Stirring the deal

18th May 2022

Currently, pockets of the central London market are heated up; there is a real lack of supply and heated demand.  This leads to higher prices and a scurry to grab properties as soon as they hit the market.

This prompted us to obtain a valuation of a property owned by a client in a premier road in Notting Hill.  The property is freehold and currently used as an HMO, though it could easily be used as a single family dwelling; the agent echoed our thoughts on the market.

When selecting an agent for a property it is important to see who is best preforming in that particular locality.  They should know the buildings on the road and have a track record of selling them.  This should be on the tips of their fingers, so they can give you an accurate price there and then.  If they cannot, they do not have their finger on the pulse.

This agent certainly did, having sold numerous properties on the same road over the years.  However, as a consequence, he was stubborn about his fees.  He was not prepared to go below 2% which comes to a lucrative fee on a valuation of £3.3M.  On the flip side, I mentioned if he is so confident of performing then he shouldn’t need more than four weeks to sell this property.  He agreed.  The strategy is to invite offers above £3.1M.  This means there is no limit to the upside, and encourages bidders to offer liberally.

Only one person will purchase the property. Ideally, this person should be buying this as a family house.  This means they will be buying with emotion, and preferably that buyer would have lost out on previous properties due to being out bid.  This would be the rough profile.  However, one can speculate, but the market decides; and I have been surprised before, both pleasantly and unpleasantly.

The other issue is performance, an offer can be accepted, but that has no meaning unless it can be executed in a timely manner.

The profile of the buyer will need to be analysed, as an offer has no meaning, unless you can lift up the hood and look into the bonnet and see the actual fire power.  This will be a condition of the offer being accepted.

The button to go ahead on this sale has been pressed.  It will be interesting to see how it progresses.

Suresh Vagjiani

Suresh Vagjiani
Suresh Vagjiani
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