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Buying to invest...

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  • Buying to invest...

    My property has been on the market for almost three weeks, we have had one viewing so far and another arranged today. Both are investors, buying to let out. This is good of course as they aren't in a chain and don't have something to sell.
    As I am new to the whole selling scene I wonder do investors tend to try to knock the price down considerably ? more than an average buyer ? also the last people (five of them) were in and out so quickly I wondered if they were either wasting our time, or had seen so many properties, they did say they knew the houses/ area, that they just were glancing to make sure it was okay ? they didn't ask any questions while they looked around. Though one said 'we'll be in touch with the agent'.

    We priced our property very reasonably hoping for a quick sale, we we're advised between £135k- £145k by the agent we put the property on the market at £139,950.00. I really don't intend to let it go for much less than this !

  • #2
    Re: Buying to invest...

    Investors, developers, buy to let will try to get it a lower price. They have the advantage that they are not buying as a home for themselves so they generally won't be upset if they don't get it - their view is there will always be another property. However, if it is in move in condition, a good area and priced competitively then you have good leverage in looking for a better price. Remember, you can refuse any offer and it is up to your agent to negotiate to get the best outcome.

    As for viewing quickly, don't worry that is normal for these types of buyers. They tend to be just looking at general condition and for any major works that might be needed - replacing bathrooms, kitchens, etc. Depends on their experience really.

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    • #3
      Re: Buying to invest...

      Scarlet, you *are* very impatient!

      And property investors will try and get around 20% off market value if they can. It's worth hanging on to see what response you get from general public, but be aware that if there is little, it may be the case that the agency has over-valued your property in the first place. Don't take a value suggestion from a property investor, though, as they are looking at the profits they can make at your expense!

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      • #4
        Re: Buying to invest...

        LOL, yes I know I am ! I have actually been approached by a neighbour,who is new here,her friend is interested, so fingers crossed. I think it is because I have seen and made an offer on the house I really want. yes, I'm impatient !!

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        • #5
          Re: Buying to invest...

          developers always look for the location, and there probability of selling it at higher rate, before selling your house think to your self, have you renovated to the max you possibly can, because developers will always look to re-do it, if they've come to your house it show's there intrest in the price, and will look to sell it at a higher rate, if you believe this property is a gold mine, they will not leave until the property is theres ;D

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          • #6
            Re: Buying to invest...

            Hi all,

            I just joined this forum so the timing of Scarletts post is apposite.

            I can openly admit to being an investor. It is not my day job but I believe I operate professionally and with due regard to the sellers needs and situation. There is a lot of mystery regarding what investors are, and are not. This leads in some circumstances to a degree of either mistrust or at the least a level of reticence to even make contact simply 'because they might talk me into something'.

            Buying property is an expensive game and so must never be taken lightly. Selling is also a potentially very stressful time for owners so it is important that an owner feels comfortable with the individual they are doing business with. I therefore endeavour at all times to be a 'problem solver'. The myriad problems that come with selling a property, investors come across regularly and so I can take a great deal of the hassle out of selling. A one stop shop so to speak. There are two reasons for this:

            1. Ethical business is the only way to go. Trust is key when operating with such an important part of a person or a families life.
            2. It pays dividends - pounds shillings and pence. Reputation is everything.

            Do we ask for discounts - yes. We buy at a discount because:

            1. It hedges against future losses in value.
            2. It assists us in obtaining suitable finance.
            3. It is critical to allow multiple future exit strategies.
            4. It is an investment and that requires profit, now and in the future. We are not a charity.

            Why would someone offer such a discount and how much?

            It is infinitely variable but the minimum I am aware of is about 15% but usually more. Certain sellers will find this level of discount acceptable and they are people who really really need a quick sale NOW. It is not predatory and the FSA have already taken steps to regulate this industry eg licencing of sale and rent back. Sometimes people need to sell quick and they are glad that there are investors out there who will take their property off their hands.

            If anyone would like to ask anything about how investors operate, please feel free to either post here or email me. Only too happy to chat.

            There is a blog I operate that may help lift the veil on selling property via investors. I cannot post the link as I haven't made 20 posts yet but if anyone is interested please email me.

            Selling to an investor is not appropriate if you want full value for your property. It can be appropriate if selling quickly is a priority and you don't want any associated costs.

            Investors usually pay your legal fees, survey fees etc and can even provide assistance with associated financial problems eg links to debt management organisations. Reposessions for example can be a stressful and heartbreaking time. Good and timely advice is crucial.

            So there we go. I hope this clarifies a little.

            Happy selling.

            Robin Ferrier
            Last edited by Robin Ferrier; 14-11-2010, 01:53 PM. Reason: already deleted my own links

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            • #7
              Re: Buying to invest...

              If you are about to take off for the world of buy to let property, as being a landlord then knowing your position regarding buy to let property insurance is often a good idea. If you have renters in your property then this risks to the home and to the owners of the house themselves are very different to the people of an owner occupied property.

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