General (main property discussion here) - What discount for tenanted properties?

What discount should I expect to get for a tenanted property when compared to an empty one?

I am being offered a tenanted property for £125000, with a 7% yield. The vendor believes the OMV of the property is £135000.

Is this representative of a normal/fair deal?

Thank you.

OMV?

'Open Market Value'.

I think it's fair to offer a discount on a tenanted property if it ensures a quick sale. The £10k discount appears fair.

Thank you for the advice, much appreciated.

Thanks Roger.

i would go as far to say that for a great purchaser (cash, no chain, quick etc)then a discount from OMV is nearly always worth it. i have been messed around so many times by people over stretching themselves etc. not worth it overall for the hassles and wasted legal fees.

tom

Discount on a tenanted property? More like a premium! Well, actually, depends on the tenant to be fair.

Walking straight into an investment can hardly be looked upon as a negative, which a discount implies..

Haha, agreed Jo... tenants are a premium of sorts.

Hopefully no vendors on LT are putting TOO much of a premium on their asking prices though ;-)

Dan LT Team

so what did you decide M I?

tom