SMF - Just Installed!

Cutting off my nose?

Started by Drummerboy, April 25, 2015, 09:05:40 PM

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Drummerboy

I have found a great little rental property round the corner from another I own. A modern 2 up2 down town house that I know will rent quickly. The guy selling bought last month and due to a change in circumstances needs to sell it. He wants back what he paid for it and is totally unwilling to accept anything less. Even at his bottom line- the sums look good when looking at mortgage vs rental income and I know it will rent quickly as its a tidy house with nothing to do. My question is- am I cutting my nose off to spite my face by not wanting to give him what he paid for it just last month? As I say- the figures stack up at the price he wants but I just don't feel right paying it and feel it's perhaps just slightly (a few thousand) too much. Thoughts please...........

Hippogriff

Does the Vendor's change in circumstances imply any pressure to sell, or is it a relaxed situation? It's a game of chicken, as it always is. Do try to remember that even if it's sold at the price paid money will still be lost by the Vendor. I'd probably try to turn the screw a little bit. I'd want to know if the Vendor commissioned a Home Buyer Report I could see, to maybe avoid doing my own... if Searches were conducted I could simplify and reduce the cost of Conveyancing, maybe. I'd always remain willing to walk (and have done so).

Drummerboy

He's splitting with his wife and the property was bought as a BTL investment just last month. The point on surveys is a good one and I could ask about homebuyers report although as the house is relatively new I wouldn't have bothered with one myself. I do know he has installed new windows at a cost of £1000. My instinct to get a bargain feels like it's clouding my business sense although the price the vendor wants is right at the top of my budget. As I  say-  the deposit/mortgage to rental returns are still good.

Hippogriff

Never be worried about a property deal falling-through... except maybe the dream house you're going to live in. Have you made an offer lower than the Vendor wants at the moment? Or have you just been told that the Vendor will only accept £x? I mean, isn't that what everyone says?

I'd be waiting until after the election, though, myself.  :-X