Private Sale - Asking Price Excessive

virgin_moneysaver

a property of a recently deceased friend of the family has been offered to us as a private sale as they knew we may be interested (which we are)

its about £10k above a reasonable price & £5k above the actual limit an estate agent acquaintance quoted on - this would sound about right as the bathroom is the original (1950's) & so are the electrics - the dearly departed was in their mid 80's

without causing bad feeling amongst the families what is the best way of getting a reduced price - I had thought about a full-structural survey to use as a reason for reduction but, on reading some threads here, that might not be worth the paper it's written on

I'm wondering if they turn down our reduced offer & put it on the market, are they likely to sell it, or even if the other offers result in surveys coming back with similar results to ours (which look obvious) are they likely to re offer it to us to save on estate agents fees

I know the last paragraph is total supposition but the vendor, even though at this early stage is being amenable, is notoriously prickly at the best of times

MarkyMarkD

Surveys don't often value down properties. If someone is willing to pay the price asked, their lender is quite likely to let them pay it.

They are pretty stupid to be asking you for full price when they will save a fair amount in estate agency costs. It sounds like they either don't have a clue about its value or are very greedy and are trying to take advantage because they reckon you have an interest in the property.

Smiley_Mum

I would offer what you can offer and if they don't accept then walk away. I feel that perhaps they are being a little greedy as they know you are interested in the property. Also, when it comes to friends and business/money, it doesn't normally mix, particularly if something goes awry with the sale. Offer whatever you feel is reasonable and if they don't want to know then fair enough. That's what I'd do anyway. I wouldn't worry too much, you say the vendor is particularly prickly at the best of times. I think that if you did offer what you consider reasonable and they did accept, if there was some defect not apparent at time of sale what comeback do you have then. They have their cash, I'd be cautious. Business/money and friendship doesn't mix. Go with your instinct.

Jay-Jay_4

I bought a house in similar circumstances.

I asked for the house to be valued by an estate agent, which it was, and then we agreed to knock a couple of thousand off for estate agents fees and the ease of me buying it.

Maybe you could suggest an independant valuation to put your mind at rest (make sure that you're there though or they could tell you any old price)

virgin_moneysaver

JAY-JAY - when you say an independent valuation - is that by an estate agent or a surveyor? - & I assume both parties would have to agree on the valuation & which party would arrange this

cheers

Jay-Jay_4

We got a local estate agent to value the property. I suggested it, they agreed and made an appointment as if they wanted to out the property up for sale (ok it was a lie and I'm sure that there will be an angry estate agent out there waiting to have a go)

It's not unreasonable for you to suggest that they have the property valued to find out the market price by an estate agent that you both agree on, after all it's a huge investment.

I would just ask them to have it valued by an estate agent then you both know that you're getting a fair deal.

theGrinch

get 3 or 4 valuations by different agents and get it in writing or when both parties are in attendance then take the average. I would agree in advance that the price should be based on a 2 to 4-week sale period.

virgin_moneysaver

at the moment we have to sell our own house, but the family said that they are in no hurry & would wait for us to complete

Al_Mac

Best bet is to get three estate agents valuations. Then take the average.

Both times I've sold, the agent has asked me what I think it is worth. So watch that one.
:beer:

sarah1

I would get say three estate agents valuations and take the middle one as a guide line. Then 'carefully' remind your friends that they would not have to have an estate agent to sell the property (so no fees for them to pay or inconveince if the property does not sell straight away) this could further reduce the sale price (say if it's only by £500 each it all helps) they could sell the property directly to you through both your solicitors. After all an estate agent only really finds a buyer they have already done that themselves.
If they are reluctant to reduce the price and you don't think that you are getting a bargain, make out you only can raise X amount and if they change their minds they know where you are. i know that it's hard but you must walk away. There's plenty more fish in the sea.
Good Luck and let us know how you get on. :beer: