When does a cheeky offer become a silly one, or – even worse – an insulting one? That’s the question that needs to be the first you ask yourself if you decide that you are going to offer less than the asking price. The last thing you need to do is to rush in with guns blazing and offend anyone. Neither, however, do you want to pay any more than you have to…
Each country has a different take on the thorny issue of exactly how much lower you should offer than the asking price. Here’s where a really good local estate agent could advise you. An agent with extensive knowledge of both the rules and regulations of the property laws plus of the local vendors is worth their weight in gold. They will know local price trends and they will also have a good insight as to how the property game is played in their neck of the woods.
Both the vendor and estate agents need to know that you are a serious buyer and not just wasting their time so it is important to get organised before you make an offer. If you have all your ducks in a row in terms of what is needed to buy - things like a bank account opened, a mortgage agreed to in principle, a good Experian credit reference to hand - they will be far more likely to take an offer from you seriously. Even if it is lower than another offer they may receive, the fact that the sale will probably go through quickly will weigh in your favour.
Another thing to bear in mind is that, although the vendor may not be prepared to accept a lower offer, they may well be prepared to consider other incentives to encourage you to buy. Things such as paying your closing costs, landscaping your garden, providing white goods in the kitchen…if you don’t ask, you don’t get!
Remember, if you are buying from a Brit who will be moving the proceeds of the sale back to the UK, the exchange rate from euros into sterling may be more favourable than when they bought so they can perhaps afford to drop their price and still make a profit…
The recession meant that a lot of buyers got their fingers burnt, buying at the top of the market and seeing the value of their properties plummet.
What does this mean to you?
It means that as a buyer you may be a fairly rare species and that fact allows you to haggle. It also means that you need to consider your purchase carefully. You don’t want to be one of those buyers with burnt fingers!
So…to summarise:
1. Leave your British reserve at the door! Remember, after the sale, you may never see either the estate agent or the vendor again. You are not trying to make a new best friend…
2. Do your research before you set foot abroad. Try and get a feel for possible prices, the state of the market etc.
3. Make sure that you have all those irritating bits of paperwork tied up BEFORE you start looking if at all possible and that you are ready to sign a deal immediately (gives massive bargain power to be able to move fast)
4. Get your finances set up so that you know exactly what you want to spend. This should include all purchase costs
5. Then, by all means put in an offer, but make it a sensible one
6. Best case scenario would be that you do this acting under advice from a local estate agent who has a handle on the local market
7. If your offer is rejected, try to get other incentives to sweeten the sale
Good luck!
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 24 March 2011
Thursday 17 March 2011
Researching and Choosing a Good Developer
When buying a property abroad it’s possible to buy from a developer that provides bad service, is unauthorised to build property and leaves town with all your money. It’s also possible to find a good developer that builds a property on time, to specification and within the budget requested. And then there are all the other developers that fall somewhere in between!
There are three stages to choosing a good developer. However, many buyers are either unaware of, or simply skip, the first two stages. Failure to spend time on stages 1 and 2 dramatically increases the likelihood of serious problems later on in the buying process.
Stage 1: Research the property market and get an understanding of who’s who regarding developers.
Stage 2: Pick a good developer and take actions that will increase your likelihood for a smooth purchase process.
Stage 3: Sign a contract of sale with your chosen developer.
Starting with stage 1, it is very important to get a good understanding of the property market and the various developers that contribute to that market. There are some very shoddy developers out there that should be avoided at all costs; however, if you don’t know the market, or the players in that market, it’s difficult to determine exactly who is good and who’s not so good.
To ensure that you find a good developer there are several things you should consider before determining the developer for you. Below I’ve listed 5 actions you can take. However, I must stress at this point that the ultimate action to be taken is to do your homework, get information from a variety of resources and never, ever rush into anything!
1. If possible, move into rented accommodation BEFORE you plan to buy. Living with and talking to people in shops, restaurants or during a walk on the beach will give you a very good idea about reputable developers as opposed to the not so good. In smaller towns everybody knows everybody else, and conversations often centre on the wonderful weather, a new restaurant that comes highly recommended…or the latest property scandal. Simply spending time in the area that you’re interested in can provide you with all sorts of important, indeed essential, information.
2. Search the Internet for expats in your town or city of choice and you’ll find various forums and groups that discuss a multitude of issues. Some forums highlight poor practices and name and shame shoddy developers. Others provide testimonials of purchases that went swimmingly well! Reading the forums will help you to determine the developers to instantly cross from your list and those that can be considered ‘maybe’s’.
3. Consider using an estate agent as they have a certain amount of leverage over developers. The last thing an agent wants is hassle, thus many tend to work with developers that have a good reputation and provide a good product. If the developer decides to cause problems, the agent often has the upper hand by threatening to withdraw future business unless the developer complies with the needs and wants of the agent and buyer.
4. View many different developers in many different areas to get a comprehensive idea as to property styles, prices and value for money. Some developers will charge €10,000 to €30,000 more for the same spec property than other developers – it pays to shop around and get to know the developers that inflate their prices.
5. Look for projects from developers that adhere to any and all building regulations – you need to know at the outset what those are and that they are conforming to them.
In addition to Stage 1, you’ll want to pick a developer and take actions that will increase your likelihood for a smooth purchase process. You may want to consider some of the following actions:
- Visit a couple of the developers’ previous projects, knock on doors and talk to the previous buyers. Ask them what problems they had, what went well, what could have been improved. Also ask them if they have any advice for you.
- Force the developer to comply with your requirements by retaining a solicitor independent of the developer who will ensure that your contract that has clauses inserted to protect you. Also make sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of milestones not simply by dates in the calendar. Some people have had to pay almost the full cost without a brick being laid if they omitted this step!
- Buy a bond or take out insurance. Yes, it costs money, but it does mean that you are covered if the developer goes bust or there are any major issues with the build.
- Interview the prospective developer: ask them for testimonials and enquire about the amount of successful projects they’ve completed (to time, to budget and within specification). You can also ask about their customer service and after-sales follow up. What is their complaints process? Do they assist with setting up bank accounts, getting mortgages, getting the water and electric bills set up?
The key points: eliminate the bad developers and find out who’s who in the world of developers (Stage 1), seek out a developer that has a past record of happy buyers and research various options that increase the likelihood of success (Stage 2) and then finally it’s time to sign a contract of sale that protects you, with a developer that has a good reputation (Stage 3).
All this said, the majority of buyers fly over for a holiday or a 3-day inspection trip and fail completely to do any research at all. They get caught up in the wonderful atmosphere, become emotional about living the dream and make uninformed decisions about something that could potentially affect the rest of their lives. Don’t make this mistake! Take responsibility for the entire buying journey, do your homework, don’t rush into anything and set yourself up for success.
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
There are three stages to choosing a good developer. However, many buyers are either unaware of, or simply skip, the first two stages. Failure to spend time on stages 1 and 2 dramatically increases the likelihood of serious problems later on in the buying process.
Stage 1: Research the property market and get an understanding of who’s who regarding developers.
Stage 2: Pick a good developer and take actions that will increase your likelihood for a smooth purchase process.
Stage 3: Sign a contract of sale with your chosen developer.
Starting with stage 1, it is very important to get a good understanding of the property market and the various developers that contribute to that market. There are some very shoddy developers out there that should be avoided at all costs; however, if you don’t know the market, or the players in that market, it’s difficult to determine exactly who is good and who’s not so good.
To ensure that you find a good developer there are several things you should consider before determining the developer for you. Below I’ve listed 5 actions you can take. However, I must stress at this point that the ultimate action to be taken is to do your homework, get information from a variety of resources and never, ever rush into anything!
1. If possible, move into rented accommodation BEFORE you plan to buy. Living with and talking to people in shops, restaurants or during a walk on the beach will give you a very good idea about reputable developers as opposed to the not so good. In smaller towns everybody knows everybody else, and conversations often centre on the wonderful weather, a new restaurant that comes highly recommended…or the latest property scandal. Simply spending time in the area that you’re interested in can provide you with all sorts of important, indeed essential, information.
2. Search the Internet for expats in your town or city of choice and you’ll find various forums and groups that discuss a multitude of issues. Some forums highlight poor practices and name and shame shoddy developers. Others provide testimonials of purchases that went swimmingly well! Reading the forums will help you to determine the developers to instantly cross from your list and those that can be considered ‘maybe’s’.
3. Consider using an estate agent as they have a certain amount of leverage over developers. The last thing an agent wants is hassle, thus many tend to work with developers that have a good reputation and provide a good product. If the developer decides to cause problems, the agent often has the upper hand by threatening to withdraw future business unless the developer complies with the needs and wants of the agent and buyer.
4. View many different developers in many different areas to get a comprehensive idea as to property styles, prices and value for money. Some developers will charge €10,000 to €30,000 more for the same spec property than other developers – it pays to shop around and get to know the developers that inflate their prices.
5. Look for projects from developers that adhere to any and all building regulations – you need to know at the outset what those are and that they are conforming to them.
In addition to Stage 1, you’ll want to pick a developer and take actions that will increase your likelihood for a smooth purchase process. You may want to consider some of the following actions:
- Visit a couple of the developers’ previous projects, knock on doors and talk to the previous buyers. Ask them what problems they had, what went well, what could have been improved. Also ask them if they have any advice for you.
- Force the developer to comply with your requirements by retaining a solicitor independent of the developer who will ensure that your contract that has clauses inserted to protect you. Also make sure that the developer’s financial staged payments (stipulated in the contract of sale) require you to pay according to completion of milestones not simply by dates in the calendar. Some people have had to pay almost the full cost without a brick being laid if they omitted this step!
- Buy a bond or take out insurance. Yes, it costs money, but it does mean that you are covered if the developer goes bust or there are any major issues with the build.
- Interview the prospective developer: ask them for testimonials and enquire about the amount of successful projects they’ve completed (to time, to budget and within specification). You can also ask about their customer service and after-sales follow up. What is their complaints process? Do they assist with setting up bank accounts, getting mortgages, getting the water and electric bills set up?
The key points: eliminate the bad developers and find out who’s who in the world of developers (Stage 1), seek out a developer that has a past record of happy buyers and research various options that increase the likelihood of success (Stage 2) and then finally it’s time to sign a contract of sale that protects you, with a developer that has a good reputation (Stage 3).
All this said, the majority of buyers fly over for a holiday or a 3-day inspection trip and fail completely to do any research at all. They get caught up in the wonderful atmosphere, become emotional about living the dream and make uninformed decisions about something that could potentially affect the rest of their lives. Don’t make this mistake! Take responsibility for the entire buying journey, do your homework, don’t rush into anything and set yourself up for success.
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 10 March 2011
A currency strategy – why on earth would someone need this?
Simple really. When you buy a UK property you know exactly how much you will need to pay for the property and as such you can plan accordingly.
With a foreign property you will have to pay in another currency; for example euros or US dollars, which means changing sterling into that currency at a specific exchange rate. However, that exchange rate moves every minute of the day and sometimes the movement can be quite dramatic. You will have used the rate on the day that you first thought of buying…If the exchange rate moves against you, you can suddenly find that you need a lot more sterling to buy your foreign currency and pay for your property than you had originally envisaged.
Hence the need for a currency strategy which will allow you to target exchange rates, focus on timing and secure a favourable exchange rate when available. The currency strategy will take a lot of the risk of increased costs out of the equation and at the same time reduce stress which is always welcome!
The best way to develop a currency strategy is to talk to a currency expert and discuss all the different permutations that are available to you. You will then be able to make an informed decision about your currency transaction thus minimising your costs…and your stress level.
Get your free currency report from Smart Currency Exchange at: http://www.Smartcurrencyexchange.com/freereport1.htm
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
With a foreign property you will have to pay in another currency; for example euros or US dollars, which means changing sterling into that currency at a specific exchange rate. However, that exchange rate moves every minute of the day and sometimes the movement can be quite dramatic. You will have used the rate on the day that you first thought of buying…If the exchange rate moves against you, you can suddenly find that you need a lot more sterling to buy your foreign currency and pay for your property than you had originally envisaged.
Hence the need for a currency strategy which will allow you to target exchange rates, focus on timing and secure a favourable exchange rate when available. The currency strategy will take a lot of the risk of increased costs out of the equation and at the same time reduce stress which is always welcome!
The best way to develop a currency strategy is to talk to a currency expert and discuss all the different permutations that are available to you. You will then be able to make an informed decision about your currency transaction thus minimising your costs…and your stress level.
Get your free currency report from Smart Currency Exchange at: http://www.Smartcurrencyexchange.com/freereport1.htm
Kim
The Overseas Guides Company
http://www.Overseasbuyingguide.com
Thursday 3 March 2011
What is the cost of living looking like?
It’s no secret that the cost of living varies dramatically between countries. For instance, every country that has joined the EU has seen it’s cost of living rise quite dramatically…but then they have also seen their standard of living rise too so I suppose it’s a case of swings and roundabouts.
When you decided to emigrate I am sure that you looked at costs, including those to buy property and to move, but did you factor in the day to day cost of living? This can make quite a difference in your life style, to where you live and how you live. It would take more space than I have here to discuss each and every country in detail, but I have a few pointers that you may like to think about.
Food
In many countries, although food can be costly in the main cities it is usually much cheaper in more rural areas. You may also find that there you will be able to buy fresh produce locally, which will dramatically reduce the bills. My colleague Alexis, who has a home in France, visits the local weekly market to buy fruit and vegetables and says that the savings are quite dramatic. However it bears remembering that in, say, Greece, the islands - although many are rural - are sometimes more expensive as goods have to be shipped in. These are the things that you need to find out in advance and factor into your plans before you buy.
Utilities
The costs will vary, depending on the size of your home, how many people live there and where you are located. There may, however, be more than one provider and perhaps a comparison exercise would throw up a cheaper provider. A word to the wise here: my son has a far cheaper telephone line than mine, but there is always a problem with it…what’s the use of that? Best case scenario is that you chat to a local.
Schooling
You may find that free State schooling is available. But how good is it? And do you need to live in a more expensive or a rural area to access a better school? In South Africa for instance there are only a handful of State run schools that are rated as acceptable…and private schools really cost. This is the sort of thing that a good estate agent can give you the low-down on.
Health
You need to do your research here. Is there a State health care system that residents can use? If not you will need to pay for healthcare and this can prove very expensive. It is essential to check this out before committing yourself as this can be a deal breaker.
Transport
Costs can vary tremendously. You need to check this out carefully. In Johannesburg, South Africa, for instance - which is the country I know best – there is virtually no public transport system at all. I had a bad car accident and no longer wished to drive, and it is not safe to walk…problem! Also, if one partner works and one cares for the children then you need two cars…and this cost needs to be factored in. Plus registration, insurance, fuel, garaging…
So you can see that ‘cost of living’ actually means the cost of living YOUR life. There may well be some things that are non-negotiable but there may be other things that you can compromise on in order to exchange your present life for one that you perceive to be better. The point is that you need to do your sums and take all the factors into account before deciding exactly where you are going to put your roots down.
Good luck – and please let us help you. We at the OGC Resource Centre have spoken to hundreds of folk like yourselves who are planning a move abroad. And also, sadly, those who have returned, having found that all was not as they thought it would be. Let us share our expertise with you – just phone 0207 898 0549 and have a chat.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
When you decided to emigrate I am sure that you looked at costs, including those to buy property and to move, but did you factor in the day to day cost of living? This can make quite a difference in your life style, to where you live and how you live. It would take more space than I have here to discuss each and every country in detail, but I have a few pointers that you may like to think about.
Food
In many countries, although food can be costly in the main cities it is usually much cheaper in more rural areas. You may also find that there you will be able to buy fresh produce locally, which will dramatically reduce the bills. My colleague Alexis, who has a home in France, visits the local weekly market to buy fruit and vegetables and says that the savings are quite dramatic. However it bears remembering that in, say, Greece, the islands - although many are rural - are sometimes more expensive as goods have to be shipped in. These are the things that you need to find out in advance and factor into your plans before you buy.
Utilities
The costs will vary, depending on the size of your home, how many people live there and where you are located. There may, however, be more than one provider and perhaps a comparison exercise would throw up a cheaper provider. A word to the wise here: my son has a far cheaper telephone line than mine, but there is always a problem with it…what’s the use of that? Best case scenario is that you chat to a local.
Schooling
You may find that free State schooling is available. But how good is it? And do you need to live in a more expensive or a rural area to access a better school? In South Africa for instance there are only a handful of State run schools that are rated as acceptable…and private schools really cost. This is the sort of thing that a good estate agent can give you the low-down on.
Health
You need to do your research here. Is there a State health care system that residents can use? If not you will need to pay for healthcare and this can prove very expensive. It is essential to check this out before committing yourself as this can be a deal breaker.
Transport
Costs can vary tremendously. You need to check this out carefully. In Johannesburg, South Africa, for instance - which is the country I know best – there is virtually no public transport system at all. I had a bad car accident and no longer wished to drive, and it is not safe to walk…problem! Also, if one partner works and one cares for the children then you need two cars…and this cost needs to be factored in. Plus registration, insurance, fuel, garaging…
So you can see that ‘cost of living’ actually means the cost of living YOUR life. There may well be some things that are non-negotiable but there may be other things that you can compromise on in order to exchange your present life for one that you perceive to be better. The point is that you need to do your sums and take all the factors into account before deciding exactly where you are going to put your roots down.
Good luck – and please let us help you. We at the OGC Resource Centre have spoken to hundreds of folk like yourselves who are planning a move abroad. And also, sadly, those who have returned, having found that all was not as they thought it would be. Let us share our expertise with you – just phone 0207 898 0549 and have a chat.
Kim Brown
The Overseas Guides Company
http://www.Overseasbuyingguide.com
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