Most people are aware that conditions in the housing market have become increasingly difficult over recent months, and with the mortgage sector still suffering the effects of the global credit crunch and with house prices falling, many homeowners have found that it is difficult or impossible to sell their homes. Estate agents have reported the poorest performance figures in years and there are even fears that many could lose their jobs due to lack of property sales.

Whilst this is bad news for many people, such as industry officials and homeowners, there are some people that are benefiting from the situation, and this is the cash rich buyer who is able to negotiate ridiculous discounts on property prices from sellers.

Many panic stricken sellers are finding themselves being forced to accept offers that are way below the asking prices in order to sell their homes. The buyers are sometimes offering up to 30% below the asking prices, and reports have labelled them predatory buyers.

One estate agent recently said: ‘There are sharks on the sidelines waiting to pounce on vulnerable vendors.’

Another industry official stated that the people that were engaging in this sort of activity were wealthy buyers with plenty of cash who were not being affected by the crisis in the mortgage market. Many sellers are nervous that they will be unable to sell their homes, and the predatory buyers are using this fear to try and get the seller to drop their price dramatically.

Many potential buyers are now unable to get a mortgage for a property due to tighter credit conditions in the mortgage and other financial sectors, and many others are fearful that if they purchase a property now they could be left facing negative equity if property prices continue to fall.

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