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Shared equity is an innovative form of joint mortgage/joint ownership the government promotes to help the ones who are first time property buyers. It includes many features that are attractive to a buyer so that he can materialize his dream of owing a new house.

Shared equity scheme

The shared equity scheme is launched because of the struggles of the first time buyers become a major political issue in the recent past and it is estimated that the scheme will create an extra 100,000 homeowners in the UK alone by 2010. The major attraction of the scheme is that the buyers could takes 75% mortgage and the remaining part of it will be covered by an equity loan from the government and the lender. This way the buyer gets to save a significant sum on his investment. People will find it quite easy and convenient so that he does not have to go for other alternatives that may be tricky and confusing. You will get further information on shared equity from the official website of the BBC if you are looking for the scheme in the United Kingdom.

The chief features

The shared equity envisages that the first time buyer of the property does not own it in conjunction with any other party as against in the case of shared ownership. At the same time, the scheme takes out more than one loan for the property – an equity loan and a mortgage. There is not going to be any co-owner for the property and you are the sole person on the deeds; however, if the property is to be sold, then the property buyer has to repay all the loans and he has to pay a proportion of the increase in the equity of the property (if there is any) to the party who is making the equity loan. One of the major features of the shared equity scheme is that there is much flexibility and ease to implement it so that the person who is going to buy will be quite relieved at the prospect of a great help from the part of the government.

In the UK, one of the initiatives was termed as the Open Market Home Buy Scheme and it allows the prospective buyer to choose any property from the open market that comes within their range. The scheme is available to all the key public sector workers, the ones who are on a council waiting list, social tenants and other priority first time buyers that include the ones with a household income of 65,000 pounds or less. There are similar projects in the United States as well and the aim of the project is to revitalize the housing sector by making real estate investments affordable.


The shared equity scheme is quite different from the mortgage loans and the processes and procedures involved in it helps the buyer in general and the materialization of the wishes of the buyer, especially the first time buyer, come true. It is a great option for anyone looking to own a real estate property at an affordable rate.

Remove unrealistic expectations

Selling ‘high’ is oftentimes a relative thing for many sellers. In most cases, you sell ‘high’ when you get the highest possible closing price that the current market allows. In almost every case with today’s market, the seller is still faced with taking a lot less money than they perhaps initially paid to own the real estate property, so don’t be bull-headed about earning a profit.

Justify your listing price for buyers

If you list a house at the price that professional appraisers have set, and one that is in line with other properties in the area, there is little wiggle room for buyers to negotiate. In most cases, you will be able to gauge how interested the buyer is in the property by playing hardball and saying that other buyers are willing to pay the appraisal price to see if their low offer increases.

Great-looking houses sell for higher prices

If you have a great lawn that is well fertilized, mowed, and impressive to look at it makes a big difference with buyers. A home that looks great on the inside and outside can inspire an added sense of worth, and will intimidate buyers into believing that the listing price is quite accurate. Remember that every time a buyer finds something they don’t like, it justifies a lower offer.

Use the internet

One of the biggest misses from sellers is to neglect the internet as a tool to help them sell at the highest potential. The internet has many regional and local house listings that you can place your house on to be seen by buyers around the world. Without being placed on these listings the uninformed will be wondering why their home isn’t as popular as the other local houses that have internet listings.

Take a decent photo for the listings

You’ll want to make sure you have immaculate listing photos, as buyers will be using that photo as their first ‘test’ of whether or not they are interested in the property. Try to avoid having any personal items (cars, yard furniture, toys, etc.) in the shot that can distract or hide the property. You’ll want the buyer to imagine themselves living in the house when they see the photo, which requires the elimination of all personal items.

Hire a real estate agent

Realtors will have the experience and local connections to efficiently sell your house at the price that you think its worth. Make sure you research your real estate agent before signing any contracts with them, and its good practice to look at a few different agents before making any decisions.

Have an open house

A real estate agent can help you set up an open house if you haven’t received offers within weeks of putting your house on the market. Buyers who are interested will need the extra motivation of walking through the house to come to terms with the appraisal price. Make sure to set open houses up within a few weeks of listing the home, as having it after months without sale seems desperate to buyers.

Avoid seller financing

Many people argue that seller financing is not worth the hassle. With seller financing, a buyer that defaults will first be obligated to payback the bank/mortgagor (if they can) and then the seller (if there’s anything left of their assets). There’s high risk, and little reward when there are more financially stable buyers just around the corner who don’t need discounts.

More fundamental Tips about Purchasing and Selling Property at Auction

No matter whether you’ve experienced purchasing and selling at an auction or heading in this direction the very first time, there’s always something to understand. The majority of us live and eat the saying ‘we study from our mistakes,’ why get some things wrong, to begin with when we do not have to. It just takes some good sense and a while for research.

Below is a listing of more fundamental tips before you purchase or sell your home at auction.

First of all, would be to organize your loan. Take time to get the best mortgage loan for you personally. You will find many finance venues to select from etc: Lenders, Banks, Lending Institutions, simply to title a couple of. Consider the Rates Of Interest, Term from the loan, costs, and expenses, versatility, etc. Never place a first deposit on the property just before organizing finance. In case your loan isn’t approved you’ll lose your deposit, as well as the disappointment of also losing the home.

Make certain you retain current together with your local auction market. These particulars are available in the local newspapers. Search for items like qualities offered, Qualities passed in and current trends (if any) while using the auction approach to purchase.

It’s also a great idea to go to some on-site property auctions like a spectator. You can study a great deal just by watching how bidding works, additionally, you will feel a lot more relaxed and comfy on your auction day knowing what to anticipate.

Just before determining to bid in the auction make certain you’ve attended open houses and assessments around the property. When purchasing at auction it’s a situation of ‘what the thing is is what you’ll get therefore, don’t get caught needing to spend 1000′s of dollars on which you ‘did avoid seeing. Get yourself a building inspection report which means you to be aware of fundamentals are strong, no termites, seem structure, etc. It’s also smart to have a piece of paper and tape measure. Although at open house assessments both of these products can be quite helpful. Before attending a wide-open house or inspection you need to write a listing of products you particularly desire to check although you’re there. If you don’t have a listing to visit off you probably will forget a couple of things.