Selling MIL's house

[Snowsquonk]

I'm very, very tired and can't think straight. My MIL has moved to a retirement flat (that's why I'm so tired...) and has asked us to arrange to sell the house she was in. It's in a state, it needs renovating - we have an offer from a friend of a friend who was described to us as a property developer. We accepted his offer then found it is subject to him selling his current house - he develops property by buying houses that need work, doing them up whilst living in them and then selling them on. So not the kind of property developer we thought who would be able us to have a quick sale.

So - as his current house is not selling (he blames Brexit) we are going to put MIL's house on the open market after Easter. So obviously we will tell him this and he may take his offer off the table - but what happens if we're marketing (probably going multi-agency to maximise chance of a sale) and he returns with the cash to purchase - should we be transparent with the estate agents that a private sale is possible?

Any help welcomed because I cannot think straight at the moment. It's taken about a fortnight to get MIL to understand that yes she has to pay x2 bills, council tax, insurance etc because she owns two properties - she keeps saying "surely property developer man should be paying that..." and doesn't seem to understand that he's not yet actually BOUGHT the bloody thing.

Thanks

You need to be sure that you don’t get charged by the estate agent even with a private sale so I’d discuss it with them (preferably in writing) so that it can be made clear that shouldn’t happen. Some contracts require commission to be paid even with a private sale (which makes sense since they will have still done the work).

I think you can get a 6 month council tax break for an empty property? Might be worth checking.

Also I wouldn’t go multi agency, I’d just pick a good local one. Price it realistically and it will sell.

Many councils no longer give the old 6m grace period, and many actually charge you more than the usual rate as punishment for leaving a house empty.

You need to make sure your agency have sole agency and not sole selling. The difference being whether they get a fee if the house sells at all or not. If they haven’t introduced your buyer you don’t want to owe them a commission. It’s fairly standard, just be clear about what you want and check the contract is correct before signing.

I wouldn't go multi-agency. It smacks of desperation or overpricing, and can make people think there's something wrong with it.

I'd pick an agent who's apparently very active locally - you can tell by looking on Rightmove and Zoopla - and one with good floor plans and photos.

Given that the property needs work, ask for a realistic valuation, not what they think you want to hear. (Maybe use those actual words!). Some people will always prefer a project, rather than someone else's idea of a nice kitchen/bathroom/decor.

Might add that when selling my mother's house (which needed a lot of updating) after she had to go into a care home, my DB asked for a thoroughly honest valuation. EA gave 3 - optimistic, 6 months plus to sell, more realistic, 3 months, and, 'I'll sell it in a week.'

There wasn't actually a vast difference. DB went for 3, and it did.

I think you can get a 6 month council tax break for an empty property? Might be worth checking.

Not necessarily. It depends on the local authority. I had to pay full council tax on my Dad’s house from the day he died until the day the sale completed. It cost more than when he lived there alone as he was getting the single discount.

Also, please check the house insurance as you may find that the current insurer will no longer insure once they know the house is empty. I was in this situation and had to find a specialist insurer which was around three times the cost.

I believe that when you sign up with an agent, they will ask if you have had any private approaches and will agree that if you sell to those specifically named buyers then you do not pay the agent.

Thank you all.

Council tax - where MIL lives she gets one month off then it's the full rate.

Insurance - we sourced specialist empty property insurance, she cancelled her own buildings and contents insurance a couple of months before she moved (I know, I know....)

And good tip re single vs multi agencies. Have looked on Zoopla and Rightmove and have a couple of ideas.

With regards to council tax, if they won’t give you the six months break it’s often worth contacting your local MP. Magically the council will then find they can make a special exception just for you.

Nearly everyone looks at properties online so I wouldn't bother with multiple agencies either, as that will just push up commission.