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Will!

Seven Types Of Vendor I Have Encountered

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In London and S Herts over the past seven years, in no particular order:

1) Executor of a dead old person. Good point: the heir(s) may want to avoid the house being left empty for too long and so may be willing to accept a lower offer from a buyer who can proceed immediately. Bad point: the heir(s) may have run up big debts in anticipation of a big cash sum from the sale of the house and so be unwilling to accept an offer that doesn't clear those debts.

2) Old person going into a care home. Good points: as above plus they need a sale sooner rather than later to pay care home fees. Bad point: as above with heir(s)-to-be.

3) Divorcees. Good point: one party (or maybe both) probably needs cash from the sale ASAP and so may be willing to accept a lower offer from a buyer who can proceed immediately. Bad points: one party may be living in the house but not paying all the mortgage and so have a reason to delay the sale for as long as possible. They may be debtors (see below).

4) Debtors. Good point: if they've been repossessed then the buyer is dealing with a dispassionate bank rather than an emotionally attached homemaker. Bad points: vendor may not be able to bring themselves to accept a lower offer that crystallises their losses and may hang on for an offer that clears their debts. Unfortunately forbearance and zero interest rates work in their favour. Also after a few CCJs for bad debts their credit rating is trashed and so they have nothing to fear from repossession.

5) Kite flyers with no need to sell. Good point: they provide price discovery as to what that type of property won't sell for. Bad point: they have no need to accept a lower offer.

6) Upsizers. Good point: a growing family may put inexorable pressure on them to move. Bad point: they won't accept an offer too low to allow them to climb the next step of the pyramid.

7) Buy-to-let landlords selling up. Good points: buyer feels virtuous making an extremely low offer. Vendor is more likely to view the property dispassionately as an investment than those selling a home to which they are emotionally attached. Bad points: none.

Perhaps interestingly, I haven't encountered anyone selling because their location of employment has changed. All the people I know personally who have had to move for this reason decided to let out the property they own and rent somewhere else rather than selling and buying.

Edited by Will!

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Another bad point re executors: legatees may be quarrelling bitterly about the selling price. One lot just wants to get shot, the other lot won't 'give it away'. This happened with a house next door to a colleague, and while they argued for months the back garden turned into a jungle.

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Another type: Old person selling their house because they've inherited a bungalow moved into it making their house is surplus to requirements.

That's the type of seller were currently buying from, dropped from £225k to £209k after some haggling. Not a bad price for a 4br detached place with huge garden.

The great thing about buying from this type is they have lived there since it was new in the 80's and had wall insulation windows etc all done. Essentially spent more on the house in maintenance than it cost them originally!

That's the opposite with BTL, you can guarantee the house will be a wreck and in most cases if you take it on as a project you will never recoup the costs where it would be cheaper to buy a property that's up to standard. I learned that one the hard way.

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Another bad point re executors: legatees may be quarrelling bitterly about the selling price. One lot just wants to get shot, the other lot won't 'give it away'. This happened with a house next door to a colleague, and while they argued for months the back garden turned into a jungle.

Also probate. We waited six months for the house to finally clear it. Thankfully, it gave us time to get clear headed about what would have turned out to be a very bad choice - and we pulled out.

The converse of the old person selling is that they have sometimes done f all of the house in thirty years.

Regarding repros - I've found banks (or at least their EA minions) very unwilling to negotiate. It seems in this climate banks are happy to wait for a year for a sale so they get top dollar.

Downsizers: In the end, our favourite seller was the one we bought from. Rightmove showed hefty price reductions every month until we viewed it - indicating a desperate seller (who had already moved it turned out). We had cash so offered another 20% off - settled at 17% off. Two months later it was ours!

Edited by StainlessSteelCat

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I haven't encountered any downsizers yet. Any other good and bad points about dealing with them? Presumably in a falling market they're desperate to sell and preserve their margin?

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Another type: Old person selling their house because they've inherited a bungalow moved into it making their house is surplus to requirements.

That's the type of seller were currently buying from, dropped from £225k to £209k after some haggling. Not a bad price for a 4br detached place with huge garden.

The great thing about buying from this type is they have lived there since it was new in the 80's and had wall insulation windows etc all done. Essentially spent more on the house in maintenance than it cost them originally!

That's the opposite with BTL, you can guarantee the house will be a wreck and in most cases if you take it on as a project you will never recoup the costs where it would be cheaper to buy a property that's up to standard. I learned that one the hard way.

I agree and I probably wouldn't buy a ex-BTL for this reason.

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Has anyone bought from a "do-er upper"?

We've taken a passing interest in one in our town that's been on the market from October. Price has come down from £595k to £530k in that time ( and still needs to come down further).

It's unoccupied and cost the current vendor £250k to buy, I suspect that they spent c.£100k doing it up so they will be in for £350kish. Assuming that's all borrowed money it's costing them c.£1,500 a month to have it sat on the market (plus council tax?).

We were debating a cheeky offer at around £425k-£450k, and could move quickly. I would have thought that might appeal to a "businessman" keen to take a profit and run.

Anyone got any experience of these types of situations?

Edited by Exiled Canadian

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I'm looking around to buy somewhere cheap outright at the moment.

Found one I liked the look of, with an "offers over" price on rightmove I can just about stretch to.

Rang the estate agent to ask if it's still available. First lady tells me it is, and asks "do I want to book a viewing". I say no, that I just want to ask some questions about the place first. She can't help with that but will have a local rep call me back.

Few minutes later I get a call back from a guy saying it's no longer available. He tells me that they'd marketed it at "offers over X" and the lady was prepared to accept a figure only slightly over that price. But there had been a lot of interest and the highest offer she'd had was 25% above her offers over price (more than she'd told the estate agent she'd accept), and as a result she'd decided to take it off the market.

I'm not quite sure what category that falls into?

Something doesn't seem quite right to me about it. When I look up the history of that house I see its been for sale multiple times over the last couple of years starting at a high price and working its way down to the latest offers over price. I was assuming it was someone who needed to sell as judging by the photos the house is empty and untennented, so I don't think it's someone kite flying (otherwise they'd be living there or have tennants in surely?).

I'm tempted to send a letter to the address of the house, or visit the place to see if I can get some contact details from the neighbours or leave a letter through the door to try to find out what the deal is.

This wouldn't fit a typical kite flyer profile would it? Or perhaps it would?

P.S. The place is still showing on rightmove as available with the "offers over" price.

Edited by RandomFactor

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Something doesn't seem quite right to me about it. When I look up the history of that house I see its been for sale multiple times over the last couple of years starting at a high price and working its way down to the latest offers over price. I was assuming it was someone who needed to sell as judging by the photos the house is empty and untennented, so I don't think it's someone kite flying (otherwise they'd be living there or have tennants in surely?).

I'm tempted to send a letter to the address of the house, or visit the place to see if I can get some contact details from the neighbours or leave a letter through the door to try to find out what the deal is.

This wouldn't fit a typical kite flyer profile would it? Or perhaps it would?

P.S. The place is still showing on rightmove as available with the "offers over" price.

Could be a downsizer. Would like to sell but not in any hurry while the market is rising. Might be a bit keener if they think the market is on the turn.

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Could be a downsizer. Would like to sell but not in any hurry while the market is rising. Might be a bit keener if they think the market is on the turn.

You could be right, though it seems odd that they've left it empty.

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