Member Article

Beware of the sharks!

A leading North East estate agents fears tough economic conditions are leaving desperate homeowners vulnerable to unscrupulous quick sell property companies – warning sellers they could be “swimming in shark-infested water”

Ajay Jagota of KIS Lettings, who manage properties for some 700 landlords across the region from branches in Sunderland, North Tyneside and South Tyneside has urged homeowners to “know their rights, use their common sense and to not let themselves be pushed or panicked into a decision they’ll regret”.

He said: “We’ve all come home to see leaflets on the doormat promising property sales within 24 hours , and if you’re desperate to sell due to the current economic climate, or your home has been on the market a long time it’s easy to be seduced by them.

“Below Market Valuation Marketing is an entirely legitimate practice, and many fast sell firms are entirely ethical and responsible. But homeowners should know they are swimming in shark-infested water.

“The BBC reported this week that not only are their offers likely to be scandalously low, companies often demand unnecessary fees, use high pressure sales techniques and can suddenly lower their offers without warning.

“If your priority is getting rid of your house rather than getting a good price for it, then fair enough – but I would urge sellers to know their rights, use their common sense and to not let themselves be pushed or panicked into a decision they may later regret.”

Ajay offered his top tips on dealing with fast sell firms.

1. Don’t Panic

“Experts this week predicted numbers of house sales will go up next year and even though it may take time, prices will eventually return to their peak.

“If you can hang on in the short term – even if it means renting your property out – things are going to get better in the long term.”

2. Don’t be Bullied

“Fast sell firms can try to force you into making a decision that’s right for them, not you – by claiming you only have 24 hours to accept their offer or by suddenly lowering their offer at the last minute, when your boxes are packed and you’re ready to move.

“Just remember: You have something they want. Until the contract is signed, you hold all the cards – and even after that there’s a statutory cooling-off period.”

3. No fees or no chance

“Some firms will demand an upfront fee to carry out a valuation of your home. Don’t touch them.

“If you were selling your car to someone, would you give them money to tell you how much they’re willing to pay? Of course you wouldn’t!”

4. Do you need them?

“Typically fast sell firms will offer you 25% below market value. If you can afford to drop your asking price by 25% to get a quick sale, then drop your asking price by 25%.

“Moreover, these firms want your house because they think they can make a profit renting it out. So why can’t you?

“It’s natural to worry about finding and managing tenancies but the right agent can take all the hassle out of that. You won’t be any worse off and the chances are you’ll be better off

KIS Lettings have recently introduced a service where all their tenants must have a home owner guarantor allowing an insurance policy to be issued to the landlord offering nil excess rent guarantee and damage protection giving any new landlord peace of mind that there property is protected until the property prices return to a more favourable level.

This was posted in Bdaily's Members' News section by Ajay Jagota .