December 18, 2023

lucy

Property Advice

Popularity of the Single Storey Residence moves into a different league

Popularity of the Single Storey Residence moves into a different league 0

Single Storey Residence is such a great description for a bungalow. This was drummed into me by my then boss Richard in my early days of property transactions when bungalows back then were far less sought after and to avoid the misdiiscriptions act of 1991 it was a very acceptable factually correct terminology.

As we bid farewell to 2023 and enter into 2024 single storey properties are becoming increasingly popular with premiums specifically in our area of West Sussex.  The high demand is driven by the asset value of high-end bungalows, especially as our population ages and seeks the convenience of single-storey living.   Village living we have found has attracted many downsizing with the attraction of village pubs, stores and a community and living on one level can have many widespread reasons and not necessarily just for the older generation.

In recent decades many have been knocked down or replaced in larger plots, but many buyers recognise their unique potential as a bungalow as it’s known to most of us can suit contemporary design trends and open- plan, high ceilings rather than extending vertically.

This flexibility appeals to clients for various reasons, and architects can create forward-thinking eco friendly designs to modernise these bungalows discreetly.

As buying agents, we’ve observed this trend throughout 2023, and we anticipate it gaining even more traction in the next decade.

By Jennie Hancock – Founder & Director at Property Acquisitions. 

November 21, 2023

lucy

Area FocusesProperty AdviceProperty Market Update

Why downsizers in West Sussex are sidestepping instead

Why downsizers in West Sussex are sidestepping instead 0

Having operated a buying agency business for two decades, downsizers in West Sussex have consistently been a part of our client base. Given our location in the picturesque villages around Midhurst, Petworth, and Chichester, it’s no surprise. These areas offer an idyllic lifestyle and charming homes, perfect for those seeking a slower pace of life.

Traditionally, downsizers would opt for a smaller home after their children have flown the nest. However, a notable shift has occurred, with more downsizers now exploring the concept of “sidestepping.” Instead of simply downsizing in terms of square footage, these individuals are in search of a property of similar size, achieved by purchasing something more affordable and extending it or trading in features they no longer require for more practical ones. This emerging trend is intriguing, and there are compelling reasons behind it.

One driving factor is reducing the overall cost of moving. The number of large family homes available for sale, owned by these empty nesters, has decreased in recent years, primarily due to the increased costs associated with downsizing, such as stamp duty, solicitor fees, and general moving expenses. However, savvy buyers have realised they can still enjoy a similar-sized property and a great lifestyle by purchasing a property that needs some work at a significantly lower price. They can then extend and adapt it to their liking. This approach results in substantial savings on stamp duty, a benefit that sets sidestepping apart from traditional downsizing.

For homeowners selling sought-after, spacious family houses, whether locally or in London, they often attract serious buyers quickly and secure a good price for their property. This allows them to use the surplus funds to purchase a more affordable home in a desirable location, where they can renovate and personalise it. This may involve modern extensions, adding an annexe, or upgrading kitchens, bathrooms, and en-suites. While financial considerations are still relevant, this approach enables downsizers to afford both the village lifestyle and the house they truly desire without compromising too much on size.

An added benefit of sidestepping is the potential to eliminate their mortgage entirely or significantly reduce it. While many of our clients are either cash buyers or have relatively small mortgages, they may have carried substantial mortgages in the past. Once their renovation project is complete, they can enjoy an attractive, well-sized home without the burden of hefty monthly mortgage payments.

Another example of sidestepping involves buyers swapping properties of similar size and price, but with changes in the features of the house. For instance, they may currently own a 2,000 sq ft house with three acres, including a pool and tennis court, however with their children no longer using these facilities, they opt for a 2,500 sq ft house set half an acre, which is more cost-effective to maintain once updated to modern standards. They might even include an annexe in the garden for a relative to move into. Alternatively, they may prefer to trade these amenities for higher quality kitchens, bathrooms and interiors. While the price levels may remain similar, these buyers seek to replace amenities they no longer need or consider less important.

For more information about how Property Acquisitions can help you downsize in West Sussex, contact Jennie Hancock at info@propertyacquisitions.co.uk

August 15, 2023

lucy

Property AdviceProperty Market Update

Negotiating a lower price – how low do you go?

Negotiating a lower price – how low do you go? 0

‘Do you think I can secure the house under the asking price, and how low can I go?’ are two of the most popular questions we are asked as a buying agent. During the market frenzy of Covid, securing a home for under the asking price was pretty much an impossible task. This was especially true for the good quality houses in the sought after locations, as the race for space meant demand far outweighed supply. However, with mortgage rates rising since the Mini Budget last Autumn, the tide has most definitely turned now, putting the balance of power in favour of buyers and haggling on price a little more possible.

What we’re seeing at the moment is that the difference between buyer and seller expectations has been steadily growing throughout this year. There is a price correction between the property market peak of 2021 and now. Many sellers believe they’re still in the market of 2022, whilst buyers are thinking more 2020/21, mainly fuelled by the pressures of increased mortgage rates and general cost of living. Purchasers are definitely more wary now as a result, and if they feel anything is wrong with the location or house itself, they want to haggle on price.

According to Hamptons, one of the UK’s largest estate agents, 54% of homes across England & Wales sold below their asking price in July, up from 47% in June and 34% in July last year. Price reductions have also reached their highest level in at least nine years, with buyers achieving a 4.5% discount average last month. We are seeing similar trends, as sellers realise that if they want to sell quickly, they need to be realistic about what is happening in the current market.

Currently, we are securing properties for buyers at guide price or slightly under, which wouldn’t have happened even a year ago. This is because demand in and around the waterside and rural villages of Chichester, Midhurst and Petworth is still as strong as it has been, whilst good quality houses are scarce.

So how can you maximise your chances of having a lower offer accepted?

It’s important to remember that a house is only worth what somebody is prepared to pay for it. Just because it’s been set at a particular asking price does not mean that that is the correct value. There are a number of factors to consider when making an offer, which takes into consideration things like the seller’s circumstances, location and if there are major works that need doing. With this knowledge, buyers can then make an offer – whether at guide or below it. Go too low however, and you risk losing out entirely, which is where the benefit of having a buying agent on side plays a vital role.

Our tips include putting the offer in its best light and explaining the circumstances. If you are a cash buyer for example, you are in a very good position in the current market. Vendors, particularly those who need to sell quickly, are choosing the buyer who has the ability to purchase over who is offering the highest price. This is because with funds ready in the bank, cash buyers can move forwards quickly and there is less risk of the sale falling through. Another good factor to include is if you are happy to be flexible on a completion date. Exchange can happen as soon as you can, but a long completion date can give a seller more time to find something else. This also then makes them a proceedable buyer, putting them in good stead for their onward purchase.

For more information about how Property Acquisitions can help you find your next home in West Sussex, contact Jennie Hancock at info@propertyacquisitions.co.uk.

August 13, 2023

lucy

In The PressProperty AdviceProperty Market Update

In The Press… The Times

In The Press… The Times 0

We had the pleasure of being featured in The Times day in a property piece about the benefits of being a cash buyer in the current market, quoting our Founder Jennie Hancock.

As a buyer, cash is king right now. Over the last few months, the local housing market has turned from being price led to the ability to purchase, highlighting the importance of being a cash buyer when looking for a prime country house in West Sussex. Multiple estate agents are calling us far more frequently for access to our clients as a result, because as a buying agent, we only work with those who are proceedable. Their vendors are nervous about selling to somebody who is relying on a mortgage, where the risk of a sales transaction falling through or being delayed due to possible hiccups such as down valuing or failing a ‘stress test’ is much higher. Whereas cash buyers are chain free, have the funds ready in the bank and can act quickly, which minimises the risk and worry of them pulling out of a sale substantially. Stress levels are also reduced for both parties as the sale is pretty much guaranteed to progress without much delay, and with minimal risk of falling through. If somebody is buying in cash, this also helps shorten the process. Recognising the advantages, many of our clients who initially had relatively small mortgages have reduced their budgets since interest rates rose, so that they can solely be a cash buyer.

For example, we have recently secured a property for a client less than the guide price because they were complete cash and could offer security and flexibility, enabling the vendors to secure their onward purchase. We have also recently secured a family home in the Chichester area off market where our lower offer was accepted because our client was a good proceedable buyer and the owner didn’t want to put the house on the open market.

Recognising the advantages, many of our buyers who initially had relatively small mortgages have reduced their budgets since interest rates rose, so that they can solely be a cash buyer in the current market.

Read the full article here.  (paywall)

July 24, 2023

lucy

In The PressProperty AdviceProperty Market Update

In The Press… The Spectator

In The Press… The Spectator 0

Property Acquisitions was quoted in The Spectator today, discussing what’s in and what’s out in the world of property. We mention annexes as a key property trend for 2023. Buyers that didn’t need an annexe before are considering them when house-hunting as they can be used as a back-up income stream. Rental income can cover increased interest rates. As an added bonus, the buyer can also get multiple dwellings relief from the stamp duty.

Read the full piece here where veg patches, wild lakes and flower meadows are very much on trend right now, whilst swimming pools, fixer uppers and sofas are on their way out…

July 7, 2023

lucy

Property AdviceProperty Market Update

Advantages of Entering a Less Competitive Market

Advantages of Entering a Less Competitive Market 0

After more than two years of a booming house market with recorded prices achieved, sealed bids, best and finals and cash buyers scrambling for the best houses, it is now clear that there is a shift as buyers are now dealing with higher borrowing and a far slower market. However, as a buying agent these are exciting times as this is always a good time to
 buy. Historically we can never be sure when to buy, and some experts may advise buyers to wait until 2024/25, but there are always good reasons to take the plunge prior to the predictions.
Offers are being made lower than the asking price:
In the current climate, offers close to or below the asking price are common. This means buyers have the opportunity to secure better properties at more realistic prices. However, it’s important to gauge the situation as vendors may change their minds or decide to rent out their homes instead.
Less competitive market:
With fewer buyers, the market offers more opportunities and less disappointment. Taking advantage of this uncertainty can be beneficial. To increase the chances of having a lower offer accepted, it’s important to be able to proceed quickly without needing to sell a house. Capitalising on a market of some uncertainty can prove very beneficial, but the key to having a lower offer accepted is being able to proceed and not have a house to sell.
Cash, or predominately cash:
Now is the time for cash buyers without a doubt as we enter a less competitive market. As buying agents, our ability to negotiate on price also offers them fabulous value on a purchase, whilst their buying power is extremely attractive to any vendor, especially if they can be flexible on a completion date. This is because it allows the seller time to find something to purchase themselves, putting them in a good buying position because they have a purchaser waiting in the wings.
Renters Should Buy:
As rents increase, it becomes more beneficial to pay for your own mortgage rather than lining a landlord’s pocket. It’s important to seek professional financial advice and explore all possibilities, as buying a property can be a great incentive and make you a property owner.
For more information about how Property Acquisitions can help you find your next home in West Sussex, contact Jennie Hancock at info@propertyacquisitions.co.uk.

June 7, 2023

lucy

Property AdviceProperty Market Update

Families seek long term homes, and downsizers are key in finding them

Families seek long term homes, and downsizers are key in finding them 0

Over recent years in the South East, especially the South Downs National Park, detached houses and village homes have jumped in popularity which has been heightened due to the pandemic, resulting in the increased numbers of working from home, space in the garden for an annexe /office. Many London families, and other counties wish to settle in the South Downs.

Trends are changing and we are seeing younger families buying their ‘forever home’ far earlier than in the 90’s and 00’s.  It was far easier to make smaller jumps in the property ladder years ago as related expenses were far lower.  Costs of moving such as stamp duty, is a huge financial commitment, and is a big consideration.  

Therefore buying a home to live in for many years is becoming more normal and more attractive as it is possibly the largest financial outlay in a lifetime. It is more common now for families to look at this as a ‘one off’ payment and pushing to their maximum purchase price in order to avoid encountering reoccurring payments when moving.

Who are living in these houses and how it will change in the years to come?

As the older generation often entering the final third of their lifespan, they have built up significant equity over decades and therefore are the ‘downsizers’ that are releasing their homes to families for their ‘forever home’  The older generation see this for themselves as an opportunity also to release capital and help their own children and possibly grandchildren to make their way into the housing market and provide in turn for them an easier lifestyle and smaller outgoings and pay off any remaining mortgage.

The “downsized properties” they will move to are usually with smaller gardens, closer to amenities, a shop and often a local pub and with a village community.

We are seeing this more and more often now as the jump from a first time buyer accelerates to the largest possibly that is affordable.  It’s interesting how the mindset has been on mortgage increases recently, but more and more buyers are considering initial outlay such as stamp duty and related expenses which they feel is just as important when it is spread over many years too.

Stock remains low as there is always hesitation for everyone to find these special homes which is why we all need to take the plunge and see who is thinking of buying and selling. As buying agents we keep a ‘black book’ of possible clients who intend to move, and this is how the wheels continue to turn off market.

May 28, 2023

lucy

In The PressProperty Advice

In The Press… Daily Telegraph

In The Press… Daily Telegraph 0

Property Acquisitions were featured in this interesting Telegraph article on the best hotspots for family buyers. In West Sussex, we have found that families are choosing homes that are immediately liveable but need work over time. Ideally these homes have space around them to extend in three to four years as they can afford and as their needs change because they don’t want to move again for another 15 to 20 years. Being closer to your child’s school than the station has become more important for the first time too. With more remote working being carried out, a drive to the station has become less important than the daily drive to school – people want a school run that will take no more than 15 to 20 minutes now.

Read the full article here (paywall)

May 22, 2023

lucy

Property AdviceProperty Market Update

How to avoid badly behaved house sellers

How to avoid badly behaved house sellers 0

Our Founder, Jennie Hancock, was interviewed recently by The Times for protective measures on how buyers can deal with badly behaved house sellers. Following a strong few years for the housing market, the industry has reported that some vendors (not all) believe they now hold all the cards, and are bending the rules and changing the goalposts at the last minute, often causing deals to fall through – even as close to when it’s time to exchange. Moving house is one of the most stressful and expensive things one can do in life, so for purchasers who are ready to exchange having paid for surveys, solicitors and other associated costs, it can be devastating financially as well as emotionally when a sale collapses. Of course, there are occasions when a vendor may have to pull out, but when they’re changing their mind for no good reason, it’s generally considered poor behaviour.

So what can buyers do to protect themselves from such a situation? Here are Jennie’s top five self-protection measures…

Offer a quick exchange and a long completion

I have long said that being flexible with a vendor on completion dates can often act in a buyer’s favour, and this is even more applicable in a market with a lack of stock and huge demand. Sellers can panic that they won’t have time to find a new property so pull out. This is especially pertinent with those in their sixties and seventies, who may feel reluctant to let go of a much-loved family home. So what we’re doing more of is a quick exchange to secure the deal, then a delayed completion date of six to twelve months. The critical thing is that the delayed completion date can be moved forward by mutual consent if needed to.

 

Engage a good solicitor

Engage a good solicitor who is going to be proactive, communicative, and excellent at moving things forward quickly. There’s nothing more off putting to a vendor than a buyer’s solicitor taking a long time.

 

Suggest a ‘rent back’ agreement

‘Rent backs’ are another good option to give sellers time to find the property they want too. This is an agreement between the buyer and seller that allows the seller to continue to live in the house after completion in exchange for rental payments for a set period of time. A typical scenario would be that we present a cash buyer to Mr and Mrs X, the vendors. We would then say to them ‘They are in a very strong position to buy your house, so if you’re not ready to move yet why don’t they rent it back to you for a year?’ This is often an attractive option for “the older generation of vendors. It stops them having to do a double move. However, it really only works when the buyers are mortgage free, because most residential mortgage providers would not agree to it.

 

Be a cash buyer

If possible, buyers should try and be cash purchasers. A vendor is less likely to walk away from a cash buyer because they are like gold dust in their eyes. Such purchasers can proceed quickly, are chain free and are less risk of the sale falling through because there aren’t any mortgage affordability tests to go through.

 

Retain a buying agent

Finally, find a good local buying agent. They will do all the fighting talk on a buyer’s behalf and manage any complications with the seller. Buying agents also provide vendors with reassurance that their client is a serious buyer due to all of the due diligence checks they have to do for proof of funding. This can help minimise the chances of a vendor messing around or walking away, tremendously.

 

For more information about how Property Acquisitions can help you find your next home in West Sussex, contact Jennie Hancock at info@propertyacquisitions.co.uk.

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