Guides 10 Ways to Do a Property Deal in a Tougher Market

When a market slows down, sellers often become more flexible around prices, terms and timing. By understanding the different ways a transaction can be put together, you can increase your chances of securing the right property while solving a seller’s problem at the same time.

In this blog we’ve put together our top 10 ways to do a property deal during a tougher market period.

1. The Advantage of a Cash Purchase

The first strategy is the most obvious one: cash.

If you can move quickly and buy without relying on finance, you immediately become a more attractive buyer. Sellers like certainty and speed, particularly when a property has been on the market for some time. 

Recently, we bought a hotel and adjoining shops within two weeks because we had cash available and could complete quickly, we refinanced afterwards. Using cash does not mean you need to leave all that in the deal, you can leverage the cash to get the deal done, and then refinance to free some of it up for another project.

If you’re a seller facing delays and uncertainty from buyers needing mortgages, surveys, and approvals, a cash buyer can often negotiate a significantly better deal. 

2. Exchange Quickly with Delayed Completion

This is one of my favourite strategies in slower markets. The principle is simple: exchange contracts quickly to secure the property but negotiate a delayed completion. That completion could be four months, six months, or even longer depending on the circumstances.

Why is this powerful? Because you secure control of the property without immediately funding the purchase or paying expensive finance costs while you sort planning permission, funding, or detailed due diligence.

You own the certainty of the deal without carrying the cost too early.

3. Offering a Larger Deposit for Longer Completion

If a seller is reluctant to agree to delayed completion, consider offering a larger deposit. Traditionally, buyers exchange contracts with a 10% deposit. But if a seller wants reassurance, you may offer more in exchange for flexibility on timing.

This can give the seller confidence while allowing you additional time to organise planning, finance, or exit strategies. One important warning though, before handing over a larger deposit, ensure the seller has enough equity in the deal. You do not want your deposit disappearing into mortgage repayments with little security behind it.

4. Purchase Subject to Planning Permission

This is a very common strategy for developers and one we still use regularly.

If a site requires planning for a significantly different use or intensification, agreeing a purchase subject to planning can dramatically reduce risk.

Planning timelines today are far slower than they used to be. What might once have taken three months can now take a year, or even eighteen months.

If you are borrowing money at 10% interest or more, that delay becomes extremely expensive.

Buying subject to planning allows you to secure the opportunity without carrying finance costs before permission is granted.

5. Buy on an Option Agreement

Options are talked about a great deal in property and can be highly effective, particularly on land.

An option agreement gives you the right, but not the obligation, to buy at a future point.

However, there is a downside you need to be aware of.

Because the seller is tying up their asset for a period of time, they will often expect closer to full market value. In addition, options can last two or three years, and there is always the risk you choose not to proceed.

Personally, I tend to like options more on land than existing buildings, but they absolutely have their place.

6. Ask the Seller to Leave Money in the Deal

This is becoming increasingly relevant in today’s market.

Sometimes, when selling a site with planning permission, we leave some money in the deal to help the buyer proceed.

For example, the buyer may secure 65% funding from a lender while the seller leaves an additional percentage in the project until completion.

This is useful because, many developers are struggling with rising build costs or slower sales, as well as others not being able to sell completed units as quickly as expected.

Seller participation can bridge the gap and make otherwise difficult deals viable. We think it’s always worth asking “Would you consider leaving some money in the deal until development is complete?”

7. Joint Venture With the Current Owner

A joint venture can be an excellent alternative when a seller doesn’t necessarily want to sell outright, or when funding is constrained. Instead of buying the property immediately, you partner with the owner.

As with any joint venture, you need a proper legal agreement in place. Both parties should be clear on the purchase price, development costs, individual responsibilities, project timescales and how profits will be shared.

8. Buy the Company Shares Instead of the Property

Where a property is held within a limited company, it may be possible to buy the shares of that company rather than purchasing the asset itself.

One of the potential benefits of this way, is the potential stamp duty savings. However, this strategy requires some serious due diligence.

When acquiring a company, you are taking on its entire history, so you need to ensure there are no hidden liabilities, unpaid taxes, legal claims, disputes, or unexpected obligations sitting inside the business.

It’s important to speak to accountants and solicitors, carry out detailed checks, and consider insurance where appropriate.

Done correctly, this can be a very smart way to structure a deal.

9. Assisted Sale

Assisted sales have become increasingly popular in tougher market conditions. 

It is where you agree what the seller wants for the property, but rather than buying immediately, you invest money into refurbishment or improvement. The seller then sells the improved asset at a higher value. You recover your refurbishment costs and share in the uplifted profit.

This strategy can work particularly well where a tired or neglected property simply needs presentation, refurbishment, or repositioning in the market.

You will need capital to carry out works, but it can be an excellent low-risk structure to create value without committing to a full purchase from day one.

10. Angel Investors

Finally, we have angel investors. Right now, there are a lot of developers are seeking private investment.

If you are an angel investor, it is important to look beyond just the pitch. Before committing any capital, undertake thorough due diligence on both the individual and the opportunity. And what some people often don’t consider, is anyone looking for investment needs to carefully vet their angel investor too.

Unfortunately, many deals go wrong because assumptions are made on both sides, sometimes the developer disappoints, or sometimes the investor cannot provide what they promised.

So make sure to check each other out thoroughly and ensure there is a proper legal agreement that protects everyone involved. Do not be concerned that your angel investor will take offence to that, they should understand the importance of this, and be pleased that you are taking care of the deal.

In Conclusion

One of the most common mistakes I see investors and developers make is assuming there is only one way to acquire a property.

In tougher market conditions, the people who do best are those who become more creative, more flexible, and better at structuring deals.

Whether through delayed completion, subject-to-planning agreements, joint ventures, assisted sales, options, or seller finance, understanding how to structure a deal properly can dramatically reduce risk and improve profitability.

In today’s market, understanding how to structure a deal is becoming just as important as finding the opportunity itself, if you want to be able to see if through to completion.

Interested in exploring more about these property deals? Get in touch today to find out more.