How do I just sell a house.

[BeyondMyWits]

Never sold a house like this before, so not sure what has to be done...

My parent has moved to a care home, and her neighbour (a developer) has said they'd like to buy her house.
This house is only ever going to sell to someone like them, it is falling to bits.

I know I have obligations to parent/council etc to get a reasonable price.
I have POA both health and financial.

My question is - Has anyone done this? what do I actually do?

Have it valued?

I think you only get the first few months of care free so speed is key here.
Get three valuations, consider an auction and evaluate the developers offer.

Make sure the resulting money is in different locations as only £80k is protected at each banking institution.
Premium bonds and ISA’s are tax free and NS and I protect large lump sums.

Consider buying a care annuity to pay care home fees leaving the bulk of the sale cash untouched.

First, get it valued. You could ask a couple of estate agents to come and give you a price they would market it at / expect to sell for. Interview them properly, how would they market, who is target market, sold prices nearby, and their fees. You will need them if the neighbour doesn’t come through. Don’t tell them about neighbour.

Then name your price to the neighbour: or ask his price, but I wouldn’t accept less the EA price minus 5 or 8% , and minus the EA selling fees. Maybe negotiate down to 10% lower.

Then appoint a solicitor to do the conveyancing, ask them to check that the neighbour had funds. Leave to solicitor to manage. You will need to show the solicitor your POA .

Get some estate agents round for valuations. They will be able to take account of the condition of the house.

First have it valued with 2 or 3 estate agents and then maybe consider placing with a specialist property auction house.

If the neighbour isn’t making a good offer, go back to the EA and sell through them.

Wrt the money: if the money runs out and the care home know a property is being sold they (or the LA) will put a charge on it and wait til it is sold, you won’t be left high and dry. So don’t panic sell at a ridiculously low price just for speed.

With wrt the money when you receive it, you will need an account from which you can make regular withdrawals, as high interest as possible, and a longer term for the balance each year. Your Mum presumably doesn’t pay tax so you don’t need the tax-free protection of an ISA? Or maybe you do if she has a private pension that takes her into taxable status?

Oh, wow, thanks for the responses... they have already given quite a lot to think about.

Hadn't even thought about protecting the money after. And naively didn't think about the neighbour not offering "around"(always under, I know) market value, or dropping out... or as someone pointed out privately "gazundering" last minute.

And, no, she doesn't pay tax.

So, step 1 is valuation. I guess 2 or 3 estate agents, and "interview" them re fees and marketing.

Cheers, I really appreciate people taking the time to help.

A PP mentioned Power of Attorney. Do you have this OP? If not you should organise it with your parent, as it is still their house.

You will need a solicitor so you can ask about this at the same time (it may be two different lawyers within the same firm).

Yes, I have POA for both finance and health. Glad it was arranged a few years ago... sadly needed due to advanced dementia now.

Thankfully, at least it is one fewer thing to have to worry about.

OP - for a short term higher balances are protected if they are a result of a 'life event' such as house sale. So once the solicitor pays the proceeds of the sale into the agreed bank account (will it be your Mum's account over which you have authority to act?) you have a while to work out how you need to divide it.

The MSE (MoneySavingExpert.com) site is brilliant for listing the best paying accounts , and how much flexibility they have in regular withdrawals etc, or maybe the second year's money could go into a fixed rate account for a year at a higher rate.... have a look - MSE never recommend any accounts that are not protected. But rates and deals change, so have a look as the completion date approaches.

I know you say your Mum doesn’t pay tax currently, mine didn’t prior to her house sale.

She is now generating £40k+ a year in interest on her savings so we were a little foolish not to utilise ISA allowances originally.

When my mum moved into a home we sold her house via an online auction arranged through the estate agent as it meant that there was no risk of a chain breaking down. As I was travelling 150 miles each time I needed to sort something out speed was of the essence for me. It also meant the buyer was as committed to completing the whole process within 4 weeks.

More food for thought.. thanks.

Yes, I have authority over her bank account, that has been working nicely. And yes, if the house sells for the mid to upper end of a crude estimate based on not-a-lot, she will probably end up paying tax for a bit, (until depleted by care home provision) so would be a good idea to at least start thinking about that aspect.

Auction is something to look at too, as the house is in a state of disrepair, it would not really appeal to someone wanting to move in without having a builder remodel.

Cheers.

Honestly do look into a care annuity, for £140k Mums annual bill of £50k+ is covered completely (plus her pension)
Her capital has never been touched.