Selliing house to a property company

tek-monkey

Not this company, just a tactic that's been heard of generally among these sort of company.

Bermuda_John

its postings like this from maninthestreet that tarnish the people who operate in an ethical way, do you have first hand experience or is this just what you have heard?

there has been one or two instances of this happening and then you are in a position where you cant say no.

I very much doubt they will do it, a lot of the chancers that used to operate in this market have been found out by the lack of available credit straight after the sale and the need for large deposits.

What was happening in this industry, was people were buying at a low price ie 58k then going to the bank the next day and get it remortgaged at market value ie 80k and then using the equity release ie 22k to then fund another property and keep the cycle going, basically recycling the money.

this cant happen now as 99% of the lenders now require you to have owned the property for 6 months before you can get an advance. Add to that the 25% deposits required it has weeded out the cowboys and left a group of operators in the market who are 99% genuine.

If they do try to gazuunder you, tell them to go away and i'll buy it at £58k.

centenaryman

hehe nice thought son,,,may hold you to that....i would doubt these would try to drop the price,,,but heck what do i know,,,were still in the early stages of the process,,,there sending round the survey guy soon thats the next step.

Thanks

Andy

Bermuda_John

the survey is the time when they may try to negotiate the price they have agreed. What did they say about 58k, was it conditional on the survey being ok? They may be a little friendly with the surveyor and it is in your best interests to be AT YOUR PROPERTY when he/she turns up. EXPLICITLY TELL THE SURVEYOR THE VALUE OF THE HOUSE ie 80k as it is in your interests to get the vlauation as high a spossible.

Then when they come abck and say the property needs x,y and z doing to it at a cost of £10k they wont be able to haggle on the price.

centenaryman

we guessed the survey time would be the crunch,,,,just to make sure for ourselves we got the halifax out to value the house and surprisingly enough they came to a similar conclusion to the guy,,,ie the house should be marketed at £85000....we will be in when he comes,,,and it will be a big surprise if anything is a miss with the property. Even right down to us having cavity wall insulating and loft insulating,,,we have looked after the place and even down to the neutral decor and wood floor,,,,really decent combi,,,serviced each year on a contract with the makers,,,double glazing.

Thanks

Andy

Bermuda_John

should all go to plan then andy, good luck, hope it all works out.

desperado2

Why dont you investigate the possibility of a property auction?? you can set a reserve, you get a quick sale, and probably more than your kwik buy people are offering.

I don't see the problem in selling before you commit to a purchase, if you were buying a £500k house, sure the market might go up 10 % and that would cost you £50k, but on £100k houses, you are talking a fluctuation of around £5 - £10,000 max.. half what you were prepared to throw away for a quick sale..

One other benefit of selling at auction is that you are then a cash buyer, which will put you at the front of the queue on any future purchase.. as I found out to my cost last month!!!

centenaryman

well we ignored some real good advise in this thread thanks by the way,

up to now we are still selling the original way,,we have had surveys done all mortgages are in place and its now down to each solicitor,,we have been asked by the property buying company can we be out by the 11th dec 09,,,so we mentioned this to our solic and she raised her eyebrow and said they could try LOL

the only question,,,worry we have now is we have read alot and been warned that property buying companies drop there offer at the last minute,,,does anybody have any thoughts or input on this.

Thanks

Andy

clutton_2

exchange contracts sooner rather than later and then they cannot drop the price after that

centenaryman

a post ive dreaded in typing,,,,but it hopefully might help somebody else knowing the pitfalls.

if u have seen this thread i wont go back over it,,,anyway were at the stage of very close to exchanging contracts or that area...when the property company have just rang us to say they were selling our property to an investor,,,this investor has pulled out,,,,but with a bit of luck they may have a further investor ready but it will set the deal back weeks,,,back to the stage before there survey...we obviously are gutted it was moving along great,,,but we were made very clear of the pitfalls if u sell to a property company,,,i only hope this is a hicup

Thanks

Andrew