How to navigate selling your house in this market

Help1234

Hi, we put our house on the market yesterday and have now racked up 20 viewings and one person has made an offer for the full asking price before they have even viewed. If we are lucky enough to get some more offers after viewings (majority taking place tomorrow and Friday) how are we supposed to know who is best to sell to? Should we ask people to submit "best and final offers"? If so how much of a deadline to give for this? We are concerned in doing this we could end up in a situation with the bank devaluing the price. Or did we possibly list our house for less than it's worth considering this flurry of interest?

Also we have all sorts of people in difference circumstances. We have first-time buyers with mortgages in principle, first-time buyers without mortgages in principal, cash buyer no chain, investor/second home buyer with mortgage in principal and no chain, people in chains with mortgage in principals and people in chains who will be cash buyers when this goes through. We would like to sell quickly so is there someone we should prioritise?

babyblade41

Ask your agent to make sure they do all the relevant checks before hand.. affordability, circumstances etc 

Help1234

We are using an online agent and much of the control is in our hands, it's us who can see their circumstances

lookstraightahead

If you decide to go for as much money as possible, make sure that whoever you accept from has the funds to make up the difference if the house is 'down' valued.

with so much interest people can act in a frenzied way and then pull out, or not meet affordability criteria, or a seller can get a bit "greedy" and it all goes wrong.

I personally would be looking for a bottom of chain - someone who has nothing to sell. That over a few extra K any day.

Mortgage free is good (cash buyer) they know what they can afford, they are likely to be a bit more cautious as it's their money.

Careful with your timings as well. Someone more likely to complete without having to relist, as interest rates will soon be on the rise and personally I think it will affect the housing market (although no one has a crystal ball).

MaryNB

Help1234 said:

 We are concerned in doing this we could end up in a situation with the bank devaluing the price. Or did we possibly list our house for less than it's worth considering this flurry of interest?

Be wary of anybody with a small deposit bidding above asking. They'll more than likely drop their offer if the bank downvalues it. Even if they have a high deposit, they might not like paying over their bank's valuation (despite offering over asking to get the property) or might not like being stuck with a higher interest rate because it affects their LTV. If they offer above asking, ask them if they will stick with that offer even if that bank downvalues it to the asking price (or lower).

Just because people are going above asking doesnt necessarily mean you put it on too low. A lot of demand drives higher offers. A bank won't be caught up in that though and will do their valuation based on the general local market. Did you get a few EAs in to value it?

Help1234 said:

Also we have all sorts of people in difference circumstances. We have first-time buyers with mortgages in principle, first-time buyers without mortgages in principal, cash buyer no chain, investor/second home buyer with mortgage in principal and no chain, people in chains with mortgage in principals and people in chains who will be cash buyers when this goes through. We would like to sell quickly so is there someone we should prioritise?

I wouldn't accept an offer from anyone needing a mortgage who didn't have at minimum an MIP. I've seen a good few people on the Mortgages board who think they can get 5x or 6x salary mortgages with ease.  When I bought my house the EA asked for an MIP and proof of deposit. On top of that the seller wouldn't go SSTC until I had a mortgage offer...

Help1234

That's incredibly helpful thank you so much! We got 5 estate agents to value (3 came out as same price which is what we went for, and the other 2 came at £5000 less). It's listed for £200,000.

MrsBrush

Biggest bit of advice - find out who they intend to use for their conveyancing. If it is a cheap as chips conveyacing factory based in one of the larger towns in the midlands, steer well clear!!

babyblade41

free with above.. online conveyancing would be a no no from me too especially if I had a choice of buyers 

thegreenone

Also, with the cash buyers, make sure they are that and not an investor remortaging ie they will be a cash buyer when their mortgage is approved.  I think we've had that scenario on here recently.

I'm surprised the EA let the FTBs view, with no mortgage agreed.

Help1234

@thegreenone thank you! what do you mean by "make sure they are that and not an investor remortaging ie they will be a cash buyer when their mortgage is approved"?
We have someone who has already made an offer prior to a viewing who is described as an investor/second home with a mortgage in principal. Is this someone we should avoid? Thanks

grumiofoundation

thegreenone said:

Also, with the cash buyers, make sure they are that and not an investor remortaging ie they will be a cash buyer when their mortgage is approved.  I think we've had that scenario on here recently.

I'm surprised the EA let the FTBs view, with no mortgage agreed.

Having a mortgage in principle is not the same as having a mortgage agreed