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Original poster

House for sale/to let - would this put you off buying or renting it?

25 replies

gaelicsheep · 09/03/2013 20:48

Would it make you offer less, because you'd assume the owners were desperate for the money? Would it make you reluctant to rent it, lest it be sold from under you?

We are renting a house that was for sale/for let. We rented it on condition that it was taken off the market, so it didn't put us off.

Would be very grateful for honest opinions please. TIA.

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KindleMum · 09/03/2013 20:51

It wouldn't put me off as a potential buyer but I wouldn't rent a house that I knew was up for sale. Moving is expensive and finding a rental is a hassle so I wouldn't rent somewhere with an increased chance that I'm given notice to move again shortly.

Original poster

gaelicsheep · 09/03/2013 20:55

The arrangement where we're renting is that we might buy it if and when we manage to sell our house, and in the meantime they're very happy to rent it to us for as long as. Perhaps we were lucky.

The risk is that if we just put it up for sale we still have to cover costs, perhaps for months or years, and we can't afford to do that for much longer. But if we only rent it out we don't get a chance to buy where we are, and I really do hate renting.

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KindleMum · 09/03/2013 20:58

I'd try to just get your house sold then. Is it priced realistically? Have you done the Phil Spencer Secret Agent act on it? Is it in an area where property is selling?

Original poster

gaelicsheep · 09/03/2013 21:05

It is very complicated. It's very rural, there are few properties that you can realistically compare it against. It definitely could appeal to the second home market given its location, much as that would grate on me, but equally it might not be posh enough for that. We are also still very attached to it, and struggling with the concept of selling, especially since that closes off our escape route back should we need it (and well we might). So aside from the purely financial side of things, there are many other factors at play!

We've had a valuation survey done, which now needs updating. It hasn't gained much value since we bought it 5 years ago, but hasn't lost either which is good as it means it has outperformed the market in the area. And like I say if it ends up stuck on the market for months we're going to be really stuck. It's already been a year - a very long story - so we are sailing close to the wind now.

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Original poster

gaelicsheep · 09/03/2013 21:09

I think I'm most interested of all to know whether a house that was also up for rent would make you, anyone, as a buyer offer less?

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KindleMum · 09/03/2013 21:13

In that case - have you tried talking to a good financial advisor about putting that one onto a buy to let mortage and releasing the equity that way so that you can get a second mortgage to buy this house? Would the sums stack up? Can you keep that house tenanted easily enough? That can be an option but you need a good FA, the house needs to be easily rentable and you need a little bit of financial slack in case you're tenantless for a bit.

KindleMum · 09/03/2013 21:14

It wouldn't make me offer less. I would assume the owner was in a position where they could hold on to it and rent it out if they can't get the right sales value, therefore not desperate. I have a few friends in that position at the moment, I think most people do with the property market as it is.

Original poster

gaelicsheep · 09/03/2013 21:16

We've been into all that. It was doable just, but only with an injection of cash from my DPs because we couldn't raise enough deposit out of the house for two hefty deposits plus all the fees. The house we were interested in fell through, and now I really don't want to go back to asking my DPs again. It feels all wrong somehow. I agree though, that would be our ideal option. Again, it's hard to know if the house is easily rentable, but all I can say is we had two sets of people wanting to rent it before it even went on the market. We had to turn both away in the end because we couldn't get the necessary work done in time (long story!). But equally they could be the only two couples in the area who would be interested - it's a bit niche I guess, not for everyone.

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SavoyCabbage · 09/03/2013 21:18

It wouldn't put me off buying it, but I wouldn't rent it.

Delayingtactic · 09/03/2013 21:29

As said before it would actually make me think the owners weren't that desperate for the money, as they could afford to sit it out until tge right offer came along.

But there's no way in hell I'd rent, even with the assurance it would be taken off the market.

Original poster

gaelicsheep · 09/03/2013 21:31

Interesting. So even if you were told outright by the agent that the property would come off the market once rented, that would put you off?

Darn it, that kind of puts the mockers on the try them both and see approach. We just don't know which would be best. I really really do wish we could refinance onto BTL and buy this house here. Then we'd all be happy. Right now the thought of selling our old place is making us all as miserable as sin.

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TapselteerieO · 09/03/2013 21:32

It would put me off renting, especially with a family - as a long term renter and after living in three houses that became short lets (two owners "suddenly" decided to sell after 4 months, one to move in after 4 months). I would never want to do this, none of the owners were honest, all said it was a long term let. It is hell moving with dc, especially in rural locations where the choice of other rented properties can be extremely limited.

I would say that if you are honest you might find the right tenants but then you have to potentially give them notice when the house sells, and as a buyer I would be put off by tenants - worrying they might stall the process, with trying to find alternative accommodation.

Please be up front with tenants!

Original poster

gaelicsheep · 09/03/2013 21:33

I guess when we rented here we were that desperate that almost nothing would have stopped us. Well I lie, black mould would have stopped us, as would knowing for sure we only had 6 months. But other than that we were just grateful for a roof over our heads tbh. That's unlikely to be the case with our house, given where it is, so yes I do take your points. This is very helpful, thanks.

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Original poster

gaelicsheep · 09/03/2013 21:34

Oh gosh, we would always be honest. And quite genuinely, the house would come off the market if we found a tenant before we got an offer. We just need to cover costs and we would much rather NOT sell. Would it make a difference if you were told that?

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Original poster

gaelicsheep · 09/03/2013 21:39

The trouble is, if we just put it up for rent, and then we don't get a tenant, then we've missed much of the prime selling time and no one in their right minds would buy our place when they see it in winter . Ditto to the opposite scenario. So it's like we have 6 months for one or the other to happen - it's getting pretty scary.

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TapselteerieO · 09/03/2013 21:43

Yes, getting that assurance would help but it might stop me getting to the point of finding that out, if I saw the house was for sale I would presume there was a higher chance of it being sold after 6months - I would be worried after bitter experience that the owners wanted to sell rather than rent.

Long term lets are generally much more attractive, especially for families who usually want stability.

Original poster

gaelicsheep · 09/03/2013 21:46

Tell me about it, I understand having been there myself quite recently. Moving is a nightmare and if you find a decent place (and boy is that hard) you definitely want to stay put!

Yes, as you say, the worry is that potential tenants don't get to the point of asking. Oh God, what to do! I wish we'd never moved.

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Delayingtactic · 09/03/2013 21:48

I might if I actually talked to you directly and you conveyed that sentiment. If your house was in an area I really liked.

I don't suppose it's got land attached to it? I'd quite like to be more rural.

TapselteerieO · 09/03/2013 21:49

It is hard, I am just giving you mho. I would still try and rent it first, in my experience finding good rental property is difficult, choice was limited, so it might be easier than you think to find tenants. Not that I know what it is like to be a LL - we did have a few good ones! I would try renting for 3 months then reconsider.

Original poster

gaelicsheep · 09/03/2013 21:50

No unfortunately not much. Plenty of open land all around, but not ours. There is a garden of sorts but it needs much doing - it's basically full of reeds just now. Garden was the next project.

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ILikeBirds · 09/03/2013 21:54

I think assurances only go so far.

We rented a house that had been up for sale. It was off the market when we signed our tenancy agreement and we were given the impression that the owners were happy to rent it out for as long as we were renting it. 18 months later they decided to sell, which meant we had to move with all the associated costs and get ourselves tied into another 6 month contract which we didn't want as we were looking to buy ourselves.

Original poster

gaelicsheep · 09/03/2013 21:56

Yes and that's fair enough, I can see that. I think that route is not looking very sensible, but oh what do we dooooo? We could quite easily make the wrong decision whichever way we turn, there's just no telling.

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Misty9 · 09/03/2013 22:02

I think the only way you'll rent in that situation is with a hefty rent reduction and lots of clauses written into the contract about when to move out/give notice. Also, tenants are not legally obliged to show prospective buyers around until the last two months of the tenancy...

We're trying to sell a rented property at the moment and I'm concerned the tenant part is putting owner-occupies off. It doesn't exactly look very loved or lived-in. But even a bit of rent coming in sounds like it might be useful in your situation?

Original poster

gaelicsheep · 09/03/2013 22:06

We wouldn't be expecting tenants to show round prospective buyers at all. God knows, I wouldn't (or I'd make it as difficult as I possibly could). But I think tbh decision is made on that score.

I'm now starting to look back over our figures from when we were hoping to refinance onto BTL and buy here. This house is worth less than the one we were looking at. I wonder if it's feasible in any way. I really do favour renting if we possibly can, because doing that on our existing mortgage for a few months (with permission of course) would give us the confidence to take the leap to BTL.

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Original poster

gaelicsheep · 09/03/2013 22:49

Just did some sums and I'm wondering if it's at all vaguely possible that we can manage to keep on our old place, buy this one and NOT have to beg from my DPs. That would be truly wonderful, and I think it would lift such a huge lead weight from our collective shoulders. DH has never been as miserable as he has this past year since we moved. I hope I haven't missed something obvious.

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