Harry Dhaliwal from Manchester

Rightmove’ Q1 First-Time Buyer Report finds that the proportion of buyers intending to purchase for the first time over the year ahead has dropped below one-in-four. Prospective first-time buyer levels dropped from 25.5% in the final quarter of 2010, to just 22.8% in Q1 2011. This is the second lowest figure Rightmove has ever recorded, just marginally above the 22.2% reported in Q3 of last year.

Rightmove also finds that mortgage challenges are the main factors supressing first-time buyer levels as more than half of respondents stated that their single biggest concern was a mortgage-related issue. Our survey found that 44% of first-time buyers cite ‘raising enough deposit’, and a further 10% ‘meeting monthly mortgage repayments’, as their principle housing concern. These are timely and concerning figures given the imminent mortgage lending summit called by the Government to look into the plight of first-time buyers.

Miles Shipside, director of Rightmove comments: “The level of first-time buyers dropping below one-in-four of all prospective buyers is a big concern for the property market. The desirable level of first-time buyers for a healthy market is typically around 40% of all buyers, almost double the current level, as they perform a vital function in completing chains and aiding fluidity throughout the housing ladder. These findings are likely to heighten government concerns about the scarcity of first-time buyers and it is imperative for the longterm health of the market that a solution to this issue is found.”

The difficulties of those looking to own a roof over their heads for the first time is highlighted by the decreasing proportion of first-time buyers purchasing alone, leading our survey to record its highest ever level of those buying with a partner or spouse. This has increased from 62.1% in our Q4 2009 survey to 72.5% in Q1 2011, while the proportion buying on their own has dropped over the same period from 32.7% to 25.5%.

Shipside adds: “They say that home is where the heart is, and finding love seems to be the only path available for many of today’s generation of first-time buyers as mortgage lending and the economic downturn mean that buying alone is becoming less viable. While lenders so far haven’t budged in finding solutions for first-time buyers, it is the buyers themselves that are adjusting to market conditions by coupling-up in their pursuit of home ownership.”

– First-Step Group Limited Reports

Google has quietly launched a trial run of a mortgage comparison site that includes buy to let mortgages.

Links to the site appear at the top of the search results page triggered by mortgage related keywords.

Only a few lenders are listed – Woolwich, ING Direct, Lloyds TSB, NatWest and Royal Bank of Scotland.

Around five buy to let deals are available to compare.

The trial follows Google acquiring online comparison site BeatThatQuote for £37 million in March. Google is also running a mortgage comparison site in the US.

Asking price rents reached a new record high in May after four successive months of rises, according to the latest Buy-to-Let Index from LSL Property Services, which owns national estate agency and lettings chains Your Move and Reeds Rains.

In May, the average rent in England and Wales rose by 0.5% to £696 per month, overtaking the previous high of £692 in April.

The growth means that the average asking price rent is now £30 per month higher than May 2010 – an annual inflation of 4.4%.

In the past 12 months, rents have risen in all but two regions in England and Wales, says LSL.

Rents have risen the fastest in London, where they increased 7.8% in the past year. The next biggest rises were in the North-East and the East Midlands where rents increased by 6.4% and 6.2% respectively.

In the last year, average rents have only fallen in the South-West, where they declined by 0.4%, and the East of England, where they have fallen by 1.2%.

David Brown, commercial director of LSL, said: “The rocketing cost of living, combined with ongoing difficulty first-time buyers are experiencing in obtaining a mortgage, is increasing the number reliant on rental accommodation.

“With the fierce competition for homes, rental gazumping is becoming more commonplace and properties are being let beyond asking price. For tenants, unable to buy, renting is becoming less affordable. Rents are increasing at twice the rate of wages.”

LSL estimates that the total annual return on a rental property now stands at 2.9% with high yields offset against a slight annual decline in rental property prices.

The total average annual return is the equivalent of £4,891 – £7,414 in rent, with a capital loss of £2,523. If property values continue on their current trend, a property investor could expect to make a total annual return of 5.7% over the next year – equivalent to £9,404 per property.

Tenant arrears decreased in May, with 11.5% of all UK rent unpaid or late by the end of the month. Although a slight decrease from the 11.8% in the previous month, it is above the 10.6% average of 2010.

The index is based on over 18,000 rental properties on LSL’s books across the UK.

Home buyers have high expectations for their purchases this year, the most critical of which may be a really great deal. In addition to more bang for the buck — and the bragging rights that go along with a superior bargain — today’s house hunters also are looking for incentives, such as gift cards that they can use to decorate their new home or financial assistance at the settlement table.

Another important desire of buyers is that the property be well-maintained. “I’m not working with too many people who want a fixer-upper,” says Pat Vredevoogd Combs, vice president of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., and past president of the National Association of REALTORS®.

Current NAR President Ron Phipps agrees. More often than not, he explains, “buyers have limited amounts of cash. Even if they want to do a fixer-upper, they don’t have the money to do it.”

That is true even for buyers of bank-owned properties, says real estate broker Joan Pratt of RE/MAX Professionals in Castle Pines, Colo. “They want the short sales and the foreclosures, and they want them to look like they’re owner-occupied,” she says. “They don’t want to paint. They don’t want to put carpet in. They don’t want to clean.”

Modern buyers also favor open kitchens; open floor plans; and outdoor living components, such as screened porches, exterior kitchens, and two-way fireplaces. Additionally, the environment is increasingly important, with today’s prospects seeking out elements such as triple-glazed windows and energy-efficient appliances.

Repurposed materials matter, too. “We’re seeing lots of different materials and lots of reusable materials, which is interesting,” Phipps notes. “Also a lot of unusual uses of hardwood — like pine flooring (reclaimed and) reused for counters,” or terra cotta slabs for countertops. Buyers in 2011 are indicating a preference for smaller homes, but they like them nicely appointed. Luxurious elements such as coffee bars in the master bedroom are gaining popularity, as are expensive finishes in not-so-expensive homes.

Source: “Nine Items Homebuyers Desire in 2011,” Bankrate.com, Dana Dratch (June 16, 2011)

Britain is home to a generation of renters who are giving up on buying their own home, says a report out today. They expect their mortgage applications to fail, so don’t even bother to apply.

If attitudes become reality, the shape of Britain’s housing market will be fundamentally changed within a generation.

According to the research into the attitudes and behaviour of young people towards home ownership, 77% of all those who do not own a home still aspire to owning one.

However, despite this aspiration, nearly half of 20 to 45-year-olds say Britain is becoming more like Europe where renting is seen as the norm, and predict that Britain will become a nation of renters within the next generation.

Produced by the National Centre for Social Research, the report analysed the results of a survey of 8,000 20 to 45-year-olds and identified the emergence of ‘Generation Rent’: two-thirds (64%) of non-home owners who believe they have no prospect whatsoever of buying a home.

The perception that banks are not lending, the size of mortgage deposits necessary, and a fear of the application process has prevented ‘Generation Rent’ from making any significant attempts to buy a home.

Longer term, only 5% of this group are making sacrifices to save for a deposit; 95% say they have no spare cash, no interest in saving for a deposit, or were trying to save but failing to do so.

Stephen Noakes, commercial director of Halifax Mortgages, said: “Our research indicates just how many potential first-time buyers are not making it to the application stage because of a fear of being declined.

“We would like to help aspirational home buyers to realise they do have options, that they can apply for a mortgage, and that it is still possible to get on to the property ladder. At Halifax we approve eight out of ten mortgage applications from first-time buyers, and it is important that today’s potential first-time buyers don’t miss out because of the fear of rejection.”

The report revealed widespread pessimism about lenders and the mortgage application process: 84% say first-time buyers are put off by a belief that banks do not want to lend to them and find excuses to turn them down, and 60% believe getting a mortgage is very hard or virtually impossible.

Almost seven in ten (67%) believe that everyone is rejected by lenders so there is little point in applying.

Rightmove’s most recent Consumer Confidence Survey has revealed some encouraging news that prospective first-time buyer levels are now at their highest for 12 months.

Each quarter Rightmove records the proportion of people who intend to buy over the next year who state they will be doing so for the first time. The Q2 survey found that 26.2% of buyers over the next 12 months will be first-time buyers, the highest level since the same period last year and an increase of almost 4% on Q1. Although first-time buyers numbers remain down on traditional levels, the upturn offers an encouraging sign that things may be improving.

Rightmove director Miles Shipside comments: “The long term health of the housing market has depended on around 40% of purchasers being first-time buyers, so with the figure hovering just above a quarter it means overall market volumes look set to remain muted. However, a jump of nearly 4 percentage points over the past quarter is a move in the right direction and a welcome sign that more first-time buyers feel the next 12 months will be the time for them to buy.”

The rise in the proportion of first-time buyers who look set to enter the property market in the next 12 months coincides with an increase in those expecting house prices to be higher over the same time period. Rightmove’s Q1 2011 survey found that 21.9% of first-time buyers expected house prices to rise over the following year. This quarter the proportion of those expecting prices to be higher in 12 months’ time has jumped to 33.3%, indicating that many first-time buyers may be choosing to take the plunge and purchase their first home sooner rather than later before prices increase.

Shipside adds: “This quarter’s survey appears to indicate more first-time buyers are calling the bottom of the market. A significantly higher proportion of them now believe prices are set to increase over the next 12 months and so they are perhaps looking to enter the property market in greater numbers before their affordability deteriorates.”

For the second consecutive quarterly survey first-time buyers expressed that their single biggest concern in the property market is raising enough of a deposit to purchase. The proportion of those expressing this view remained the same as our Q1 survey at 44%, twice has high as the second highest concern which was finding a property to buy.

Shipside adds: “It is no surprise that raising enough of a deposit continues to be the major concern for first-time buyers, and more needs to be done to assist them on this front. Initiatives such as FirstBuy are a step in the right direction, although it is limited to just new build property which doesn’t assist the wider resale market. Encouragingly, our survey found that just under 40% of prospective first-time buyers stated they would be more likely to buy a new build property as a result of this scheme.”

William Bronchick wrote an blog on www.trulia.com which demonstrated the basics of the real estate contract.

The real estate contract is the most often used, yet least understood tool in the real estate business. Whether you are a rank beginner or seasoned expert, there is no excuse for not knowing and understanding the real estate contract.

Real estate contracts are based on common law contract principles, so it is important that you understand the nuts and bolts of contract law: Offer, Counteroffer and Acceptance. In most states there are standardized contracts used by real estate agents and attorneys. The contract is generally drafted in the form of an offer. The offer is usually signed by the buyer (the offeror). The contract is not binding until the seller accepts, creating a “meeting of the minds” (called “mutual assent”).

An acceptance is made if the offeree (the seller, in this case) agrees to the exact terms of the offer. If the seller replies, “I’ll accept your offer if you agree to close fifteen days sooner,” there is no binding contract, but rather a counteroffer. The basic building block of a contract is that there is mutual agreement.

If the offer is not accepted in the time frame and manner set forth by the buyer (offeror), then there is no contract. For example, if the contract specifies that acceptance must be made by facsimile, an acceptance by telephone call or mail will not suffice.

Unilateral contract vs. Bilateral contract

A real estate sales contract is a “bilateral” (two-way) agreement. The seller agrees to sell, and the buyer agrees to buy. Compare this with an option; an option is a unilateral (one-way) agreement in that the seller is obligated to sell, but the buyer is not obligated to buy – it is his option to do so. A bilateral agreement with a “liquidated damages” provision yields the same result if the buyer fails to close escrow; the seller keeps the buyer’s earnest money and the deal is over.

Basic legal requirements of a real estate contract

There are some basic requirements that must be present to make a real estate contract valid:

1. Mutual assent

   As stated earlier, there must mutual agreement or “meeting of the minds.”

2. In writing

   With few exceptions, a contract for purchase and sale of real estate must be in writing to be enforceable. Thus, if a buyer makes an offer in writing and the seller accepts orally, then backs out, the buyer is out of luck.

3. Identify the parties

   The contract must identify the parties. Although not legally required, a contract commonly sets forth full names and middle initials (it helps the title company in preparation of the title commitment). If one of the parties is a corporation, it should so state (e.g., “North American Land Acquisitions, Inc., a Nevada Corporation”).

4. Identify the property

   The contract must identify the property. Although not required, the legal description should be set forth. A vague description such as “my lakefront home” may not be specific enough to create a binding contract.

5. Purchase price

   The contract must state the purchase price of the property or a reasonably ascertainable figure (e.g., “appraised value as determined by ABC Appraisal Group”).

6. Consideration

   A contract must have consideration to be enforceable. Consideration is the benefit, interest or value that induces a promise; it is the glue that binds a contract. The amount of the consideration is not important, but rather whether there is consideration at all. It is common for a contract to state that “ten dollars and other good and valuable consideration has been paid and received.”

7. Signatures

   A contract must signed to be enforceable. The party signing must be of legal age and sound mind. A notary’s signature or witness is not required. A facsimile signature is usually acceptable, so long as the contract states that facsimile signatures are valid.

original source from [trulia]

Home sales and prices are still dropping around the country as huge inventories of foreclosures and short sales continue to weigh on many markets. So how can traditional sellers stand out in a crowded real estate marketplace? CNNMoney.com from US recently highlighted several keys to getting a home sold in a tough real estate market and the real estate specialist in Manchester, Harry Dhaliwal agrees and thinks these 4 keys also apply to today’s UK market.

1. Cut your price by a lot. Buyers nowadays want to feel they are getting a “steal,” real estate experts say. But some sellers may be tempted to list a property above fair market value just to test out the market and see if they can get a taker. In the past year, about 25 percent of sellers who initially listed their homes too high ended up having to reduce the price, according to Trulia.com.

Harry agrees the comment from an US real estate professional, “The first 30 days on the market are the most important,”. That crucial time is when the home gets the most attention and showings. For sellers who aren’t realistic about the price from the get-go, they often end up with less than they would have if they priced it right initially, Kamar says.

Harry also notes that if after 30 days on the market there are still no buyers, sellers may need to make a big move.

“When a property sits, people start thinking it must be listed too high,” says another real estate professional – With same opinions as Harry from Manchester, she suggests making a giant price cut–as much as 10 percent of the asking price–which may be extra motivation for buyers to take a second look or attract a new pool of potential buyers seeking a lower price range.

2. Play hardball in negotiations. Sellers shouldn’t feel they have to accept any lowball offer that comes their way. However, if a buyer is willing to negotiate, that’s when sellers need to try to set aside feelings of anger or insult and start to counteroffer, says Harry Dhaliwal, owner of the First-Step Group Limited in Manchester, UK. He says the ideal is that you’ll be able to negotiate within £5,000 to £10,000 of an acceptable offer. Using incentives–such as agreeing to leave the appliances–may get buyers to budge in agreeing to a higher price.

3. Stage it. Staging is becoming popular in trying to sell mid-range homes. Professional stagers will help home owners highlight key areas of a home and often rearranges furniture or bring new furniture in, repaint, and get the home looking like it’s ripped from a catalog. Real estate brokers say that proper staging can actually speed up a sale and increase the final sales price too.

4. Get the home in front of as many buyers as possible. The real estate professional needs to get creative in the marketing to make sure the home gets a lot of attention from buyers. “The more eyeballs that get on the listing, the better”.

One key: Boosting the home’s online presence. Having 20 instead of five photos will nearly double the number of hits the property gets on the Web, according to first-step.uk.com. Incentives can also draw out buyers, such as with offers to cover a buyer’s closing costs, pay the first year’s property taxes, or even a £1,000 gift card (and maybe one for the buyer’s agent too). (Note: You must disclose any such gifts or payments when the offer is agreed on.)

Check out more tips.

Coronation Street actress Michelle Keegan was drafted in to Chorlton in Manchester last weekend to open a new office for Belvoir Lettings.

Keegan (pictured), who plays the street’s Tina McIntyre, joined Belvoir licensee Harry Dhaliwal to release 300 balloons to mark the opening. The balloons are being tracked and a cash prize is on offer for the person who finds the one that has travelled the greatest distance.

It is the second office for Dhaliwal, who with 25 years’ property market experience opened his first branch on Whitworth Street West in the city centre seven years ago in UK (United Kingdom).

His Chorlton office is expected to work with tenants and landlords in surrounding areas such as Didsbury, Whalley Range, Rushholme, Levenshulme, Trafford and Burnage in Manchester.