When moving home it is imperative that you pick the right estate agent. You want an agent that is going to do your property justice and get you a good price. Before you sign anything and enter any deal with an estate agent there are number of questions you need to ask; here are ten of the best questions to ask to make sure you receive efficient service.
1. The first question to set to your estate agent is how much they charge. Although rates vary a general rule of thumb is around one to three percent of the eventual sale price. At this stage it is essential to negotiate if you feel the cost is too high, it is worth remembering though that price usually reflects the effort the estate agent will put into the sale of your home. A lower price may in fact harm the service you receive. Before entering an agreement ensure to get all details put down in writing so you can highlight any discrepancies you may have.
2. Another question you should ask your estate agent is whether they are a member of any ombudsman schemes. In the UK there are no compulsorily legislative regulation schemes and hence membership to a body such as the NAEA (National Association of Estate Agents) or the OEA (Ombudsman of Estate Agents) is essential. These types of organisations ensure their members follow strict guidelines and have comprehensive complaints measures in place.
3. Thirdly you should find out how viewings will take place, obviously you know your property better than anyone and will want to show it off to its best potential. Research however has shown that houses that are viewed in the presence of an estate agent do sell quicker, this is definitely worth bearing in mind. Usually a balance of the two will maximise the viewings and increase your chances of a sale.
4. Find out from you estate agent the prices of similar houses in the area. Any agent worth their salt will be able to answer this question in a knowledgeable way, if they cannot, it may be time to find a new representative. Although the answer to this question may vary greatly due to market fluctuations, its purpose is not really to gain a figure but work out the level of knowledge possessed.
5. Ask how your property will be marketed; websites are increasingly being used in the industry and to maximise the chance of a sale, online marketing is essential. The older methods of local papers are still worthwhile but finding an estate agent who is up to date with technological developments is highly desirable.
6. Try to find out what the notice period is if you do want to change your agent. Some will require a two to four week period before you can make the change. Changing however is not always advisable; twelve weeks should be allowed for the sale of your house unless you are utterly unhappy with the service you are receiving.
7. Assess the level of sales that fall through with that particular estate agent. According to research it is estimated that eighteen percent of sales fail to reach completion. This is normally down to the buyers so a figure below this percentage will reveal how devoted an agent is to pursuing a sale.
8. A good question to ask is what kind of information they will be including in the marketing literature, this should ideally be asked after they have looked around so you can assess whether you estate agent has noticed your property's strongest selling points. It can also give a good indication of the agent's marketing skills.
9. It may seem a given but asking how to stay in touch with your agent is essential. Selling your house can be stressful and not being able to get hold of your representative can make the process more so. Test the water by making enquiries before the house has gone on the market, if they take their time getting back to you, you can presume they give buyers the same level of service.
10. Finally a vital question that needs to be answered is the time the average property takes to sell. If properties are on the books for no time at all it may be an indication that your agent is underselling. The opposite can be asserted if properties are on the books for extended periods of time.
By following these ten points the sale of your house should be speedy and efficient. Finding the right agent is a fundamental element of selling houses and if you want your move to go ahead swiftly, the services you and the buyer receive could be the deal breaker.
When looking for a mortgage in todays market you are swapped with information, products and deals. This can make the whole process very daunting and confusing. For this reason it is good to be prepared with a set of questions to ask your mortgage broker, so that you do not get ripped off and you know where you stand.
1. What are different types of mortgages and in what way do they work?
There are a mass of different types of mortgage products on the market, so make sure that your broker explains the differences between the different types of mortgages and how they can benefit you. For example may lender these days offer fixed rates, discounts and cashback over a number of terms. Also make sure that you get an outline of the varying ways of paying the capital off. This at first might seem to be a complicated area, but once you have the basics explained everything will become a lot clearer and you will start to see how different products will suit your personal circumstances better than others.
2. What is the Annual Percentage Rate (APR)?
In accordance to regulations the APR is meant to appear in all adverts alongside the headline mortgage rate. The APR is used to provide customers with the true cost of loans and empower them to be able to compare different deals. Do remember that APR is unreliable and is no substitute for personal prepared quote that outlines all upfront and ongoing costs.
3. What is the interest rate that I will be charged?
In the cases of fixed, capped or discount rate then your broker should tell you what the initial rate you will paying and how long you will be on that rate for.
4. So what happens at the end of the fixed or discount rate period?
It is important to know what will happen when your fixed or discount rate period ends. Will you be switched on to the standard variable rate or will the lender offer you another discounted or fixed rate deal. Also remember remortgaging is a good option.
5. Standard Variable Rate. What is that?
Because house prices are at a record high many people (probably including yourself) are now thinking of their mortgages in the long term as well as the upfront rate. For this reason it is worth knowing what current customers are paying. It is highly unlikely that when you come to the end of your fixed or discount rate period you will be on the same SVR as current customers. But you can use the information to see how the lender compares against others in the market.
6. What are the Early Redemption Charges or Early Repayment Charges attached to the product?
Most mortgage deals will involve some kind of repayment charge. So you will have to a fee to the lender if you repay your mortgage early or switch to another lender within a set time period. Make sure you find out precisely what you will have to pay and what would happen if you moved home during the mortgages term.
7. What will my monthly payments be at the quoted interest rate?
Your broker should tell you exactly what your monthly payments are going to be. They should also tell you what you would be paying at the SVR as to give you an indication of what you will be paying after your products term comes to an end. Get the broker to work out the payments on interest rates of up to 11% as well. This way if the interest rates rise substantially you will be able to see if you can afford the mortgage.
8. Are there any other conditions attached to the mortgage?
Different lenders will have different deals, incentives and clauses. Lenders will offer better discounts, fixed rates or cashbacks if you are prepared to take the lenders building and contents insurance. This is something that will be worth considering. Just make sure that you are informed about the terms and what would happen if you moved your insurance cover.
9. Are there any Higher Lending Charges?
With some lenders there may be a Higher Lending Charge (HLC) if you are borrowing more than a certain amount of the value of the property. Make sure you know what the charges are and how much the fees are. Some lenders will add HLC charge to the loan others will charge it upfront.
10. What are the arrangement or broker fees?
Your broker should tell you about every payment you will have to make to arrange your mortgage. This will give you an idea of the whole cost of the deal rather than just an upfront rate. This will also allow you to shop around and find the best deal.
So next time you are looking for a mortgage make sure you have these ten questions to hand.
Both Thomas Pretty & James Copper are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Thomas Pretty has sinced written about articles on various topics from Formula One, Debts Loans and Interior Design. Property expert Thomas Pretty makes sure any worth hiring can answer these ten questions knowledgeably and effectively.. Thomas Pretty's top article generates over 1500000 views. to your Favourites.
James Copper has sinced written about articles on various topics from Finances, Mortgage and Mortgage. James Copper enjoys writing on areas of mortgages and loans. He works for Adderson & Co. who are specialists in and the. James Copper's top article generates over 1220000 views. to your Favourites.