A client with an imminent return from the States to the UK was the driver for this search, which the clients had conducted alone in advance of an introduction to Garrington. As a result a number of properties had been viewed and Harrogate was the town of focus.
A potential property was put forward in a sought after location, on the market for £895,000 in South Harrogate – deemed their ideal location. The property required building work to bring it up to standard but the extent of works, their associated cost and scope to add value was unknown and it was at this stage the client instructed Garrington to research the property’s potential and secure it on their behalf.
Garrington swiftly arranged to view the property, spending considerable time evaluating the extent of renovation and re-configuration work necessary to meet the client’s exact requirements. This also involved a thorough evaluation of present and future values in the event that the client decided to sell the property in the short, medium or long-term.
Work required was extensive and the consultant’s experience in property development enabled them to help the client to understand the size of the project they were about to undertake. In addition to the immediate development needs further investigation was undertaken for the future development of an orangery, which would improve the flow of the internal space.
Preliminary ideas were put forward for further consideration. Input was also sought from an appointed surveyor and architect to advise on the structural and planning requirements of the project.
Negotiation: Compiling an accurate assessment of current market value involved the reported due diligence of the building and all associated works, its central location (being walking distance of the town centre), internal space and character. The comprehensive comparable property report was the basis for a discussion regarding a suitable negotiation. After careful consideration the client decided to proceed with an offer.
Garrington established that the property had been on the open market for over 12 months and had previously attracted three potential purchasers. Originally on the market for £950,000 the price had subsequently been reduced to £895,000.
As a result of the consultant’s relationship with the sales agent it was also established that three other offers were currently on the table, one at the asking price from a purchaser with a property to sell and the other two were from purchasers with over 70% cash who had both offered below asking price. Further research led to the conclusion that these bids were in the region of £825,000 to £850,000.
The client was keen to secure the property and so an offer of £875,000 was submitted along with a request to remove the property from the market.
After a period of deliberation the vendor made a counter offer stating that removal from the market required an asking price offer. Garrington responded with a suggested compromise where the property would remain on the market, viewings could take place but the vendor agreed not to entertain any further offers. Terms were agreed and the transaction completed without issue.
Value delivered: The clients fed back, post completion, that had they not called on Garrington’s experience, knowledge and understanding they would not have taken the transaction further than their initial viewing, concluding the project too complex to formulate a realistic offer in the short time scale that the sales agents wished to conclude proceedings.
Negotiations on pre-sourced properties rely heavily on a consultant’s ability to quickly evaluate a project and provide best advice and guidance to clients as well as working closely with appointed professional advisors and the sales agents. As a result Garrington were not only able to secure a property which, once adapted, perfectly fitted a clients brief but also achieve a £20,000 saving with a quick exchange and subsequent completion.