Many Vendors will also state that they think the
property is worth an amount over market value so
what looks like a 25% below market value deal, actually
turns out to be only a 10% discount. It
is rather upsetting and a waste of money if the
Surveyor
values the property at less than you want and this
part can make or break a deal.
It
is important to check that the property will value
to the amount you want and that you can get the
rental required to cover all the outgoings and put
some extra in your pocket.
It
is highly recommended that you check what other
similar properties in the same street or local area
are on the market for. This can easily be done via
internet sales sites and also Estate Agents local
to the area.
You
also need to check what local properties actually
sold for as there will be a difference in the figures
with the actual sale price being lower than the
market price.
It
may also be helpful to check house price trends
to see whether an area is on the up or down and
whether there is an approximate percentage difference
between market prices and sold prices.
If
you purchase a package or READY
MADE DEAL, the due diligence should have been
done and the figures will most likely be supplied
to you.
You must however, do your own DUE DILIGENCE to ensure
the figures quoted are correct.
Most READY
MADE DEAL providers are reputable and will not
intentionally miss lead but it is not unknown for
the back end valuation to be inflated to make the
deal stack. What looks like a 25% BMV deal may actually
turn out not to be.
DUE
DILIGENCE - You COULD AND SHOULD –
- Check
with Agents in the relevant area by telephoning
them and asking their opinions
