I’ve just come back from fresh training that has opened my eyes to the new possibilities in the housing market for 2014 using a revolutionary new property sales and purchase model developed in Australia and the US but that came to the UK only more recently.
The point is that to sell your home on the High Street involves a singular approach. An Estate Agent puts a property for sale (against the competition from other Estate Agents) and if it doesn’t sell, the price is reduced. In fact this doesn’t bring in many more buyers to view your property. It just fuels competition for a downward spiral.
Look at the illustrative chart below and let us assume that a buyer needs a £25K mortgage deposit for your property priced at £100K. Reducing the price by £10K to £90K means the mortgage buyer still needs £22.5K deposit and this brings in only perhaps 5% more of the interested market in your property, which still moves slowly:
Are you in, or do you know someone in this position of having a slow moving property for sale? If so, get in touch with me, or ask them to get in touch with me, for I may be able to help.
In fact, lowering the price just means property prices on your street fall. Tight mortgage company conditions over the past five years have ensured this.
In extremis, vendors will sell at 70% – 75% market value. It is always said that 2% of the wealthiest individuals hold 80% of the funds. If you are willing to sell at 75% for an instant sale please contact me also for I have access to a database of cash-rich investor buyers in the current market who will put their money on the table and will approve properties very quickly on these terms.
Because such a small percentage of people have this amount of cash buying power, prices offered tend to be low.
But I have also just returned from my induction to become an agent for the largest rent-to-sell scheme in the UK, which, in principle can open up terms that suit the largest percentage of buyers, by making the threshold to entry on easy terms.
Think of it as a lease on a house that is like leasing a car. You pay for the car over a pre-arranged term then at the end of the term you can pay it off and own the car. The buyer can afford a better quality of car than if he or she had to dig into deep pockets to pay for the car on day one. This method is also more direct than haggling with the bank for hard-to-obtain funds.
Likewise, this is an easy way for many more home buyers to get into ownership and it has been given approval by the housing minister.
The scheme is regulated by the Property Ombudsman.
So if you are interested in putting your property onto this scheme or indeed, buying this way then please give me an exploratory call on 01792 463257.
Mike
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