for those in apartments.
Luxury Home in Cheshire
If you are looking for a luxury home in Cheshire then take a look at what we have for you.
Our properties stretch from the Golden Triangle of Prestbury, Alderley Edge and Wilmslow to lovely Mottram St Andrew.
A luxury home in Cheshire is not so hard to find, it is just the small details that will make a luxury home in Cheshire right for you. When searching for your luxury home in Cheshire it is probably best to employ an estate agent’s services.
Here at Britain's Best Home we will happily discuss the requirements for your luxury home in Cheshire to ensure we get the best luxury home in Cheshire for you. You may be searching for grandeur or imposing features in your luxury home in Cheshire, it may be personal touches like a swimming pool or triple garage or games room that make it perfect for you.
If you are looking for a little bit of land with your luxury home then we can surely accommodate most if not all of what you are looking for. Many luxury homes in Cheshire are inhabited by stars of the sporting and business world that understand a luxury home in Cheshire places them perfectly for commuting around the country.
Liverpool and Manchester airports are nearby and London is only 2 hours by train. It is a beautiful part of the country in which to have a luxury home in Cheshire. If you are looking for a second home, a luxury home in Cheshire is perfect.
Should you already reside in London a luxury home in Cheshire would be perfect for spending long summers and great family weekends as it features some fantastic local scenery and wildlife. There is plenty to do up in the North West and it is a refreshing change from the hustle and bustle of London.
Why not visit our website www.britainsbesthome.com and find your dream luxury home.
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