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Price for Selling a House

Discussion in 'Legal and financial issues' started by Lookingafter, Oct 9, 2019.

  1. Lookingafter

    Lookingafter Registered User

    Aug 21, 2019
    I wonder if anyone can please advise?

    Had 3 separate visits from estate agents today.

    Two talked me into modern method of auction (got a CON29M coal mining report and a mineshaft is showing outside the my boundaries) and one traditional saying it would go for a lot more money (£40,000 more).

    My questions are: 1) can anyone advise on the pros and cons of either - I’m just reading literature and it’s not meaning a fat lot and 2) if I sold at auction (rationale behind this - quick sale to pay for care fees) - will social services deem this as depreciation of assets or similar for not waiting and potential getting a better price?

    many thanks
  2. DesperateofDevon

    DesperateofDevon Registered User

    Jul 7, 2019
    I don’t have any experience of this but auction houses take a fee & so do estate agents. So with the fees etc what’s going to give you the best Monterey result for care home fees?
  3. Palerider

    Palerider Registered User

    Aug 9, 2015
    North West
    If your looking for a quick sell it might be better to look for companies that will buy the property as it is and give you a qoute rather than auction, which might not bring in what you thought it might or be far less than you anticipated. Bidders are always looking for the cheapest buy given the asset they wish to purchase.

    The issue of the SS is based on who has the legal right to sell. In that is the decision on what is acceptable as a price. Also bare in mind any debts due against the sale of the property.
  4. Shedrech

    Shedrech Volunteer Moderator

    Dec 15, 2012
    hi @Lookingafter
    personally, I'd try getting the property on the market in the usual way ASAP to test the market as you just don't know what interest there will be until you try .... maybe start at a figure a bit below the highest suggested to tempt buyers in (unless you badly need a high figure ... though asking too much can put buyers off and hold up a sale) ... monitor the interest and consider reducing the price if no-one bites ... then look at auctioning as once you go that route there's no going back
    and firmly instruct the agent not to discuss the reason for the sale or your circunstances, try to have it seem like a 'normal move' .... I'm convinced the buyer of dad's property knew he had us over a barrel
  5. Lawson58

    Lawson58 Registered User

    Is there any way you can get a comparison of prices for auction against private sale?

    I know that here houses sold at auction get considerably more than selling as a listing. And it seems that even if passed in at auction, properties tend to sell very quickly if not immediately following the auction.
  6. Normaleila

    Normaleila Registered User

    Jun 4, 2016
    There are websites advertising houses for sale that show most properties for sale in a particular post code. (Can't name them here.) They also show the prices houses actually sold for, from land registry records. Prices usually posted 3 months after the sale. That would give you an idea of values and you could compare the state of your property to the ones that sold.
    I'm in England and I've always used an estate agent - both to buy and to sell. I think most people here would be nervous about buying at auction although it works in other countries.
    Look at sale boards and you'll see who sells most houses of your type in your area. They can save you a lot of hassle and guide you through the process
  7. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    I wouldn't buy a house by the "modern method" of auction, all the sale fees (typically 3% plus) are paid for by the buyer where normally the seller pays the fees for the house sale.
    Unlike Lawson's experience in Australia houses in the UK usually sell for a lower price at auction because it relies on someone being in the room or online at the time of the auction.
    Modern method is more like ebay, the house is offered for sale for a set period, normally 2-4 weeks and people bid online and have to pay a none refundable percentage at the time of sale, back out and you lose the money, no chance of a house selling chain, buy it and pay for it in (typically) 28 days later or you could lose thousands, why would I buy a house like that unless I was an investor or getting it cheap?
    These days you have to declare on the house selling form anything that might materially affect a buyers decision: bad neighbours, border disputes, new housing developments...anything that might affect the purchasers decision, so the fact (should you disclose it) that you're aware of the mind shaft might come back to haunt you.
    Caveat emptor no longer applies to house sales, you are legally obliged to disclose any material facts before the sale and as you know about the mine shaft probably you should say so, legally.
    A conventional High Street estate agent may take weeks to sell, you may not get the full asking price and you have to pay the sale fees, an auction will sell the house (subject to a reserve it you set one) on a set date so you may well see the money a lot quicker but it might be less money that's the choice.
    There is a house auction coming up at the Ehhiad stadium (Manchester City's ground) in a couple of weeks and I'd say the guide prices are well under the local market rate, redevelopers go to auctions for a bargain, do them up and take them back to auction and sell to buy to let landlords, basically it's all people with their own money not normally people buying with a mortgage to arrange.
  8. Lookingafter

    Lookingafter Registered User

    Aug 21, 2019
    Wow! Thanks for the replies.

    I’m advised by the first two that families and ftb would not be able to get mortgages due to the mineshaft.

    The prices range from £19,000 to £135,000 and there’s a mix of estate agents. One in same street went to auction for 24,000 and sold for 87,000. I personally don’t think the house is worth £125,000 and that’s setting me up for a fall. There no CH, no plumbing etc, needs a lot of modernising. They’d start it at £70,000.

    Are you saying that estate agents won’t declare the mineshaft at auction cause I won’t be comfortable with that?

    Not really fussed if someone else makes a profit afterwards. Just want a quick “5 months max’ sale.
  9. jugglingmum

    jugglingmum Registered User

    Jan 5, 2014
    My story may help. With my mum's house, I didn't have the mineshaft issues - and I don't know the rules on disclosure - but it was fairly dilapidated.

    The house is a standard 3 bed semi. The best bit (only good bit) about it was it had had a new roof fairly recently. My parents bought it in 1967, the survey stated at the time it needed rewiring - this still hadn't been done, the ceilings in 2 bedrooms were badly damaged (ie large holes) from water leaks before the roof was replaced. There was no central heating, the only heating was one working storage heater in the hall, the coal fire had been the main heating as a child but mum hadn't used for a while. The kitchen still had the original belfast sink bare walls, the bathroom needed replacing, in many rooms wallpaper was peeling off the walls. My parents had had secondary glazing fitted in the 70s before double glazing was invented, something they regretted, so it needed new windows and external doors throughout as well.

    So we knew that it needed a lot of work before anyone could move in.

    On the plus side it was in a very desirable london commuter town, in the best school catchment areas for both primary and secondary.

    Whilst we were clearing it (filling skip after skip - mum had been a hoarder all my life) we had many approaches from builders wishing to buy it - it clearly was only going to go to someone with the cash to do it up, and might not be mortgageable, so instead of going to an estate agent, we sat down with each in turn and took the highest offer. We did look at rightmove etc and find out how much houses were going for - most were now 4 or 5 bedroom due to attic conversions and we got what we thought was a fair value based on costs to modernise and put in the attic bedrooms.

    As POAs we did have a fiduciary duty to get the maximum, and we felt this was the best way to do it, however mum is likely to always be self funding, due to location the house sold for a lot of money.

    Estate agents do tend to know the market, if they are suggesting an auction method there is a reason. The poor state of the house is an issue as well as the mine shaft.

    As you said not mortgageable so you will need cash buyers.

    You could try contacting local builders - they used to advertise in local papers as houses wanted for modernising.

    I personally would go with the modern auction if getting the cash within 5 months is essential.
  10. Sirena

    Sirena Registered User

    Feb 27, 2018
    If the property is unmortgageable you'll need a cash buyer, which severely limits your market.

    You could market it the usual way through an estate agent for 3 months and see what happens. If you don't get any offers (or they are very low) you can then try the auction method. That would avoid any issues with deprivation of assets as it will be evident you tried for the best price.

    At a traditional auction you can set a reserve price, so it isn't sold for below x amount, I guess that would apply to modern auctions too? That would avoid it going at a ridiculously low price, but then again it may not be worth that much given the mineshaft.

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