Sam Cooke

It’s not that we’ve got anything to hide

Shopping is usually pretty straightforward. You decide you need a thing, find a place that sells that thing, decide if it looks affordable to you and if it does you buy it.

It’s fairly stress free as processes go, some people even enjoy it.

If you get the thing home and realise it doesn’t actually enrich your life in the way you thought it would the law even allows you to just take it back.

There are some specific industries that choose make it a little bit less straightforward though.

I’ve not bought tons of kitchens in my life, but I find it a hateful process. The last time I did I got prices from three shops that varied from £8,000 to £32,000 for broadly the same thing. When I rang the £32,000 people up to try to make sense of the difference, it was my great fortune to discover that they were, for a very limited time and only for very special customers, offering 60% off. Bringing the price down to £12,800. How very lucky I was to have called them that day. I explained to them that this was great news but that it was still 50% more than the cost of the lowest price I’d had. They muttered something about soft-close hinges and promptly reduced the price to £9,000. I hung up the phone unimpressed. The £9000 seemed OK and soft-close hinges are fancy, but I had no confidence that I was getting a fair deal, it felt like they set their prices purely by how ruthless a negotiator the customer was. I couldn’t help but imagine a certain type of buyer, my mum for example, only getting one quote, being pleased with a 10% discount and paying £20,000 more than they could have. I ended up buying my kitchen from Ikea. Not because I liked their kitchens, but because their pricing was honest and transparent. Everything has a specific price and everyone pays the same. It’s fair. When I told the kitchen salespeople from the other shops this was my decision they warned me that my new Ikea kitchen was so cheaply made it would probably explode within the first year. I decided to take the risk.

New kitchens aren’t the only product that works like this; double glazing is another, some classic car dealers list their stock as ‘Price on application’ then attempt to judge the size of the customer’s wallet over the phone, and, of course, there’s estate agents (you knew that was where I was heading, I expect). At estate agency school they teach you how to handle what they call a ‘fee enquiry’. The knack is, they say, to convert the enquiry to a valuation visit without actually quoting a fee. Like kitchens, there are certain differences between what different estate agents do so the idea of booking a valuation is so the agent can present their services to the customer so they can decide if they like what you do for your proposed fee, as well as the fee itself. Fair enough to a point, but the whole thing can still feel a bit murky and uncomfortable to some people. People like me.

When we first opened Cooke Curtis & Co we talked about publishing our standard selling fees. Why not? Surely there were people out there like me that would appreciate the transparency. The fear is always that if our competitors know what we charge they’ll automatically just undercut us a bit. But so what? Volkswagen’s published prices are higher than Dacia’s and it doesn’t stop people buying Volkswagens. If people can see extra value in something they don’t mind paying a fair price for it, so why don’t estate agents just state our fees explicitly? We’re not a kitchen shop, we don’t do questionable 60% off sales, we charge a fair fee. One we can make a living from without overcharging people’s mums because we can get away with it. A bit more than some agents and a bit less than others. Despite all this logic though, we still don’t actually do it. Nowhere on our website will you find our sales fee quoted. We feel hamstrung by the convention, I suppose.

When I started typing this piece it was going to end with me telling you what we usually charge. As I approach that sentence now I still have an odd reluctance to do so, but here goes:

My name is Sam and my usual sole agency fee is 1% of the sale price of your house plus VAT.

There, I said it. Pow! Take that industry conventions. I’m a renegade. A disruptor. The Ikea of estate agency but without the yellow polo shirts. Though it seems I still can’t bring myself to stop using little qualifiers like ‘standard’ and ‘usual’.

Sam Cooke

It’s not as good as doing it properly

We’ve not had significant numbers of new builds in and near Cambridge for decades, so part exchange has been a rare option, then when the thousands of new Trumpington properties first came they were all selling so well that builders had no need to offer such incentives.


But times are changing, interest rates have risen and buy-to-let has been made less appealing for small landlords with tax changes. Most critically the number of new builds has rocketed and so buyers have more choice and builders are increasingly turning to part exchange to boost sales.


Just like with a car, PXing your house is appealingly simple. It takes away the uncertainties of having a chain and means you just sign a piece of paper and turn up for the keys when the new house is finished. This, of course, doesn’t come for free. It costs builders thousands in stamp duty and estate agent fees and just as importantly they are taking a risk in doing PX as your house may not sell quickly or for what they think it will. Ideally they’d build in a margin of tens of thousands to cover all that but, just like cars, they know that most owners won’t take that low an offer. This means they build all the costs into the profit margin on the new build. What you’ll never know when you PX is what sort of discount you might have got if you didn’t. If you walk through their door ready to go you’re loads more appealing than someone with a PX so that tens-of-thousands risk the builders take with them could easily come as a discount on the price for you. Maybe even more. But do you care? So long as you’re happy with what you get for your house and what you’re paying for the new one, part exchange can make life much easier and that’s worth something.


PX is quite an extreme move for builders and they usually only offer it as a last resort. What they often offer instead is something they appealingly call an ‘Assisted Move’. With this the builder doesn’t buy your house but they agree to reserve the new build for you if they can take charge of your sale. This has two benefits to you – they pay the estate agency fees and because the new build is reserved to you there is no risk of losing it. It has big benefits for the builder over PX – they don’t have to pay the stamp duty and other costs of buying your house and they don’t have the risk of losing money on the resale price. It seems like a good compromise. But our experience is that it’s the absolute worst of both worlds.


I’ll elaborate.


National house builders don’t understand local second-hand markets. They don’t have the time to look in detail at each PX property so they appoint a national intermediary to do it for them. But these intermediaries aren’t able to understand the intricacies of local markets any better than builders. They often charge estate agents a fee, meaning they just appoint those prepared to pay for business rather than making a judgment on who would be best placed to sell a property. Worse still, they often instruct three agents at once, which is the kiss of death in Cambridge. Nothing looks worse than a property that’s so difficult to sell that it needs 3 agents. The theory is that these intermediaries take away some of the work from a seller, but in reality what they take away is all of the control.


When we work with our clients it’s a collaborative effort. We agree the best photos, agree the marketing campaign, agree when and how to do the viewings. We take great care to optimise everything. We analyse buyers to decide if they’re any good, analyse their offer to see if we think we can do better by waiting. We don’t rush to take the first offer just to get the file off our desk. We discuss everything with the owner to do the best possible job.


Intermediaries generally don’t discuss, they dictate. The price, the launch date, which agents they use. It’s their way or the highway. We’ve even had them cancel promising viewings to accept an offer lower than the asking price. No amount of frustrated discussion would convince them to wait one more day. They didn’t care about getting another £10,000 they just wanted it done.


My advice therefore is that when a builder is trying to convince you to sign on the dotted line you either go for a full part exchange, knowing you probably aren’t getting a great deal but accepting that it’s worth it for the ease. Or that you go away, sell your house properly and then make them an offer. I am certain that assisted moves usually end up costing the house seller more money than they save in estate agency fees. By a long way.

Sam Cooke

It’s been rubbish

An estate agent's photoshop, yesterday

The summer weather, I mean.


In particular those with school-age children will know. Pretty much from the day they broke up until the day they went back it was cold, rainy and sad. We had a decent June and early July but the whole of August was disappointing. Luckily I went on a sunny holiday to a house in the Andalusian mountains that we borrowed off a friend in exchange for promising to keep half an eye on their daughter during her 3 year art degree at ARU. Nice deal for us I’d say. I think they’re over-estimating how much supervision a 20 year old student will want. It was great. 10 days of perfect sunshine, the only variable was where between 32 and 36 degrees the temperature would be by 2pm. An ideal holiday climate for sure, but actually I think I’d soon get bored of that sort of weather day in day out, I really like the changing of the seasons.


As does the housing market. #cleversegue


It follows exactly the same straightforward pattern each year, but, snubbing Vivaldi and pizzerias everywhere, it follows three seasons rather than four, basically in line with our holiday periods. December is always quieter and we panic that the market will never come back, but by late-January we’re run off our feet and wishing we’d relaxed and enjoyed the quieter time. Good Friday weekend, which customers often think will be busy, is really quiet for viewings, then as soon as the Easter break is over it gets hectic again. Same again from August into September. The best analysis I can give is that this is driven by simple distraction – there’s too much happening during holiday periods many people to think about moving.


There’s an accepted wisdom that spring is the best time to sell a house and that’s sort of true – the post-Easter surge is usually the surgiest of the surges, but actually that can be bad as well as good. A surge in buyers is good, but a surge in sellers means more competition. If you’re buying on then more houses for sale is good, as you have more choice once you’re sold, but if you are just selling then it actually can make sense to market your house at a quieter time when there is little else available. Buyers do get a bit distracted over the holidays but not completely, they do keep looking, and if your house is the only one of its type for sale they’ll buy it. Anecdotally I’d say the ratio of active buyers to active sellers is pretty consistent through the year.


Some agents have an obsession with houses being photographed with blue skies, to the point that they add in perfect blue skies on otherwise dull, or even rainy pictures. It’s just not necessary. A good photo on a grey day is miles better than a botched photoshop that leaves buyers wondering what else the agent is faking.


That said, for certain types of house it is worth waiting until the better weather comes round. If you’re in a picture-perfect cottage down a winding country lane next to the village duck pond, it could be worth hanging on, but with period terrace with an open fireplace in the city centre the winter is just as good as the summer, or any other time.


Truth is, there are just so many variables that it’s impossible to be sure of the optimum time to sell, so our advice is to just do it when you feel ready. Don’t rush it or hold off because you think the market will improve or worsen, do what suits you and your timescales.

Sam Cooke

It’s falling

Animated logo

If you pay any attention to the local housing market (and I reckon you do) you’ve more than likely noticed that stuff isn’t selling like it was a couple of years ago.


Where once I could guarantee a For Sale board round here wouldn’t last two weeks it’s now not unusual to see more price reductions in Rightmove’s daily emails than new listings. Prices are clearly on the slide. It’s impossible to argue otherwise.


But prices aren’t actually on the slide.


Except they are.


But they aren’t.


(They are).


I’ll explain.


When estate agents value a property we look at various things to gauge where we think the price should sit, the most important one being comparable evidence. We look at what similar properties have been selling at recently and how they compare to the subject property. If one a bit smaller sold at £380,000 and one a bit bigger at £420,000 then it’s pretty straight forward to work out that £400,000 will probably be about right. Easy peasy lemon squeezy. But what if the last two sold nine months ago? What then? Well that’s pimps too, the market’s been going up around 8% or so for the last 7 years, so you add a bit for that elapsed 9 months, maybe 6%, and ask £425,000. Lovely job.


And for the last six-and-a-half years that’s worked a treat.


But now it doesn’t.


If something was £400,000 nine months ago and you ask £425,000 now it’s highly likely you won’t sell it. Until you reduce the price to £400,000.

But when you do it will fly out. It might even sneak up to £410,000 in the process.


Reduce the price £25,000 and the house will sell. So prices have dropped then?


Yep. ASKING prices have indeed dropped. But actual prices, selling prices, probably haven’t. You see, that house never really was £425,000, it was always £400,000, we just got it wrong by assuming a rise that wasn’t there. It’s taken us a few months to accept it fully, but now we do and everything’s back on track again.


At the time I write this, of the 10 most recent properties we’ve agreed sales on, 7 were at the asking price and 3 were a bit over, just like the old days. Of those 7 three had been reduced in price but all three were older listings, from before we’d fully grasped this brave new post-referendum, post-stamp-duty-hike world. To put it bluntly, those listings that were overpriced at the off. I don’t necessarily make any apologies for that, we always do our best to get things right and we were simply applying the same formula that had worked brilliantly since before Kate and Wills got married.


They were happier times, weren’t they? The early 2010s. A lovely royal wedding. People running and jumping and throwing stuff in London. A French bike race starting in Cambridge. Life was splendid. And now what? A level housing market. That’s no good at all, is it? Unless you’re a buyer…

Your request for a booking has been submitted, we will be in touch with further details!

Your request for a booking has failed, please try again.

Book a valuation

Your request for a viewing has been submitted, we will be in touch with further details!

Your request for a viewing has failed, please try again.

Request a viewing

Your details have been submitted to our team and you'll be added to the list shortly.

Your request to join the mailing list has failed, please try again.

Join our mailing list