Instant Equity Property Deals

We see alot of property companies promoting Instant Equity property deals. The companies have usually sourced a property through property finders who get a fee for this when the property is onsold to a third party. Most of the property companies purchase a property remarket it with an old valuation or CV and promote Instant Equity. When the property settles with the third party the original vendor gets paid out contemporaneously.

Well being around 20 years in the property business we all know Instant Equity is hyperthetical and yes we make our money when we buy, as was the intention of getting that margin. We believe marketing a property for a margin is one thing (if it is there to be had) but promoting Instant Equity opens a can or worms. Advertise the property with the current CV and if a registered valuation is available, that is no more than three months old, give it to the purchaser or warrant to re address the registered valuation to the new purchasers lender. By not inducing the new buyer with Instant Equity you don't encourage over leveraging in a flat market.

We do source properties but require registered valutions but find 5% of property companies buying or selling ever provide one. It is a different situation for normal vendors selling their homes so we cannot put these vendors into this catergory.

Property Medium

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