- A previous owner squeezed the bath tub into the hallway, the estate agents said
An estate agents admit that even they were ‘shocked’ to be tasked with advertising a ‘cramped’ London flat for almost £500,000 – with a bathtub in the hallway.
Prospective buyers were shocked to find the tub exposed and only yards from the front door in the near half-a-million-pound flat, located in Kentish Town in North West London.
Some even claimed they felt sorry for people trying to get on the London property ladder and joked about how having a bath in your hallway summed up the size of flats currently on the market in the capital.
From the estate agent’s photos, the interior of the house seems like a normal flat with a bedroom, shower room, kitchen, dining room and outside decking area.
It is only after entering the property through the front door that house-hunters discovered the sneaky tub squeezed into a white tiled area in the hallway.
The flat was listed on Rightmove by Burghleys Estate Agents for £475,000 and is being advertised as a ‘unique’ one-bedroom garden flat with shower room and ‘extra’ bath.
Ashley Gendler, the director of the company, said they were shocked to find the tub in the hallway of the property but says it hasn’t put prospective buyers off viewing the one-bedroom flat.
Ashley said: ‘There have been remarks about it as it’s not something you would usually see.
‘It was an architecturally designed conversion not by the current owner but by the previous owner who we know nothing about, so we don’t know the reasons why he did this.
‘It may well be that he lived there on his own and no one was coming into the flat so he put a bath there because he couldn’t fit one into the shower room so that was the next available place to put it.
‘There have been a few raised eyebrows, people commenting saying it’s odd and a few double takes.
‘It’s quite simple to take the bath out and replace it with storage cupboards in that area if you wanted to.
‘We have the eyes and ears of the general public when they are out viewing properties and we were quite taken back as well.
‘But when we first viewed it, this area was filled with junk.
‘We didn’t even know there was a bath there. It had to be pointed out to us so it was even more of a shock to us.
‘There are plenty of flats being sold just with shower rooms and not with baths. Whoever converted the flat several years ago didn’t have to put a bath in there.
‘The property is getting a great deal of interest at the moment. I think people who have the common sense to either leave it or take the bath out and replace it with storage cupboards.
‘People are not being resistant to viewing it because there is a bath in the hallway.’
On social media, users were quick to comment on the odd placing of the family ‘bathroom’.
One user said: ‘Have a nice hallway bath and then get into your crawl space.. Bliss.’
Another said: ‘Why even bother with the bath just have a shower not as if having a bath adds to the property.’
A third added: ‘I feel so bad for the normal people of London.
‘How are you ever supposed to get any kind of housing security with rents rising at instance amounts and you can’t even get a mortgage for a flat where you need to have a bath in the hallway.’
A fourth commented: ‘I’d invite you in but the missus is having a bath.’
Another said: ‘So pretty much half a million pounds for a cramped space in a converted house with a ‘garden’ that is smaller than my parking area and then you have to pay ground rent on top because it is a leasehold.’
Viewers have been left unimpressed by a new luxury property programme which shows estate agents competing to sell high-end UK homes – as they vow to switch off from further episodes.
Taking to Twitter during the episode, which aired on Channel 4 at 9pm on Tuesday evening, people blasted the estate agents as ‘wannabes’ as they showed potential buyers around multi-million pound homes across London and other UK areas.
As part of their bid to sell the luxury homes (and earn thousands of pounds of commission in the process), the agents organise open house events to show around multiple potential buyers at once.
The format of the programme sees up-and-coming estate agents manage a tight budget to create an open house event to sell a £20 million property, Kenwood House – set on three acres of land.
However, as the contestants used their limited experience to put together the open house event during the episode, viewers took to Twitter to express their discontent with the format as they labelled the trainee estate agents ‘deluded’ and ‘wannabes’.
At the beginning of the episode, the eight contestants are tasked with pulling together the open house event for the mansion, and they quickly decide on a 1920s theme.
To find props for the event, contestants Mairead and Colin visit a warehouse – but they can’t resist the opportunity to lark about while they’re searching.
While Colin puts on a bunny costume and dances, Mairead takes photos of him in the giant pink suit – before they finally get down to business and shop for props.
They also explore pieces of furniture including a giant martini glass and a sculpture of a naked muse.
As they explore props, the two contestants in charge of the entertainment at the event carry out auditions with contortionists, snake charmers and a brass band, plus flapper dancers.
While contestants argued over how best to use their tiny budget of £2,000 to put on the event, viewers were turned off by the ‘deluded’ cast and said they found the programme ‘ghastly’.
One person wrote: ‘I’ve been disappointed with this. Don’t think I’ll bother with further episodes.’
Another wrote: ‘That was ghastly,’ before adding, ‘I bet it will get a second series.’
Several viewers likened the programme to Sir Alan Sugar’s The Apprentice in its format – although they didn’t see this as a good thing.
One person branded the show as much like The Apprentice but ‘with an even more jumped-up ‘Lord Sugar’ and even less able candidates.’
The ‘Lord Sugar’ figure in the programme referred to property tycoon Paul Kemsley, who runs Robert Irving Byrne.
One viewer said the TV show was like an ‘Apprentice wannabe’ programme – adding that the tweets of discontented viewers were more entertaining than the contents of the episode itself.
Blasting the contestants, one person said the cast was ‘deluded’ and accused them of having ‘too much talk’ and ‘not enough graft’.
Another said the were a bunch of ‘instant wannabes’ and said she was turning off the programme because their antics had left her ‘beyond frustrated’.
- An overly optimistic listing for a flat has left social media users in stitches
- The £65k property – with stained carpets – was described as a ‘serene haven’
Flat-hunters have been left in stitches after a flat with ‘blood’ on the living room floor was made to sound like ‘Downtown New York’ by estate agents.
The two-bed property, in Garthamlock, Glasgow, sparked derision on social media after it appeared to have suspicious stains on the carpet – but was sold as a ‘world of contemporary elegance’ by optimistic sellers.
Estate agents describe the humble flat as, among other things, a ‘world of contemporary elegance’, ‘a haven of relaxation’ and a ‘sanctuary of luxury’.
But there are suggestions that the flat is undergoing a refurbishment – with smudged paint and a ladder propped against a wall.
At the centre of the bedroom’s white carpet, meanwhile, there is a questionable red stain – which might draw the buyer’s attention from other redeeming factors such as its modern wallpaper and walk-in wardrobe.
Despite its rather unremarkable exterior, and run-of-the-mill interior, estate agents Harbor Property marketed the home as ‘a world of contemporary elegance’.
The flat boasts shiny wooden flooring leading the prospective buyers into an unfinished living room.
Laying it on thick, the property’s full description reads: ‘Step into a world of contemporary elegance with this exceptional two-bedroom top floor flat, nestled in the heart of the sought-after Garthamlock neighbourhood.
‘The spacious lounge is a haven of relaxation, boasting ample space for your lifestyle needs.
‘The laminate flooring adds a touch of sophistication, perfectly complemented by a large window that fills the room with natural light, creating a welcoming ambiance that is truly unparalleled.
‘For the culinary enthusiast, the well-appointed kitchen is a masterpiece in design and functionality.
‘Both bedrooms are generously sized, ensuring a serene haven for rest and rejuvenation. Bedroom one delights with plush carpeting, adding an extra layer of comfort to your private retreat.
‘Meanwhile, bedroom two boasts laminate flooring, offering a sleek and stylish space that can easily adapt to your changing needs.
‘The fully tiled bathroom is a sanctuary of luxury, featuring a pristine white three-piece suite and an electric shower.
‘Outside, a communal garden beckons, providing a tranquil space for leisurely strolls or vibrant gatherings with friends and family.
‘Embracing the spirit of modern urban living, this top floor flat also enjoys excellent motorway links, making your daily commute a breeze and opening the door to endless exploration and adventure.
‘Don’t miss the opportunity to make this exquisite two-bedroom flat in Garthamlock your new home.’
There are other hints that the flat was undergoing a spruce-up ahead of its sale.
The walls appear smudged in places, and a ladder is propped against a back wall of the living room, implying that there is still room for more paint.
Double doors then lead to the small kitchen with a simplistic design of white walls and wooden counters matching perfectly with the white appliances.
Further smudges can be seen in the back walls of the kitchen before house-browsers are led to the first bedroom.
The flat was listed for sale at offers over £65,000 earlier this month but has seemingly already found a buyer, being listed as sold, subject to conditions, on Wednesday.
One Scots house-hunter took notice of the over-the-top description, sharing the flat to social media on Thursday, writing: ‘Am f***ing howling at this description of a gaff [house] in Easterhouse, man (sic).
‘They’re trying to make it sound lit [sic] Downtown New York.’
The post received over 1,775 likes and hundreds of comments from many Scots left in stitches at the description, and the ‘blood’ on the bedroom floor.
One person wrote: ‘Closing date the 23rd, as if someone’s gonna put an offer in with blood on the bedroom floor.’
Another quipped: ‘Somebody’s been stabbed in the spacious lounge.’
A third joked: ‘Looks like someone’s been dragged along the inviting entrance hallway.’
A fourth added: ‘Just step over the luxurious neighbourhood welcome party that are passed out in the close of the building.’
Responding to the social media frenzy that ensued, Harbor Property boss Jason Gillan said today: ‘We hate to burst the bubble of local imagination but, contrary to popular opinion, I can confirm that any unedited photos reveal only spilled pink blusher on said carpets and nothing more sinister.
‘Despite the media hype surrounding our outlandish comments, Harbor have managed to agree an offer for this property considerably above home report value and our client is delighted.
‘Thank you to all our fans!’
- House hunters in Derby were gobsmacked to find the shocking listing
- The home was a cannabis farm back in 2019, housing more than 500 plants
- Snaps showed plants, pots, fans and other remains of growing paraphernalia
Estate agents have faced online mockery after advertising a family home for sale using pictures from when it was a cannabis farm.
House hunters in Derby were gobsmacked to find the listing of the five-bed family home included photos of large plants, pots, fans and the remains of other industrial-sized indoor growing paraphernalia throughout the property.
The Derbyshire property was listed for sale on Rightmove by estate agents Bagshaws Residential for a ‘bargain’ auction guide price of £150,000 to £200,000 on 6th July.
However the listing went viral when people spotted the shocking images.
It turns out that the home was a cannabis farm back in 2019, with police snaps showing it housed more than 500 plants across the 12-room dwelling.
The photos showed reflective silver material peeling off the walls, accompanied by what appears to be large carbon filters among many entangled wires.
Panicked estate agents quickly hid the ‘incriminating’ images.
The ‘indoor gardening’ equipment can be seen within several rooms, with standing fans littered across the attic floor and more than 16 substantially-sized plant pots filled with soil stacked up in the kitchen.
There are little signs that it was a liveable space other than a small toilet, several discarded mugs and a clothes hanger in the kitchen.
Estate agents Bagshaws Residential’s listing described the three-storey home as in need of ‘a full scheme of renovations’.
The listing also warned that ‘currently no internal viewings are available’.
Meanwhile, stunned viewers online took to social media share their bewilderment as to why the estate agents would use photos that showed its previous history so plainly.
The Derby property is currently sold and under offer, while another local commenter claiming online that it sold for £210,000 at auction on August 1st.
Sequence Auctions, part of the Sequence group along with Bagshaws Residential, explained it was ‘vital that selling agents ensure the state of repair of the property is transparently shown so buyers can make informed decisions’.
However they did not clarify why the images appeared to afterwards be removed.
One person online commented: ‘Can’t believe the estate agents have uploaded these photos’.
Another said: ‘I’m literally two mins away from that house and I’m baffled how it was used for what it was being next to a primary school.’
A third joked: ‘Some serious indoor gardening going on there,’ with another adding ‘a bargain is a bargain in this economy.’
Someone else added: ‘It sold for £210k via auction, that surprised me. Thought it’d be more. No doubt it’ll be flipped and back on the market for £800k in a year though.’
The Facebook page for Derbyshire Constabulary’s Safer Neighbourhood Policing Team for Normanton and Rose Hill posted about the repossession of the home back in May 2019, writing: ‘Well as the late great Freddie Mercury once sang.. ANOTHER ONE BITES THE DUST.
‘Officers from Normanton SNT have located yet another Cannabis Grow with in excess of 500 plants in the Normanton area.. (plant emoji)… Currently gathering evidence and continuing with enquiries to identify the offenders..
‘We’ll keep you posted. £upinsmoke.’
Derbyshire Police confirmed that a cannabis grow was found at the property in May 2019, but that no arrests have been made in relation to the investigation.
Bagshaws Residential said it was a matter for Barnard Marcus Auction House to respond on – both are part of the Sequence group.
Chris Glenn, divisional managing director for Sequence Auctions, said: ‘Landlords that have had a difficult experience managing a property may have gone through months or even years trying to reclaim them and will quite often enter them into an auction for an efficient sale.
‘However, following the pandemic the auction process has somewhat changed and many auctions are not back in the room.
‘They have remained largely digital with many investors buying properties online without seeing them.
‘This makes it vital that selling agents ensure the state of repair of the property is transparently shown so buyers can make informed decisions.
‘This is especially true in auctions as the sale is a legally binding exchange, often on the day, compared with a private treaty sale which will take a number of months.’
By Bridie Pearson-jones and Harriet Johnston For Mailonline
Updated: 17:28 21 Aug 2023
Crazy Rich Agents: Selling Dream Homes viewers have slammed the property brokers for having ‘no idea what they’re doing’ claiming the cast are ‘amateurs’ and ‘small fish’.
The new series features five rookie real estate brokers, who have given up their old jobs and ‘risked it all to make it big in the world of luxury real estate’.
Ditching their salaries, they have been taken on by the new London branch of US property firm Nest Seekers, and given the opportunity to sell million-pound mansions in the UK and beyond.
But their income is entirely commission based, and so they are battling to cut ‘six figure commission cheques that could make or break them’.
Among the brokers are Krish, is a former building society worker and a born hustler, ex care home worker Georgie, former model Vanesa, and Aly.
At one point Aly and Krish are taken to New York to try and sell properties, but end up stumbling over properties of a luxury apartment in Manhatten.
While at another point, Georgie drives to the countryside in order to sell a £2.3million former vicarage – however, her clients didn’t turn up.
Despite the buyer not turning up to view the house, Georgie asked fellow agents what her commission would be, which left her branded ‘clueless’.
The home, with a cinema room and wine cellar in on four acres of land.
However, Georgie was keen to negotiate her cut of the fee, despite not offer being on the table.
Later, her clients told her the location of the house was wrong for them.
Viewers slammed Georgie and her fellow agents as ‘useless’.
‘These amateurs are so out of their depth. Small Fish Big Pond,’ one person wrote.
‘The agents on #crazyrichagents are really low calibre; how strange!’ wrote one.
‘This program should be called 2 Bob Bit Brokers, 1/10,’ said another.
‘These agents say “obviously” so much that it’s OBVIOUS they don’t know what the hell they are talking about.
‘#crazyrichagents aren’t exactly doing estate agents any favours,’ commented another.
‘And OBVIOUSLY, Georgie didn’t listen to the feedback from her boss; she is still jumping the gun about “fee structure” without bringing a buyer!’ added a third.
Elsewhere in the show, one businessman turned down multiple luxury properties deemed them ‘too small’ and complained the hedges were ‘overgrown.’
The property show follows a number of agents working for brokerage Nest Seekers and has been billed as the BBC’s equivalent to the highly successful Netflix series Selling Sunset.
In Sunday’s episode, 22-year-old Krish tried to find a property which would work for millionaire businessman Nirad Solanki, who is the founder of a Leicestershire-based Elmesthorpe Brewery Company.
The entrepreneur had a very specific check list he was looking to fulfil as he tried to secure his dream property – from a home with 18,000 sq ft of space to a landscaped garden.
However he appeared less than impressed with the offerings shown to him by Krish – poo-pooing one property because it was ‘too small’, while he was annoyed by an overgrown driveway at another home.
Appearing on the show, British boss Daniel McPeake, who is the managing director, said: ‘The property business isn’t about near misses. We’re a few months into this process now, and some people are getting closer than others.
Eddie Shapiro, president and CEO of the business, said: ‘What we look for in talent is the spark. Here comes this magical personality which will draw people.
‘When I see that little bit of X-factor, I’ll draw the people in.’
Krish said he had ‘a lot of things to think about’, saying he was determined to land a sale at the company
He said: ‘You’re watching your numbers decrease in your bank account, you’re spending money you don’t have to impress people.
‘It starts to put doubt in your mind, am I not doing this right?’
Among Krish’s clients as Nirad, who made his fortune by founding a brewery and pub business.
He tasked Krish with looking for a house with greenery, no neighbours, and at least 18,000 sq ft of space.
Meanwhile he added: ‘It’s got to be landscaped grounds as well as farming. it’s got to have character, it’s got to be listed. It’s got to tick the Nirad seven boxes, and I won’t tell anyone that.
‘I never have a budget generally speaking, it’s all about value for money for me.’
The first property Krish showed Nirad was a secluded seven bedroom Victorian manor in Dorset, which is on the market for over £5 million.
It featured a pool and Jacuzzi, as well as an expansive outdoor area and a BBQ cooking station.
It also had a guest house, meaning it’s the perfect location for friends and family to stay.
Krish described the kitchen as a ‘Grease Lightning style’ kitchen, but Nirad quickly quietened the agent, saying he ‘just wanted to absorb it.’
However Nirad was put off by the room, saying he could easily spend £100,000 transforming the space.
Each of the bedrooms had a walk-in wardrobe and a bathroom – but Nirad still wasn’t sure.
Nirad said the master was a ‘great space’ but ‘a bit small’, saying: ‘I feel the house is a bit small.
‘I don’t feel it’s worth £5.75 million at all. If I was realistic, I think it’s probably worth £4.25 million.’
The second house Krish showed Nirad didn’t leave a good first impression on the millionaire.
He said: ‘The driveway is too narrow, the amount of brambles and bushes etc. I’ve got a few marks on my Rolls Royce.’
It was an eight bedroom, converted farmhouse with extensive outbuildings, and it was on the market for £4.8 million.
The property was sat on 6 acres of land, with a tennis court and outdoor and indoor swimming pool.
It also has a croquet lawn and a Moroccan spa.
And despite his initial reservations, Nirad confessed he was blown away by the property, saying the home was ‘ticking a lot of boxes.’
He said: ‘This is a game changer, as if one swimming pool wasn’t enough. Go back or go bigger.’
Nirad added: ‘I really can see myself living here. I reckon it’s probably worth £4.5 to £5 million.
‘It’s certainly food for thought and I’m going to leave it with you, I want you to organise a second viewing for me where I bring my wife and kids down. I think it’ll work.’
Crazy Rich Agents airs on Sundays at 9pm on BBC2.
- Some property agents are wearing body cameras
- Cameras used as security measure during inspections
- Some tenants concerned cameras breach privacy
Real estate agents have resorted to wearing body cameras to protect themselves from potentially disgruntled renters.
The drastic step comes as skyrocketing rents and low property vacancies put a strain on already tense relationships between tenants and property managers.
Queensland-based company 360 Property Management Mackay has already rolled out the changes.
Office manager and sales agent Adele Crocker made the decision for her staff to wear body cameras when conducting tenant home inspections.
Ms Crocker decided on the security measure after one of her female agents was trapped inside a property after a renter refused to let her out.
‘After this occurred we had a big discussion on safety in the workplace and spoke about how we could all feel safer entering into home of what essentially are strangers,’ Ms Crocker told news.com.au.
Current tenants were informed that property managers would be wearing body cameras as part of their personal protective equipment, while new tenants will be advised at the beginning of their tenancy.
The body cameras will be turned on at the start of the inspection – when an agent enters the home – with the footage uploaded and stored on a data base.
Ms Crocker added the footage is stored for a short period of time and if no incidents arise during the visit it is then deleted.
She added the majority of tenants viewed the security measure as ‘important’ and were ‘surprised’ the agency had not implemented the policy sooner.
However, the agency received some negative written and verbal responses to the security policy claiming the body cameras violate their privacy.
Ms Crocker said staff are ‘very mindful’ of their tenants privacy but believes the cameras act a deterrent which stops renters from lashing out at staff.
‘If someone was upset, the camera may very well be a visual deterrent to become upset at staff and instead wait until they have left and then perhaps phone with their concerns,’ Ms Crocker said.
‘If walking into a strangers home with a camera on gives that feeling of security, with or without incident, then we are doing our job correctly.’
Corporate Director of OBrien Real Estate in Victoria Darren Hutchins said his team of property managers do not use body cameras but employ other safety measures.
Mr Hutchins explained property managers have a ‘safety app’ on their phone and are advised to take a support person or team member with them if they feel a conflict or issue could arise.
He added incidences between agents and tenants have occurred but are ‘very rare’, claiming when respect is shown to a renter then it is ‘generally given’ to staff.
In relation to body cameras and privacy, there is no general ‘right’ to privacy that is enforceable by legislation in Australia.
There is no legal objection for someone to take a photo or video footage of something that they can capture from where they are standing as long as it is in a public space.
An individual can object to footage provided it was captured in a non-public space including somewhere owned by a person, government department or company.
However, the law becomes more complicated when dealing with property managers who enter a tenants home for the purpose of an inspection.
The property manager, in a legal sense, is an agent for the homeowner and therefore is not viewed as an ordinary member of the public just as the tenant is not viewed as ‘owning’ the space.
- Lettings agents expect the cost of renting to rise sharply in the months ahead
- Demand for rental homes continues to rise while available supply is declining
There is no end in sight for rising rents despite costs reaching record levels, lettings agents have warned.
The latest survey of agents from the Royal Institution of Chartered Surveyors found that tenant demand rose in the three months to July.
Of those surveyed, 54 per cent of agents said they had seen an increase in rents during that period.
It is the strongest quarterly pick-up in rental demand since the beginning of last year.
It follows separate research showing the average cost of rent in England has reached a record £1,367 a month per property.
Simon Rubinsohn, of Rics, described the outlook for the lettings market as ‘concerning’.
He said: ‘Demand shows no signs of letting up, supply remains constrained and that means rents are likely to continue rising sharply despite the cost-of-living crisis.’
As demand continues to rise, the supply of properties available to rent continues to decline.
Rics said the number of landlords instructing agents declined once again, with 30 per cent of agents saying they had seen a decrease, compared to from a decline of 24 per cent the previous month.
And a net balance of 63 per cent of respondents expected rental prices to increase in the next three months.
It is up from 55 per cent in the previous quarter and marks a record high.
Will Ravenhill, a lettings agent in Leicester, said: ‘The rental market is broken. Many buy-to-let landlords are leaving the market.
‘Those that remain who have buy-to-let mortgages are increasing rents to ridiculous levels to adhere to their mortgage covenants.’
Kevin Burt-Gray, a lettings agent in Cambridge, said: ‘Shortage of stock and a surplus of quality tenants is keeping the private rental sector busy, with multiple applications being received on most properties within a few days of them coming on to the open market.’
And David Martindale, a lettings agent in Wakefield, added: ‘There continues to be good demand for rental properties and rents are continuing to rise.’
It follows separate research by Goodlord at the beginning of this month that said rents in England have reached a record high.
It said rents had soared 19 per cent in a month, with prices being pushed up by students seeking accommodation for the new university term.
The fiercely competitive rental market has seen the average cost of rent in England reach £1,367 a month per property.
It is the highest level ever recorded by the index and is 9.4 per cent higher than the previous record set in September last year, at £1,249.
Harriet Scanlan, of Richmond estate agency Antony Roberts, explained: ‘We are still in the thrust of a very strong rental market.
‘At the start of this week we listed three properties for rent – and within two days, we had received multiple offers from prospective tenants on each property.
‘Two of those landlords received well over asking price at best and final offering point.
‘We don’t relish in having to disappoint unsuccessful applicants and understand the difficulties in trying to find a new rental home in this highly-competitive market.’
The Government agency in charge of regulating New Zealand’s 16,000 real estate agents will talk to sector leaders about safety following missing Christchurch real estate agent Yanfei Bao’s disappearance after showing someone through
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When Mitchell and Samantha Erbe decided to leave their two-bedroom apartment in Queens and move out of New York City, they still had a choice to make: where to go.
The two 29-year-olds work remotely for a medical device company and an insurance company. Mitchell grew up in Rochester, and still has family there. They both went to Binghamton University and had friends in the Buffalo Niagara region, where they knew home prices were lower.
“So we thought we’d venture up to Buffalo and give it a shot,” Samantha said.
Finding a house wasn’t easy, though.
It was “slim pickings in terms of what we were looking for,” she said. While they ultimately got a 2,700-square-foot house in East Amherst, with four bedrooms, they had to pay $496,000 to get it – $46,000 over the asking price. They close in mid-August.
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“The price has kind of skyrocketed,” Mitchell said. “You couldn’t even consider putting an offer near asking. You had to be a minimum of 10% to 20% over asking to be competitive.”
The Erbes aren’t alone in their experience with the Western New York housing market, which continues to buck national trends. Across the country, the housing market has cooled, with prices dropping as rising mortgage rates squeeze buyers.
Regis and Rebecca Cleary, with son Benjamin, just signed a contract on a house in Lancaster. They stopped house hunting last year when Benjamin was born, and, says Rebecca, “we were expecting the house prices to be lower, but they weren’t.”
The median sales price nationally has dropped for the last several months. And now the median list price nationwide has declined from the previous year for the first time in at least six years, according to Realtor.com. That means sellers and their brokers are also less optimistic.
But not in Buffalo Niagara, where prices continue to rise, even if the continued shortage of homes for sale has led to a nearly 20% drop in closed sales during the first half of this year, according to data from the Buffalo Niagara Association of Realtors.
“We’re definitely not like other areas of the country,” said Sherry McDonald, an agent with Hunt Real Estate on Grand Island.
“It’s still a cage match,” said Jerry Thompson, broker-owner of Century 21 Gold Standard in East Aurora. “You want to win a house? You better be coming loaded and ready to win it.”
To be sure, there’s fewer offers on each house than there were during the height of the market. But there’s still competition, forcing bidders to put their best foot forward with inflated offers, significant cash and generous terms such as waiving inspections or even appraisals.
“Buyers need to come in with the best of what they’ve got if they want to even be considered,” said Elizabeth Foy, an agent with M.J. Peterson.
A big part of the problem is that homeowners aren’t selling. The number of homes hitting the market during the first half of this year was 12% less than a year ago, tightening an already tight market.
“I know other markets around the country have seen a softening and slow down, but we haven’t seen that yet,” said Neil Gerrity, general manager of WNY Metro Roberts Realty.
Regis and Rebecca Buttaccio Cleary just signed a contract on a four-bedroom house in the Town of Lancaster, with 2,800 square feet. They had started looking last year and were outbid by $60,000 on one house, but took a pause while Rebecca had a baby. When they started looking again in the spring, she said, “we were expecting the house prices to be lower, but they weren’t.”
Instead, the prices seemed to start at the level homes had sold for a year ago. They agreed to pay the asking price of $570,000.
“If we paid a little extra for this house, I’m just glad we’re not dealing with people with cash offers. That was the most frustrating thing,” said Rebecca, 34, a physician assistant at Erie County Medical Center. “I’m still surprised at how high the houses are. I thought for sure last year, the way they were shooting up, I thought they would come down with the interest rates going higher.”
The living room of Regis and Rebecca Cleary’s home in Amherst on Tuesday, July 18, 2023. (Joseph Cooke/Buffalo News)
In fact, the median sales price in Western New York is up 2.3% during the first half of this year, reaching $220,000, according to the Realtors data.
One reason prices have held up, brokers say, is because Western New York has lower prices to begin with. Home prices in the Buffalo Niagara region ranked in the bottom 20% among the nation’s 221 biggest metro areas during the first quarter, according to the National Association of Realtors.
“Our baseline in which we started was not as high as some areas of the country,” Thompson said. “We had a long way to go to get our market up.”
But it has also been driven by continued pressure from competition, and an ongoing influx of cash – both of which show few signs of abating, despite the Federal Reserve’s campaign to rein in the economy by raising interest rates.
Indeed, all-cash offers are still a major factor in the market, and it is not just professional investors. Rather, it is people moving here from much higher-priced cities, where they sold a house and are now flush with more cash than they even need here. Or it is people who sold a house during Covid-19 or even subsequently, but have been renting since then because they’ve been unable to buy so far.
The upstairs nursery room for 8-month-old Benjamin Cleary in home of his parents, Regis and Rebecca Cleary, in Amherst on Tuesday, July 18, 2023.
“It still boggles my mind how much cash is in the market,” Thompson said. “Money’s just worth less. There’s more of it out there, it seems.”
Heated competition continues
There is also still a severe shortage of homes for sale, with just under 1,600 homes on the market last month, according to BNAR. That’s a 10% drop from a year ago, and represents 1.8 months of sales at the current pace –well below a balanced market of six months. And while sellers listed 1,419 new homes, that was 17% less than June 2022.
So, with a short supply of inventory, many houses still get more than one offer. Some get quite a few more. T.J. Miller of Howard Hanna Real Estate Services cited one 847-square-foot house on Campbell Boulevard in Amherst that was listed for $237,000, and drew 53 offers before selling for “well over $300,000.” “We’re still in a robust seller’s market,” M.J. Peterson agent Susan Lenahan said.
Renee Moran, broker-owner of Red Door Real Estate, said her firm tells clients to bid at least $30,000 over asking “to have a chance to win,” but has also clients lose with bids of $50,000 over. “This market is hot,” she said.
Little effect from interest rates
Greg D’Angelo and his girlfriend, Lori Urbanczyk, are seeking to buy their first house together for themselves, although he owns several rental houses. They’re looking for a double on the West Side, between Richmond and Delaware avenues, so they can have rental income to supplement their mortgage payments. But they have come up short, despite bidding $50,000 to $70,000 over asking on two properties – one of which sold for a $122,000 premium.
“There seem to be a lot of big buyers out there that have a lot of cash to offer,” D’Angelo said. “It takes the wind out of your sail, believing that you can actually get something you love, and instead you probably have to compromise a little in what you’re looking for so you can have a chance to actually win a house.” To be sure, higher mortgage rates – now 7.5% on a 30-year fixed-rate loan – have taken some buyers out of the market and added hundreds of dollars to a buyer’s monthly payment.
The living room of Regis and Rebecca Cleary’s home in Amherst on Tuesday, July 18, 2023.
“Affordability has had an impact, but it seems like the market is still hot,” Red Door agent Francis Fernando said. “I think it’s wiped out a certain segment of people, where affordability is very important. They’re looking for a certain dollar amount, and they need to finance. Where it hasn’t slowed down is for the people who have significantly more cash.”
As a result, the homes that sold during the first half went for an average of 3.2% above their most-recent asking price, though that’s down from a 6.6% average premium a year ago, according to BNAR statistics.
“Interest rates are surprisingly not fazing them,” said Nick Corto, an agent with Hunt.
Reach Jonathan D. Epstein at (716) 849-4478 or jepstein@buffnews.com.
When Musa Maalim moved to Mombasa from Nairobi for work, he was excited about the prospect of living in the historic and tourist city.
His first task was to find a decent rental house for his family.
“Being new, I called my cousin to help me find a temporary house while I settled down. We searched for a whole week, but all the houses I looked at did not meet my requirements,” says Maalim.
An agent he worked with charged him Sh500 for every house he looked at, whether he liked it or not.
“If you ask me, it was a waste of my time and money. The agent I worked with made easy money without prioritising the client. To this day, I doubt whether the houses we saw were legitimate,” adds Maalim.
And Susan Wambui knows the pain of house hunting all too well.
She did not pay a viewing fee, but she had to pay half the rent to the agent before she could move into her new rental.
“I found a house in the Majengo area where the rent was Sh20,000. It was in good condition and when I shared the photos of the house with my husband, he advised us to pay before anyone else moves in.
“But I was shocked when I visited the agent’s office and they informed me that I had to pay a Sh10,000 commission, which was non-refundable. When I asked around, I was told that this is the norm here in Mombasa. It cost us Sh50,000 for two months’ deposit and this agent’s fee. Daylight robbery,” claims Wambui.
Many house hunters in Mombasa and other parts of the country share Maalim’s and Wambui’s concerns.
House hunting is a gruelling and frustrating activity, especially in a new environment.
According to Buxton Tenants Secretary-General John Tsuma, those most affected in such scenarios are those who move to Mombasa from other big cities.
“There is lack of awareness about the area you are moving to and people tend to seek help from estate agents to get a good house in a good location.
“But they are in for a shock because what some of these so-called estate agents are doing is extortion. If a client likes the house, the agent should settle his fee with the landlord or owner of the house, not double-dipping from both sides by charging a viewing fee to the tenant,” says Tsuma.
The same goes for those who book hotels, apartments or villas directly.
In Mombasa, agents are making good money by acting as intermediaries between property owners and guests looking to book temporary or holiday accommodation.
Eric Omtere, a real estate agent and businessman, says the business is his main source of income.
According to him, he works depending on the targets set by the apartments or villas and earns a minimum of Sh10,000 per client who are both local and international tourists.
The more clients he gets, the more money he makes.
“In a month, I get no less than 20 clients who book through me,” says Omtere.
This means that if he gets four to five clients in a day and charges a minimum of Sh10,000, he earns Sh50,000.
Martin Kariuki, head of sales and marketing at Gulf Cap Real Estate, notes that upfront payment is not a legal requirement and such arrangements are made on a willing buyer, willing seller basis.
“There is a need for buyers to know and understand how the process works. We have come across situations where a tenant cheats an agent and vice versa. These are situations that force agents to charge these fees that are not guided by the law,” he says.
He adds that the real estate sector is governed by the Real Estate Agents Act, which establishes a body responsible for registering real estate agents and regulating their activities.
Under Section 2 of the Act, a person shall be treated as a practising estate agent if he or a partnership of which he is a member, receives payments for acts done by way of practice as an estate agent by him, or by a partner of his, or by an employee of his or of the partnership or by any person acting on his behalf.
The Act further states that the ‘payment’ shall not include payment limited to the reimbursement of expenses or payment of salary by an employer to an employee.
Under the Estate Agents Act, a person who may practise as an estate agent is the one doing, in connection with the selling, mortgaging, charging, letting or management of any house, shop or other building.
“Bringing together, or taking steps to bring together a prospective vendor, lessor or lender and a prospective purchaser, lessee or borrower or one who is negotiating the terms of sale, mortgage, charge or letting as an intermediary between or on behalf of either of the principals,” the Act states.
But the law appears to have done little to curb fraud in the sector.
Unregistered companies and rogue individuals, says Kariuki, take advantage of Kenyans’ ignorance of the law and property matters.
“There are many unscrupulous agents who are not registered. Tenants have found themselves paying ‘find us’ and ‘viewing’ fees, which are not well regulated.
“Legal fees are binding on a registered agent and a property owner. But many landlords are afraid to entrust their investment to estate agents and end up using the services of individuals who are not professionals and are not registered,” he says.
Observations made by the Nation revealed that location, good facilities and discounts offered in the apartments or villas are among the key concerns checked when customers want to make bookings.
The process of booking hotels, apartments or villas through an agent is different from booking directly.
Vanessa Atieno says she prefers to book directly rather than through an agent.
“It is actually more expensive to book through agents compared to asking for a discount from the apartments or hotels themselves,” she says.