Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • barnez
    • By barnez 10th Jul 17, 7:44 AM
    • 30Posts
    • 148Thanks
    barnez
    Selling house quickly
    • #1
    • 10th Jul 17, 7:44 AM
    Selling house quickly 10th Jul 17 at 7:44 AM
    Good morning! Has anyone used a company to sell their house quickly? I am trying to sell a property which is in need of renovation. I have had two offers from cash buyers who want to develop the plot on the side but due to a restrictive covenant on the deeds we have come up against a brick wall each time. There is an equity release outstanding on the property and unless I can exchange contracts before August 10th, the company will be granted a possession order. I understand that if I use one of these companies I will not get full market value but this will also be the case if possession is granted as it will be out of my hands totally then.
    I would be very grateful for any advice/recommendations.
    Thanks in advance.
Page 1
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 10th Jul 17, 7:57 AM
    • 2,106 Posts
    • 3,138 Thanks
    ScorpiondeRooftrouser
    • #2
    • 10th Jul 17, 7:57 AM
    • #2
    • 10th Jul 17, 7:57 AM
    The full market value that you won't get is the full market value with the restrictive covenant in place. Were the cash buyers not willing to buy it at any price? Because what the company would do is buy it for less than they are prepared to pay and sell it to one of them.
    • barnez
    • By barnez 10th Jul 17, 8:03 AM
    • 30 Posts
    • 148 Thanks
    barnez
    • #3
    • 10th Jul 17, 8:03 AM
    • #3
    • 10th Jul 17, 8:03 AM
    I am waiting for a decision today from the buyer, but the value to them is in the plot, not really in the house. The house itself (not taking the plot into consideration) is worth about £265,000. With the plot around £320,000.
    Last edited by barnez; 10-07-2017 at 8:08 AM.
    • mrginge
    • By mrginge 10th Jul 17, 8:16 AM
    • 4,309 Posts
    • 7,721 Thanks
    mrginge
    • #4
    • 10th Jul 17, 8:16 AM
    • #4
    • 10th Jul 17, 8:16 AM
    Quick sale companies are not interested in dealing with hard to resolve issues like restrictive covenants. They want to turn over property as quickly and cheaply as possible so they have cash available to buy the next one.

    Their offer (and subsequent reductions) will reflect the current postion, not the potential.
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 10th Jul 17, 8:23 AM
    • 2,106 Posts
    • 3,138 Thanks
    ScorpiondeRooftrouser
    • #5
    • 10th Jul 17, 8:23 AM
    • #5
    • 10th Jul 17, 8:23 AM
    I am waiting for a decision today from the buyer, but the value to them is in the plot, not really in the house. The house itself (not taking the plot into consideration) is worth about £265,000. With the plot around £320,000.
    Originally posted by barnez
    I am almost certain you would get more money from this buyer than you are ever likely to get from a quick sale company. If they won't pay what you want, take what they will pay.
    • barnez
    • By barnez 10th Jul 17, 8:24 AM
    • 30 Posts
    • 148 Thanks
    barnez
    • #6
    • 10th Jul 17, 8:24 AM
    • #6
    • 10th Jul 17, 8:24 AM
    The restrictive covenant would only come into play if someone was buying the house with the intention of building another property on the side. Not if they were buying it to renovate and either live in or sell on. Do you think this would mean that a quick sell company wouldn't be interested? I have no experience of this, whenever I have bought and sold houses before it has been relatively straightforward.
    • barnez
    • By barnez 10th Jul 17, 8:26 AM
    • 30 Posts
    • 148 Thanks
    barnez
    • #7
    • 10th Jul 17, 8:26 AM
    • #7
    • 10th Jul 17, 8:26 AM
    I am almost certain you would get more money from this buyer than you are ever likely to get from a quick sale company. If they won't pay what you want, take what they will pay.
    Originally posted by ScorpiondeRooftrouser
    Thank you, I just hope they come back with something. I also have the option of going to auction with it on July 24th, but again that is risky.
    • eddddy
    • By eddddy 10th Jul 17, 8:37 AM
    • 5,546 Posts
    • 5,230 Thanks
    eddddy
    • #8
    • 10th Jul 17, 8:37 AM
    • #8
    • 10th Jul 17, 8:37 AM
    The business model of quick sale companies is roughly:

    - Market the property very cheaply in order to find a buyer quickly
    - Charge the seller a very large fee

    You would probably sell the property equally quickly, if you told a regular EA to:

    - Market the property very cheaply in order to find a buyer quickly

    And the fee you pay to the EA would be smaller, so you'd be better off over all.
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 10th Jul 17, 8:41 AM
    • 2,106 Posts
    • 3,138 Thanks
    ScorpiondeRooftrouser
    • #9
    • 10th Jul 17, 8:41 AM
    • #9
    • 10th Jul 17, 8:41 AM
    The restrictive covenant would only come into play if someone was buying the house with the intention of building another property on the side. Not if they were buying it to renovate and either live in or sell on. Do you think this would mean that a quick sell company wouldn't be interested? I have no experience of this, whenever I have bought and sold houses before it has been relatively straightforward.
    Originally posted by barnez
    Are you trying to sell it for a price reflecting the development potential or not?
    • mrginge
    • By mrginge 10th Jul 17, 8:42 AM
    • 4,309 Posts
    • 7,721 Thanks
    mrginge
    Thank you, I just hope they come back with something. I also have the option of going to auction with it on July 24th, but again that is risky.
    Originally posted by barnez
    Unless they had a buyer lined up immediately, sticking it in auction is just what a quick sale company would do. And they would only be interested in getting rid since they had already made their margin out of you.
    • barnez
    • By barnez 10th Jul 17, 8:51 AM
    • 30 Posts
    • 148 Thanks
    barnez
    I am almost certain you would get more money from this buyer than you are ever likely to get from a quick sale company. If they won't pay what you want, take what they will pay.
    Originally posted by ScorpiondeRooftrouser
    Are you trying to sell it for a price reflecting the development potential or not?
    Originally posted by ScorpiondeRooftrouser
    I originally accepted an offer of £320,000 from the first buyer (who was a property developer and so wanted to develop the plot),as we were unaware of the restrictive covenant. The sale fell through because of the covenant.
    The Estate agent then made the second buyer aware of the restrictive covenant and we accepted an offer of £280,000 to take this into account. They then asked us to get the restrictive covenant lifted which we are unable to do. I went back to the estate agent on Friday and asked him to ask the buyer what he would be prepared to pay with the covenant in place, and I am waiting to hear about this.
    • davidmcn
    • By davidmcn 10th Jul 17, 9:12 AM
    • 6,272 Posts
    • 6,056 Thanks
    davidmcn
    I originally accepted an offer of £320,000 from the first buyer (who was a property developer and so wanted to develop the plot),as we were unaware of the restrictive covenant. The sale fell through because of the covenant.
    The Estate agent then made the second buyer aware of the restrictive covenant and we accepted an offer of £280,000 to take this into account. They then asked us to get the restrictive covenant lifted which we are unable to do. I went back to the estate agent on Friday and asked him to ask the buyer what he would be prepared to pay with the covenant in place, and I am waiting to hear about this.
    Originally posted by barnez
    What did they mean by "taking it into account" if they also wanted it removed?!
    • barnez
    • By barnez 10th Jul 17, 10:07 AM
    • 30 Posts
    • 148 Thanks
    barnez
    Reading between the lines, when I accepted the offer and they agreed they were aware of the covenant, their solicitor hadn't seen the deeds and advised them not to proceed with the covenant in place. They didn't ask us to get it removed until we were a few weeks into the process.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

686Posts Today

4,430Users online

Martin's Twitter
  • Nice debating with (all but the rude ones) of you. Bedtime for me now. Goodnight #bbcqt

  • RT @kevmthomas: @MartinSLewis It was a comment you made about the referendum being a binary choice on a non binary issue that helped me rea?

  • To clarify this. Cameron's gamble that having a stark vote'd mean his team won. He gambled wrong (that's not a stat? https://t.co/NSCT3aKvGS

  • Follow Martin