Worthless/ unsellable house

[GreyhpundGirl]

Hello. My FiL died unexpectedly a year ago. My husband is the sole beneficiary of the estate which is his house. My husband was on the mortgage so probate took a few months.

When it was put on the market in the summer it got lots of interest and an offer was put in (120 000) but this was withdrawn when the survey came back (some damp and movement) Since then there has been nothing. It is listed on the open market and was listed on a modern auction site for much less than original asking price. (80 000)

We can't afford to do it up to remedy the problems but my husband is stuck with a house he can't sell nor can afford to keep paying the mortgage and council tax. There's about £40 000 left on it.

Any advice as it's causing us a lot of stress.

Possibly, I think we'll need to sit down and work it through. The auction ended last night and had some interest but no buyer so it's was a bit of a sucker punch to husband who thought he may come out with around 70 000 from the sale when an offer was put in in August, to no interest now but having to pay the mortgage etc. He just wants rid as it's causing financial strain and emotional stress. Thanks for your comment.

I'd want a proper estate agent to be able to say 'look it will be worth 120k when it's fixed, it's £50k worth of work and we're selling at 40k so a real bargain here'
You can also give the survey to potential buyers so they can see everything and get quotes done etc before buying.

Why did he go with that method of selling? That's what's putting people off, not the price - really really silly idea. I'm guessing in his grief he was taken in by the estate agent? Relist in the new year with bog standard sales method.

If refurbished in the same road go for £120k, listing at £90 should generate huge amounts of interest. You won't need an auction or we buy any house dot com.

Clearly your main option is dropping the price until it sells but if you do find yourself in a position to address the subsidence issue then look at the Uretek system which is a lot cheaper than other methods and causes minimum disruption. It is also possible to recommend that any potential buyer gets a quote from them as it may be less than they would expect. I have no links with the company but used to know people who worked for them as well as people who had their buildings stabilised using the system and they were enthusiastic about it.

Surely as a condition of the mortgage you have buildings insurance so if there is potentially subsidence you can claim on that for the work to be carried out.

I agree just go to a normal sales agent , get a current valuation and put it on for £10000 under and see what interest you get . Don’t go down to 40000 that’s ridiculous

Serco. They'll fully repair and rent it out and put it in good condition when they've finished.

I’ll DM you with the one I used. I have no
connection with them!

If you empty the house you may not have to pay council tax, check with your council.

It was, and is listed with a traditional estate agent. There was some interest and an offer in the summer. Then nothing. My husband isn't daft so must have listed it with the modern auction house, rather than a traditional one for a reason. Thanks for the comment, it seems they are not popular with buyers at all!

It is not the best time of the year to sell @GreyhpundGirl and even more stressful when it was your parent's home. I lost my Mum in May and sold her house in October and it is tough. I am sorry for your husband and you, of course, and hope the house sells quickly.

We have, our council charges. Thanks though.

But it was priced too high when you listed with traditional estate agent - it obviously needs to be priced to reflect that it needs developing.

It was priced at market value when it was listed. The price was reduced as a result of the issues that were highlighted by a buyers survey. We are aware it needs reducing still. It's just a big punch in the stomach to my husband who thought he might make 70 000 in August to realising he might not make anything and that his inheritance has been a massive financial and emotional burden. (he's fully aware he has no right to anything from the estate but I think he would have preferred to.know this a year ago rather than probate and house selling dragging it out)

He will have gone with MMA because it maximises his profit. No estate agent fees for the seller.

In reality, buyers resent the MMA fees, which are usually 6K plus £400 for the information pack or 4.6% if it is greater. The buyer then knocks that off what they are prepared to bid. So if on for market value and the reserve is set at that, it's already overpriced for the buyer.

Have a look at the one star reviews of iamsold on Trustpilot. It's grim reading. There was a thread on here bumped recently. Absolutely desperate buyers who have lost their life savings.

A house buying company (reputable) seems like a good option. Or perhaps the local council would be interested in buying it.

Have you looked at just handing the keys back to the mortgage company? You'll want to look at the consequences of it as its a voluntary repossession, but it's an option.

That's how he felt last night when the auction ended with no bids. It's an option to look into. Thanks.

Start afresh with a new Estate Agent, it sounds like the old one was useless.
Or maybe put it in the hands of two EA at the same time so they have some competition and incentive to get the house sold. It will cost more in EA fees but it sounds as if actually getting the job done (and paying off the mortgage) is the most important thing atm.

So it’s worth £120k if it’s refurbished. How much needs spending to get it to that stage? You didn’t have any interest at £80k, so it must need more than £40k of work done?

Take the quote for renovations, subtract it from £120k, subtract another £10k to make it worth the hassle, and that’s your sale price.

It was priced at market value when it was listed

Which was what?

I’d put it on with a traditional agent at a cheaper price that will attract first time buyers and developers. Maybe get a survey yourself to see what the damp issue is and get it fixed if possible. I wouldn’t go anywhere near a modern method of auction house so a lot of buyers will have been put off.

I think the trouble is that builders are reluctant to buy doer uppers at the moment because of the uncertainty in the housing market, higher interest rates and increased costs of raw materials. But that doesn't help you. Reduce again or approach the lender and ask for interest only is a good idea suggested upthread. I wouldn't really recommend asking one of those we buy any house folk but it wouldn't cost anything to get a quote from them.

Can you get everything reconnected and get a tenant in? Try again in a year or so?

When we had to insure an empty property last winter the insurance company stipulated that the water was turned off, so it was impossible to heat. But ditto the person coming in to check every two weeks.

The next buyer might not get a survey and so the problems shown up on that shouldn't really make a difference, unless they are totally obvious...which I'm assuming they are not as they got the survey in the first place.

I've sold 2 properties in the last 4 years, one Victorian, and neither buyer got a survey. In the case of the Victorian house, they really should have!

I'd try again from scratch, tart it up as much as possible and see how diligent potential future buyers are....