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deeplyblue

Gotta Sell,

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Death and probate delays and now all heirs want property sold and whole thing sorted. Details vague, for obvious reasons.

Rang a couple of EAs who had been approached for probate valuation. One gave what I was/am sure was an over-optimistic valuation. Other one recommended we go straight to auction. Said the May auction was "a lovely day out" and that auctions often achieved "about what you'd get on the open market, but faster and more certain since hammer down means contracts exchanged."

I thought it might be worth it, others (including solicitor) horrified, "giving it away." I don't know enough to contradict - or confirm.

Agreed to go with optimistic EA.

Minor disaster (water) mid-week (before property on market) and now some delay. Overnight EA "had another think" and thought we should go for "Offers in excess of £xxx" (this £35K under original estimate).

Told him that I, and every other buyer, just ignore the OIEO and treat the £xxx as the asking price. We think that we should probably be able to £xxx (same figure each xxx) at the end of negotiation, not the beginning. Next door went on the market at £xxx + £40K a couple of weeks ago. Properties broadly similar in size, theirs "nicely done up" - new kitchen etc. Theirs a semi-forced sale as well (illness dictates a move, but not an urgent timetable).

Same agent told me at one point that 2% was nearly double 1.1% I told him I'd done "A" level maths, and they let you in on secrets like that (not quite true, but nearly). The other day he assured me that he was honest. Heart-sink moment.

However, there were good reasons why we chose that agent in the first place, and I thought if we ignored the optimism and concentrated on getting what market research seemed to indicate was a sensible level even for a probate sale, then we might get a sale by the autumn.

Now I don't know where we are. Should we re-consider the auction route? Should we try to tart the place up a bit? It's all made more complicated by a difference of approach by two different "factions" within the family. It's not primarily about the actual amount of money, since I think we all believe that we're probably, realistically, looking at the same £xxx. I suspect it's about who makes the decisions and what the best way of getting to desired goal. And personality clashes - inevitable. Everyone more or less holding together until this latest problem. Delays making everyone panicky because of the state of the housing market.

Consider this the picture from the other side. Two heirs need money to help with their own house purchases, so panic there also.

A mess, so I thought I'd share the gloom.

db

Edited by deeplyblue

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Is the house actually on the market yet?

Nope. Burst pipes to mend first!

Not even signed up to agent, verbal agreement only, based on original optimistic figure. So we could adopt a different approach - or even a different agent. I'd rather not clart around tho'. This needs sorting for everyone's sanity.

db

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I understand your situation, and although I do not know what part of the country you are in, I will share the following;

The faster you sell the better, and auction is the way to go.

Go and visit an auction local to you first, and you will still see plenty of cash rich 45-70 year olds with cash to buy (as they put it, no return anywhere else).

Myself and my business partners have been to many in our locality looking for construction projects with which to keep our workforce busy while contracts are thin on the ground.

The last 6 months we have left empty handed and almost in tears of laughter of prices being paid, that we/most people could easily negotiate less in private or agent sales.

At some point I know this will run dry, so your window is closing.

Go and have a look at ei group auction sold properties as a basis.

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I understand your situation, and although I do not know what part of the country you are in, I will share the following;

The faster you sell the better, and auction is the way to go.

Go and visit an auction local to you first, and you will still see plenty of cash rich 45-70 year olds with cash to buy (as they put it, no return anywhere else).

Myself and my business partners have been to many in our locality looking for construction projects with which to keep our workforce busy while contracts are thin on the ground.

The last 6 months we have left empty handed and almost in tears of laughter of prices being paid, that we/most people could easily negotiate less in private or agent sales.

At some point I know this will run dry, so your window is closing.

Go and have a look at ei group auction sold properties as a basis.

Thanks for your info, I'll take another look. As I said the original response when I suggested an auction was "we're not that desperate," and "they're trying it on!" But I will investigate a little further.

Could you tell me what the relationship is between the "guide price", the reserve and the selling price. I know what a reserve is, but I'm used to the system whereby what's usually called "the asking price" is - in the current market - more of an aspiration than anything else. Most buyers - and certainly cash-rich buyers - will expect to pay well below that figure. But I rather gathered that it's the other way round with auctions. OTOH the reserve, I discovered is a secret, so people might bid up from the guide price and still not meet the reserve - have I got that right? So how much difference is there between the two, usually. 10%, 5%, anything at all?

It seems to me that your cash-rich retirees are our best market, given the location (about which I'm being coy - I'm sure you'll understand) and the property. The big concern is whether we would miss out on the best selling period, only to find we wouldn't make an acceptable price at auction.

Obviously, people go to auctions in order to get a bargain. I don't know how much we are prepared to concede to get a quick sale.

Better consult my local psychic and the family diplomat.

db

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I think you might want to read this:

http://www.fathom-consulting.com/research/fathom-proprietary-indices/auction-price-index/latest-update/

As far as I am aware, it is the only index that tracks the difference between prices acheived through auction and the open market.

The problem is that the two historic sample sets are likely to be entirely different.

Whilst such a survey will be useful in showing the overall state of the market it is unlikley to be useful in gauging the percentage of "market" value that a specific house will obtain at auction.

tim

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  • 312 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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