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Original poster

private offer before flat on market - WWYD?

28 replies

threeleftfeet · 13/06/2012 20:26

I'm about to put my flat on the market. It was valued at £240K about 8 months ago, and I expect it'll be a bit more now as it's in an area where - despite what's going on nationally - prices are going up.

My upstairs neighbour recently sold his flat within 3 viewings, other close neighbours sold on their first viewing. The estate agents tell me that it's still the case that flats are shifting very quickly round here.

I've received a private offer of £235K. We've agreed that I'll see what value the estate agents give it before replying to the offer. But I've started wondering what value I would accept to not put it to the market? As it's a sellers' market, would I be silly to not see what we could get? I'm secretly hoping for just below stamp duty (£250K) but I think that's possibly unrealistic!

Would you accept a private sale in a sellers' market? How would you judge what was a reasonable offer?

We're using the equity to buy our new place (no mortgage) so every pound counts! Whatever the equity is that we get from this place will be what we can afford to offer for our new place. £5K, for example, could make a big difference to us!

We are in no particular hurry to sell.

WWYD? Any advice much appreciated!

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nocake · 13/06/2012 21:04

Are you sure prices are going up. Asking prices are going up in most areas but purchase prices aren't.

I would accept a private offer because I like the idea of not paying an absurd amount of money to an estate agent for not doing much. You could save over £3k in fees.

Do a bit of research to find out what properties like yours have sold for recently - sold for, not put on the market for - and use that as your guide.

Original poster

threeleftfeet · 13/06/2012 22:05

Thanks for the reply :)

According to Zoopla, prices have gone up on average £4,526 (1.52%) compared to a year ago. They've gone down £1,985 (-0.65%) compared to 6 months ago, but they're going back up again, on average £1,849 (0.61%) compared to 3 months ago.

My area has always been quite rough, but it's become trendy recently, you can see gentrification in action! For example, The club round the corner which was not so long ago a place which attracted arseholes with guns, is now a gastro-pub charging £15 for Sunday lunch!

Loads of young trendies are moving in, I'm confident it'll sell. Also, my flat is quite unusual in that it's a normal flat! There are so many dodgy conversions round here, with tiny tiny rooms, or weird layouts, it's actually quite strange to find a flat with large rooms in nice layout (took me 6 months of searching to find it!).

I agree it'd be nice to not hand over lots of money to an estate agent, but not so much so that I'd be happy to lose out on £10K for the privilege!

If get £235K for the flat (after / without agent's fees) we'll be able to afford a flat in our new town. If we get £245K it'll be a house. I really want a house!

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PotteringAlong · 13/06/2012 22:08

Why are you so set on mortgage free? A £10k mortgage would be nothing for a house?

If it were me I'd sell rather than risk not selling and having to take a much lower offer 6 months down the line.

RCheshire · 13/06/2012 22:10

I'd explain yourself to the private bidder just as you have here. You'd like 250 and can show him (based on sold data) why you believe that is realistic. You'll let it go directly for 245 cutting out the agent (which benefits both of you).

PacificDogwood · 13/06/2012 22:11

We sold our previous house privately just before it officially went on the market. In fact, the estate agent had been round to take photographs but we had not officially signed any kind of contract with them yet, so were able to wiggle out ...

We did not accept the first offer the interested party made, nor the second (hardnosed business sharks, us NOT). The third offer was more that we would have dreamed of. Mind, this was 8 years ago, before the Big Slump.
We were lucky in that our previous abode, albeit tiny, was in a highly desirable location, we had fully renovated it, it had a garden and off-street parking in the centre of a happening neighbourhood.

Personally, I'd go for it. Paying EA fees is just annoying, particularly if you think your flat is likely an easy sell.

Original poster

threeleftfeet · 13/06/2012 22:11

Nothing against mortgages, but we're both students at the moment, no one is going to lend to us! (If you know of anywhere, please do let me know!)

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PacificDogwood · 13/06/2012 22:12

RC said it much better and to the point than me...

Original poster

threeleftfeet · 13/06/2012 22:14

Interesting to hear your story PacificDogwood :)

Would the agents take a dim view of the private sale? Did the contract say you'd have to pay them even if you arranged the sale yourself?

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Original poster

threeleftfeet · 13/06/2012 22:16

I don't think it'll take 6 months to sell. I'm expecting it to take weeks. Two flats right next to mine sold on the 3rd and 1st viewings and the agents confirm this is typical round here at the moment.

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Original poster

threeleftfeet · 13/06/2012 22:18

RCheshire good advice, thanks :)

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PacificDogwood · 13/06/2012 22:23

From memory, I think, if we had in fact appointed our agent, then yes, we would have owed them money even for a private sale.
All this was in Scotland btw, I am not sure the rules are the same??

We were contacted by the party who eventually bought our property within a few days of having told some neighbours we were going to move - jungle drums work a treat in an inner city setting, I find!

We had a figure in our head that we would have accepted - the 2nd offer was lower than that figure, the 3rd a fair bit higher. We are (still) not at all mortgage free, but managed to go from 1 1/2 bedrooms in Trendcity to 6 bedrooms/garden/garage in the sticks with money to spare. I still feel stupidly lucky how things turned out tbh, and there was a fair bit of dumb luck involved (market bouyant).

If you pull it off, I'd be quite envious of you being mortgage free with house - good luck to you !

Original poster

threeleftfeet · 13/06/2012 22:33

Ah, thanks. But it'll be a modest 2-up 2 down. I'm envious of your 6 bed Scottish mansion!

(DP is Scottish, I expect we may well move there at some point in the future).

Like you I feel very lucky. I bough a home first and foremost, not an investment, but it's turned out to be a good one.

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Original poster

threeleftfeet · 13/06/2012 22:35

I'm curious about how much people might offer on it! I was actually quite looking forward to the viewings process

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Original poster

threeleftfeet · 13/06/2012 22:37

I do look at Scottish property and dream about it from time to time :)

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KatieMiddleton · 13/06/2012 22:41

How much would you pay in EA fees?

Original poster

threeleftfeet · 13/06/2012 22:51

The standard seems to be 2.5% but one I spoke to indicated they'd be open to negotiate on that.

If I do go the estate agent route I'll go for the one with the smallest fee (assuming I think they're competent!)

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RCheshire · 13/06/2012 23:03

I was actually quite looking forward to the viewings process

If you've no children then you're just weird. If you have then you're certifiable!

Original poster

threeleftfeet · 13/06/2012 23:06

Certifiable I'm afraid!

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Sleepwhenidie · 13/06/2012 23:10

Why don't you get a couple of agents to value your flat now so you can either get comfortable with the level of the private offer or ask them to raise it? You dont have to appoint them.

I assume the private offer also has the benefit of being a cash buyer/no chain? That would also play a part in my thinking about it.

KatieMiddleton · 13/06/2012 23:12

Well you'll pay £6k in Estate agent fees on a £240,000 sale price so £235,000 looks better value to me!

No harm in asking for a bit extra and taking the private sale. Alternatively you could have a crack at selling privately? Put it on Zoopla or stick a For Sake board outside the property with a mobile number to call and see what happens?

I'm not sure why anyone would deal with an estate agent if they didn't have to... and I used to run a mortgage brokerage so dealt with a lot of EAs.

Original poster

threeleftfeet · 13/06/2012 23:19

Sleepwhenidie I've got three EAs coming round for a look next week.

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Original poster

threeleftfeet · 13/06/2012 23:20

KatieMiddleton do you think that would work?

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Original poster

threeleftfeet · 13/06/2012 23:21

Sleepwhenidie and yes you're right they have no chain - although they will be getting a mortgage.

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KatieMiddleton · 13/06/2012 23:22

No harm in trying if you are keen to do the viewings and if you think the interest is there. Although a For Sale board might be better than a For Sake board..!

Original poster

threeleftfeet · 13/06/2012 23:24

hee hee a "For Sake" board. I like it

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