Cheap Fees in Burton - You must be Crackers!

I went out to a rental valuation a few days ago in Winshill and, as I always do, did my preparation on the property, the area and suitable tenants. I introduced myself but, before I could begin speaking, he said “How much then? What are your fees?”. Now don’t get me wrong, the subject comes up pretty much most of the time but not usually that quickly!

It got me thinking about landlord fees and how landlords perceive agents. Lots of agents advertise ‘Free fee deals’ – we have in the past! Do they work? No! But why don’t they?

Well, at my local Sainsburys at Burton town centre, they often give out free crackers as you shop. Does it sell more crackers? I doubt it!

‘Free’ is a fine way to grab attention, but more often, it's the wrong sort of attention. How many times have you tasted the free crackers from the supermarket and gone on and bought that product …?
When I discuss our fee packages with potential landlords, they always ask "What do I get for that and is it worth it?" The shoppers at Sainsbury’s who munch a few crackers as they do their weekly shop aren't asking that question. When focusing on free, the 'worth it' question never comes up, because when seduced by the zero price alone, we fail to answer the question about worth or value.

We had a new lettings negotiator start last week and he asked me “How can some agents in Burton charge such a small fee for a fully managed service?”. “It depends on your definition of a fully managed service” I replied with a wry smile!

So, is a cheap or non-existent fee at the forefront of a landlords mind? No, it’s not! I can put my hands on lots of independent reports from lots of property experts, where thousands of landlords are surveyed each year, and each year, only 3% to 5% landlords want the cheapest fee.. most want the best value fees.. and value is measured when someone says, “What do I get for my money?”

So Mr and Mrs Landlord, if you have a rental valuation always ask the question; “What do I get for my money?” Even ask your existing agent the same question when your current tenant leaves because, let’s face it, that’s the ideal time to switch!

If you are a landlord, new or existing, feel free to pop through the door of our offices on The High Street, call me on 07973 666229 or send me an email to the email address below.

If you are a landlord, new or existing, feel free to pop through the door of our offices on the High Street, call me on 07973 666229 or send me an email to davidm@professionalproperties.co.uk.

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE

Take a trip down the A38 and see the price difference!

A few weeks ago I said that property values in Burton had risen by 4% over year, or to be more precise £6,600. The interesting thing is that this rise hasn't been a smooth rise. 12 months ago, prices in Burton were around £162,700, 6 months ago they reached the heady heights of £172,000; around 3 months ago, average prices had actually dropped to £167,300 but have since recovered in the last 3 months to today’s £169,300. This is great news for anyone who owns their own home in the town.

Looking at our neighbouring City of Derby, North along the A38, the average value of a  property rose by £11,900 in the last 12 months. My experience in both markets shows that what happens in Derby one year happens in Burton the next, which on the face of it, makes Burton properties a possible bargain.
However, take a road trip along the A38 to Lichfield and a completely different story has been seen. An average property in Lichfield has seen a huge increase in average property values by around £15,750 over the last 12 months. However, don’t all start going South down the A38, as the average house price is £335,900, so in fact prices have risen by a more modest 4.9%, not too dissimilar to the figure achieved in Burton.

I find it amazing that three places along the A38 of Burton, Derby and Lichfield, all within a few miles of each other, can experience such variations in property prices. With average rents steadily rising by 1 to 2% a year and with continuing troubles for first time buyers raising the £10,000+ for the deposit and fees, I can only see greater demand for rental properties in Burton, which will mean more people will continue to buy property for buy to let, and where there is greater demand, the price tends to go up.

This however, is only my opinion. If you would like to have a chat about any matter relating to property in Burton, pop in and see me, or my team, in our offices on the High Street.

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE

The Burton lettings expert hits a decade. It’s only tin for ten years!

Burton’s usual lettings expert, David, has been given a week off from research and article writing to allow me, Susan Cope - Managing Director, to sing his praises!

David has been with Professional Properties for 10 years this month and has been our lettings expert in Burton for around 9 years 11 months of the 10!

Traditionally in this country, tin is the celebratory metal associated with a 10 year anniversary so the Burton team have kindly got him a four pack of baked beans as gift!

The reason that this 10 year anniversary is so important for us, as an agent, and you, as a landlord, is the local area knowledge that David has developed over this time. Knowledge of a particular area is based on experience, it is adapted to the local culture and environment and it is dynamic and constantly changing.
In the world of lettings and property investment, it is so important to get the right information before making decisions on what to buy and where to buy it.

The boys who herd the cattle may know, better than their fathers, where the best grazing sites are. If you ask the fathers to show you the good pastures, you might  only get partial or inaccurate information. Asking the wrong people the right questions may result in poor decisions being made.

Anyway, back to David. He is definitely the right person to ask the right questions because he will give you the right answers!

Regular readers will have seen the articles he has written providing Burton landlords and investors with essential information and statistics on the local area. Which areas are best for investment, which properties sell the best, what is the future of the rental market in Burton and many more. In one great article, he even compares two neighbouring streets with very interesting results!

Well done David, here’s to the next 10 years…

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE

Postcodes and the effect on Burton property prices.

I was asked last week if postcodes make a difference to property values. Well, in swanky West London, the difference between SW3 and SW10 can make values drop or rise by hundreds of thousands of pounds. However, in our little town of Burton, we don’t have many Russian Oligarchs and Saudi Prince’s buying our property! However, after doing some detailed investigating, I did find out some interesting information.

I would like to start with the two main postcode areas that neighbour the town centre. I found an amazing trend that I think will interest the people of Burton. Over the last decade, property values have always risen in DE15 first (Stapenhill, either side of Ashby Road after the River Trent, Newton Solney and Bretby), then they plateau allowing DE13 (Horninglow, Stretton and the Western Burton villages) to catch up a 18 months later. Then DE15 has another spurt, again plateauing and now DE13 is catching up again. I have no idea why this happens, but I just know it does.

Let me explain. In 2008, property values in both areas were roughly 11.1% lower than they were today, therefore they had plateaued. By the time we had got to 2010;  DE15 had risen by 5.5%, compared to 1.5% in DE13 (doesn’t sound much but its over three times the growth of the other).
Get to 2012, and DE13 had caught up, increasing by 6.14% compared to DE15 growth of 1.95%. Since 2012; DE15 and DE13’s have levelled out at an equal growth of 3.5%. I believe over the coming few years, DE15 will have another spurt and DE13 will catch up around 18/24 months later. I could be wrong, but the figures going back suggest that this will happen.

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment.

If you are a landlord, new or existing, feel free to pop through the door of our offices on the High Street, call me on 07973 666229 or send me an email to davidm@professionalproperties.co.uk.

If you would like to arrange a FREE RENTAL VALUATION then click HERE.
If you would like to see our selection of Investment Properties for Sale, then click HERE