Selling to an investor

Naetha

Hi guys, wonder if I could ask for some advice.

Me and my husband (who thanks to this site have just won our bank charges back from the evil demons at the Halifax) are looking to sell our house. It’s a 4 bedroom brick built end terrace house in an average area of Leeds (Armley to be precise) however, it is in need of a bit of TLC. As most of the houses in our street have recently sold to property developers and are now flats, we are seriously considering selling to a property developer. We figured that this would save us the trouble of decorating and renovating the house (i.e. removing artex from 90% of the walls and ceilings, installing central heating etc).

Is this the best option for us? If it is, then how do we go about selling it to a developer? Would we still go through an estate agency, or can we cut out the middleman and approach developers directly? How much renovation should we do to the house in order to sell it? I've heard that to sell it as a house it needs to have a permanent source of heating etc (which it currently doesn't - long story), so would we need to install something like this before selling it? How would selling directly to a developer differ from selling to a family?

As this was our first house, we have no experience of selling a house previously, and would appreciate any advice possible!

Doozergirl

I've answered in your quote:

Naetha wrote:

Is this the best option for us? If it is, then how do we go about selling it to a developer? Would we still go through an estate agency, or can we cut out the middleman and approach developers directly? Everybody wants a house to do up. You could use an internet estate agency or even just take out an ad your local paper with a little picture and a little blurb with the heading 'in need of modernisation'. You could use an agent, but I would bargain hard as it's likely to get snapped up. Auction is another option. It will guarantee completion in 28 days

How much renovation should we do to the house in order to sell it? Nothing at all. If they would turn it into flats, they would simply gut it. I've heard that to sell it as a house it needs to have a permanent source of heating etc (which it currently doesn't - long story), so would we need to install something like this before selling it? That's not true. You don't need to do anything

How would selling directly to a developer differ from selling to a family?They're likely to be quicker, more reliable and less likely to get cold feet. Just don't agree to exchange and complete on the same day

As this was our first house, we have no experience of selling a house previously, and would appreciate any advice possible!

Naetha

Does anyone know of any guides for selling your house? I'm not fussed about decorating tips etc, but would like to know things like how long each stage should take, how much each stage should cost etc. I've had a brief search on the internet, but not come up with anything useful yet.

Doozergirl

You can try

http://www.themovechannel.co.uk/guides/

otherwise, just keep asking questions here!

The only costs involved in selling are estate agents fees (if you use one, aim for 1% + VAT and see the 'house selling - money saving tips' thread at the top of this board) and solicitors fees which will be around £500 + VAT. Could be more, could be less.

Jorgan_2

Naetha, get valuation from 3 local agents on your property, don't tell them of your plans to possibly sell to a developer, find out what they think the house is worth in its current state. Then approach a number of developers direct and see what sort of figures they come up with.

You can then decide which is the best avenue to go down.

My experience of dealing with developers is that they have little or no emotional attachment to buying the property, unlike selling to a 'normal' buyer. They will base most decisions on what its going to cost them, so in some cases they will walk away from a potential problem rather than trying to sort it out, as a 'normal' buyer might. Having said that, they usually have finance in place & can move a lot quicker than most normal buyers.

Naetha

Thanks for the advice

One problem I seem to be having, is finding property developers. They either seem to be companies trying to buy properties at well below market price for a very quick sale or letting agents who want to buy properties already converted.

We're not fussed about a super fast sale, or "cash in hand" sales, but we don't want to convert the property ourselves. Any idea how I'd find suitable investors other than ads in local paper etc? A few internet searches haven't come up with anything good.

Doozergirl

Once you've advertised, they'll come to you. Those that do advertise will be looking to sell back on a profit without touching the house. And will offer below market value.

To be honest, a property developer won't be looking at the market value at all. There's a pretty standard sum that has to be followed to make money. I would work out how much the finished flats would be worth, then subtract the cost of the conversion and how much I need to make profit to make the job worthwhile. The amount that is left is what the property is worth to me.

Any advert with the words 'in need of modernistation/potential for onversion subject to planning' would create an absolute avalanche of viewings in my area.

If you can't do it yourself, use an estate agent. Property developers look, they don't advertise because that's the way the market works.

Doozergirl

Thining about it, go and post it on the 'deals offered' forum at https://www.singingpig.co.uk. You will get some interest but they will play hard

Your best chance of getting the best price really would be to use an agent and advertise to the widest audience possible, however. That's how marketing works.