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longgone

cheap ???

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There's quite a bit to do even before moving in. It looks like the carpets have gone. Perhaps that's a good thing.

The 'Offers In Excess Of' annoys me.

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2 minutes ago, MattW said:

.

The 'Offers In Excess Of' annoys me.

It basically says they're not really selling it for that price after all. It would put me off.

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4 minutes ago, Si1 said:

It basically says they're not really selling it for that price after all. It would put me off.

I wonder what would happen if a potential buyer put in a firm and final offer with the EA say £5k or £10k below the asking price? Would the EA still have a legal duty to inform the vendor?

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12 minutes ago, MattW said:

I wonder what would happen if a potential buyer put in a firm and final offer with the EA say £5k or £10k below the asking price? Would the EA still have a legal duty to inform the vendor?

All offers are required to be put forward by the agent to the vendor unless the EA has it I  writing from the vendor not to do so.

I know of that area but not what things are going for. Tbh if they've ripped out the carpets away that's one less thing for you to do and then one less thing to be disposed of. 

Might be worth a cheeky offer and let it sit with the vendors for a while. If there's no other interest then they may capitulate. After all, winter is coming. 

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I dont know that area at all so wouldnt know if it is good value or not. However, the property does look like a repo, if it is the valuation is probably fair ir cheap in this market. 

If the property is repossessed, you really want it ( not just snatching in desperation for a bargain) you feel the listed price is good fair value, and you can comfortably service the debt even if rates tick up,  I would personally make an offer close to the list price. If the house is in the banks possession they may take slightly less than they wanted, just to get it off their hands, while a very cheeky offer is likely to be dismissed out of hand and they will auction it off instead.

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14 minutes ago, nothernsoul said:

I dont know that area at all so wouldnt know if it is good value or not. However, the property does look like a repo, if it is the valuation is probably fair ir cheap in this market. 

If the property is repossessed, you really want it ( not just snatching in desperation for a bargain) you feel the listed price is good fair value, and you can comfortably service the debt even if rates tick up,  I would personally make an offer close to the list price. If the house is in the banks possession they may take slightly less than they wanted, just to get it off their hands, while a very cheeky offer is likely to be dismissed out of hand and they will auction it off instead.

i don`t know the area either but past sales are 100k more . it was more a post about worrying if these fookers are going to try and force hyperinflation , savings could be vapourised .

where to stick the cash 

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I have found a new way to estimate the fair value

https://www.landc.co.uk/calculators/how-much-rent-should-i-charge-calculator/

Enter the post code and find out what rent range the property can achieve. 

Monthly rent  X 12 / 5.5 %/ 145% gives you the 75% of the property value.  Once you get the 75% of the property value extrapolate it to 100% to estimate the fair value.

The above formulae is derived from the PRA underwriting rules. By and large most lenders would follow this to determine the property value.

 

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2 hours ago, hi5lo5 said:

I have found a new way to estimate the fair value

https://www.landc.co.uk/calculators/how-much-rent-should-i-charge-calculator/

Enter the post code and find out what rent range the property can achieve. 

Monthly rent  X 12 / 5.5 %/ 145% gives you the 75% of the property value.  Once you get the 75% of the property value extrapolate it to 100% to estimate the fair value.

The above formulae is derived from the PRA underwriting rules. By and large most lenders would follow this to determine the property value.

 

Interesting, how are the 5.5%, 145% and 75% values derived?

TIA

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1 hour ago, cognitive dissonance said:

Interesting, how are the 5.5%, 145% and 75% values derived?

TIA

That's the PRA affordability and income criteria test for BTL lending .

The theory is annual rent should cover 145% of payment, stress tested on 5.5% Interest rate.

Any BTL needs 25% down payment and 75% LTV.  That's the maximum a BTLer can borrow which is a fair value.

 

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Did nobody notice the glaring issues with this property?

 

have a closer look at images 11 and 4

 

Carpets, Kitchen and Bathroom is pretty standard stuff but id pass on a potential subsidence issue!!

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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