A guide from Home Sale NetworkProperty Market MAkINg tHE MoSt of toDAy’S Home economics With a population that is growing and ageing and an increasing number of people choosing to live by themselves, there is currently a great demand for housing in the UK. This is due to an increase in the number of households and a drop in the rate at which new homes areThe value of bricks being built. At its peak in the late 1960s and early 1970s over 400,000 houses were being built per year. This rate dropped steadily, soand mortar that by the 1990s the average annual rate was 190,000 houses per year. In 2001, there were approximately 25 million dwellings in Britain,Your home, as well as being somewhere to marketed by Home Sale Network accommodating some 23.5 million households1live, is probably your largest financial asset. members are listed on the Network’sAs with any investment, you want to ensure website, which is regularly viewed by people and yet government projections estimatethat you are able to get the best return in over 100 different countries. Instructing a that 223,000 new households will be formingpossible. According to figures from Home Network member to sell your home means annually up to 2026 alone2.Sale Network’s quarterly Property Market that not only will it be seen by local buyers Despite a fall in the average size of aReports, over the past five years the but it could potentially attract buyers fromaverage asking price of properties in the UK further afield. household, from 3.01 people in 1961 to 2.33has increased by over £60,000. people in 2000, new houses are being built Whilst your home is probably your largest bigger. In 1971, 15 per cent of new houses hadLast summer’s credit crunch, ignited by the financial asset, it shouldn’t be viewed assub-prime mortgage crisis in the US, has simply an investment. For the vast majority only one bedroom and only seven per centaffected the world economy, making lenders of people a house is a home. Buying a new had more than four. In 2002-03 only six permore cautious. However, even when the home is a big commitment, however unlike cent had one bedroom and 34 per cent hadmarket slows there are always people who stocks and shares or paying into a savings more than four3. The housing market is affectedneed to buy and sell, because they are account, money spent on improving the by many factors, as well as by the laws ofrelocating to a new job, upsizing because value of your home, whether a loft supply and demand, whereby certain types ofof a growing family, downsizing because conversion, an extension or adding an extra property because of their relatively low supplytheir children have left home, are first bathroom, can have a positive impact on will remain in steady demand and vice versa.time buyers or buyers looking for a your day to day life in the property as wellretirement home. as potentially adding value to your home.The property market is changing and is Investing in property has also beenincreasingly price sensitive, but a realistically traditionally viewed by leadingpriced house, that reflects the current commentators as a safe direction for longmarket, will generate interest. Properties term results. www.home-sale.co.uk
How to pick the rightestate agent for yourproperty A quick guide toChoosing the right estate agent to sell your home Buying and selling a home is not an everydayis vital. Do your research. Use property websitesand look at which agent is selling what in your occurrence for most people. If you are buying andarea. Home Sale Network is made up of over 700independent estate agents, who are hand picked by selling for the first time or it’s been some timeCartus, the premier provider of global relocationservices, after thorough checks. Each and every since you last bought and sold property here areHome Sale Network member has been selectedbecause of their detailed knowledge of their local some tips, from Home Sale Network, to help.market. Using this experience of the market whereyou are, our local member can not only help youset an accurate and realistic price for your property, Selling your home A buyer’s first sight of your home may be from the estate agent’s property details, sobut can advise on what buyers in your local market As soon as you know you are moving you it is important to choose an agent who willare looking for and on ways to maximise the appeal should contact your mortgage lender and really take the time to present your homeof your home to potential buyers. notify them that you intend to redeem your in the best possible way. Many Network existing mortgage. Find out if your lender members have received specialist training inCheck which membership body or trade charges a redemption fee and how much property photography and will ensure thatassociation the estate agent belongs to for example this will be. your home is presented in the best possiblethe Royal Institution of Chartered Surveyors (RICS), light. Your estate agent will also discuss theNational Association of Estate Agent (NAEA) or preparation of your Home Informationthe Ombudsman for Estate Agents (OEA). Find out Pack with you.if the agent has any other accreditations and whatawards they have won, visit their website. It is also a Once you have confirmed you are happygood idea to ask your estate agent for references. with the sale particulars and that the information is accurate, your estate agentQuestions to ask potential agents will arrange for your property to be advertised in local and possibly national• What evidence do you have to support your newspapers, on the internet and within suggested price for my home? their offices. In the UK, Cartus, the premier provider of global relocation services, uses• Which websites will my property appear on? Home Sale Network members to help buy• Will you show potential buyers round my home? and sell homes for relocating families. So potentially your home could be marketed• Who will prepare the Home Information Pack to a much greater audience by using a for me? Network member. Your estate agent will• How often will you update me on progress? also contact potential buyers registered• Once a sale is agreed, what will you do to ensure with them to discuss viewing your home. that the chain remains strong and prevent it from Your estate agent will manage the viewings, breaking? can accompany potential buyers on viewings and collect feedback. There will always be buyers who want to view outsideCartus clients normal working hours, so be prepared to Financial Services show these people round yourself – don’t When you ask an estate agent to sell your Chemicals/ lose them. A good estate agent will always Petrochemicals property for you and they have agreed, you give you honest feedback so be open to Construction/ are entering into a legally binding contract, Housing any suggestions they have as to how to so it is important to make sure that you Aerospace improve the saleability of your home. are happy with the estate agent. Home Sale Telecoms Network members have been selected When a buyer expresses an interest in your as the best independent estate agent to home and makes an offer, your estate agent Other represent the Network in your local area. will check the buyer’s ability to proceed Utilities And, collectively Network members sell and their timescales for moving. Your estate Pharmaceuticals Food/Beverage Manufacturers Computer/IT a property every two minutes. Make sure agent will contact you to inform you of the Automotive Transportation/ Public Sector that you have checked all the terms and offer and the potential purchaser’s situation. Logistics conditions of the contract and if you The estate agent will then negotiate the Charity Manufacturers Retailers are unsure, have sought independent best offer for you. The estate agent will legal advice. work with all parties to ensure a successful exchange and completion of contracts.
buying and selling Why choose a Home Sale Network member? • Home Sale Network is a division of Cartus, the premier provider of global relocation services, moving over 130,000 families every year. In the UK Cartus uses Network members to buy and sell homes for these relocating families. • Home Sale Network is a national network of over 700 selected estate agents. All members are independent businesses, hand picked after thorough checks Buying a home remembering that caveat emptor (buyer beware) applies in law to all property by Cartus identify them as the Before you begin looking for a new home best independent estate agent to purchases in the UK. you will need to decide how much you represent Home Sale Network in can afford and are willing to spend. Most When it comes to making an offer, do some their area. people will need a mortgage to pay for a research by looking at the asking price of new property and it is essential to obtain similar properties in the area and speaking • Home Sale Network is highly independent professional financial advice. to the vendor and estate agent so you can selective and membership is based make an informed judgement on how much Think about why you are moving. Is it for to offer. Try and build up a rapport with the on certain criteria being met work, a bigger property, downsizing, or to agent and ask them questions about the such as quality of service, local be near a certain school? Once you have property – they have to answer factually a clear idea of the area where you would knowledge and professionalism under recent legislation. Once you have like to buy, start contacting the local estate resulting in membership decided on your new home, you should agents and viewing property websites. Your make an offer ‘subject to contract and approved on an invitation local Home Sale Network member can satisfactory survey’ to the vendor’s basis only. help you in your search to find a new home estate agent. as well as offering guidance and information • As well as relocating families on the local area. If you have had your offer accepted and the property surveyed, your solicitor will moving with Cartus, Home Sale As soon as you see a property that interests manage the conveyancing to allow you to Network helps people move you, contact the selling estate agent and go ahead with the purchase. As part of arrange a viewing. Viewing a property is as from one part of the country the conveyancing, your solicitor will review much about physically seeing it as finding to another by referring buyers the Home Information Pack contents, the out more about the street and immediate contract sent from the vendor’s solicitor and sellers to other Network area. You should always take time and care and check any queries about boundaries, members. Each month 1,200 on a viewing, looking at all aspects of the fixtures and fittings with the vendor’s property and its location. Before making a movers receive help this way. solicitor. They will also request ‘searches’ decision, if it’s practical, view the property from the local authority. Once the searches and its location at different times of the day • The Network provides coverage are back, and if all parties are happy to go and on different days of the week. in England, Scotland and ahead with the sale, you will need to be Buyers in England and Wales should ask ready with your deposit, normally 10 per Wales, and there are Home to review the Home Information Pack cent of the purchase price, so your solicitor Sale Network members in major that has been prepared on the property. can exchange contracts on the property towns, cities and rural areas. Ask for professional advice on its contents through the vendor’s solicitor. www.home-sale.co.uk
Home Information Packs (HIPS) Home Information Packs or HIPs for short, apply to residential properties there are likely to be differences between HIPs for these sales and those provided for that are advertised for sale in England and Wales. There is a fair amount of properties sold as completed dwellings. For cross over between the information required for a HIP, and the information example, the searches for the property and title information may cover a wider area if gathered during the conveyancing process. The main difference however, is the property has not yet been allocated an that a HIP is the sellers’ responsibility rather than the buyers’. address and individual titles have not yet been created. But what exactly is a HIP? A HIP is • Evidence of title, this would usually What happens if I change estate agents, a dossier of information that is collected be copies of the basic Land Registry do I need to get another HIP? together and made available as part of registers and title plan. the sale process. Every estate agent in If you have paid for the HIP and it is not • Local property and drainage searches, or England and Wales who market homes tied in to the estate agent’s contract then a record of the fact that they have been with HIPs need to be registered with the you can have your home on the market ordered. Local property searches are independent arbitration service run by with one agent and then switch to another used to check various details that may the Ombudsman for Estate Agents (OEA). one and take the HIP with you. However affect the property. Equally, all HIPs providers must subscribe you should check the contract with your • A copy of the lease, if the property is agent before changing the agent that you to the Home Information Pack Code and leasehold. are marketing your property with. be registered with the Property Code Compliance Board. HIPs FAQs Are there any properties that don’t need What’s in a HIP? Do I need to have a HIP before I put my a HIP? • An index, or contents list of what’s property on the market? There are a few instances when a HIP is included in the HIP. Currently, until the end of the year, homes not required, but they will not affect the can be marketed as soon as the HIP and majority of sellers. • An Energy Performance Certificate or EPC, which is similar to the energy its contents have been ordered, it’s not Properties that are exempt from requiring rating that many domestic appliances, necessary to wait until the pack is delivered a HIP are5: such as washing machines and freezers in order to get your home on the market. • properties that have been cleared for have. This rates the property on a scale If I buy a brand new build property, will I demolition or been declared unfit for from A-G, with band A properties being get a HIP? human habitation the most energy efficient homes. The Newly built homes are affected by HIPs • properties that are being sold with a EPC is a calculation of the estimated but there are differences in the way the sitting tenant energy costs for running the property, scheme operates for these properties, • when the property being sold is mixed as well as its potential energy efficiency particularly in the way that energy use, for example it is a shop with a flat after the suggested energy efficiency performance information is presented. or flats above it measures, detailed in the EPC, have been New homes marketed ‘off-plan’ before put in place, for example adding extra • the property that has more than five they are physically complete will not have a insulation in the loft. hectares of agricultural or horticultural full Energy Performance Certificate (EPC) • A Sale Statement, which gives the basic land as these can only produced following details of the property, like the name a physical inspection of a completed • if the seller is marketing a portfolio and address of owner, address of the building. In these cases, the HIP will contain of over five properties in a single property being sold and tenure, whether a Predicted Energy Assessment (PEA). transaction. it is freehold or leasehold. Where new homes are marketed ‘off plan’ Sources: 1 http://www.statistics.gov.uk/census2001/profiles/commentaries/housing.asp 2 Building a Greener Future: policy statement. www.communities.gov.uk/documents/planningandbuilding/pdf/building-greener 3 Office of National Statistics, ‘Social Trends’, No. 34 2004 Edition. http://www.statistics.gov.uk/downloads/theme_social/So- cial_Trends34/Social_Trends34.pdf 4 http://www.homeinformationpacks.gov.uk/industry/170_New_builds_and_developments.html Home Sale Network 5 Property Price Advice. www.propertypriceadvice.co.uk Frankland Road, Blagrove, Legal disclaimer: The information in this guide is provided in good faith based on data currently available as at May 2008 Swindon, Wiltshire SN5 8RS and is therefore subject to change. Home Sale Network (a trading division of Cartus Ltd) accepts no liability for the data Email: email@example.com or information included within.www.home-sale.co.uk