How to find a property bargain in a high market value area, despite rising prices. This can apply to any area.
I was talking to one of my landlords the other day, when he explained there were no property bargains for him to buy in Huntingdon. He actually thought that a property deal could not be found at the top end of a rising market. However, with a bit of persistence, it IS possible. Research is key. Here, we discuss Huntingdon, but these observations can apply to any area.
When most people are selling a house, they want to get as much money for it as they possibly can. However, some people are selling for other reasons, and money is not always their chief objective. So it is a question of looking carefully and finding those bargains. One example is you might have spotted a house you particularly like, and it might have been on the market for several months or longer. That begs the question, why isn’t it selling? When you find out why it isn’t selling and if it’s an issue you are comfortable with, you could potentially negotiate a discount. Most of the issues that prevent a house from selling are either related to location or a structural fault or something within the property. Some people will not buy a house because they have heard someone has died there. Others because there are too many cats there. Among the non-silly reasons are Japanese knotweed in the garden. Whilst some people will avoid Japanese knotweed at all costs, others will just get on with the job of eradicating it.
Here is what I noticed recently about finding bargains that I had discovered over the last few months.
A 5-bed detached house on the Stukeley Meadows estate sold in 2010 for £220,000. In March 2012, it sold again for £187,000, a drop in value of 15%! A 3-bed terraced house on the Oxmoor Estate sold for £89,000 in February 2013. When new, it sold for £110,000 in 2009, these are excellent value properties.
Finally, one of those nice detached houses, opposite the hospital on Snowdonia Way, sold for £360,000 in 2015. Considering property values are much of those being achieved in 2015, some lucky person picked up a bargain in February 2016, when it sold again for £325,000. Ten percent down on the 2015 price!
So despite UK house prices currently being at the top end of a rising market, bargains can be had, if you know where to look!