Why do you say the property was undervalued and not just priced to reflect the condition when you bought it?
And boomers wonder why millennials are bitter towards them..
- Thread starter Scam
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Why do you say the property was undervalued and not just priced to reflect the condition when you bought it?
Newlish built house, chap had passed away, family getting rid, light work needed, gardens go wild without attention
That isn't answering the question.
He has a nice property and you don't get nice properties in Cornwall for £100k
Undervalued for sure.
Undoubtedly he's had to put work into the garden, but you don't typically get a 50% discount for an overgrown garden.
He has a nice property and you don't get nice properties in Cornwall for £100k
Undervalued for sure.
Undoubtedly he's had to put work into the garden, but you don't typically get a 50% discount for an overgrown garden.
I'm suggesting people don't generally sell properties at a discount at all. They sell them at a price the market will stand based, amongst other things, on their overall condition.
Well all @moon man has to do is tell us the value of other similar properties where he lives.
If his was £100k and all the others are £200K+, then surely his was undervalued, for the sake of an overgrown garden.
He already said the building was in fairly good nick?
But you are kind of making my point for me. You can't rely on a strategy of picking up a property "on the cheap", when most people will take their time with any sale and make sure they get market value.
So saying to somebody, "Come to Cornwall and buy a (nice) house for £100k," like moon_man has done, isn't really very normal or repeatable for everyone.
Well OK maybe 350k (similar properties) but I have had a long walk to Perranporth and am a bit tired so may let this debate run without me, I do think I can repeat it though with the. Next House, driving 20 minutes for a. Surf can be tiresome, so front line coastal would. Be quite nice
Generally they don't - that doesn't mean they never do though, especially if they want a quick sale.
There are companies out there that will actively buy houses off people looking for a quick sale - (assuming the company is actually genuine, plenty of scams out there) the seller is likely going to get a reduced offer relative to if they'd marketed via an estate agent.
Likewise when a bank repossesses a property they don't sit around waiting for Foxtons to show around multiple potential buyers etc.. they take it to an auction house and get what they can in a quick sale.
Essentially someone wanting a quick and easy sale can be motivated to compromise on price.
I'm aware that these things happen but not at a 50% discount and often in circumstances where people are financially vulnerable.
Also any bank selling properties for "what they can in a quick sale", instead the best price reasonably obtainable, is looking to get themselves sued.
Best price reaosnably obtainable is pretty vague... AFAIK they generally just go to auction because it is quick and easy - have any been sued for doing that rather than say using an estate agent and waiting longer for a sale?
Soldato
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There are some real bargains to be had with probate properties. I do a fair amount of work on them for a corporate client that is involved in equity release. The families generally just want to get the money ASAP, the properties are often run down as are the gardens. If you are looking for a fixer upper you can get a great deal.
Best price reasonably obtainable is defined by the courts. In the High Court case of Aodhcon LLP v Bridgeco Ltd it was held:
- the mortgagee has an equitable duty to take reasonable care to sell for the best price reasonable obtainable at the date of exchange of contracts
- this requires an informed judgment and there are no prescribed steps which the mortgagee must take generally, it is for the mortgagee to decide on the manner of the sale after having taken expert advice
- the property should be properly advertised, i.e. sufficiently frequently and widely to reach the appropriate pool of prospective purchasers
- the mortgagee is entitled to decide the length of marketing time, subject to the requirement that it is properly advertised
- the mortgagee is not obliged to improve the property for sale. However, he is obliged to advise prospective purchasers of achievable potential
- there is an acceptance that repossession can adversely impact the sale price
- the mortgagee will not have breached his duty unless he is “plainly on the wrong side of the line”
- the fact that a higher price might have been obtained does not mean the mortgagee has breached his duty
- the burden of proving a breach rests on the mortgagor.
More than a 50% discount in this case
Sure...
They're run down hence why they're "bargains".
I take it you don't believe that he bought it for £100k or you don't believe the similar properties near him are £300k or you don't believe that only the garden and the outbuildings were a bit run down?
So essentially you're saying he probably bought a wreck.. but that's not what he told us in this thread.
I'm saying that if he bought a property for one third of its value then it's such a rare occurance that suggesting other people hunt around and wait for these bargains is to send them on a fool's errand.
In which case yes, I agree completely! It's not an answer to the problem for sure.
Will some people be able to do it? Seems that way. Will many people find an absolutely bargain? Hells, no.
But the advice consistently given in this thread is to "be exceptional or get very lucky".
Either work 2+ jobs, develop a skill that pays way above average wage, move to the other side of the country, or just get lucky
I'm surprised nobody has said winning the lottery is a good way to get on the property ladder The whole point of using the auctions is to get a quick sale... it's all a bit academic to talk about their requirements to get the best price... it seems like a box ticking exercise really - if someone absolutely wanted to get the best price for a property they'd market the **** out of it and go with an agent - try to get multiple offers down to sealed bids. Chucking it in an auction as banks tend to do doesn't likely get the best price.
You can auction a propery and market it fully beforehand, including advertising and viewings.
Of course you can, point still stands though - they use auctions to get a quick sale, this doesn't necessarily get the best price... it likely results in a sub optimal price for them, I don't doubt that they make sure they're legally covered by making sure the marketing box is ticked etc..
They don't have to get the highest price possible.
Say the absolute best price of a property was £200k. If the mortgagee puts it in an auction with advertising, marketing etc. and gets £190k there isn't going to be any issue. If they slap the property in an auction to get shot of it quick, and only get £150k, they might have questions to answer.