Negative Equity occurs when the value of an asset falls below the outstanding balance on the loan which was used to purchase that asset.
Negative equity is calculated by deducting the balance on the outstanding loan from the value of the asset.
In other words, it is basically the result of having made a bad investment decision.
Once this happens there are only two courses of action left open to the investor; as far as that particular investment is involved.
Either hang on and hope, or sell at a loss and move on, still owing the lender the amount of the negative equity.
This suggests that if large numbers of people in the country suddenly find themselves in negative equity because their houses have fallen in value, large numbers of people have received bad advice as regards whether or not they should have bought and if so, at what price.
This is not a good advertisement for estate agents, who are seen as being the front-line service when it comes to helping people to buy and move (even though it is technically the vendors that they should actually be advising and not buyers).
We at Property Match (UK) can offer a significantly better service to house owners by helping them to understand more precisely how to do market appraisals for themselves and then craft offers which are more savvy than many of the deals which have been finalized in the past few years.
People really need to be market savvy in order to get themselves out of negative equity, keep themselves out and avoid further problems in the future.
Using Property Match (UK) helps both buyers and sellers to achieve this but at far less cost than if using high street estate agents.
Its time for a big change, time to go direct with house moving, using the full power of the Internet. Each individual, whether buying or selling, should take control and be better informed when making financial decisions involving moving house.
Its not difficult, now that the World Wide Web is able to connect many of us in so many aspects of our daily lives.
Please take a look at our web site? You can also make a comment to contribute to the ongoing debate about the need for these important changes.
Property Match (UK): The modern way to market houses