Sell privately or via Estate Agent

Simon675

Hi
I’m hoping someone can advise me on how to proceed selling my late fathers property. I have been approached by an individual interested in purchasing the property privately and not paying estate agent fees. However upon valuation the estate agents have offered reasonable rates and I can’t help but wonder if I’d get a better price using their services.

Can anyone offer any advice as it’s my first time selling a house and I’m in a bit of a dilemma as to what to do for the best.

 Thanks  

eddddy

Maybe get market appraisals (valuations) from 3 or 4 estate agents.

Tell them you have an offer of £x on the table, and are they interested in marketing the property for (say) 2 weeks to try and get an offer of at least £x + their fee.

(You might want to make it clear in writing before you sign an EA contact, that you will not pay them a fee, if you sell to the person who approached you.)

But also bear in mind that the person who approached you might be a 'time-wasting dreamer'. An EA would ask to see a mortgage AIP, bank statements etc, when somebody makes an offer, to make sure they really have the money etc....

.... and if their purchase is dependent on them selling, some proof of the status of their sale.

Are you happy to do that kind of stuff?

greatcrested

Presumably you have already worked out the market value which you'll have needed for Probate.

If the private buyer is offering that,or more, and unless an agent convinxes you they can achieve a better price (bearing in mind they'll promise anything to get your business!), then accept the private buyer.

As Executer/Administrator, you have a legal duty to get the best price. If that's from a private buyer, go for it.

Simon675

Thanks for your replies. I’ve had a couple of valuations and have one more lined up before I set a price and possibly put it to the private buyer. I’m just mindful of setting balls rolling if an estate agent would be a justified investment. I believe the buyer is serious, but obviously will have an upper price limit.
I’ve not told the estate agents I have a potential buyer lined up yet. I think I just wanted time to collect my thoughts as to a sensible way to proceed. 

Thanks for the suggestion of getting a price from the private buyer then giving the estate agents opportunity to beat it. If the estate agent is willing to act in such a way I believe it would be a good way to approach this without putting all my eggs in one basket.

AlexMac

Although I generally distrust Estate agents,  the last two who have acted for me have performed spectacularly well. One sold our flat in 3 days for 15% more than any other agdny valued it at; the later one flogged a holiday home for 12-15% more than we dared hope by playing two eager buyers off against one another.

I couldn't have done that myself.

So , how good a negotiator are you.
.. and don't you have more to worry about with  the  grief and p obate stuff?

Thrugelmir

Estate Agents aren't going to buy the property. Just market it. Are you the sole beneficiary of the will? 

NinjaTune

Is this someone you know or who lives local to the property who has made an offer?  After announcing my Dad's death in The Gazette I received 2 letters in the post from random strangers saying they wanted to buy the house.  Didn't respond to either of them (apart from anything, not looking to sell until next year 

Simon675

I know from the purchase of my own house that property can be sold over list price when demand is there. In this instance I suspect the demand will be there, but perhaps that’s my own personal attachment to the house with a sprinkling of estate agents patter on top. The second estate agent I saw phoned me back today saying they had a potential buyer he wanted to preview the house to. I asked him to hold off until instructed to act for me. The interested party is local and has been round the property to view. I’m waiting on one more valuation before coming up with a price. I’m in possession of probate and am the sole beneficiary. I’m thinking the best way to proceed could be to average the valuations then use this as list price before requesting best and final form private buyer before seeing if an estate agent can better it. Is this a realistic way to proceed? I suspect I’m not the first person to experience such a scenario. I’ve only got one private buyer interested and don’t have time or energy to market it myself but equally don’t want to pay estate agent fees to sell for the same price as I’d get privately. As I said in my first post this is my first time selling and with it being my parents house I’m feeling a sense of responsibility to do the right thing by them and make the best of the situation.

eddddy

Simon675 said:

As I said in my first post this is my first time selling and with it being my parents house I’m feeling a sense of responsibility to do the right thing by them and make the best of the situation.

A big part of an Estate Agent's job is to "progress the sale".

Essentially, that includes things like telling the buyer and seller what they need to do, and chasing them to make sure they do it.

If you don't fully understand the property buying/selling process, and you happen to find a buyer who doesn't fully understand it either, that could be a bit challenging for you.

I've seen private property sales fall apart, because the seller and buyer didn't really understand the process.

snowcat75

I posed a similar question on hear a few weeks ago, although slightly different a buyer approached me outside the EA.
 
The general consensus which was also my own initial thoughts was that they are not doing so to benefit me.

I think in general people are trying to get a bargain on a property that they know will sell well, or they haven't got the basic checks in place which an EA will ask to be proven before proceeding with the sale.

When I used to let it was the same story although I never thought agents did much for there money, however, generally anyone asking to let outside the agent wanted to do so to avoid something.

Personally by not listing it and going to the first buyer you will lose out, despite the doom in the press, it seams in reality the demand for certain property's is really high at the moment. 

Simon675

Thank you all for your advice. As a first time seller I appreciate your time taken to share your experience and help me reach a decision. I think I’ll leave it to the professionals.