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When they first took out their mortgage
they had put down a substantial deposit and so had been able to get a
great mortgage, however this year because the amount between what they
own and what they owe is much smaller and because they have lost so much,
lenders were not keen to give them another mortgage.
They have literally
lost £30,000 of their own money,
you can't imagine how devastated they must have been at this news.
In years to come, it will of course recover which is why property has
always been a sound investment.
But with house prices rising they should have been looking to the future
making money on their house, not trying to make it back.
Whilst this is an extreme case, even a
smaller loss of £10,000 to £20,000 can have a devastating affect on a
family, particularly in cases where they haven't just lost their money,
but the banks money as well (this is known as negative equity, where you
owe more than the house is worth). Unfortunately these are not isolated incidents, we come across this a lot.
When
making an offer, it is not just a case of walking in and throwing a
figure on the table, which
is usually how most buyers do it. The offer must be well thought
out and researched, you need to know what other comparable properties
both on that street and in the local area are selling for. You
need to know the vendors position, how long the house has been on the
market, how it compares condition wise to the other houses, that you are
in a position to make an offer and can guarantee reaching completion
(many people think they are, but are often ill prepared).
All these elements are then presented to
the agent, you are providing them with a justified offer and confidence
that it will actually go through to completion. Doing it this way
your offer will receive more serious attention and is more likely to be
accepted.
If your offer is accepted, you then have to live
up to the promises you have made.
Finding properties below market value is what we specialise in.
By the time we come to make an offer, even with new agents we will have
taken time to build up a solid relationship over a period of weeks,
sometimes months and years, especially where we are making multiple
purchases. Personality plays a large part, agents love to work with us
because they know we deliver and it means they are not having to chase
buyers for results,
this really does save our clients thousands. |
