Selling to a neighbour - no agent?

Mickie2323

I'm about to sell a property that I also own and which my mother has just moved out of.  The neighbour has been particularly keen to buy the property for several years as the garage, and drive in front of it, is adjacent to their house, and indeed looks as if it is already part of their property (I know odd, but 1960s estates!).

 They have asked before to buy just the garage but it would have been madness to sell it as parking is restrictive in the area, and obviously it would have devalued my property considerably.  They even voiced an opinion previously that they'd buy my house when it came up for sale and then sell it again minus the garage.  Obviously, this is a possible once in a lifetime opportunity for them.  It would greatly enhance the value of their own house and my even give them scope for an extension.

 I'm not looking for a premium on the price, just a fair price, and I'm keen to sell it soon.

If they're still interested, and I get a range of valuations, and we agree on a price together, could this sell be organised without an estate agent, and just with a solicitor to ensure all the legal aspects are covered?    Likely pitfalls?

Flugelhorn

I have sold without an estate agent on a couple of occasions - it was a while ago though. Solicitor said it was fine and to just give him the details of amount / name / buyer's solictor etc 
these days the agents seem keen on checking your ID and proving funds but the solicitor will do that as well so can't see that being a problem

eddddy

Mickie2323 said:

They even voiced an opinion previously that they'd buy my house when it came up for sale and then sell it again minus the garage.  Obviously, this is a possible once in a lifetime opportunity for them.  It would greatly enhance the value of their own house and my even give them scope for an extension.

It sounds a bit far fetched.

• Has the neighbour really got enough cash sitting their bank account to suddenly buy a house another house?

• Have they added up the costs of buying your house, and then reselling it (without the garage)? SDLT, Legal costs, estate agents fees? It might work out to be a very expensive garage.

• Even ignoring the costs - it doesn't sound like a plan that makes good financial sense... 

• ... in fact, you've already described it as "madness" to leave one house without a garage. (Do you think your neighbour will spend money on an idea that is "madness"?

Mickie2323

Agree, with all that you've raised - pertinent points.   Yet, if they're still keen, and have the finances readily in place, it's an option to explore - but only one option.  If they're not sounding credible then the convention sales route is always there. 

motherofstudents

We had a neighbour interested in buying so we got an estate agent round for a valuation and told them about the neighbour. They said they would market the house as normal but there would be no charge if the neighbour bought it. I had very little faith that the neighbour would buy but in the end they did and it was all done through solicitors.

gettingtheresometime

I'm hoping to do what your neighbour wants to do in the sense buy a near by property without going through an estate agent.

From your perspective though, would you be able to achieve a higher price if you went through an estate agent, even taking into account the EA fees (this is my biggest worry as I know everyone wants to sell their property for as higher price as possible).

What they want to do with the garage afterwards isn't your worry - they could, for example, want the garage and rent the house out separately - whether they can afford the house is.

Madmel

We sold our home 17 years ago without using an agent. We lived on a 15 year old housing estate that was very popular so we just stuck a sign up in the window. We had 3 EAs round to value it; all 3 were within £5k of each other so we went with the top figure, then negotiated down to the lower one so the buyer thought they had a good deal and we were happy as we didn't have to pay any EA fees. We told the solicitor immediately and it wasn't a problem. 

propertyrental

Mickie2323 said:

.....

If they're still interested, and I get a range of valuations, and we agree on a price together, could this sell be organised without an estate agent, and just with a solicitor to ensure all the legal aspects are covered?    Likely pitfalls?

Yes of course. The only thing an agent might contribute to the process is checking the neighbour has the cash and/or mortgage available.

jrawle

Without commenting on the specifics of your situation, of course you can sell without using an estate agent. You just need to agree a price with the buyer, then you both instruct a solicitor to complete the sale. The estate agent's job is to find a buyer. If you already have a buyer, you don't need an agent.

I sold my flat to someone I knew a few years ago via this method. It removes a lot of the stress, no viewings, no hassle. Of course, you do need a buyer and a price you are both happy with.

Bonniepurple

We are hopefully selling my parents’ old house to the son of the next door neighbours.  He’s been on the lookout for a house in the street for some time and approached us.  He’s offered what it was valued at for probate and we’ve accepted.  Fingers crossed he still wants it once we can legally sell it!

NameUnavailable

Get 3 valulations and decide on a price you would be happy with and put that to your buyer. If they're happy to proceed then just instruct solicitors as mentioned above. You say they have the funds to buy so that's not an issue then.

However, agents do help move a sale along - negotiating over issues brought up in a survey for example. Negotiating directly with your buyer can be difficult, you need to keep it strictly on business terms.

If they start dragging/you feel they're not being serious you have an agent (or few) lined up to instruct to market the property normally (but do tell them about the potential existing buyer and agree that if they should proceed to exchange there's no fees due for the agent).