Purchase & Sale Level 3 Flashcards
What was your first example?
Private Hospital, Peterborough
What was your method of disposal? and Why?
Private Hospital, Peterborough
Informal Tender - most appropriate in creating competitive tension and satisfy by clients objective of maximising the highest possible sales price. The client was under no pressure to sell and therefore a better option than an auction.
What’s informal tender? What are the advantages and disadvantages?
Private Hospital, Peterborough
Method used when the agent anticipates a goof level of interest for the property and calls for best bids.
A:
Flexible - vendor has right not to sell
Can use multiple rounds of bidding to create competitive tension
Allows for negotiations
Can pick your buyer
D:
No guaranteed sale
What did you advise your client?
Private Hospital, Peterborough
I advised my client to use NDAs to keep the process confidential. The rational behind this is that it allows us to bring more serious parties into the first round bidding stage and also important due to the nature of the asset. If info got out it was selling it may panic patients and staff.
I also advised on the method of sale of informal tender. The rationale behind this advice was to help achieve my clients objectives of maximising the sales price. I believe informal tender was most appropriate to do this in this scenario to allow a second round of bidding after negotiations to create competitive tension.
Were bids received in line with clients expectations?
Private Hospital, Peterborough
No - market wasn’t very strong at the time - a lot of uncertainty following mini budget and repricing was happening so investors sitting on their hands
Client wasn’t under pressure to sell - wanted to maximise value so it was advised to pause the process and relaunch in improved market conditions.
What was your fee basis agreed in TOE?
Private Hospital, Peterborough
Sole agent with sole selling rights. Money will be payable if contracts exchanged in a period where the rights exist eve if the purchaser was not found by the agent. Fee also due after period if property sold to someone that the agent introduced
Describe the property
Private Hospital, Peterborough
purpose built in 2004
orthopedic hospital
two Storey
large car park
5 consulting rooms, 1 x ray room 1 operating theatre
Describe the location
Private Hospital, Peterborough
conveniently situated in Peterborough within easy reach of a number of key road junctions
10 minute drive from Peterborough station
What was your second example?
Project Bud
Project Bud - 5 care homes in the north east
What was your method of disposal? and Why?
Project Bud
Provides good flexibility and control over the process as there is no obligation for the client to accept the highest or any bid
Describe the location
Project Bud
Located in various locations across the north east including north shields and Scarborough
Describe the asset quality
Project Bud
Relatively modern purpose built - with 100% en-suite provision
What was your advice to the client?
Project Bud
I advised my client to go with a 3rd party designer to help market the portfolio with a premium feel. Through spending a bit extra on marketing costs, it can have a good impact on investor interest helping us to build competitive tension throughout the marketing period.
What was your fee basis agreed in TOE?
Project Bud
Sole agent with sole selling rights. Money will be payable if contracts exchanged in a period where the rights exist eve if the purchaser was not found by the agent. Fee also due after period if property sold to someone that the agent introduced
