Selling to investment buyers

ab7167

Hi,

We are selling our house to a couple who want to let it out. They have now phoned the EA to say they want to start lettings viewings this Friday. However, we have not yet exchanged contracts.

My boyfriend feels that it would be an act of good faith to let this happen. I feel that we should not allow viewings before we have exchanged contracts, as we have no gauruntee that they will actually go through with the purchase. It has been a long 10 months to get to this stage, and I can see boyf's point - anything to speed it up. But my instinct is really saying no to this one, can anyone advise what is the normal proceedure.

I am waiting for my solicitor to phone back to confirm how close to exchange we actually are.

Thanks in advance.

Ali

silvercar

I think it is reasonable to let one or two letting agents view the property before exchange. Your buyer will need to get an idea of likely rental values and speed before purchasing.

I think you should also agree to viewings, with sufficient notice, after exchange before completion. After all the investor is helping you by buying your house it is reasonable to return the favour. If it was a sale to someone moving in, you would expect them to want to measure up curtains etc.

Sumostar

Hi

I don't know what the usual procedure is, but a buyer who has a tenant ready to move in is less likely to back out or delay the process. It also strengthens your hand if he asks you to drop your price at the last minute. I suppose it depend on how much of an inconvenience it is.

daz9643

I've never heard of anything like this before and i sold a flat to someone who wanted to let it out. I'd just say watch out for dirty tricks, for example, being told there is no chain to get a lower asking price and then finding out at the last minute there is a chain. If the sale has been going on for 10 months with the same buyer ? you need to increase your asking price as prices will have risen since you accepted the offer, you are able to increase the asking price regardless of the price you accepted up until you exchange contracts. I certainly wouldn't let any prospective tenants into my house, if the buyer wants to let it out they'll be making plenty of money anyway so don't worry about helping them out, look after number 1.

ab7167

Letting agents no problem. And we have already had a letting valuation for their mortgage company. It's what would happen if they showed it before exchange, couldn't get anyone interested and then pulled out leaving us back with no buyer.

They can do what they want after exchange. Vieiwings, etc - we are leaving all the curtains, but once they have exchange I am happy for them to pretty much do what they want (within reason...)

And if he asks to drop the price at the last minute, he will be told to get lost. The house is already cheap, and neither I or OH will put up with that kind of lowlife behaviour.

Ali

ab7167

No, 10 months since we put it on the market. Only been goign 6 weeks with this buyer. They claim no chain, but don't know if this has been verified or not. Should have been done by the EA surely?

Ali

daz9643

Hi Ali, EA's do sod all for the money they charge. When i moved house they didn't even give me the keys to the new place, they said they didn't have them and i'd have to go round there and get them from the owners. I've learnt that you must not let emotions affect your decisions, i've fallen in love with many houses when we were looking to buy, as a buyer you always think you'll never find another house like it - until you fall in love with the next one. As a seller you always think why doesn't anybody want to buy my house. If a buy-to-let investor wants to buy your house then it must be a good deal otherwise they wouldn't be interested, that means there will be other interested buyers. Did you take it off the market when you accepted their offer ?

ab7167

Yes, we took it off the market.

I have no reason to suspect their motives, but unfortunately I have a nasty suspcious mind.... and have heard many horror stories about people pulling out, gazundering, gazumping, and basically doing anything they can to get their own way. And fair enough £185k is a lot of money, but it is cheap for a 3 bed semi, garage, garden and additional allocated parking space in the south west.

The little estate (16 houses) that I live on already has 3 rented out, identical to ours, all with the same estate agent that I am selling our through. I should have thought they would have a pretty good idea of the value and lettability surely?

Ali

PoorDave

Tell them they can do letting agent viewings, then tenant viewings whenever they like, as long as it's after exchange. You've showed you're willing to help them, they have to show they're serious about buying it. Should get exchange sorted quicker.

Unless there are lots similar for sale in your road, obviously.

Leon_W

Tell them to take a hike !

No way would I be letting prospective tenants (some of which can be pretty undesirable) checking out where my DVD/hi-fi/Laptops are kept.

After exchange then fair enough as long as completion is no longer than a fortnight after.

Bloody cheek if you ask me !

clutton_2

i would allow letting agents in accompanied by one of the purchasers, and i would not let prospective tenants in untiil after completion.