fineslice property blog

Sourcing Property Through Estate Agents

2009-02-18T12:04:00.000-08:00

The following is an extract from our ebook which comes out in the next few weeks:

The 20 Best Ways To Source Cheap Property

Estate agents should be at the top of anyone’s list that is looking to buy a property. Draw up a list of all the agents in your local area or the area you are planning to invest in and go and visit them.

I believe first impressions last so enter the estate agency confidently. Introduce yourself as a “Professional Property Investor” and ask for someone who deals directly with investors. The reasoning behind this is to speak to an agent who actually has that local knowledge you can tap into. The phrase “Speak to the engine not the oil cloth” comes to mind here.

Talk to them about what you are you looking for. Are you looking for a property to fix up that needs some minor cosmetic upgrade? Are you looking for a property in a certain area of the town? Do you want a property that has already had the work done it and all you have to do is get the keys you are ready to move in? What price range can you afford?

One of the phrases I use is “Mr Agent, If I brought you a property today, to sell today, what would it be, where would it be and how much could you sell it for?” In that way you can gain a good idea of house price values, types of properties that may sell easier as well as areas to buy in and to avoid.

Once you have decided on a strategy that works, be specific about your personal requirements. This will make it easier for agents to identify the right properties for you to look at. Remember that 100 people before you have watched Home under the Hammer or Property Ladder and walked into an agent asking for a deal. How can you show your professionalism?

Push the agents for people who need to sell rather than the people that want to sell? Always ask probing questions: “Do you have any multi-agented properties, any probates, any vendors who are on the phone after every viewing to request a progress report, any vendors who may be facing repossession etc? Let the agents know that you can be the solution to these people’s challenges.

In conclusion I would also say that building and maintaining a good relationship with agents is critical to the success of sourcing good deals. View properties with them on a regular basis, maintain contact with the agent after the viewings and stay in contact consistently. You also need to offer to show that you are a “Professional Property Investor” and serious about buying. By doing the above you can be sure to be the first person an agent calls when a gem of a deal comes through.

Meeting our role models

2009-02-04T07:48:00.000-08:00

On Friday and Saturday we attended the Wealth Intelligence Academy annual conference. What a great event it was with many great speakers. We both had an awesome time and got to meet a lot of good contacts. As well as that we got to meet two inspring people that we both admire. Below are photos of us and Duncan Bannatyne and James Caan!

Great time to sell.

2009-01-29T01:23:00.000-08:00

We have had a good start to the year and are very much looking forward to a rewarding 12 months. Next week we should be completing on a sale that will net us £12 000 on a house that we have never owned. Yes we are selling in this climate!
This is part of our capital generating strategy. This particular deal was sourced at about 30% below the bank valuation and sold to a couple for full market value with a cash back to cover their deposit. What made this deal attractive for them was that the house was on the open market for £110 000 and were buying it for around £90 000.
The house was inherited by six children a few months ago they decided to put it on the market, under the estate agents misguidance, at £114 000. This was a ridiculous price as it only valued at £90 000. The big mistake that the agent made was that they didn't know that the house was of concrete construction. It still boggles my mind that they can get away with calling it a valuation when it is actually a listing guide price. Let's not go into that now. The fact that the house was of concrete construction put us in a great position to negotiate. Under normal circumstance it would be quite difficult to get a vendor down from £114 000 to £63 000. What also worked in our favour was that, because of the high listing price, there was no interest in the property from day one. The vendors were keen to sell quickly, but were a bit greedy and fell for the estate agents sales pitch.
When we were contacted through our own marketing the house had been on for a number of months, had no viewings and the price had been dropped. So by now the owners were keen to sell. We initially offered them £68 000, which was declined because they apparently had a buyer for £72 000. Well, we played their bluff and came out smiling. They didn't have a buyer and we new it. So when they phoned back 4 weeks later to say they would accept £68 000 we said we couldn't give them that as we were tied up in another deal, prices had dropped further and finance was increasingly hard to get hold of. BUT, at £63 000 we might be able to help!!!
We got an 'option to purchase' contract signed for £63 000 which would last six weeks and went to find a buyer. We paid £350 for the option which would come off the purchase price if we exercised the option.
It has taken a little bit of time and effort to get this deal through, but for about £11 000 in 10 weeks and about 12 hours spent on the deal it is easy money.
TOP TIP: The discount is in the terms and not the price. Solve a problem and get the discount. Too many people put in offers based on what they want IE: 25% discount and don't find out what the best solution for the seller is

No. 1

2009-01-27T04:06:00.000-08:00

Welcome to Fineslice Ltd property blog. We hope to share our challenges, resources and achievements through this blog.
Fill in your details below to be kept up to date: