Pricing a Property Nobody Else Wants

Condition, title problems and the discount complexity earns

The discount on a distressed property is the market paying you to absorb uncertainty, fund work, carry risk and solve problems, and misjudging any of those turns a bargain into a loss. This book teaches you to price such a property properly, and to avoid the most expensive mistake in the field, paying a price that would only make sense if the property were not distressed. It explains the four numbers that matter and how to evidence them from sold prices, size and layout, rents and condition. You will learn to value the end result up to the local ceiling and no further, then build the full cost stack. The deal is stress-tested by making the works cost more, the project take longer and the exit harder. A complete worked example works back, step by step, to the only price that makes sense, and the final chapter sets out a disciplined calculator and the questions it cannot answer. Next in this series: “Probate, Title and Ethical Practice”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void and the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.