Would you sell to an investor?

[Jellycat50000]

We've had some offers on our house.

-Asking price from someone with no chain
-6k over asking for someone with house on market but not sold
-£13k over but from an investor company. Worried they might try to knock money off at end of sale or aren't as reliable due to no emotional tie.
Any advice?

Yes I would- sorry but money talks

Yes, I would. It’s a business transaction. I’d also think an investment company would be easier to deal with, less likely to argue about small shit.

No emotional tie: they’ve had a good look around and know what the property is worth to them. I’d expect them to just crack on with the purchase quickly and not be surprised by the survey etc.

Definitely. I don’t think they will try and knock money off personally - and chain free buyers.

Thanks all. It's actually an individual investor sorry not a company.

Ah that changes it some. If the market comes down they may change their mind...good luck.

I'd be wary. We accepted an offer from a private investor. Just before exchange he pulled out, claiming Brexit concerns (this was last October). We were so angry, I naively thought no emotional ties means a hassle free sale, but now realise it means they can pull out without any thought for anyone else.

No guarantees in selling in England so get the process underway asap and push for early exchange

I don’t think an investor is any less reliable than a person who wants to live in it. Different issues but equally as swayable.

It depends on what the investor plans to do. I have a social conscience and for me it’s not all about money.

I sold a house to an investor.
He was buying up starter size homes to rent out and offered me my asking price on the day it went on sale. He’d already bought several on the small estate so I accepted his offer.

Is the investor company buying up similar properties nearby or is this a new venture for them? Are they buying Individual houses to do up and flog or to rent out?

Mine had been redecorated throughout for selling and had a fairly new kitchen and bathroom and UPVC double glazing installed only a few months earlier so it didn’t need any work doing.

This was in the 90’s though so things might have changed.

The offered who is yet to sell own house is a waste of time (you’ve no idea how long it’ll take, how much they’ll get, etc). The investor is no better or worse position than the first offer, but is giving you £13k more.
Yes, I’d sell to the investor! Alternative is to wait for a proceedable private individual to offer you more, but that seems pointless.

Thanks everyone. The house is all in very good condition and everything new in last 6 years so think they just want an easy place with no work doing that they can do a buy to let with. Market is moving so quick here that I suppose even if something happens it will probably sell again fairly quickly.

I would. Preferable to someone who is in a cumbersome chain.

I would because even if he reduces it later on you will make more. I understand it's hard when you love your home because you want someone else to love it. I'm at the other end. I've got absolutely no attachment to our house and we are moving

I would. Also, being as they don’t have the hold up of selling something, I’d make the acceptance based in an exchange within a short period of time so no backing out.

Has his financial viability been checked out before you progress with him?

@ladybirdsarelovely33 I was told he has a MIP and a deposit (I do know the amount but can't remember off the top of my head)

We did have a bad experience. A private investor asked for a substantial discount late in the process. When we said no, he just pulled out. We had to put our house on the market again but lost more than 8 weeks which then had other implications down the line. I would echo ladybirds query, make sure to understand the financial position of the investor. They often claim that they are cash buyers but then it slowly transpires that they need a loan and sometimes a bridging loan which is more risky.

I know he is not a cash buyer - he does need a mortgage and apparently he has now applied for so hopefully all will go through ok...

£13K over asking price from someone who still needs a mortgage sounds too good to be true OP. What happens if the building society give a lower valuation?

I'd go with the asking offer and no chain tbh.

Sunshine, that’s interesting. I have been wondering whether sellers only look at the £s and do not think deeply about whether that amount would stand up to scrutiny. I suspect you are rare but refreshing.

I don't know sunshine I hope it all works out I guess will have to wait and see! Although when we bought our first house we paid 15k over the asking price!

I would have said yes, but after an experience at the bottom of our chain and a friends experience I would now be very cautious. The problem is exactly that they have no emotional tie and no direct need to move. That means that they are not always motivated to move speedily (as they are not in a chain or giving notice on a rental) and you are subject to the wims of their personal financial situation and their concerns about the market.

We had an investor at the bottom of our chain who was just problematic, hard to get hold off and not engaged / motivated by anything other than his investments. They were a nightmare for our buyer. In contrast our buyer fell head over heels for our house and we always knew would complete. Similarly our friend has had an investor pull out two days before exchange because he had seen a better opportunity.

We did. It was actually a blessing as there were some delays with our onward chain and as they were investors rather than a first time buyer eager to get into the house, they weren’t pressing us to move out quicker.