How to proceed with a private sale and negotiate?(9 Posts)
We currently live in a 1 bed and rent, however the landlord has just given notice that he wants to sell.
If we beg scrape and borrow we should be able to get a deposit together. I was just wondering if anyone knows how you go ahead with a private sale as I have no experience in property buying.
The other thing is that the landlord has indicated that he would like £200K for it. Properties on the same road in the same condition are advertised at £190K. It is in London which is a fab price but dont want to be paying over the odds.
Why would you want a private sale? There is no additional cost to the buyer - it is the seller who pays Estate Agent fees, and even if he were paying 1.5% at market value (£190k) it would still cost him less than the £200k that he has indicated.
You will still need to pay stamp duty and solicitors fees whether you buy privately or not.
If other property is cheaper why would you pay an extra £10k to him?
Ive bought privately. You will need to negotiate directly with the seller on price unless you love it so much that you want to pay over the odds for it and the mortgage valuation means you can do this. Then instruct solicitors and let them do their thing.
£200k in London for a 1 bed?! Where do you live?
I just thought that a private sale may make it cheaper for him so he is more likely to negotiate the price, or does it not work like that?
I have a feeling that he has been told by the EA that he can get 200k for it, so that is what he is asking. I just wanted to know if our situation i.e already living in the house would give us any additional bargaining points when it came to negotiating?
Sorry, i've said London, but its Newbury Park, so more essex way. Would love to stay in the house we already live in!
Yes that is a negotiating point you can use - no agency fees will save him money. But probably only 1% or thereabouts.
There's nothing wrong with offering, happened to my friend recently! She bought the house they are living in for a great price in exact same circs.
Let's assume LL could get £200k if he put flat on open market and that's a good price.
He'd only get that if there are no tenants in the property or if tenants were happy to keep place tidy and receive people viewing. (See other thread on renting out while selling)
If he chucks you out to sell, for every month the place is empty, he is paying a mortgage and not getting any rent. Even if it sells in the blink of an eye, completion could take a while and there might be a housing chain to get in order. We all know how un-smooth house selling can go.
In other words, it is extremely advantageous to him to sell to sitting tenants. Especially as he'll be saving other fees. So you should get a good deal on it, not opposite.
Look at sold prices locally with Zoopla and ask a friendly estate agent near you (maybe one who's selling the other flat) for valuation idea. I've been into estate agents when it's quiet and they'll usually happy to chat to you about this sort of stuff.
We sold to tenants and had a very long conversation with the estate agents before coming to a figure we were happy to offer the house to our tenants at.
Given our position at the time, it made a huge difference to us that the tenants bought the house. We didn't have to wait until the tenants left before selling, we had a guaranteed selling price, we didn't have to clear out the house after they left or do any redecoration before marketing the house.
The estate agent that had the conversation mentioned the price we would put it on the open market at and the price we would expect to achieve. We expected the tenants to offer below this. They did make an offer, less than the open market price quoted by the estate agent but more than we expected. They really didn't want to move as there was very little comparable on the market plus the cost and inconvenience of moving was significant to them.
Both parties were happy!!
So yes, you are in a good position to negotiate. Say you would be happy to carry on renting, are not really in a position to move out quickly so would be prepared to make an offer. Base your offer on what you can afford and based on other properties and any known issues with the flat knowing also that it is lowish risk for you as there will be few unknowns given you know the property. Good luck!!!
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