Sometimes the Best Advice I Give a Seller Is: Don’t Sell.
Rob Hill, Director and Founder, Greater London Properties
"That isn’t me being difficult. In my experience it’s the most useful thing I can do for you.'
Read on to hear what I do tell them..
Here’s something most estate agents won’t say. If I come to your home and tell you it’s worth £1 million, and three other agents have told you £1.2 million, I won’t argue. I’ll tell you I don’t think that’s going to happen.
That isn’t me being difficult. In my experience it’s the most useful thing I can do for you.
The overvaluation trap
The old trick is simple. Quote the seller the number they want to hear, sign them up on a long agreement, and then reduce the price week after week until it finally sells, usually for less than an honest price would have got at the start.
I’ve never seen the point. If I’m going to suggest an inflated figure, why not say £2 million? It’s an even better result, and it’s just as unlikely. A price either reflects the market or it doesn’t. In today’s market a pound is worth a pound. List it at £1.05 and nobody buys it. List it at a pound and a penny and nobody buys it. It’s a pound.
Waiting costs money
A lot of the sellers I speak to are former landlords. The property is often sitting empty. They’re paying double council tax, a mortgage and a service charge, and service charges at the moment can be serious money.
So if a property is truly worth £1 million but it costs you £50,000 in holding costs to get there, you haven’t achieved £1 million. You’ve achieved £950,000. Every month spent on the market at the wrong price is money out of your pocket. The fastest route to the best real outcome is the right price from day one.
This is often someone’s pension
Much of what we deal with is people’s retirement, in one form or another. Someone may have bought a flat twenty years ago, still have a mortgage on it, and that property is their nest egg. They may not be able to remortgage, or new terms may cost more than the rent brings in.
Sometimes I have to tell them they’ll get roughly what they paid for it. That is a very hard conversation. But it’s far harder to have it six months later, after they’ve been strung along by an agent who promised them something the market was never going to give.
Knowing the market means knowing more than property
Before most people are in the office, I’ve read the market updates and the political news. I need to understand what’s likely to be in a Budget, what changes to capital gains tax might mean for prices, and what each of the main parties is proposing. My clients are making decisions that will shape the rest of their lives, and they deserve advice that takes all of that into account.
Sometimes the best advice is: don’t sell
If you don’t need to sell, selling may not be your best option. The rental market is strong and rents keep rising. The regulation that worries many landlords is something we handle every day, and we can manage it for you. It costs a bit of admin and a few pounds, but you’ll likely earn more rent.
The caveat is that waiting it out means thinking in terms of five years, not twelve months. I’d rather tell you that honestly than take an instruction that doesn’t serve you.
We’d rather shake hands and walk away
We’re selective about what we take on. We only want to market properties that have a real chance of selling. If we can see from the start that expectations and reality are too far apart, we’ll politely wish the owner the best of luck and let someone else try. That isn’t arrogance. Our time and your time both matter, and pretending otherwise helps nobody.
What this means for you
When you choose an agent, don’t choose the highest number. Choose the person who can explain how they reached their number. They should understand the wider economic and political picture, be prepared to tell you something you don’t want to hear, and know when selling isn’t the right answer at all.
A good agent should leave you better informed, whether or not you instruct them.
If you’re weighing up whether to sell, hold or rent, I’m always happy to have an honest conversation. No pressure, just the facts.