Buying a House Below Market Value
Discussion
spydersingh said:
How easy is it to do this? Is the age old technique of getting in with an estate agent and providing a "finders fee?" Or is it a case of Estate Agent vs Surveyor Valuation?
Depends what you mean by below "market value"! The market value of a property is the price at which a willing seller sells and a willing buyer buys. Therefore if a house is marketed properly it will always sell at market value. The price it actually sels for may be higher or lower than others expect, but that doesn't mean it hasn't sold for market value.It may be possible to buy at below "market value", but unless there is a specific reason for the transaction, usually a transfer between members of the same family etc, then it is likely that someone somewhere has been involved in a fraud. You do occasionally hear tales of Estate Agents selling houses to friends or indeed themselves at low prices, but if they are caught it is not going to do their career a lot of good!
spydersingh said:
How easy is it to do this? Is the age old technique of getting in with an estate agent and providing a "finders fee?" Or is it a case of Estate Agent vs Surveyor Valuation?
It's easy enough currently because there aren't as many buyers around. At the top end of the market where landlord competition is less likely, it's much easier, just a matter of spotting one really, basing "BMV" on what research you can do, including using the property price portals. The lower end is harder because all the landlords and portfolio builders, not to mention sourcers will be sniffing around there.Engaging a "sourcer" yourself is another way, which is no different from doing the same to get a good car.
And don't forget auctions, because armed with research, and a bit of luck, you can still get decent stuff there, tho many regular auction attenders would say that auction sales are strengthening again so the competition is lowering your chances.
Chrisgr31 said:
You do occasionally hear tales of Estate Agents selling houses to friends or indeed themselves at low prices, but if they are caught it is not going to do their career a lot of good!
There was certainly one on Warrington (Stockton Heath) caught on a TV programme doing that a few years ago, I think mainly preying on old people who didn't realise how much their property had increased in value.spydersingh said:
How easy is it to do this? Is the age old technique of getting in with an estate agent and providing a "finders fee?" Or is it a case of Estate Agent vs Surveyor Valuation?
What house are you buying and why would it be below market value? Is it on the market already? If the taxman thinks it is something dodgy..........Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff