Clustering house purchase

siliconbits

I've been toying that idea for a while. Has anyone encountered the concept of clustering which is basically the bargaining power of house buyers coming together to reduce the price of their houses OR to get additional freebies like appliances or furniture.

I don't know if this can be done, but I imagine that if two house buyers come together they have some bargaining power as compared to one.

Any thoughts?

theGrinch

it happens quite a bit with new build property, where clubs bulk buy. not sure it happens often outside these conditions though.

siliconbits

Any chance you can tell us more?

RUSTY1966

is this where buyers agree in advance to bid low on house price in order to reduce selling price on a particular house.

Be aware of the offence of conspiracy to defraud

Jorgan_2

I think the op is refering to a similar system used by some of the 'make you a fortune' property clubs were they go into a developer & offer to purchase 20 properties for £x. The attraction to the developer is that they can shift a lot of properties quickly & the developer goes onto advertise the site as '60% sold'.

Not sure how it would work with private individuals.

samspam

Ot would be quite hard to do as you would have to know at least 6 people who want to buy and haven't already done so on a development.

They would all need to be in a proceedable position (i.e nothing to sell or SSTC) and be ready to sign there and then for any deals to be done.

The only people I normally get in my office asking for bulk purchases are property investor groups and contrary to popular belief developers do not always like selling to these groups as it 1) chips into potential profits by selling at 15% discount and 2) looks really bad when there are large numbers of rental / empty properties on the site you are selling.

It's a nice idea, and if a group of people did turn up in my office all wanting to buy there and then for a deal, I would certainly ask for one for them!

As I've mentioned in a previous post, the time of year is the key to getting the best deal.

siliconbits

I was actually about teaming up with some first time buyers to save some pounds on our property purchases. Just a thought, something like reverse bidding.