1. Why did you decide to go into the property market?
My family are old- fashioned BTL landlords so since I was a young boy I was taken to auctions, solicitors offices and I already knew half of the estate agents in the town. Inevitably I would end up in the property market and an apprentice position came up at Metcalf’s as I was leaving school which seemed to fit perfectly
2. What does your firm do differently?
Since becoming a director in 2010 we have taken a completely different approach to other agents. Although our firm has been operating on the Fylde Coast since 1963, we model ourselves on the London- based agencies with a completely modern approach, all the way down to how are offices are fitted out. In our new Preston office we do not even advertise properties on the walls as we believe that this is a dated approach and since the big players in our industry do this down South, we are happy to trial it in the North West. We sell both residential and commercial by private treaty and by auction. Our auction success rates are always around the 90% mark. I believe our success has been down to our pro-active approach and attention to finer detail. We work closely with investors, developers, LPA receivers, firms of chartered surveyors and we’re even a registered provider of The Crown, i.e. HM The Queen after selling a number of their properties in Cumbria.
3. Firms like emoov are suggesting that the ‘high street is dead’, would you agree?
I completely disagree. I firmly believe that both online agents and high street agents are here to stay and that there will be a demand for both.
As a high-street agent we can offer a lot of things that an online agent cannot. Unlike Zoopla’s algorithms, which is how they determine property value, a high-street agent has local knowledge and understands their patch. With a high- street agent the client is paying for expert knowledge and access to a local and/ or national mailing list which is rarely the case with an online agent. Not only this but we also offer face-to-face meetings with clients, we can conduct viewings and we benefit from recommendations and our reputation locally which is something online agents struggle with. Selling a property through an online agent takes the personal touch away completely and the seller is often putting their most valuable asset into the hands of somebody (or something) they have never met.
Although sellers will often save on fees, I would be very interested to find out how much extra, on average, a high- street agent gets for a client. As far as I’m aware there hasn’t been a survey done to date.
4. How did the introduction of MMR affect business?
Since the overnight introduction of MMR the process of getting a mortgage offer in place has slowed down. In some cases, it has made a huge impact and in other cases not so much. There is much more admin work for the mortgage brokers but we have found that since the introduction of MMR there is even more of an advantage of using an IFA who can shop the entire market as opposed to using a bank or building society who will only sell their own products.
5. How would you say the sales process differentiates between a typical FTB and an experienced landlord?
The sales process is similar but, of course, there are advantages and disadvantages to both. FTBs are generally happy to be able to get on the housing ladder and will pay market value whereas investors want everything below market value. Having said this, FTBs generally borrow 90% plus so struggle to buy properties requiring renovation as opposed to investors who only generally borrow up to 70% of the purchase price which is often BMV to start with. It is sometimes difficult to distinguish whether the target audience for a property is first time buyers or investors but it’s always exciting when there is a bidding war between the two types of buyers. Naturally – it’s always nicer to see a FTB get a good buy!
6. Would you say it is a buyer's or seller's market at the moment?
I believe it is both. There is more action in the property market than there has been since pre- recession which would suggest that both buyers and sellers are happy with prices. If a potential seller would sell at a price but believes that price may be too high for the current market, then I would suggest a phone call to a local estate agent and invite them for a free no- obligation valuation to determine whether or not that price is achievable. You may be pleasantly surprised!
7. Where should I buy this year?
Anywhere you are comfortable buying. Typically investors look for either high yields or good capital growth. It’s difficult to get both, especially if you are new to the business, so decide which you are after and then do your research. If you are looking for a high yield then explore the areas where rents are high, relative to house prices. If you are looking for capital growth then you need to know how to add value yourself and/ or be able to spot the areas where the market is rising. The main thing is – be comfortable that you know enough about the area where you are buying and ensure you have a management company in place who you can trust, or be close enough that you can service the property should anything need your attention.
