selling to property developer

sellingconcerns

First time selling a house (Victorian terrace) which has been on the market 10 weeks  and we had a potential buyer who made me nervous but I don’t know if it normal.

 Last week and young couple came and viewed the place and liked it and wanted a second viewing and we found out the a few days before that they will not be attending but a property developer will be attending as they will be buying the property to then rent out to them

 The guy turns up a hour late refused to wear a mask which he is holding and take off his shoes and inspect every inch of the house including the loft and stomps round looking for faults

 He now come back with a offer of 7% less than asking which is £xxx,037 which was a weird offer as he said this was what is virtual  surveyor came back with this  and said we have to complete within 21 days but he would let us stay there until the house we would like to purchase completes and moves as they are in a chain as well.

 The price is a little short of what we are willing to accept and our estate agent is going see if the guy wants to up his offer.

 My main worries are the following:

Why did a local family come and view then a property developer from miles away then say he is buying it for them

I feel he might try and find ways to get the price down once we agree to it

The 21 days then let us stay sounds like we would run the risk of being kicked out or he will try and charge rent

Will a developer been harder to deal with as it will all be money motivated

 Has anyone else had this before as I don’t like my gut feeling  before?

Doozergirl

Not my area of expertise but it could be rent to buy?  

The 'developer' buys it with an agreement to sell to them at an agreed price in the future (higher than you've agreed, I guess). In the meantime, he takes the rent? 

US website here, but I think the principle is the same.https://www.investopedia.com/updates/rent-to-own-homes/

This is your house.  You do have the right to ask for a bit more detail from the person offering! 

princeofpounds

Mask - it's unfortunate but the time to object was before he entered the premises, not afterwards.

Looking for faults - why wouldn't he? Ignore it.

The renting couple - who knows what their relationship is. They aren't the buyers, so are basically irrelevant.

The funny offer - it is what it is. If it's not high enough for you, negotiate. 

Completion in 21 days - depends what this actually means. If it means exchange first and then complete within 21 days after that, fine. If it means exchange and complete within 21 days - I would not commit to that without speaking to your solicitor. It's a hugely tight timescale, and although it's easier as a seller, you need a solicitor who is set up to process things quickly and confident there will be no delays on various reports and documents. Although what's the penalty supposed to be if you miss the deadline - he pulls out? 

Staying there post-completion? I wouldn't. Sounds like hassle and who knows what he will start doing to the property whilst you have all your stuff there. He can't force you to pay rent, but there could be all sorts of ways things can get awkward. Put your stuff into storage with the removal firm and take a short let somewhere whilst you wait for the chain above to progress. 

Try to get the price down? Yeah, probably. But you can always just say no.

sellingconcerns

The faults found were thing like door frames were not completely straight and the old concrete path had cracks in it.
He wants 21 days exchange and complete which I feel is too quick

eddddy

It's weird to want to exchange and complete in 21 days - and then let you stay in the property. It would make more sense to just exchange in 21 days - perhaps with a flexible completion date.

The main thing is not to sign anything like a lockout agreement, or an option agreement, or a conditional contract - unless it's been fully checked over by your solicitor, and you fully understand it (and you have considered all the "what-if" possibilities).

Those "what-if" possibilities might include...

• It takes you 6 months to find somewhere you want to buy and then there's a long slow chain (and then the purchase falls through and it takes you months to find another place)

• You lose your job and cannot get another mortgage, etc, etc.

lincroft1710

Just look for another buyer

AdrianC

You don't like his offer and terms? Reject it.

The rest is all irrelevant.