Puchase and Sale Flashcards
Land @ Yew Tree Fairfield
Why did you recommend formal tender over auction?
Property had already been marketed once before and fallen through, risk that many buyers were put off by this, therefore with formal tender, buyers were unaware of the level of interest, and may be more inclined to give their best price for the risk of losing it all together.
if there werent many bidders on day of sale price wouldnt run up the same as if buyers were giving best offer.
Land @ Yew Tree Fairfield
How did formal tender meet your clients objectives more so than auction?
Helped maximise the value as much as possible, where as if auction were to take place, and only one buyer in the room the auction was be at the hammer price.
Land @ Yew Tree Fairfield
What was your recommended market value to achieve?
The land had hope value given its size & location in a built up-suburb area, but lay in green belt and pre-app enquiries had not given positive back back. I had valued it at £50,000 subject to the overage.
Land @ Yew Tree Fairfield
What was the achieved sale price?
£61,000
Land @ Yew Tree Fairfield
What overage terms did you recommend & why?
25% on any development on any uplift in value for 30 years. 25% means still profitable for a potential investor, and a long enough time frame that my clients or their precessors are likely to benefit from it.
Land @ Eardington
Can you talk us through what external factors also weighed into your advice on the second offer requiring a loan to meet the offer made?
Yes, not only were they not a cash buyer, which meant they would have to raise either equity from their house, or against the land which would take time and may even be rejected.
They had not provided proof of funds (i.e mortgage in principle or cash deposit) made them appear untrustworthy and unserious compared to the other party.
Lack of proof of a solicitor/
Land @ Eardington
What implications would an increased time to complete have on your client’s objectives being met?
My clients were keen to complete as soon as possible, the offer that required a loan did not help to meet those objectives
What sort of complications could arise from needing a loan?
-Mortgage company requiring additional searches (time & may throw up something unfavourable)
-Mortgage company refusing & buyer being left with no finance options
- Mortgage company may not deem value to be what buyer paid for it
How did this weigh into the advice you gave?
This was important as it meant that the buyer was a more risky buyer generally
How did you add value to your Client achieving their objectives in this project?
By creating a fixed tender deadline, this allowed my client to work within time frames and understand the process.
It also meant buyers submitted their best offers.
Sale of Upton House Farm
Can you talk us through the advice you gave us to sale strategy?
I provided advice as to the method of sale - I advised that given the high value and uniqueness of the property, private treaty was the best method of sale, because it didn’t place unncessary time pressures and constraints on the sale.given the value of the propoerty it was likely that buyers may need to raise complex mortgages which would take time that auction/formal tender didnt account for.
Explain a factor which has impact upon sale value/ sale terms, from your experience.
Location is one of the biggest factors on value from my experience, as well as a properties potential for future development.
Explain an example of when you have provided marketing/sale strategy to a client.
UHF
- Marketing advice i.e method of sale, lotting or not lotting
- Advertisements, in differnet property portals etc
Land at Sugarloaf Lane
What was the agreed method of disposal for the property?
Private Treaty
Land at Sugarloaf Lane
What was the market value for the subject property?
£85,000
