The stories filling the newspaper property sections have become increasingly odd in recent weeks, as journalists who refuse to discuss the fact the boom times are over struggle to find anything to write about. Last weekend alone there were three articles on how to decorate your home, including my personal favourite a near-full page piece in The Daily Telegraph on what colour you should paint your front door.
"Brightly painted front doors are in with the in-crowd and keep the property blues at bay," reported Anna Tyzack. If you can't decide what colour to go for, the article suggests following the lead of celebrities. Kate Moss has a green door, while Madonna, Liz Hurley and Gwyneth Paltrow (below) all opt for "glossy black front doors".
We suppose that if you're stuck with a home you can't sell and a huge mortgage bill, you could get the Dulux out and paint your troubles away. Or you could turn to Emma Simon in The Sunday Telegraph for some more sensible advice on how to actually improve your chances of selling your house.
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1. Be realistic. Yes, your estate agent friend may have told you your house was worth £600,000 last year, but a quick glance at the papers will tell you times have changed. "Many people start with too optimistic a price, knowing that they are prepared to negotiate," says Simon. But a high price can put off buyers, so it's better to simply put your house on the market at a sensible price in the first place.
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To find out what your house is actually worth in today's market check property websites to see what comparable properties are for sale for. If you see a similar property with a 'Sold' board ring the agent and ask what it sold for. If the agent thinks they can sell your house they should be willing to tell you the sale price. Also get at least three valuations from respected
estate agents.
2. Think about tax bands. If your property is on the market at a price close to one of the stamp duty thresholds it may be worth dropping it to a lower tax band to entice more buyers. Buyers pay 1% stamp duty on properties sold for over £125,000, 3% tax on those above £250,000 and 4% on those sold for more than £500,000.
3. Target your market. If you are selling a family home make sure it appeals to a family. If you are using one bedroom as a study or general dumping ground, clear it out and put a bed in there to show just how many children your home will hold. And research local schools, says Donna Werbner on Fool.co.uk. Then when people are looking around tell them about the wonderful schools in the area. Likewise, if you are selling a city centre flat you might want to set one bedroom up as a study to appeal to professionals.
4. Make your estate agent work for less. The slow market means many agents may be willing to negotiate their fees in order to secure the right to sell your house. Most will charge a lower fee usually around 1% of the sale price if they are the sole agent, but before you commit to this do your homework. Make sure you won't be locked into a lengthy contract preventing you from switching agents. Also make sure you are on the books of the best agent. "Pose as a buyer and opt for the one that makes the most effort to flog you a home," says Simon.
5. First impressions count. When tidying up your house for viewings, as well as considering how it looks think about how it smells. "House-hunters are most likely to be put off by smells," says Werbner. Don't forget the exterior, either. If you have a cat or a dog clean up after them and spruce up the lawn.
6. Drop the price. If all else has failed, then cut your asking price. "There is only one reason why a property does not sell in anything but the depths of a recession, and that is the price," says Trevor Abrahamson of Glentree Estates in The Sunday Telegraph.
A view over the river at a price
With some of the best views in London, and free gardeners, the latest homes to hit London's rental market should prove popular for those who can afford them. The gatekeeper's lodges in London's royal parks are being rented out for the first time. The five-bedroom New Lodge in the middle of Hyde Park is available from September for £4,950 a week. It comes with a large secluded garden that will be maintained by park staff and keys to the park gates.
Upmarket estate agent Savills is to make mass redundancies as housing sales dry up. HBOS has also announced that it will be closing 53 estate agent offices across the country. Meanwhile, investment bank NM Rothschild has been called in to help estate agency Foxtons restructure its debt mountain. Just over a year ago, private equity firm BC Partners bought the company for £390m using around £260m of debt, leaving Foxtons with annual debt interest payments of £26m. The firm says it can still meet its interest bills, but the slow market is squeezing profits, says George Hay on Breakingviews.
The buy-to-let market continues to struggle. Including remortgages, just 69,800 new buy-to-let loans were advanced in the second quarter of 2008 according to the Council for Mortgage Lenders 21% down on the same period of 2007 and 25% less than the peak in the third quarter of 2007.
Mortgage approvals for new house purchases stayed close to record lows in July, reports the BBA. Only 22,448 were approved, 65% lower than at this time last year, and the second lowest figure since the series began in 1997. The lowest figure was in June this year.
