43.06% Below Market Value – Instant Equity!

by Mark Alexander

17:49 PM, 4th March 2013
About 8 years ago

43.06% Below Market Value – Instant Equity!

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43.06% Below Market Value – Instant Equity!

Below Market Value Instant EquityCan you believe these were real headlines in an email that landed in my inbox this weekend? Well my spam folder actually! ….. soon to be renamed my scam folder HAHAHA

How can people be so stupid to fall for scams like this?

OK, so I’m on another one of my rants, feel free to join in by posting a comment below.

First off, since when has valuing a property been such a precise science?

Second, how are these firms STILL getting away with such ridiculous claims? This time last year the Trading Standards Office won a case against PropertySsecrets in Nottingham for running a very similar advert using phrases like “Below Market Value” and “Instant Equity” – see >>> http://www.asa.org.uk/Rulings/Adjudications/2012/3/Property-Secrets-Ltd/SHP_ADJ_182530.aspx

The market value is what a person is prepared to pay. Now I accept that bargains can be had where people need to make a quick sale but even if these deals check out a bargain is just that, a bargain. Forget all this BMV Below Market Value, Instant Equity BS. It’s all just a con in my opinion and the Adbvertising Standards Agency obviously support my views on this. My advice to anybody thinking of investing into property is to avoid people using these terms like the plague!

What is Below Market Value?

Prove to me that very similar properties have sold within the last 3 to 6 months, within a quarter mile radius, for a lot more money and you might have discovered a bargain. However, I’m always going to treat such finds with extreme caution and do a fair bit of digging into why the property I’m being offered hasn’t sold for the same price as others. If I can satisfy myself with logic and the property seems to be a good investment then fair enough, it may well be a bargain.

However, the firm who sent me the ridiculous email this weekend were also saying, “call today to make a reservation, these properties will be sold by Monday!”

Yeah right, like I’m really going to get my credit card out and fork out a £3,995 + VAT reservation fee to a firm I’ve never heard of which has just sent me an unsolicited email and without doing any further due diligence???

The really worrying thing is that people must do it, otherwise I wouldn’t keep getting this type of email.

People who fall for this stuff really need a check up from the neck up don’t you think?

RANT OVER!



Comments

Neil Patterson

18:06 PM, 4th March 2013
About 8 years ago

The problem is that people want to believe in get rich quick schemes as it is human nature.
If you have no experience in the property or related markets you could be an easy target.
Property is an extremely mature market meaning it is almost completely controlled by the rules of Supply and Demand with I accept a few exceptions such as regulation and government schemes. A property is only worth what people are prepared to pay for it at the time. Some people may be negotiated down because of time constraints, but if you could sell a property for more you would do.
You can find property selling at good prices in Auctions, but that is because unless you are a cash purchaser it is more costly to do so hence demand is lower and price decreases.
All No Money Down schemes I have seen involve non-disclosure to lenders and hence mortgage fraud. Do not get trapped!

3:03 AM, 5th March 2013
About 8 years ago

Most people can only pay for a property with a mortgage they can achieve along with a deposit.
Presently this is not enough.
They may be prepared to pay more but can't.
So it has nothing normally to do with supply and demand; it is down to the level of credit available...............................which presently is pretty restricted.................unlikely to change for at least the next 10 years.
Cash buyers will be kings; the rest of us will be stuck on the side-lines!!


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