Q My house has been on the market since April. At the start there were quite a few viewings but that has slowed to a trickle. On the advice of the agent (they were very persistent about this) we dropped the price by 5 per cent last month – we are reluctant to drop it any further.
We did all the right things when we chose this agent: interviewed three and went with the one that offered the best service. Now, though, we think we should change agent as we are not convinced they are doing much for us.
How do we go about this? What fees are we liable for? Do we have to pay them before we change or can it wait until the house is actually sold (we are low on cash)? I get the impression even in Dublin that all the agents know each other, so would we be viewed badly by a new agent?
AA number of answers to your questions will be contained within the Property Services Regulatory Authority (PSRA) letter of engagement that both you and your agent signed when you instructed them to sell your property in April. Under the Property Services (Regulation) Act 2011, all agents are required to issue a letter of engagement in the form specified by the PSRA. The agreement between you and your agent will include:
1. The duration of the agency
2. The procedure for termination of the agency
3. The agreed marketing costs
4. The complaints procedure in the event of a dispute.
If your existing agent has incurred costs on your behalf such as newspaper advertisements, web listings, etc, it would be standard procedure that you will have to reimburse them for such costs. This will be covered in the PSRA agreement.
While many agents do know each other I would suggest that as it is a very competitive industry, you will not be viewed badly by another agent; they will happily take on your business and will have little or no sympathy for your existing agent.
Before you do this, I would suggest you ask to meet with your existing agent. Tell them you are unhappy with progress, that you have reduced the original asking price by 5 per cent but that this has yielded very little.
I would also suggest that your agent needs to set out clearly the justification for the original asking price together with the basis for the current price. The property price register will outline the sales in your area since your property went on the market, so prior to the meeting with the existing agent you should ask them to brief you on sales that have taken place locally and the impact they have on your property.
You should also ask for detailed and honest feedback on the reaction of those who have viewed your property. You noted that there were quite a few viewings at the beginning of the marketing campaign, but what has happened to these potential purchasers? Have they purchased and if so, what and for what price?
Many agents have experienced a changed market in the first few months of this year in comparison with the last few months of 2014.
The new Central Bank lending rules together with the expiry of the capital gains tax incentive to purchase on December 31st has had a dampening effect on the market, and it may well be that your previous and current asking price are out of line with the current market.
The property market is still very buoyant but it is important you quote the right price in order to bring about a successful sale.
John O’Sullivan is a Chartered Residential Surveyor and a member of the Society of Chartered Surveyors Ireland, scsi.ie
Planning issues
QWhat if a property is not adhering to some of the conditions attached to planning permission when it was given? Can a review of an existing permission be sought after it has been granted?
A Planning permissions normally have several conditions attached to them. It is important developments comply with all conditions. If they do not, they are unauthorised. If someone suspects an unauthorised development has been carried out, they are entitled to write a complaint to the relevant planning authority setting out the nature of the unauthorised development, which can include breach of planning conditions.
As long as the unauthorised development is not deemed to be of a trivial nature, the planning authority is obliged to write a warning letter to the person responsible within six weeks.
Among other items, the warning letter will: ask the developer to respond to the allegation; state the authority may enter the land for the purpose of inspection; state an enforcement notice may be issued; and give an explanation of the penalties that will incur if the situation is not remedied.
After the letter has been issued and if the unauthorised development does not cease, the planning authority can, within 12 weeks of issuing the original warning letter, decide to issue an enforcement notice.
This will outline the steps that need to be taken to rectify the situation. After an enforcement notice has been served – or as an alternative to an enforcement notice – the planning authority can also apply to the courts for an injunction to stop the unauthorised development. This tends to happen in cases where there is a more serious breach of planning.
Interestingly, any person can seek an injunction via the courts to cease an unauthorised development or to ensure conformity with conditions to which the permission is subject.
However, the potential cost, stress and uncertainty associated with this course of action mean it is not a decision to be taken lightly.
Andrew O’Gorman is a Chartered Building Surveyor and a member of the Society of Chartered Surveyors Ireland, scsi.ie
Period houses
Q I recently inherited a period property and am undertaking some essential repairs and extensions. Should I hire a project manager to oversee the work? Would it bring value to the project?
AI am assuming for the purpose of advising you (with limited information) that the property is a protected structure under part IV of the Planning Act 2000 and you have little or no experience of dealing with essential repairs, maintenance and building extensions to these types of buildings.
A chartered project manager would normally assume overall responsibility to deliver a project of an agreed scope of work of a given specification within the constraints of your budget and timescale that will deliver the beneficial change you require. In the case of a period building it is also important to take into account that the work is unique to the building, and the quality of the work is influenced by the requirement to make sure that international standards of best practice in undertaking works to historic buildings are met.
The project manager and his/her team will take account of a number of other stakeholders with an interest in the building, particularly if it is a protected structure and/or recorded monument, such as the county conservation/heritage officer, and county archaeologist.
Building technologies and materials changed significantly in the early part of the 20th century. This is important because buildings that predate this period are generally built with “flexible” materials that can expand and contract with changes in their environment and deal with water without the use of waterproof/damp-proof courses etc. Your period building almost certainly predates the early 20th century and would be constructed of traditional materials using traditional techniques eg stone and lime mortar, natural slates, etc.
Modern buildings of concrete, glass and steel are generally inflexible and deal with water differently eg the use of damp-proof membranes, etc. The inappropriate use of modern materials and technologies (which are ‘rigid’ and prevent water getting into the fabric) in an old building, however well-intentioned, can produce serious stresses/incompatibilities into the fabric and lead to long-term problems.
A project manager will understand that while a building has an economic use, it has a future. The challenge will be to achieve a balance that protects the historic fabric while allowing the building to continue to have an economic use. This will ensure the building will move on in to a new stage of its history which may extend back hundreds of years and have involved multiple changes to its fabric under numerous different owners.
The project manager will, at the earliest possible opportunity, ensure the advice of an accredited conservation professional is sought. This may involve a simple consultation or involve the conservation professional being part of the design team for the complete project. Period buildings may or may not be protected structures but in all cases they do require specialist input.
In essence a chartered project manager will bring value to your project by ensuring that your project of an agreed scope of work is delivered on time within the agreed budget and will meet the quality and legislative standards required.
David Humphreys is a Chartered Building Surveyor, a Chartered Project Manager and a member of the Society of Chartered Surveyors Ireland, www.scsi.ie
