Selling privately?

janeke

Father has recently moved into a care home and we will shortly be putting his bungalow on the market. A neighbour has already expressed an interest as it might suit their elderly father.

I`ve virtually no experience of house selling anyway so I`m not sure how to proceed. My father would like it to go to someone he knows but obviously we need the best price for it. Before the neighbour made contact, I was just going to get several valuations, choose an agent and let them get on with it.

The neighbour`s father hasn`t said for sure that he would like it, so I wouldn`t want to delay the sale while he made up his mind and possibly miss another buyer. (But it is tempting to try to avoid agents` fees)

Any thoughts would be very much appreciated

G_M

Who is selling? Your father? Or you on his behalf?

Do you have POA?

If selling on his behalf you have a responsibility to act in his best interests, and that does not mean selling below market value to a mate (his or yours).

So yes, get 3 (or more) estate agents round

* get their suggested price to market at
* get their realistic valuation (ie what they think it will actually sell for)
* Negotiate fees with each agent (1% ish for sole agency?)
* Do NOT sign a 'sole selling rights' contract (ie if you personally find a buyer rather than an agent finding one)
* negotiate the minimum contract period (6 weeks? 8? Not more)

Given your lack of experience, and your obligations to your dad, I'd avoid cheap online agencies or private sales unless the private sale is clearly a similar price to the 3 agents you've had round.

Get yourself a book (free from the library) on house selling.

da_rule

As has been said, if you are acting on behalf of your father as he know longer has capacity etc then you have a duty to act in his best interest. Therefore, as long as someone is offering the value of the property (you could allow a bit lower as there would be no estate agent fee's) then it shouldn't be an issue selling it privately.

However, if your father is fine and you are just acting as a go between then it his decision whether he wasn't to entertain a private offer.

Sedge123

We bought Ina private sale from people we knew. They had three valuations and decided the price they would like (their choice, we had no influence but I knew they would prefer the house to go to someone they knew). We went round for a cuppa, they told us the price and we accepted. I would not have dreamed of trying to barter. We both appointed solicitors,exchanged solicitors details and the solicitors took over. Really really easy. There was also the added bonus that as we knew the sellers we could ring and ask if we could go in and measure etc. and for them they avoided the estate agents fees.
You have nothing to lose, if he potential buyer starts messing you around or trying to knock you down further than you want to go then just tell them you're going through the estate agents.

ThePants999

I recommend you:
- Get 3 agents round to value, but don't sign up with one yet
- Tell the neighbour "it's about to go on the market for £X, but if you get in first I'll save £Y in agency fees which I'd happily split with you, would you like to make an offer?"
- If they don't come up with one sharpish, go ahead via an agent.

janeke

Thanks very much everyone. I do have POA for my father but he is still compus mentis enough to be involved in the decision. He lives in a pretty village and knows that the bungalow is likely to be bought by a developer, so he would much prefer it to go to someone who actually needs a bungalow - but he also knows that his carehome fees are enormous and he needs to get every penny he can.
I will contact 3 agents next week. Fortunately I live nearby so am not having to do all of this from a distance

eddddy

janeke wrote: »

He lives in a pretty village and knows that the bungalow is likely to be bought by a developer, so he would much prefer it to go to someone who actually needs a bungalow - but he also knows that his carehome fees are enormous and he needs to get every penny he can.

If there really is development potential, you should contact some specialist EAs who deal with land/property for development.

If I were to be really cynical... Might the neighbour be spinning a story, in the hope of getting a valuable development plot for the price of a bungalow?

And/or could the neighbour be seeing that the two plots put together unlock even more valuable development potential?

xylophone

a valuable development plot for the price of a bungalow?

A year or so back, a widow living in my road sold a small bungalow - within weeks, in went an application for demolition and replacement by a four flat block - this was turned down by council and on appeal but development was allowed - a pair of four bed semis.....

RedHitman

I'm going through exactly the same thing right now. The lady next door to my parents passed away and I am buying from the family in a private sale. I know how much the houses are selling for on that street and the price they offered it at was fair.
All we did was then leave it to the Solicitors to sort out.

kinger101

If you get an offer that you're happy with, first thing you or your solicitor should do is qualify it;

(A) DIP plus proof of deposit if they're using a mortgage;
(B) proof of funds if not.

From then on, the only downside to not having an agent is they are sometimes good for sales progression (chasing solicitors etc).