In March 2021, 23% of homes were sold within a week of being advertised – outlining a record shortage in housing.
Here are some updated methods on how to get a property below market value (BMV).
Check if the Property Needs Work Done
A property survey can unveil if work needs to be done to a property.
This could provide you with an opportunity to take the cost of this work away from the asking price.
It is important that you have an idea of how much the additional work will cost. You don’t want to negotiate £3000 off because of damp and then you find out after buying that it will cost you £10,000 to fix.
Don’t be in a Property Chain
There might be a situation where the seller needs to sell their property before they can finance the purchase of another one. This may incentivise them to accept an offer BMV.
If you are in a chain, you may find the seller unwilling to accept your offer because of the risk associated with a chain. Alternatively, a seller may be willing to accept a lower offer if you are chain-free, as there is less risk of the sale falling through or stalling.
Find Properties that are Completely Empty
An empty house cannot and does not generate any income. However costs like mortgage bills, utility bills, council tax and general maintenance still must be paid. That means an empty house is one an owner will want to get rid of as fast as possible, leaving negotiation room for any bidder.
Properties that have been on the Market for the Longest
If a property has been on the market for a long period of time there is a chance that the buyer has become a desperate seller. Low demand is always a tell-tale sign that you can put in a BMV offer.
Even in 2021, there are properties on Zoopla and Rightmove that have been on sale since 2020! So this is still a process that applies in today’s market.
Never Offer the Asking Price & Negotiate
This one is a simple but effective way to get a property BMV. Always offer lower than the asking price!
Have you ever asked for something cheeky then been surprised when it’s actually granted?
When you have identified reasons for why a property should be cheaper, make sure you follow it up with a “cheeky offer” (even if there are no reasons why the property should be cheaper … still put in an offer lower than the asking price!)