Selling my house....estate agent taking the p1ss

mrsrwallace

Any help/advice appreciated. House has been on the market for few months now, about £40,000 of negative equity. Had hoped to sell the house, then somehow arrange repayment of the shortfall whilst renting a new house. So we had a buyer who subsequently pulled out of the sale and now we have had no further offers.

I have to contact the EA each time for updates to see if anybody asks about our house etc - it feels as if I have to remind him that he is marketing our house. Anyway I asked for an update recently and he suggested knocking another £15,000 OFF the asking price - that would leave us in nearly £60,000 negative equity. From what he says it seems that he has this little black book of potential buyers who are like vultures (I know they are obviously making the most of the abismal property situation but I still see them as vutures!) who are sitting with the ready cash to buy repossessed homes and properties from folk like me who can't afford our mortgage anymore. Now, in my opinion the EA is keen to push us into selling at a ridiculously low price so he can get his fees off us and the buyer and we lose out massively as does our lender.

I am refusing to budge on the price. So what should I do? Hand keys back and give up or rent my house out? My folks have a bit of land and said we could stay in a mobile home on it so it would save us money on having to rent another house to live in. Do lenders let you rent out the house easily or is there more paperwork to complete first?

I am tossing ideas around as I genuinely do not know what to do here. I just think that if we sell at a stupid loss we will have to go bankrupt as how would we ever pay back £60,000 plus costs?? So to prevent bankruptcy and losing the house we would need to rent it out but that involves the hassle of being a landlord etc plus would we ever actually live in the house again? Aggghh! I just don't know!!

Suggestions please? Anyone?!

mrginge

You should really discuss the repayment of any shortfall with your lender before finding a buyer. It is quite possible that the lender may not allow you to pay back any shortfall over time. They will also be able to give you options around the possiblity of renting out.

mrsrwallace

yes we have been given "permission" to sell from our lender with the big shortfall. they will take over the sale as soon as we get a buyer and then send us a bill basically for the shortfall. I am just wondering whether it is best to try and stick with it or call it a day and hand the keys back. I am trying to get best scenario for all concerned but all I see is the EA and any potential buyer being the only ones who will benefit from a cheap sale.

Fire_Fox

Why have you moved out, have you had to move away for work? What are the land registry sold prices for your street and area? Post your Rightmove link and we can give constructive criticism.

Handing the keys back doesn't get rid of the problem, you still have to pay the shortfall AND all the lender's costs in selling. You will probably want to consider bankruptcy at that point. You can't let the house without consent to lease from the lender, I doubt you will get that with negative equity.

missile

£60,000 negative equity is a lot. How much is the house valued at? I am guessing by your avatar you are in Scotland, but where? A link to your estate agents advert would help.

Renting your house out may lead you into more trouble.

Handing the keys back should be your very last resort. You would be better reducing your price.

Now, in my opinion the EA is keen to push us into selling at a ridiculously low price so he can get his fees off us and the buyer and we lose out massively as does our lender

If you are not happy EA, try another. Your lender will pursue you for his losses.

Have you thought of renting a room to a lodger?

anselld

How can you afford rent plus 40k repayment if you can't afford your mortgage? Surely rent + loan would be more than mortgage.

googler

You can 'refuse to budge' on the price all you want, but if there's nobody out there willing to buy at your level, and you don't adjust the price at least some of the way to their level, then all that does is leave you with a house that doesn't sell.

The valuation the EA originally put on it is, to a certain extent, immaterial. You have to deal with the number of available buyers at your selected price (which may get larger the lower your price goes, and which may be limited at the moment by your higher price), the available mortgage finance they can get, and similar factors for the persons buying their house, and those buying theirs, all the way back to the FTB who buys the cheapest one in the chain.

Do you really WANT your EA to phone you every week to relate that none of the viewing public have shown an interest in your home?

mrsrwallace

thanks for the replies, all very constructive.

To clarify, we are still living in the property, we have not moved out yet. In answer to the valid point made about being able to rent a property and pay back a shortfall yet not being able to pay our mortgage, that is true. We cannot afford our mortgage BUT believe it or not we could actually repay a shortfall more cheaply than staying here. As I said before my family has some land which they have said we could live on in a mobile home until we get back on our feet. This would save considerably on rent. Although I must point out that rental properties nearby to where I live are up almost half my mortgage. So we could afford to rent and pay towards the shortfall rather than not being able to pay our full mortgage.

Yes I also agree that the seller will only get what the buyer can afford to pay for the property and to accept an offer (even if it is like giving the house away) is probably the only option open to us if it means taking the first steps to moving on with our lives.

Ah to have a crystal ball! I suppose knowing that there are those who will buy it if we do accept a low offer is a way of leaving here. I guess I am just trying to fend off the inevitable aren't I?

Saying that I could contact the lender again and let them know the EA has suggested lowering the price and go with any advice they state. I just don't want to be too hasty, you know? If I could even get the rest of the year staying in this house and then start afresh in the New Year making final decisions and steps to move forward.

Thanks

McKneff

some one suggested a lodger or two, is this not feasible to enable you to pay your mortgage.

[Deleted User]

As others have suggested, do you have spare rooms that you could let out to lodgers?

Take a look at this link: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

dancingfairy

I'm confused about why the buyer pulled out?
Also what about an auction? Presumably you can set a reserve price?
What is your house worth? realisticallly? Would another agent be better? Does it need a coat of paint/new curtains/better marketting pictures? Any cheap/easy ways you can improve your house and get it to sell?
df