Tuesday, 10 May 2016

Why Do You Always Quote The Asking Price Not Market Value?

I'm often asked by Landlords & Investors why I always quote the asking price on the properties featured on this blog rather than basing the returns on the Market Value for the property

There's a couple of reasons for this

Firstly, given the properties featured aren't being sold by Belvoir, I'm basing my recommendations purely on the estate agents blurb and marketing photos, never having visited the properties in 99% of cases (if we have managed it I'll say so and inevitably will be able to supply more detail)

Secondly, to do detailed research into each property prior to each blog post will simply be too time consuming - that said if anyone is genuinely interested and calls me to discuss I will happily put some time aside to do more in-depth analysis (I just couldn't do so for every property)

More often than not the properties I feature are new listings, rather than those that have been sitting around for a while, which suggests the vendors may be looking for the asking price (or close to it) than if the property had been on the market for some time

The price will be determined by interest in the property, something I have no control over

Finally, I have no idea whether you are a Super Hard Nosed Negotiator able to secure a cracking double digit discount or alternatively you may be a wallflower who doesn't want to make a fuss by haggling!

When I'm looking at a property to see if it stacks up, I'm generally looking for 6.5% Gross Yield or above, so if it works based on a conservative rental figure and the asking price, you should expect a better return based on the fair assumption that you'd be able to chip away at the price a little

Hope that helps! If you are genuinely interested in a property do get in touch by emailing neil.whitfield@belvoirlettings.com or calling 0191 567 8577 and I'll gladly talk you though it in more detail and give my thoughts on what the true market value really is

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