Inherited property "unmortgagable" advice

crazyoldmaurice

mi-key said:

Do you know what the lenders surveyor valued the property at? It could be thy have downvalued it and the buyer can't come up with the difference and are trying to get a higher mortgage from another lender.

The buyers probably wouldn't tell the agent this, so they wouldn't know.

Lenders are lending on all sorts of properties every day, including ones that need a lot of work, so it is unlikely to be the house itself. The only properties they tend not to lend on are either ones that are uninhabitable, or have non standard construction.

If it were me I would relist with a different agent, and see who comes along. You could get a cash buyer, or someone who needs  mortgage but can actually afford it. 

No, they didn't tell me this info but I've just asked estate agent. The buyer has some saving along with deposit at 15%. We dropped from 145k to 140k so guessing somewhere around there 

crazyoldmaurice

MobileSaver said:

crazyoldmaurice said:

dropped price to 140k. This was in November ...  a house 2 doors down just sold with no issues

How much was the house two doors down on for and do you know what condition that one was in?

In really nice condition and was around 200k mark 

km1500

are you able to get a few cans of white paint (and stain blocker) and do it up a bit - esp the nicotine stains. Look at it with buyers eyes and see what you can improve for the best efect. Also change agent.

crazyoldmaurice

Emily_Joy said:

I spoke an EA recently about a property that was listed as "cash buyers only". I was told that the property is believed to have structural problems, since there was a subsidence claim and that it appears the money has not been used to fix the problem. 

I don't want to list as cash buyers only as it might be off-putting as with cases like that as structurally its absolutely sound. Been around for 100 years and no one has ever had an issue selling on that street

Murphybear

Another vote for traditional auction.  It’s much quicker than the “normal” route and properties in poor condition sell fairly easily.  

baser999

EA will be keen for you to stay with them as otherwise they’ll lose commission. Auction seems the better option though? 

eddddy

crazyoldmaurice said:

The estate agent is pretty adamant the buyer has a perfect credit history and had around 15% deposit with some savings to do the essential works (rewiring, heating) but planned to live in the property for a few years before he flipped it.

I just spoke to estate agent and said that retracting an offer wouldn't be down to the condition as they wouldn't have made an offer at all surely. Be he is absolutely adamant the buyer had no changes in circumstance but can't offer me any further info.

As others have said, a valuer/mortgage lender wouldn't just say "No" with no explanation.  They would explain to the buyer why they're saying "No".

So the Estate Agent should be asking the buyer why their valuer/mortgage lender said "No".

If it was a problem with the property (e.g. it's condition), the buyer would almost certainly tell the Estate Agent.


If the buyer is refusing to tell the Estate Agent - it's probably because the buyer is ashamed or embarrassed about the reason.  (For example, they fibbed on their mortgage application or they've changed their mind about buying a property, etc.)

mi-key

crazyoldmaurice said:

mi-key said:

Do you know what the lenders surveyor valued the property at? It could be thy have downvalued it and the buyer can't come up with the difference and are trying to get a higher mortgage from another lender.

The buyers probably wouldn't tell the agent this, so they wouldn't know.

Lenders are lending on all sorts of properties every day, including ones that need a lot of work, so it is unlikely to be the house itself. The only properties they tend not to lend on are either ones that are uninhabitable, or have non standard construction.

If it were me I would relist with a different agent, and see who comes along. You could get a cash buyer, or someone who needs  mortgage but can actually afford it. 

No, they didn't tell me this info but I've just asked estate agent. The buyer has some saving along with deposit at 15%. We dropped from 145k to 140k so guessing somewhere around there 

To be honest the agent will only know what the buyers have told them. I doubt a buyer would say to the agent they can't come up with the money as the agent would advise you to remarket, and the buyer would lose out on the house.

It all sounds quite fishy that one lender wouldn't lend, then another would but changed their mind... Are you sure the buyer wasn't just making up the second lender and saying they would lend them less to try and get money off? Maybe hoping you would give  them more off so they could afford it?

I think if you are listing it at £145K and a done up one is worth £200K then you shouldnt have a problem getting a buyer via a normal listing rather than auction. It really depends if you are desperate to sell quickly, or don't mind hanging around

crazyoldmaurice

eddddy said:

crazyoldmaurice said:

The estate agent is pretty adamant the buyer has a perfect credit history and had around 15% deposit with some savings to do the essential works (rewiring, heating) but planned to live in the property for a few years before he flipped it.

I just spoke to estate agent and said that retracting an offer wouldn't be down to the condition as they wouldn't have made an offer at all surely. Be he is absolutely adamant the buyer had no changes in circumstance but can't offer me any further info.

As others have said, a valuer/mortgage lender wouldn't just say "No" with no explanation.  They would explain to the buyer why they're saying "No".

So the Estate Agent should be asking the buyer why their valuer/mortgage lender said "No".

If it was a problem with the property (e.g. it's condition), the buyer would almost certainly tell the Estate Agent.


If the buyer is refusing to tell the Estate Agent - it's probably because the buyer is ashamed or embarrassed about the reason.  (For example, they fibbed on their mortgage application or they've changed their mind about buying a property, etc.)

The estate agent is telling me it's down to the condition but can't tell me anything more than that, no specifics at all as he says he doesn't know. I just can't see that being the case as it has everything working minus central heating, it does look pretty bad condition wise and needs everything doing but nothing untoward. The offer being retracted is a red flag but I still just kept being told its the condition.

gwynlas

Take a deep breath and take some time for yourself. Can you post a link to the property to get more structured advice from the forum? To me it sounds as though the house needs renovation but whether this is a total strip out and start again or whether it is habitable and needs cosmetic overall is unknown. I am not sue that your EA is giving you the best advice as at the end of the day all they are interested in is maximium commission by the easiest route. It could be that traditional auction might be the best route for a quick sale on the other hand being over £50K cheaper than another renovated house on the same street should attract traditional local buyers. It might be that it is out of reach of FTBs in your area  who need a high LTV and cannot afford to have  the work done.