property investors network

Working with Estate Agents

As UK property prices continue to fall due to lack of buyers, for the first time in many years, estate agents are facing the danger of redundancy. This means that estate agents need us in order to stay in business and employment.

Probably the only people who are buying right now, are the sophisticated investors who know what to buy and how to buy at the right price.

There are so many motivated sellers out there right now, that as an investor you can afford to be very fussy about what you buy. You should only be buying property in a great location with good rental demand, and significantly below market value. Not all property will fit into this category so you need to educate the estate agents as to exactly what you are looking for.

Often estate agents struggle with the belief that a vendor would sell a property significantly below the market value because most of their experience will be of vendors who want to achieve the highest possible price for the property. This is one of the reasons they don’t like submitting low offers to vendors.

However the fact is that the property market is still going down. Some vendors need to sell and so will accept lower offers. If you are not embarrassed by your low offer then it is not low enough.

You need to convince the estate agents that you are a serious investor and you plan to buy lots of property in your area this year. This means that the estate agent should be delighted to deal with you as you can help them keep their job which is a serious issue at the moment.

A tip for you is that if you get estate agents contacting you about properties where the vendors are prepared to drop the price, ask the agents to contact you BEFORE the price is actually dropped. You need to be quick and let the agent know if the deal is right for you but if the price is still marked up at the higher value on the agents website then this means that it will be easier to get a decent valuation on the property even if the surveyor down valuing it from the advertised price.

I would also recommend that you go back to enquiry about any properties you viewed or offered on 3 months ago as the properties may still be on the market and the sellers may be more motivated to sell now.

3 thoughts on “Working with Estate Agents

  1. Dario

    *Simon, am just concern about the financial system because it’s not point for us to pay for 6 months a hight cost for a mortgage and in 6 months the situation would be worst if we want to refinance again, even worst to take some cash out to cover our debts??????*

  2. Simon Zutshi

    Hi Dario,

    I agree that the mrotgage market is changing and that’s why I think as investors we need to change our strategy about what we buy and how we buy.

    At the moment I don’t think we should be taking cash out of deals becuase that is a high risk strategy. I think we should be buying property that we would be happy to leave money in and that will give us a good return on our money today. You may wnat to have a look at this previous post.
    http://propertyinvestorsnetwork.co.uk/blog/back-to-basics#more-49

    kind regards

    Simon Zutshi

  3. real estate baltimore

    While where in the range of the Working with Estate Agents — property investors network issue, If you want to plant a flower garden, paint the walls, or add shelving to the rental home, you need the consent of the owner to do so. After all, it is his house… you are just renting it. However, it is a good idea to get permission for these things before you sign the lease. It is also a good idea to have any details involving modifications included in the lease. That way, everything is worked out on paper before anything is signed.