We've been getting a whole stack of questions of late about the best way for you to deal with estate agents & how you can get in with the right 'type' of agent to get the bargain deals and repo's.
To be honest we don't focus much more than 25% of our income generating deal time on newspaper ads, window cards, postcards, hoardings, bandit signs (low conversions), or anything else that is 'low return on time' to do.
We find it often labour intensive & it gets high cost per conversion. If we're bored or want more deals, we'll turn the machine on...
But almost 80% of our property deals come DIRECTLY from estate agents. The ones on the high street that don't charge for entry, the ones you're allowed in with jeans on!
We attribute sourcing deals through estate agents as one of the key factors in leveraging and shortcutting our success.
So we thought...
We've had lots of questions so why not do a bit of estate agent sourcing 101 for you.
To start a glossary of terms.
The following terms are language to use with agents to show knowledge and 'authority' and to help you avoid getting 'Binned' like all the other Sarah Beeny followers.
For many of you who deal with estate agents, these property terms are common knowledge. For everyone else, we are going to update this list of property terminology over time, so here's what we have for now. If you're looking for a definition on a term please let me know and we'll list it for you.
1. 7 day notice
Notice period required by the banks before exchange of contracts on a repossessed property.
2. Best and final
When a property has more than one interested party, and negotiations are going back and forth with both parties increasing, a situation may occur where sealed bids are offered. "Best and final" is the agents' term for
Below market value (don't use this! They may not know what it means)
Mortgage broker who offers finance
Amount of deposit you have to put down against the purchase price minus the mortgage
6. DIP, AIP
Decision In Principle and Agreement In Principle (for a mortgage)
A valuation that was lower than needed for the mortgage application
You own the land that the property sits on
The person who owns the land that the property lists on
10. FTB Property
First time buyer - Gazumping - to be out-bid on the property you are buying by another buyer
To have an offer reduced at the eleventh hour
12. Guide Price
This is to give an estimate of price but offers could be under or over this
House of multiple occupancy, also known as multi-let
A property where the land it stands on is owned by someone else (such as a flat)
15. Lister or Valuer
The agent who values the properties before they get put on the market
Loan to Value - the amount of loan that is loaned by a bank in relation to the property value
Mortgage offer [written term - don't say it!]
Negotiator: the agent who sells the properties
21. Offers Over
Same as OIEO
over market value
Offers in Excess of - This means that they want offers in excess of the price advertised
Offers in Region Of- This is like a guide price and offers could be over or under this
25. Part Exchange
A property that is taken in as part payment for a property, usually a new home
A property sale handled by sols or family members that is being sold due to a death
27. Peppercorn rent
This relates to a ground rent or service charge of a leasehold property and is usually very little but needs to be in effect for the lease to be active
Renegotiate the price (don't use this one!)
Revaluing (re-instructing a surveyor) after a downval or on a remortage
31. Sealed Bids
Same as best and final above
32. Shared Ownership
A percentage of the property is retained by the builder or a housing association and rent is paid for this share, theoretically less than the other % mtg
(written down only) - solicitor
Subject to planning permission- A property may be sold advertising that you 'could' extend, STPP would be the disclaimer the agent would put after in case PP isn't offered
Subject to survey (usually with Land) - This would be a estimation of land size with a property
Subject to sale- The property has been offered on by someone who has got a property to sell (therefore it is subject to the sale of another property)
37. SSTC (Sold STC)
Sold Subject to contract- This is the same as under offer and means that the vendor has opted to not have any more viewings
The offer on the property has been accepted by the vendor (more of an informal term)
39. Under Offer
There has been an offer on the property but that hasn't necessarily been tied up yet (it is still in negotiation)
The seller of a property
41. Vendor Paid Deposit
An amount of deposit that is gifted by the vendor to aid the purchaser.
This Glossary will help you speak and understand the agents' lingo and colloquialisms [I know, we've never used a word that big] and will go a good way to getting your foot in the door to be the 'Banker' who gets to cherry pick the best
Use this information as it will be very valuable to you.
Hopefully this guide has helped you get to grips with the terms used when buying or selling property. You can find our handy free reports in our resource section.