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tommyboy

Selling To A Large Developer

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ok we had had intrest from a developer on our late grandmothers property, the property is siting vacant and we are currently waiting for probate to be completed, hopefully only 1-2 months max

the property was valued 2 moths ago for 220-260

the developers have given us three options,

1, Offer of £245k 10% payment now, 90% in three months

2, Offer of £210k Completion 28 days. £25k bonus in 12 moths if planning permision is agreed

3, Offer of £235k 10%deposit, completion in three months plus £25k bonus if planning permision is agrreed in 12 moths

so the bonus i am disregarding as i dont see this as guarenteed, what i want to know is, is this a normal offer you would expect?

I believe offer 1 will be our best option. i dont see house prices falling that much that the developer will be willing to lose £24k in three months time

we can not do anything untill the probate is complete so canot complete yet,

Have anyone sold to a deleloper before?

or can you tell me which option you would have gone for??

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ok we had had intrest from a developer on our late grandmothers property, the property is siting vacant and we are currently waiting for probate to be completed, hopefully only 1-2 months max

the property was valued 2 moths ago for 220-260

the developers have given us three options,

1,  Offer of £245k 10% payment now, 90% in three months

2,  Offer of £210k Completion 28 days. £25k bonus in 12 moths if planning permision is agreed

3, Offer of £235k 10%deposit, completion in three months plus £25k bonus if planning permision is agrreed in 12 moths

so the bonus i am disregarding as i dont see this as guarenteed, what i want to know is, is this a normal offer you would expect?

I believe offer 1 will be our best option. i dont see house prices falling that much that the developer will be willing to lose £24k in three months time

we can not do anything untill the probate is complete so canot complete yet, 

Have anyone sold to a deleloper before?

or can you tell me which option you would have gone for??

Well option 1 is £24k now. £220,000 in 3 months or they lose their deposit and you can sell on the open market.

Planning permission with a deadline is rubbish so I wouldn't go near it. Property law is different to contract law so you could instead attach a simple £25k on any uplift in value (regardless of whether the uplift is from developer 1 or developer 9 down the line when the others have gone bankrupt).

Personally I'd go for 1. Its a decent offer and it would take 3 months for anyone else to buy it anyway.

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i dont know what the land value will be if the developer gets planning permission.

if it is a lot of money i would negotaite a deal that gives you a share of the land uplift value- say 1/3rd of the uplift.

and i would still take a 10% non refundable deposit with the balnce due on completion in say a max of 60 days.

talk to your solicitor. they will have experience of this

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ok we had had intrest from a developer on our late grandmothers property, the property is siting vacant and we are currently waiting for probate to be completed, hopefully only 1-2 months max

the property was valued 2 moths ago for 220-260

the developers have given us three options,

1,  Offer of £245k 10% payment now, 90% in three months

2,  Offer of £210k Completion 28 days. £25k bonus in 12 moths if planning permision is agreed

3, Offer of £235k 10%deposit, completion in three months plus £25k bonus if planning permision is agrreed in 12 moths

so the bonus i am disregarding as i dont see this as guarenteed, what i want to know is, is this a normal offer you would expect?

I believe offer 1 will be our best option. i dont see house prices falling that much that the developer will be willing to lose £24k in three months time

we can not do anything untill the probate is complete so canot complete yet, 

Have anyone sold to a deleloper before?

or can you tell me which option you would have gone for??

The first thing to learn in negotiation is never accept the first offer (even if there are three of them).

Apart from the obvious (selling the property) what do you get out of all this messing around.

Personally I'd go for option 2 but up it to £220,000 and only a £15K bonus

Edited by gilf

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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