SHOULD i SELL TO CASH BUYER COMPANY

Katykat

My mum is in a care home and we have to sell her house to pay the fees. Its been for sale for 8 months with no offers. Its a desirable property, just a stagnant market. Quite frankly, its a hasle that I could do without, showing people round, waiting when they dont turn up.paying for utilities and insurance. I've looked at a couple of companies who would give me a cash price, albeit lower than market value. I've worked out that I'm offering it at £10,000 below market price anyway, and knocking off estate agent fees, loss of interest on the capital etc, I reckon I could accept a fair drop in price. However, is this a safe transaction. I would do as much research on the company as I could, but has anyone had any bad (or good) experiences?

ruggedtoast

I've worked out that I'm offering it at £10,000 below market price anyway,

How have you worked that out, the market sets the price by selling things. If you havent sold after 8 months theres something very wrong with your market positioning.

Just drop the price to whatever is the market value and it will sell. Taking a hit by using one of those instant sale companies, who really will offer you below market value, doesnt make any sense unless you have to sell asap.

Davesnave

The 'market' may be stagnant, but prices are very fluid. I'm 12% below where I was 5 months ago, and thinking of going below that soon....and I'm not needing to sell at all.

You have to look hard at your immediate local competition and get your house priced below it. That's what will make it 'desirable.' People still want to buy, but they are scared stiff of negative equity or purchasing what they now see as a depreciating asset. Everyone has a completely different mind-set from the time when you went on the market when, although Northern Wreck had happened, people/pundits were still in the denial stage.

Why isn't your agent doing the viewings? I was in the same position as you two years ago and the agent did all the viewings (and for 1%.) I do sympathise - even in a 'good' market it took us 7 months to sell Dad's place.

guppy

Those cash buyer companies generally offer a very poor deal.

I agree entirely with ruggedtoast, the house is either overpriced or isn't being marketed properly. If the house is empty and in need of some modernisation, its probably being optimistic to compare it to other open market sales. Asking prices in estate agents windows are meaningless at the moment if no one is buying, and the sales from the Land Registry will reflect offers made some months ago now (they are only released two months after completion, I believe.)

Anyway, if you drop the price even a little below "market value" I'm sure it will quickly get snapped up - for a price higher than you'd get from a "quick sale" company. Failing that consider sending it to auction, you can set a reserve with the advice of the auctioneer.

Good luck

SquatNow

Davesnave wrote: »

The 'market' may be stagnant, but prices are very fluid. I'm 12% below where I was 5 months ago, and thinking of going below that soon....and I'm not needing to sell at all.

House prices have dropped at least 8% from the paek last august so 12% isn't a lot.

If you want to sell quickly you need to find a real cash buyer... someone with actual £20 piled up in a wheelbarrow, not someone who has no chain but need a mortgage.

People with a barrow-load of cash are sitting on their hand while watching prices fall. The only way to attract those is to slash a sh!tload off of the price.

Your choice is simple:
A) Knock off a shedload of money, say 5% a week, until it sells.
Hold out for more and chase the market down.

You're likely to get a higher final sale price doing A.

Katykat

I think some may be missing the point. I dont have any choice here, I have to sell the house quickly as mum is in a home where she is safe and reasonably happy. If I have to rely on council funding ( they hold the fee and then claim it back when the sale goes through), there is a chance that they may move her to a lesser priced home. Its enough that we have to sell her house without being unsettled again. even if I reduced it even more, it may take months to complete. I'm not being unreasonable. Its a 3 bed detached bungalow, valued at £148000 8 months ago. Since then I've completely redecorated and fitted new flooring, and I'm asking £135000. I reckon I'd get an offer of maybe £130000, then I've got estate agent- £2700, solicitor and running costs, plus loss of interset for a few months. Its all on top of coping with a parent with dementia, working and looking after a family. I just want to put a lid on it. I'm on my 2nd estate agent, who keep telling me the market is stagnant, they dont advertise it every week, ( which I think they should)

SquatNow

It wont take months to sell if you lower the price enough, however you may end up lowering the price so far that these "CASH BUYER COMPANIES" may be offering more!

Realistically, what you need to do first, is ask a few of them and find out how much they will offer. If they only offer £100k, then you might advertise it at £115k for a couple of weeks and see what happens.

Until you know what they will offer you can't decide.

mikthe20

As guppy says, auction it.

Trollfever

And another auction fan.

Some comments here:

http://www.cliveemson.co.uk/latest_report.asp

guppy

This auctioneer's site has a lot of info about the process if you think this route might be an option:

http://www.cliveemson.co.uk/guide.asp

Exchange takes place on auction day and completion within 28 days. A reputable auctioneer (Chartered Surveyor) should be able to advise you on valuation matters.

The property sounds in good condition, maybe consider changing to a better agent? You'd think they'd be pushing harder for a a quick sale (and commission).

Edit: Trollfever, snap!

Trollfever

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