Novice in need advice re developer who is interested in our house

AdrianC

Question 1. Does she actually want to move? If the offer was way above fair market, then it might swing it - but if it's no better than market, then it's really no different to just "does she fancy moving?".


So, if she does... Then she really does need to get some professional valuation done. She doesn't want to, but she trusts your opinion. How about you offer to get a valuation in? Even better - three, so she can see a reasonable spread of values and maybe decide she actually likes one of them...

Her intransigence could be costing tens of thousands of pounds, if she does decide to accept.

If she doesn't want to move, of course, then just "Thanks, not for sale currently".

Mojisola

Penguin90 wrote: »

My mum received a letter from a construction and property company.

Essentially, they're offering her £445k for her home

If that's their first offer, they'll be expecting to pay much more.

If your Mum doesn't want to spend money on a professional to deal for her, she could just say no and see if they come back with a higher offer.

markin

Cheapest way would be to ask 3 estate agents, to get an idea of the market price. And then double it?

eddddy

She could contact Land Agents who specialise in selling development land (they're a bit like specialist estate agents).

Based on their knowledge and experience, they should be able to make a reasonable guess at what could be built on the land, and therefore how much the land should be worth.

Like ordinary estate agents, they should give you a free valuation, in the hope that you will instruct them to sell it.


They'd probably suggest that it's marketed with a guide price, and see what offers come in.

davidmcn

markin wrote: »

Cheapest way would be to ask 3 estate agents, to get an idea of the market price. And then double it?

I wouldn't expect your average estate agent to have much of a clue about this sort of scenario.

markin

davidmcn wrote: »

I wouldn't expect your average estate agent to have much of a clue about this sort of scenario.

Without planning its only worth what any house on the street is, but with a nice garden. She could ask for anything she wants, They will just move on. They make the best profit buying cheap houses and then getting planning, not by buying houses already with planning or priced like it has planning.

parking_question_chap

Penguin90 wrote: »

My mum is... well, distrustful of anything official and tends to rely on her own general knowledge and the advice of family/trusted friends when making decisions. I get the feeling that because she isn't sure whether this is a good offer or not, she would rather walk away entirely.

If she is happy in the house and doesnt need the money. Just stay put, she isnt obliged to even consider selling.

eddddy

markin wrote: »

Without planning its only worth what any house on the street is, but with a nice garden.

Not really. The house is worth whatever somebody is willing to pay for it.

If the house has development potential, a developer might pay much for it than another house in the same street without development potential.


However, the developer will take into account risk (e.g. the risk of getting limited or no planning consent), and the time and cost of getting planning consent.

getmore4less

Space is only part of the development potential,

Access can restrict the number of properties.

Local planning knowledge is essential,

Also chat with the neighbours they may be looking to get an even bigger plot.

Depending on the size of the houses and gardens around they may be looking for access and buying bits of gardens of others.

A bit of reseach will identify what other projects they have done and what they have paid for development plots.

davidmcn

eddddy wrote: »

Not really. The house is worth whatever somebody is willing to pay for it.

If the house has development potential, a developer might pay much for it than another house in the same street without development potential.

However, the developer will take into account risk (e.g. the risk of getting limited or no planning consent), and the time and cost of getting planning consent.

I would have thought it more likely in this scenario that they'd only buy conditional on them getting planning. Buying one house and replacing it with a different house is less risky from a planning point of view (you already have permission for a house, you just need to worry about the detail of the replacement). If they're wanting to squeeze more properties in, developers are less likely to want (or to have enough spare cash) to buy first and then sit on the property for possibly years while waiting for planning which might never be forthcoming.