Hannover Posted February 20, 2009 Share Posted February 20, 2009 We are an investment company looking to acquire residential property in the above areas, we will consider most things but we are buying for rental income so this will limit the offers we can make. We can help you achieve a very quick sale but pricing must be realistic in the current market conditions. Please get in touch if you have anything you would like to sell quickly. Link to comment Share on other sites More sharing options...
dongle Posted February 20, 2009 Share Posted February 20, 2009 so you will be looking to offer way below current market prices? Link to comment Share on other sites More sharing options...
Hannover Posted February 20, 2009 Author Share Posted February 20, 2009 Generally yes, as values are falling quickly we need to price in further falls from todays values. In most cases we would suggest a discount of 25 - 30% from the RICS valuation we will carry out before a purchase. Link to comment Share on other sites More sharing options...
tracknicko Posted February 20, 2009 Share Posted February 20, 2009 a valuation that the potential vendor pays for, which is non-refundable? playing devil's advocate here... you come to my house (worth £100k for arguments sake) value it yourselves for £80k ( i pay for the valuation... then you offer me £50k. hmmm, and if i say no, you still charge me the £500 quid or so for the valuation - which is no doubt refundable if i let you buy my house for 50% of true market value? Link to comment Share on other sites More sharing options...
dongle Posted February 20, 2009 Share Posted February 20, 2009 the majority of people able to sell at those sort of prices would be people who have virtually paid of there mortgages which usally will be the older generation, why woould somebody choose to sell to a company like yours and not put there property on the market at a fair price Link to comment Share on other sites More sharing options...
Hannover Posted February 20, 2009 Author Share Posted February 20, 2009 No it would not work like that, we would assess the property for our purposes, then we would negotiate with you to find a price level we were both comfortable with, this would normally be 25 - 30% less than the INDEPENDANT valuation which we would pay for (having first got your agreement that you would accept a figure of a % below this). So lets say we think the property could be valued at 100K, you agree to accept 75k (25% less) ,we pay for the independent RICS valuation, hopefully it comes in at £100k and then we pay you £75k, however in some cases it may be down valued, lets say he says £90k - we would still want the 25% reduction so we would pay £67.5k. (However we would also agree with you a lower limit, e.g. if the valuer said £80k we could have pre-agreed with you that we would not expect you to sell if the valuation came in below say £85k. The point for us is that we buy a minimum of 25% below whatever the valuation says. Link to comment Share on other sites More sharing options...
Hannover Posted February 20, 2009 Author Share Posted February 20, 2009 Because there are very few buyers out there, and less mortgage funding, it can be better than being repossessed, I accept that some peoples mortgages will be larger than then price we can offer - but not in all cases. Also there are many reasons why someone would want to sell. Another point is, although it may look cheap today in a year it may be that we paid too much. We have bought stock on this basis as recently as October at 25% below valuation, today it is only fair value at best. This is OK for us as we are in it for the long term. Link to comment Share on other sites More sharing options...
eckingtonboy Posted February 20, 2009 Share Posted February 20, 2009 So You would pay the valuation but the person have the valuation done would be under no obligation to proceed and nothing signed etc before hand? Link to comment Share on other sites More sharing options...
dongle Posted February 20, 2009 Share Posted February 20, 2009 no you have to sign an agreement before the valuation saying you will accept an offer of 25% below valuation, no doubt if you dont accept you pay the fees Link to comment Share on other sites More sharing options...
eckingtonboy Posted February 20, 2009 Share Posted February 20, 2009 (edited) *****gone****** Edited February 20, 2009 by eckingtonboy Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now