Tales from the Front Line
To Sell or Not to Sell?
by
Ed Sugden
on June 24, 2009 in
Properties
What is clear with the current market is that the lack of supply is creating a false market and driving prices. Is this going to continue? I have just completed my usual ring around the selling agents and there is one continual theme, which is not only the lack of new instructions, but the real lack of any ‘marketing appraisals’. To highlight this, one national agent in one of their mainstream country offices has not valued a property in the £1 – £2 million bracket for three weeks and there is nothing booked in the diary.
This obviously is of genuine concern for buyers and, if I were thinking of selling in the next 18 months, I would be very tempted to go now, not only because of the imbalance in the supply and demand but because the basic fundamentals of the economy in the short to medium term are not looking particularly healthy.
Lock-out Agreements
by
Ed Sugden
on June 9, 2009 in
Negotiating
As a rule, within all our deals we agree a lock-out agreement which prevents the vendor from further advertising, encouraging interest from any other buyer and considering any other offers during the time within which we have agreed to exchange contracts. Many would argue that too much time is spent (and legal fees) on agreeing wording of the document and, as such, there are occasions when we do not insist upon it as long as there are letter/e-mails from both the vendor’s agent, on behalf of their vendor, and their solicitor agreeing to the basis and intent of the proposed lock-out agreement. This is quicker and easier and, whilst it has not been tested during my time involved in property, I am informed that lock-out agreements can easily be contested and of course the vendor can employ delaying tactics, enabling them time to consider other offers outside the lock-out period.
Lock-out agreements, however do have their uses and recently we had a case where we were gazumped by £150,000 and the vendor instructed lawyers to change horses. However, thankfully due to the clause in our heads of terms, we were able to threaten (in the nicest possible way, of course!) with legal action which brought the vendors back to the negotiating table and we were able to purchase the property for less that the gazumper.