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REAL ESTATE Any UK property people here? Need advice on selling house

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elusive97

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Hi everyone.

I'm selling my house at the moment. I've had valuations of £140k-155k. I didn't buy to sell but selling at 140k I'm at a £7k profit, for reference.

In a valuation I discovered as the builder had taken out the door and window (without explaining the consequences) there is no thermal barrier. For this reason, the house wouldn't pass a mortgage survey. Basically, I can only sell to cash buyers. In the UK that's about ⅓ of buyers.

On one hand it kinda sucks as I don't have any money, so can't afford to pay the £2k to fit a new door and window, or a few thousand to finish the renovation. In that case, I'd be closer to 155k.

On the other hand, a cash sale will be quicker, which is exactly what I'm looking for. Although appealing to the ⅓ of cash buyers, it could take twice as long to find a buyer?

Although the property and area are ideal for first time buyers and professional couples, it's unlikely we'd be able to find FTBs/couples who aren't buying with a morthage. I'm the only person I've spoken to in the area who doesn't have a morthage.

Apparently because the property is 80-90% renovated it isn't very attractive to developers or investors. These are obviously the most likely type of buyers to pay with cash! For that reason I'm thinking to sell at the lower end of the valuation, or even under it (142k > 140k > 138k). Even if I have to go down to 138k, that would surely appeal as they can spend £5-8k and sell for 155k after literally a month or less of work?

I really need to get out of this place so I don't mind taking less cash but I have some questions.

1) Appealing to cash buyers only, ⅓ of the market, how much longer should I expect the process to be? It takes 60 days in my area on average to find a buyer (generally, not just cash buyers)
2) As I'm looking for a quick sale, how long should I wait between price decreases?
3) If I am unable to find a cash buyer and have to find a way to make the property morgage-able, would it a cardinal sin to relist the property at a raised price due to the changes?

Thanks for any advice! I really appreciate your time.
 

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Stargazer

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I presume you mean you have had a cheapish conservatory fitted and had an internal window and door removed and the house no longer meets UK Building Regs heat loss requirements.

If it was a proper extension you had, it should have met Building Regs so the builder has screwed up if he had not built it to these Regs.

You don't literally mean there is no door from inside to outside I hope.

If it is the former you should just have them put back in. Nothing too expensive.

You want 100% of potential buyers to be looking, not 33%.

Unless the EA is going to go straight to cash buyer contacts the fact is it will be listed on Rightmove.

Are the valuers 100% certain this needs to be done for mortgage purposes? I am not an expert so don't want to comment.

I really can't see your bank not giving you a £2k loan based on the fact you have 100% equity. The EA will have a loan guy to arrange mortgages so he could probably get you one if your bank wont.

If you listed next week it would be a miracle if the bank survey happened by middle of next month and that is if someone made an offer immediately so you can have the door in before any bank survey would have taken place anyway.

If £2k allows you to list £5k+ higher to everyone it is a no brainer.

Is the EA a good one who is realistic about prices and selling times.

Terms and Conditions are a problem to get out of which is why they usually tell you rubbish like how many houses they have sold and it will take 6 weeks and we can get so much more than the others but reality is Rightmove sells the houses these days. EA have almost zero control of the market anymore

Dan
 
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elusive97

elusive97

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I presume you mean you have had a cheapish conservatory fitted and had an internal window and door removed and the house no longer meets UK Building Regs heat loss requirements.

If it was a proper extension you had, it should have met Building Regs so the builder has screwed up if he had not built it to these Regs.

You don't literally mean there is no door from inside to outside I hope.

If it is the former you should just have them put back in. Nothing too expensive.

You want 100% of potential buyers to be looking, not 33%.

Unless the EA is going to go straight to cash buyer contacts the fact is it will be listed on Rightmove.

Are the valuers 100% certain this needs to be done for mortgage purposes? I am not an expert so don't want to comment.

I really can't see your bank not giving you a £2k loan based on the fact you have 100% equity. The EA will have a loan guy to arrange mortgages so he could probably get you one if your bank wont.

If you listed next week it would be a miracle if the bank survey happened by middle of next month and that is if someone made an offer immediately so you can have the door in before any bank survey would have taken place anyway.

If £2k allows you to list £5k+ higher to everyone it is a no brainer.

Is the EA a good one who is realistic about prices and selling times.

Terms and Conditions are a problem to get out of which is why they usually tell you rubbish like how many houses they have sold and it will take 6 weeks and we can get so much more than the others but reality is Rightmove sells the houses these days. EA have almost zero control of the market anymore

Dan
Hi Dan thanks for the reply.

No I bought the house with a conservatory already fitted. Left my partner with the builder and came home one day to them having removed the door and window between the kitchen and conservatory! I wasn't too upset as it opens up the space and the builder said it wasn't a big deal and building regs aren't affected. It's been almost 2 years since then!

They weren't 100% certain, but I did my own research on top and I'm 99% certain we don't have a thermal barrier and would fail a mortgage survey. It's a cheapy conservatory as the ex owner was a cowboy builder.

Yeah getting the windows and door done and being able to sell to people with mortgages would probably add 3-4k.

My bank won't give me a loan. They don't care that I own my own home. My income is £0-250/mo and I can't borrow anything. I have a bad credit score as I've never borrowed anything. I literally only started using my overdraft for the first time in December/January. I even tried borrowing privately and through alternate means but there's too much red tape and it's literally impossible for me to get anything, especially as I don't have close friends or family.

I can't just sell the house to someone with a mortgage then get the windows/door done if the survey fails because 1) the house will be priced differently without the thermal barrier and 2) I couldn't afford it. The only way it would work would be if the buyer themselves paid the £1.5-2k for them fitted - highly unlikely :/

Do you see what I mean? I'd either lose the buyer, or lose thousands of pounds, and potentially both. And there's no way for me to get cash. I'm only going to be able to pay the legal fees by selling a couple of designer bags I bought years ago.

So excited to be rid of this place and have capital and freedom again! Trying to keep positive throughout this, I've been screwed over so much haha

Another quick question! So the delay in selling to someone with a mortgage is only about a month for the survey?
 
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GB81

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Hi Dan thanks for the reply.

No I bought the house with a conservatory already fitted. Left my partner with the builder and came home one day to them having removed the door and window between the kitchen and conservatory! I wasn't too upset as it opens up the space and the builder said it wasn't a big deal and building regs aren't affected. It's been almost 2 years since then!

They weren't 100% certain, but I did my own research on top and I'm 99% certain we don't have a thermal barrier and would fail a mortgage survey. It's a cheapy conservatory as the ex owner was a cowboy builder.

Yeah getting the windows and door done and being able to sell to people with mortgages would probably add 3-4k.

My bank won't give me a loan. They don't care that I own my own home. My income is £0-250/mo and I can't borrow anything. I have a bad credit score as I've never borrowed anything. I literally only started using my overdraft for the first time in December/January. I even tried borrowing privately and through alternate means but there's too much red tape and it's literally impossible for me to get anything, especially as I don't have close friends or family.

I can't just sell the house to someone with a mortgage then get the windows/door done if the survey fails because 1) the house will be priced differently without the thermal barrier and 2) I couldn't afford it. The only way it would work would be if the buyer themselves paid the £1.5-2k for them fitted - highly unlikely :/

Do you see what I mean? I'd either lose the buyer, or lose thousands of pounds, and potentially both. And there's no way for me to get cash. I'm only going to be able to pay the legal fees by selling a couple of designer bags I bought years ago.

So excited to be rid of this place and have capital and freedom again! Trying to keep positive throughout this, I've been screwed over so much haha

Another quick question! So the delay in selling to someone with a mortgage is only about a month for the survey?
Hi Dan thanks for the reply.

No I bought the house with a conservatory already fitted. Left my partner with the builder and came home one day to them having removed the door and window between the kitchen and conservatory! I wasn't too upset as it opens up the space and the builder said it wasn't a big deal and building regs aren't affected. It's been almost 2 years since then!

They weren't 100% certain, but I did my own research on top and I'm 99% certain we don't have a
Hi Dan thanks for the reply.

No I bought the house with a conservatory already fitted. Left my partner with the builder and came home one day to them having removed the door and window between the kitchen and conservatory! I wasn't too upset as it opens up the space and the builder said it wasn't a big deal and building regs aren't affected. It's been almost 2 years since then!

They weren't 100% certain, but I did my own research on top and I'm 99% certain we don't have a thermal barrier and would fail a mortgage survey. It's a cheapy conservatory as the ex owner was a cowboy builder.

Yeah getting the windows and door done and being able to sell to people with mortgages would probably add 3-4k.

My bank won't give me a loan. They don't care that I own my own home. My income is £0-250/mo and I can't borrow anything. I have a bad credit score as I've never borrowed anything. I literally only started using my overdraft for the first time in December/January. I even tried borrowing privately and through alternate means but there's too much red tape and it's literally impossible for me to get anything, especially as I don't have close friends or family.

I can't just sell the house to someone with a mortgage then get the windows/door done if the survey fails because 1) the house will be priced differently without the thermal barrier and 2) I couldn't afford it. The only way it would work would be if the buyer themselves paid the £1.5-2k for them fitted - highly unlikely :/

Do you see what I mean? I'd either lose the buyer, or lose thousands of pounds, and potentially both. And there's no way for me to get cash. I'm only going to be able to pay the legal fees by selling a couple of designer bags I bought years ago.

So excited to be rid of this place and have capital and freedom again! Trying to keep positive throughout this, I've been screwed over so much haha

Another quick question! So the delay in selling to someone with a mortgage is only about a month for the survey?
You probably need to get the work done before selling. It sounds like the property would currently fail an EPC. The buyers mortgage provider wouldn't then lend against it and even if they were cash buyers then their solicitor would probably advise them not to go through with it.

Does your partner/someone in your family have a regular income? It may be easiest (if they are willing) for them to go to their bank online and just apply for a personal loan for home improvements. You can then repay them from the higher sale price. If this isn't an option you may still be able to get a loan yourself but for the fees involved on such a small loan it will be very expensive as a % of the amount borrowed.

In terms of time to complete the sale I would usually say at least 2 months. Main reasons bring time to get the valuation done but also the buyers solicitor doing local searches etc.

Hope this helps
 

SparksCW

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Don’t forget that a buyer has to pay stamp duty on properties above £125k + legal fees etc so there’s really not enough money in it for a developer to make it worthwhile.

Your market is first time buyers so you really need to find a way to finish the property or wait until you get lucky with a new buy to let landlord or cash rich first time buyer.
 
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elusive97

elusive97

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You probably need to get the work done before selling. It sounds like the property would currently fail an EPC. The buyers mortgage provider wouldn't then lend against it and even if they were cash buyers then their solicitor would probably advise them not to go through with it.

Does your partner/someone in your family have a regular income? It may be easiest (if they are willing) for them to go to their bank online and just apply for a personal loan for home improvements. You can then repay them from the higher sale price. If this isn't an option you may still be able to get a loan yourself but for the fees involved on such a small loan it will be very expensive as a % of the amount borrowed.

In terms of time to complete the sale I would usually say at least 2 months. Main reasons bring time to get the valuation done but also the buyers solicitor doing local searches etc.

Hope this helps
We already have a 3 year old EPC. They're valid for 10 years so we don't need a new one. Would that still affect the sale to a cash buyer?
 

GB81

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We already have a 3 year old EPC. They're valid for 10 years so we don't need a new one. Would that still affect the sale to a cash buyer?
Maybe not to a cash buyer but if the epc is poor then the solicitor may advise the buyer not to proceed. Probably depends how experienced the buyer is. If they're an experienced investor they might be OK with it.
 
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elusive97

elusive97

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Maybe not to a cash buyer but if the epc is poor then the solicitor may advise the buyer not to proceed. Probably depends how experienced the buyer is. If they're an experienced investor they might be OK with it.
Thanks for the advice GB, I really appreciate it
 

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