How to proceed with a private sale?(11 Posts)
After looking for ages and having our house under offer we have leafletted (sp?) the area we want to move to. We have had one response and are going to view the house on Monday. I'm not sure how to proceed if we like it.
We are thinking that we should suggest and pay for an independent valuation. Do you think that the vendors will consider it independent if we are funding it? Do we move ahead with the valuation figure or is it just a starting point. In the meantime, would vendor need to provide a HIP.
Is there anything else we need to consider?
Any valuation is a starting point. They will probably have an idea in mind or want to get some agents to value for them - the independent valuation may be "correct" but they may not be willing to accept it. You will have to play it by ear, see how they want to go ahead, you can suggest an independent valuation but, of course, they may not want to be bound by it. The ball's in their court re: how much they want to ask and in yours re: how much you're willing to pay...
We bought our house through a private sale in exactly the same way. We leafletted an area and then got a call and went to see a house.
We were lucky in that a similar style house was up for sale through a local agent's at the same time, so we used that as a starting point and also the vendor called a couple of estate agent's who made valuations.
Let me know if you want any other info
NoseyHellen - I suspect the owners ('the vendors') of the house you are after will ask a couple of estate agents to come round and give them their valuation which will inevitably be above the true market price because agents always quote a high price to vendors to try and persuade them to use them to sell their house. The vendors will then turn to you and demand you pay the suggested asking price - they are hardly likely to agree to less.
You will then need to decide if you are willing to pay that suggested asking price.
Had some friends did what you are doing and they eventually agreed to pay 5% over the suggested asking price to stop the vendor putitng it on the market. They did this right at the peak of the market. Regretted it ever since.
Be careful not to overpay and check what comparative property has sold for in the area. You do not need your own independent valuation except to get a mortgage but bear in mind that in the current climate a mortgage valuer will almost certainly suggest a lower value than an estate agent would suggest to the potential vendor they hope to get an instruction from.
The vendor will not need a HIP unless they advertise it.
Thanks for your help.
As it happens, the next door house has just sold - we actually viewed it last year but it wasn't for us and in the 15 months it's asking price reduced by £150k and the final sale price was £25k less than that! That was smaller I think but in perfect modern condition.
I'll let you know how it goes after we see it tomorrow.
So, we're back from viewing the house and it's not for us. The house is really very small and can't really be extended. Of the 4 bedrooms, 1 had a single bed and a wardrobe (which they thought would be perfect for a cot but I'm not sure my son will want to stay in a cot for the next 18 years) and another had a junior bed and a small bureau. Our leaflet specified that we were looking for 4 good-sized room and I cheked this with him on the phone.
On price, we said that if we were interested we'd pay for an independant valuation. The vendor wasn't happy about his. He said that the house 2 doors down was on for £525k so that's what he wanted. Well we've viewed that one too and it was the same size but very nice inside but hasn't sold at that price yet, despite being on the market for 16 months. We chose not to point out that his immediate neighbour is sold subject to contracts at £449k and that was nicer than his too.
Looks like it will be rented accommodation for us next, but I can't even find someting to rent either - we might be in a hotel at this rate!
We did the same in Rugby when we wanted to live here and we got really good replies, unfortunately the people wanted too much, one pointed out to massive inflated price of a house nearby (sold a few months before) and when DP told him that the house actually sold for much less he was a bit miffed but still wanted lots of money. All the peple we met had this figure in their head and only one out of four ended up putting their too small house up for sale, the others stayed put, which makes me think they were chancers.
NoseyHelen - that is the problem we are finding and similar to goldenpeach too.
Vendors and their agents refusing to acknowledge the recent actual sales prices achieved in an area and just marking up property to the peak asking prices last seen in August 2007 or even higher in some cases. Sorry to hear you were disappointed but went through the same experience several times in the last 2 years.
No consolaton but the early 1990s crash to took 8 years peak to trough. We are only in year 2 of this one and prices are still ridiculous multiple of wages. The killer will be unemployment and falling ages.
We just rented a nice house at 50% of the cost of an interest only mortgage and no repair bills so we are happy to sit it out.
Hope you find a nice rental - rents are falling quickly.
Yes, I think he was a chancer. They have a house on the coast and they were thinking of selling next year. They probably wanted to see if we were a couple of idiots who'd pay over the odds, in which case they'd sell now.
Just read this thread with interest. We are in the process of going through with a purchase from our leafletting of a particular villag. However we are having problems as the vendor just seems to be taking an awful long time to get anything done - we agreed a price 4 weeks ago but his solicitor has still not contacted ours. Sometimes it really is useful to have an EA to chivvy along a little bit. We are now under pressure from our buyers who are ready to exchange - not sure what to do now and if the vendor is really committed. It seems from reading other threads that a lot of people are in renting waiting to buy but that suitable properties are not coming up. We are really reluctant to get into this situation particularly as we have quite a low mortgage and renting will drain our resources. Nightmare .............
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