Frequently Asked Questions
What is stamp duty?
A tax levied by the government, paid by purchasers, on the sale price including any sum agreed for fixtures and fittings.
As at May 2011, a purchase up to £125,000 is exempt.
£125,001 to £250,000 is 1% of the purchase price
£250,001 to £500,000 is 3% of the purchase price
£500,001 to £1,000,000 is 4% of the purchase price
and above £1M is 5% of the purchase price.
First Time Buyers who have never purchased a property before, ie their names have never appeared on Land Registry are currently exempt up to £250,000.
I see some agents display the NAEA logo, what does that mean?
The National Association of Estate Agents (NAEA) are now part of the National Federation of Property Professionals (NFoPP) and are the organisation, which represents Estate Agents. They charge an annual fee and require new members to sit an exam to join. Members who are directors or partners within their firms are required to have the appropriate Professional Indemnity (PI) insurance and also join the Property Ombudsman Scheme (TPO) and subscribe to their code of practice.
The government are reluctant to introduce licensing within the industry despite the vast majority of reputable agents being in favour. The greatest protection and comfort the public can get is to use an Estate Agent who is a licensed member of the NAEA, which of course Blount & Maslin are.
Why do fees vary between different companies?
As with most things in life, you get what you pay for. An agent who is offering a discounted fee will usually offer a discounted service. In general, agents who are weak at negotiating with you will be equally weak when it comes to dealing with your buyer.
There are a few things to consider when comparing agents service and fee structure. There is no doubt that the internet is the biggest innovation within the industry in recent years and websites play an important role in the marketing process. At Blount & Maslin we subscribe to rightmove and primelocation, two of the largest property portals. Buyers no longer need to register with individual agents as they can simply register with a portal to receive email alerts of any properties matching their requirements. The rightmove website receives the most hits by some considerable margin and we utilise additional marketing products from them, including brand plus, premium display and local homepage to ensure our properties stand out from the crowd.
The second biggest innovation in recent years is floor plans. It is essential that your agent uses a professional system as properties with a good quality floor plan receive far more hits than others.
As with most businesses, staffing is a major overhead and any agent is only as good as its weakest link. Employing an experienced workforce naturally comes at a price. At Blount & Maslin we only employ local people, with a depth of local knowledge, so they can sell Malmesbury and the surrounding villages from a position of strength.
What different types of surveys are available?
There are three basic types of survey – a mortgage valuation, a homebuyers report or a full building survey.
- The mortgage valuation: essentially undertaken by the lender to confirm that the property you are intending to buy represents suitable collateral for the loan. This is essentially to protect their interest and will not provide you with any significant detail regarding the property.
- The homebuyers report: this is the most popular form of survey for properties built in a conventional fashion. The report will grade any works required in order of urgency.
- A building survey: this is a comprehensive inspection suitable for all properties, but would be particularly recommended when buying a very old or listed building. It is particularly important if the property has been neglected or poorly maintained, as it will provide a schedule of works required in order to update the property.
Prices naturally vary depending upon the size of the property. We are able to provide a number of local individuals who are all members of the Royal Institution of Chartered Surveyors (RICS).
What is an EPC?
An Energy Performance Certificate (EPC) is required when selling all residential property. It provides information on the energy efficiency of the property and information about how to improve it. An EPC is valid for ten years, but if significant changes or improvements were made to (eg insulation levels) it would be advisable to renew the certificate prior to selling. For brand new buildings an estimated rating is required.
What is the difference between sole, joint or multiple agency?
Sole agency, as the name suggests, is one single agent who is instructed to market your property usually for an agreed minimum period. We charge 1.5% (plus VAT) for a sole agency agreement.
A joint agency is where two companies, normally in different towns, are instructed to sell a property that lies perhaps on the edge of both offices boundaries. It is also sometimes the case that clients require a national agent based in a larger town to work in conjunction with a local agent in the nearest town. In this instance, a higher fee is agreed and normally split equally between the two agents. We charge 2.5% (plus VAT) for a joint agency agreement.
A multiple agency is a higher fee again where the seller can instruct any number of agents and will only pay the company that introduces the buyer. This can create the impression that the seller is overly keen to sell and when the property appears on the internet with a number of agents it can give the wrong impression. We charge 3% (plus VAT) for a multiple agency agreement.
When do I need to appoint a solicitor?
When selling it is important to instruct a solicitor as soon as possible as this will enable them to locate the deeds for your property and prepare the necessary draft contract papers in readiness for the sale. If there are any irregularities, or if the property has not been sold for some considerable time then hopefully these may come to light prior to a buyer being found so that they can be resolved more easily. When buying there is no need to appoint a solicitor until your offer has been accepted, although it would be wise to shop around for a company who are conversant with what is normal in the area you are intending to purchase. We are able to provide details of local solicitors who are all members of the Law Society.
The property I am buying is in a conservation area, what does this mean?
A conservation area is a predetermined area drawn up by the local planning authority. It was formed to prevent the loss of local identity and historic environments with the purpose of ensuring that areas retain their identity. The centre of Malmesbury became a conservation area in the early 1970’s although this was extended in 1987 and again in 2006. If the house you are intending to purchase lies within the conservation area you will require permission to erect a satellite dish, fell any type of tree or extend the property.
What is a Listed building?
Listed buildings are designated as being of ‘special architectural or historical interest’. Malmesbury has about 300 Listed buildings and consent is required for all work that would change the character of the building (whether internal or external). At present Listed building planning applications are free.
What kind of costs are involved in purchasing a property?
Obviously this varies hugely depending on the price and size of the property. However the basics are as follows:
- A deposit, ideally 25% or more of the purchase price to secure a reasonable interest rate on your mortgage. Some lenders charge an arrangement or product fee.
- Stamp duty as referred to above.
- A survey. Lenders often provide the basic mortgage valuation free and a typical homebuyers report is between £400 and £600, whereas a building survey is likely to be £800 to £1000 or more.
- Solicitors fees naturally vary and include search costs, Land registry fees, transfer fees etc. A typical first time purchase is likely to be £750 and a family house valued at £350,000 would be around £1200.
- Removal costs vary on distance and whether you have packers or do your own. A typical local move is around £1000.
If you have any other questions please do not hesitate to call us 01666 825725 or send an email to sales@blount-maslin.co.uk.
