What is the science behind an offer price?Make Text Bigger
I am very new to the whole property investment market and I have been researching two areas for investment property (flats) at the moment in Slough and Ilford.
I have made a few offers, unfortunately my bid usually just falls through. I wonder if my offers are too low or investors see something that I fail to see. I guess what I am after is some guidance on how to work out a offer price?
I have tried to use the per square meter average price for the area along valuation reports from mouse price, I usually look up the demand for rental in the area as well. The figure usually comes a lot lower than the guide price, even after factoring a 5-10% premium for infrastructure, transport links or regeneration projects. I can’t quite quantify raising the offer to battle the kind of bidding wars that happen towards the end.
So what is the secret sauce for working out the offer prices on investment properties?
Any tips and pointers would be greatly appreciated.
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