January sales have been and gone, however, we are tempted by sales, promotions and discounts all year round and often they are not as good as they initially seem. Property can also fall within this same sentiment.
Perhaps you have been thinking of buying a property from a family member or your landlord at a discounted price, there are several things to take note of if you are considering this option. Firstly, you should think whether you want to buy the property because you like it or simply because of the potential discount? If the answer is the latter, you should consider the future. Are you going to be happy to stay in the property for some time? Would you be able to move to another property in the future? These are important questions to ask yourself as you are unlikely to stay in a property if you are not happy with it and it does not tick all your boxes.
Secondly, you need to consider, if you bought the property, how would you deal with any issues that arise? Imagine purchasing the property from a family member and within a few weeks of owning the property, the boiler breaks, the shower leaks or you discover damp in the property. If you bought the property in a usual sale this would be your responsibility, and in this scenario, it should still be your responsibility, however hostility may arise if more and more problems occur.
Finally, and possibly most importantly, it is common that the family member or landlord who is selling the property will value the home at a higher figure than it is realistically worth. This is something that we see on a regular basis, often the valuer will value property at a lower figure than has been stated. You need to consider would they sell the property for the value they have suggested on the open market and how much of a discount are you getting in real terms?
If this is something you are contemplating, I would highly recommend you speak with an independent mortgage advisor in order to research and discuss all options.
Jenny Ennis Cert CII (MP)
3rd February 2020