Selling an inherited property - structural issues

Travelling_shoes

Hello,

I would welcome some advice please. I am in the process of selling a property that I inherited from a relative earlier this year. The potential purchaser expressed interest very early on in the selling process. Following the surveyor's report, the property was found to have some issues with sinkage, and further investigative work & remedial work was recommended with quotes provided. I have reduced the sale price by £20,000 to take into account the work that needs doing.

The potential purchaser is still interested but was asking for me to carry out the investigate work myself, on the basis that the property could potentially be affected by subsidence. I am not in a financial position to be able to do this.

The way I see it I have 3 options:

1) Try & progress with the sale as it stands at present - the potential purchaser does still seem interested & the estate agent says that my price reduction is "very reasonable"

2) Put the property back on the market (it is located in a very desirable location) but taking the risk that now the structural issues are a factor, it may be worth less

3) Try & obtain a loan & carry out the investigative/ remedial work myself, then put the property back on the market

My solicitor has mentioned the possibility of signing a conditional contract that would enable the purchaser to withdraw should subsidence be found.

Any advice would be very welcome. I am not a home owner at present & so this whole process is unfamiliar territory to me. Thank you.

wwl

\i'd say it would at least be worth getting some investigative work done by a structural engineer, so the potential costs are more certain.
Or maybe ask the potential buyer at what price would they be prepared to go ahead unconditionally.

anselld

Is it not insured against subsidence?

Travelling_shoes

Thank you for the replies. I have attempted to obtain my own quote for the work. However, the solicitor asked a surveyor who said that the original quote should be sufficient as it was provided by a reputable firm. I am located in a different part of the country, which makes it harder. The idea to negotiate an unconditional offer sounds like a good idea.

No, the property is not insured for subsidence. The insurance firm who originally insured it were asking £900 p.a. to insure an empty house after my relative died & I couldn't afford this, so I took out my own policy to insure predominantly contents.

Tassotti

Put it in an auction. You'll probably sell for more than through an agent and a lot quicker

Doozergirl

Personally, depending on the value of the fixed house, I would investigate and fix it. It will affect price by considerably more than the cost of fixing as the property is unmortgageable with ongoing subsidence.

If I didn't want to do anything, I'd put it on the market. The price reduction presumably reflects the fact that it may have subsidence and does need investigating. If it doesn't have it, then the price isn't worth dropping for this buyer. I'd be very surprised if a surveyor said it was sinking and it wasn't.

Given that it is likely to be a cash buy. Are your buyers able to buy cash? If they aren't then you're chasing the wrong buyer anyway.

phill99

I think you are being niave. You have one 'potential purchaser' and you seem hell bent on bending over backwards to accommodate him. He could easily pull out at any stage and all the effort and money you have put in to pacify him will come to nothing.

There will be other potential purchasers. Whether you do the work or let someone else do it, you ultimately will end up paying.

Cut your losses now. Put it back on the market as is, with the knowledge you will take a hit on it. If you pyt it into auction you ate al ost guaranteed a sale, hassle free. To me its a no brainer.

eddddy

From what you say, perhaps you have two choices...

• Do the investigations and sufficient repairs to make the house mortgageable - and sell it through an EA.
  
• Sell it through auction with its unquantified structural problems - to a builder/developer who's prepared to take a risk and has the ready cash available. (Who will then repair it and sell it to make a profit.)

You will take a big hit on price going down the auction route.

If you're not familiar with the property market, maybe a car analogy would help:

• Selling a mortgageable house through an EA is like selling a car on a dealer's forecourt.
  
• Selling a house with structural problems through an auction is like selling a car that's a non-runner with no MOT through an auction.

The price achieved will be very different.

You can contact one or two auction houses and ask them for an appraisal. They will indicate what they think the property would achieve at auction.

Travelling_shoes

Thanks everyone, it's really helpful to hear your views. Auctions scare the pants off me, I'll be honest. People who are recommending this option, what is your experience of them?

I am trying to be objective in this whole process, but this was a family home & inevitably there is sentiment involved; in other words, I don't want to get it "wrong" if that makes sense?

That said, I feel like everyone else is pretty much pulling my strings at present & would like to feel more in control of the process.

A starting point would seem to be to do the investigative work myself ...

Slinky

What is there to be scared about with an auction?

If you just need rid of the property without any hassle and are accepting of the fact you will probably take a hit on the price for the simplicity of the sale, it looks the easiest option, particularly if you don't live in the area.

I have no experience of auctions but at some point in the future I may inherit a property which if I did, I'd go down the auction route to escape dealing first hand with the many bodged jobs and lack of building regs I know have gone on with it.

Slinky

Also, going back to the insurance issue, did your relatives have cover for subsidance issues? I know you say you don't, but these issues didn't occur overnight and the previous insurance on the property may cover them.