Buying a repossessed property
Discussion
Repossessed residential properties - I have a few questions:
1. Who buys them? BTL landlords, cash buyers looking to turn a quick profit?
2. Why do they typically sell for less than 'market value' (i.e. indexed value from the original purchase price) . By this I mean relative to a comparable property type in the same location. Discounts can be up to 30%+ in cases. Banks have an obligation to get a fair value for the customer so I don't think it's the result of a quick sale. I know some go to auction but the majority are sold via estate agents. Properties being trashed, or in the case of BTL properties are they just generally poorly maintained and so the discount relative to their expected value is high?
3. Discounts are generally higher in the North and are higher for flats than houses. Why? Less demand from buyers in the North? Flats more likely to be BTL and thus in poorer condition?
Sorry loads of questions - I've searched but can't find much discussion on here or elsewhere.
Thanks
1. Who buys them? BTL landlords, cash buyers looking to turn a quick profit?
2. Why do they typically sell for less than 'market value' (i.e. indexed value from the original purchase price) . By this I mean relative to a comparable property type in the same location. Discounts can be up to 30%+ in cases. Banks have an obligation to get a fair value for the customer so I don't think it's the result of a quick sale. I know some go to auction but the majority are sold via estate agents. Properties being trashed, or in the case of BTL properties are they just generally poorly maintained and so the discount relative to their expected value is high?
3. Discounts are generally higher in the North and are higher for flats than houses. Why? Less demand from buyers in the North? Flats more likely to be BTL and thus in poorer condition?
Sorry loads of questions - I've searched but can't find much discussion on here or elsewhere.
Thanks
Gassing Station | Finance | Top of Page | What's New | My Stuff