private sale - how much discount is reasonable?

[lainiekazan]

We need to sell pil's house to pay nursing home fees.

Someone has expressed interest in buying the house privately. Obviously as a first step we are getting estate agents' valuations, but how much/what percentage could he reasonably ask to be knocked off the valuation?

It would be handy to sell privately, and the person says they are a cash buyer, but want to way up the convenience versus losing an amount of money.

Any advice appreciated.

selling privately doesn't affect the value of the house. All you save is the agents fee, between 1 and 2% ish plus BAT.

you still need a solicitor of course.

be very careful of 'I'm a cash buyer'. An agent will ask to see proof of funds, i.e. a bank/building society statement or statements showing the money. If they don't have that, they aren't a cash buyer.

BAT? VAT!!

Mmm, 10%, that's quite a lot. The house isn't worth a huge amount and therefore 10% seems more substantial.

I'd suggest half the cost of the estate agent fees.

estate agents fees only.

agree, get valuation and deduct estate agents fees. had this with PIL house (was in a desirable area thought). had a direct approach- we came up with fair value. did written agreement on price with them to complete by x date. worked well

Thanks.

What about survey? It is an old house so may be some issues, and I don't want a private buyer then trying to knock even more off price.

Take care that estate agents don't exaggerate how much your house would fetch on the open market.

Agents are desperate for stock at the moment, so they may well over-value your house to secure your instruction. Cue months of frustration before you end up settling for more or less the same that you'd have got from your private buyer.

You could get two surveyors to value, yours and the buyers, and then split the difference.

Or you could go to auction - you'll exchange the same day and the buyer has to complete within 28 days so you'll only get cash buyers anyway.

IMO, the people who come round suggesting that you save money by not advertising it in the open market and getting the best price paying an agent, hope to buy it cheap.

I don't know, most people expect to take an offer on a house rather than get the full asking price so factor that in perhaps?

Have they already asked for a discount? If not, then wait until they do - worst case, you add up to what suits you and, if they won't meet you on that (or half-way) then it goes up on the market anyway and you've only lost a couple of weeks. I would tie them down to a time-frame though to save you losing too much time if they don't offer an acceptable amount.

It's a tough situation to be in though - hope you get the price you need for it.