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The price you pay for expert property advice

Simon Barnes looks at property portals, dedicated agents and why you need to get expert property advice when selling your most costly asset

Commission is a dirty word among vendors trying to sell their homes, it sparks grumbling resentment, while legal fees and conveyancing costs get paid without a quibble from the seller.

The rise of the online property portal appeals to vendors because it appears a cheaper option. However, in my opinion, the old adage ‘you get what you pay for’ is never more apt than when it comes to choosing an online property agency over a dedicated agent and dare I say someone who picks up the phone and engages directly with their client.

It seems foolish to me that anyone would entrust their greatest most costly asset to a faceless digital set-up in preference to someone with years of personal industry experience. Loathed by many, a decent estate agent is in reality worth their weight in gold bricks and definitely deserves between 1% and 3% of the commission from any sale.

Your agent has the power to be a deal maker, a mediator and above all an enabler. It is they, who will navigate the problems thrown up during the course of the sale and come up with resourceful solutions, sensible property advice and the wisdom accumulated over years of encountering similar scenarios.

A solid capable agent will be the voice of reason when it comes to managing the egos of both buyer and seller and negotiating the best price achievable in whatever market you are selling. Without an experienced, professional agent the lines of communication, that are essential to progressing a sale, are completely neglected. If you use an online portal, when the momentum falters or the buyer threatens to pull out, you have no come back and absolutely no support, unlike when you retain a ‘real person’ and an agent who can pick up the phone, or meet the parties and get the deal back on course.

Make no mistake the business of house buying and selling is a tricky and sophisticated business, so it really is prudent to retain and pay for the best professional agency you can find. Professional agents will understand planning, talk knowledgeably about market conditions, make property value comparables and explain legal issues like listed building restrictions, covenants and rights of way. Any of which can throw you into confusion, not to mention a potential spanner in the works.

Grumbling about commission is ridiculous, when the price you are paying for expert property advice is so small in comparison with the final net gain – selling your house, banking the money and moving your life on.

Contact Simon Barnes

A version of this article by Simon Barnes appeared in PrimeResi (subscription required)

by Simon Barnes

Market update – post Brexit prices

Brexit certainly speeded up the summer recess and meant that in Prime Central London the property market tailed off sooner ahead of July. The post Brexit dormant period has perhaps lulled people in a false sense of security and the feelings about Brexit faded away over the holidays, perhaps suggesting that it is not quite as bad as everyone made out initially.

Post Brexit in Prime Central London

The reality is that in central London people with a need or strong urge to move will, whether this is dictated by schooling, job relocation, or personal circumstances. Good properties, priced at the correct market level, will sell; those that are not so good will sit around. Undoubtedly, Q4 will be a quieter three months than previously, as people wait, watch and see how the politicians handle negotiations and how the economy and market confidence fares. My feeling is that this is a good time for buyers to go in and make an offer and potentially drive a hard bargain – it is a buyers’ market. While new buyers entering the market post Brexit and the summer will not be rushing in but playing a waiting game, old buyers who were in the market before the summer, will see this as a window of opportunity to return with a reduced offer.

The post Brexit period has granted agents a justifiable reason to advise their clients on where the true price should be if they are seriously minded to sell. They will be using this opportunity to have a realistic conversation with their clients owning houses in ‘grade A’ locations like Chelsea and Notting Hill. Right now they will be recommending that the asking price is too expensive and needs adjusting to reflect the price sensitivity in the current PCL market. Those that listen are far more likely to sell than those who do not. Of course, aside from buyers and agents, the people determining property values in today’s market are the valuers, who remain overly cautious, creating a chicken and the egg situation.

by Simon Barnes

Buying off the radar property in London

In London, established property experts acknowledge their geographical boundaries. The nature of the city’s geography and spread of property means that not only is there a north south river divide, but there are micro markets within relatively small areas of the city. Areas within close proximity may offer a differing mix, style and proportion of property, the density of housing, the layout of squares and streets and the range in value, all have distinct characteristics.

Prime Central London

The very small market referred to as ‘Prime Central London’ is particularly specialised. Selling a large, lateral flat in Belgravia, or a substantial town house with adjoining mews house in Mayfair, is not about sticking it on your web site, an advert in the freebie property press, then sitting and waiting for the phone to ring. Just as looking for a particular style of house, with off street parking and gardens in Kensington, is unlikely to be achieved by simply registering with the local agents. Rental investment portfolios, unmodernised properties, with development potential, unusual houses. There are specialist ‘expert’ agents for each, but they’re unlikely to be the same agent.

Off the Radar

The property I seek out and deal with is largely off the radar; in fact sometimes it is never actually on the market. This is where that good old fashioned ‘ear to the ground’, tap of the nose stuff really kicks in. His ‘expert’ knowledge of a very specific area means he genuinely knows who lives where, who owns what and can describe the inside of a property from the outside before having crossed the threshold. When someone has been actively buying in an area over a long period of time, they will have their own extensive figures and comparable values to hand based on actual sales,. More importantly, they want to be advised by someone with first-hand experience, who can offer a fistful of examples which will instil confidence in the client and be incredibly useful in buying or selling at the best price and the right time in the market.

In this business some off the radar deals take longer than others. Depending on the circumstances of the deal time spans vary hugely. We completed an ‘off market’ deal last year within 10 days of the buyer seeing the property; but in another case, it took nine months to complete the deal because the seller needed time to find an alternative property. Patience and decisiveness wins the prize, one example being a successful purchase in 2011. We bought a house for a client last year. He was incredibly specific on the address in prime Belgravia, the type and style of house. Unfortunately the house was rented so we couldn’t get to see it. So we waited until the tenant vacated, the house would have been available on the open market and the interest would certainly have pushed up the price. We made the decision we wanted the house, so we bought it without seeing it.

The Buying Agent

It’s important to recognise the value other professionals can add and finding out about property which is not actually for sale is one of the trademarks of a very experienced buying agent and essential when scouting for the finest property investment in PCL. The bedrock is having a solid relationship with the Capital’s key agents built up over many years. Transacting several deals with serious high net worth individuals ensures one access to the best properties both on and off the market. I will often be the first person an agent calls with their ‘off the market’ properties

by Simon Barnes

Spear’s Magazine: Simon Barnes comments on the prospects for Prime Central London property

Mayfair-based property adviser Simon Barnes reflects on a turbulent Prime Central London market

I think we all know Prime Central London prices have been plateauing for some time now, but in reality, in many places prices have simply been too high and this, together with the threat of a mansion tax and the increase in stamp duty, has been responsible for stalling the market. It was clearly a relief to have a definitive election result as far as Prime Central London property was concerned, however it was very unwise of anyone to believe this would have an immediate and dramatic impact on market activity.

READ THE FULL ARTICLE IN SPEAR’S

by Simon Barnes

Navigating the prime London property market

Simon Barnes of H. Barnes & Co talks about what overseas investors need from a buying agent to secure luxury property in the prime property market of London

In London, established property ‘experts’ acknowledge their geographical boundaries. The nature of the city’s geography and spread of property means that not only is there a north south river divide, but there are micro markets within relatively small areas of the city. Areas within close proximity may offer a differing mix, style and proportion of property, the density of housing, the layout of squares and streets and the range in value, all have distinct characteristics.

PROPERTY MARKET IN ‘PRIME CENTRAL LONDON’

In the same way you would not send your prized Rolls Royce to the local garage for a service, you probably wouldn’t go to the ‘local high street agent’ if you were looking to buy or sell a particular type of property. True, they may be able to do the job eventually, but they wouldn’t be specialised enough to get you the best results. You wouldn’t ask your local estate agent to sell your house in the country, or to find you a secluded villa in the South of France. The very small market referred to as ‘Prime Central London’ is particularly specialised. Selling a large, lateral flat in Belgravia, or a substantial town house with adjoining mews house in Mayfair, is not about sticking it on your web site, an advert in the freebie property press, then sitting and waiting for the phone to ring. Just as looking for a particular style of house, with off street parking and gardens in Kensington, is unlikely to be achieved by simply registering with the local agents. Rental investment portfolios, unmodernised properties, with development potential, unusual houses. There are specialist ‘expert’ agents for each, but they’re unlikely to be the same agent.

THE BUYING AGENT

The property I seek out and deal with is largely ‘off the radar’, in fact sometimes it is never actually on the market. This is where that good old fashioned ‘ear to the ground’, tap of the nose stuff really kicks in. His ‘expert’ knowledge of a very specific area means he genuinely knows who lives where, who owns what and can describe the inside of a property from the outside before having crossed the threshold. When someone has been actively buying in an area over a long period of time, they will have their own extensive figures and comparable values to hand based on actual sales,. More importantly, they want to be advised by someone with first-hand experience, who can offer a fistful of examples which will instil confidence in the client and be incredibly useful in buying or selling at the best price and the right time in the market.

‘OFF-MARKET’ SALES

In this business some ‘off the radar’ deals take longer than others. Depending on the circumstances of the deal time spans vary hugely. We completed an ‘off market’ deal last year within 10 days of the buyer seeing the property; but in another case, it took nine months to complete the deal because the seller needed time to find an alternative property. Patience and decisiveness wins the prize, one example being a successful purchase in 2011. We bought a house for a client last year. He was incredibly specific on the address in prime Belgravia, the type and style of house. Unfortunately the house was rented so we couldn’t get to see it. So we waited until the tenant vacated, the house would have been available on the open market and the interest would certainly have pushed up the price. We made the decision we wanted the house, so we bought it without seeing it.

The price you pay for expert property advice

Market update – post Brexit prices

Post Brexit in Prime Central London

Buying off the radar property in London

Prime Central London

Off the Radar

The Buying Agent

Spear’s Magazine: Simon Barnes comments on the prospects for Prime Central London property

READ THE FULL ARTICLE IN SPEAR’S

Navigating the prime London property market

PROPERTY MARKET IN ‘PRIME CENTRAL LONDON’

THE BUYING AGENT

‘OFF-MARKET’ SALES

SEEK OUT EXPERIENCE

Contact H. Barnes & Co – Tel: 020 7499 3434