Selling my mum's house

[chris667]

I've done it, so it can't be difficult, obviously it depends on complexity.

Exactly. This isn't straightforward.

 

[GuyBoden]

Exactly. This isn't straightforward.

But, not too difficult either.

 

[chris667]

As someone who spent a couple of decades working in this field professionally, this does not seem like a strainghtforward one. Not at all.

 

[steveindenmark]

My mum died earlier this year and left me her house, which is a large bungalow on a good-sized plot of land in a sought-after area of a Midlands town. The bungalow itself is only 2 bed and 1 bathroom, as it was built by my parents before I came along. It has also had very little done to it for about 20 years, so is rough around the edges.
While I wait for probate to come through, someone who lives near the bungalow has approached me and asked to buy it. He is in his 70s but has been in the building trade for decades and he wants to do it up before he and his wife move in as their last home. I quite like the idea that a developer doesn't buy it to rip it down and cram 3 executive homes onto the site.
For the purposes of valuing mum's estate, I got an estate agent to look at it and they said it was hard to price, as houses in this area vary widely and some have had a lot of money spent on them by people moving into the area. However, the agent agreed with my proposed ballpark figure.
This potential purchaser is having his own house valued tomorrow and wants the agent to also give him a price for mum's house. If he's happy with the numbers, he's willing to make me an offer.
Couple of slight issues:
1) I'm a little bit nervous about doing this without an estate agent involved, although I don't think they'd really be earning their fee if I already have a buyer lined up.
2) The potential purchaser would like to have some work done inside the house before it's ready for them to move into, so he hinted he might want to start this before I have probate.
3) I live 3 hours drive away, so will have to do pretty much everything remotely.

Any advice?

I have bought and sold 21 houses. I would suggest you get 2 more agents to value it and take the average. You have no way of knowing if the guy making the offer has any connection with the estate agent in the past. You will need a solicitor for the conveyancing. I always left it in the hands of the agent. It saves a lot of worry and they do it for a living. It really is worth the money for you peace of mind and you do not have to deal with the buyer. Do not let the buyer do anything to the property or move anything into the property or grounds until all is done and dusted and the keys are handed over. You would be shocked at how things can stall or fall apart at the last hurdle.

 

[Profpointy]

I thought everyone knows that estate agents are mostly licensed thieves. Sounds like you’ve already got one involved so be prepared for them demanding a large sum for doing virtually nothing. Your conveyancer will handle everything for you. You hold the keys so control access.

I don't think that is a really a fair comment. Unlike quite a few professions, there is no obligation whatsoever to use the service. You can stick a notice up outside yourself, show people round, and all the rest or you can choose to pay someone. OK they can get lucky and get their 2% very easily if six viewers come round and all offer, and it's easy money. But other times they take people round, maybe no-shows for viewing, buyers dick about or drop out, and they've had to work hard for their money. There's a fair bit of "compliance" they have to worry about too.

Sellers can be very odd though. I went for one viewing with the estate agent and we both waited outside for the seller to nip out from work, but he never turned up. Apparently he was a Doctor and was tied up with a medical matter - but despite this presumably regular constraint he wouldn't let the agent show people round without him. WTF hire an agent if you're not going to let the do the job you're paying for? I never bothered re-booking as I sensed the whole thing might be a waste of time.

Anyhow, both buying and selling I've
mostly found them Ok

One caveat, I do think there's a big conflict of interest with estate agents who are also selling mortgages. If they get bigger commission from selling the mortgage, then they are very likely to bias the whole thing to someone buying the finance from them, rather than a cash buyer or someone financing elsewhere. In the past I've very much got the impression my offer would not progress if I didn't buy their (endowment) mortgage. This was 35 years ago, and in modern times I've not felt this such an issue, though the conflict is still there

 

[Profpointy]

As someone who spent a couple of decades working in this field professionally, this does not seem like a strainghtforward one. Not at all.

Apart from the "not starting work till he's bought it" advice, what do you think isn't straightforward? Sounds pretty straightforward to me?

 

[Gunk]

Very interesting reading some of the comments especially as I’ve been in estate agency for nearly 40 years now, still involved but now do a group senior management role. I’ll keep my own opinions private, but if the OP would like some advice please PM me.

 

[chris667]

I was going to write a post about this, but decided against it. Suffice to say much of the information presnted here is not to be relied on.

 

[Jameshow]

Not if he starts, messes up, pulls out as mentioned?
Lots of Google hits about selling a house before probate granted eg.. https://www.gnlaw.co.uk/news/selling-a-house-during-probate/

8 Key Stages to Selling a House When Dealing with Probate​

1. Value the estate
2. Pay any inheritance tax due
3. Obtain the grant of probate
4. Prepare the property for sale
5. List the property for sale
6. Accept an offer
7. Exchange contracts
8. Complete the sale

Pay inheritance tax before completion of sale? How is that generally possible?

 

[vickster]

Pay inheritance tax before completion of sale? How is that generally possible?

Don’t know, never had to do it
all the info is here about probate with lots of links various eg IHT.
Apparently, have to pay IHT within 6 months of death, if can’t, have to pay interest.
https://www.gov.uk/applying-for-probate

https://www.mshblegal.com/private-c...paid within,charged on any outstanding amount.
Normally, IHT needs to be paid before probate can be issued. But where property is concerned, HMRC might accept staged payments until the property is sold. Or a bank might release money if it's paid direct to HMRC to pay an IHT bill.

 

[Alex321]

I was going to write a post about this, but decided against it. Suffice to say much of the information presnted here is not to be relied on.

No, that does not remotely suffice.

If you know the advice is wrong, then tell us what is wrong. If you can't tell us what is wrong, then please don't cast groundless aspersions.

 

[chris667]

No, that does not remotely suffice

No. This is a cycling forum. It is not a place to give or receive legal advice.

I don't want to be put my name to it.

 

[Alex321]

No. This is a cycling forum. It is not a place to give or receive legal advice.

I don't want to be put my name to it.

Well don't then.

It isn't right to give a generic "bad advice given here" without saying what that bad advice is.

Either don't mention it, or say what the issue is. Just that generic statement means nobody has any idea which of the many bits of advice given you are referring to.

 

[steveindenmark]

No. This is a cycling forum. It is not a place to give or receive legal advice.

I don't want to be put my name to it.

Thats sounds like you would be having a stab in the dark like a lot of people. I cannot offer legal advice. Just practical advice as I have bought and sold a lot of houses.

 

[T4tomo]

Given:

The bungalow itself is only 2 bed and 1 bathroom, as it was built by my parents before I came along. It has also had very little done to it for about 20 years, so is rough around the edges.

IHT is unlikely to be an issue (on the assumption the deceased was predeceased by her spouse and has received transferred regular IHT & main property allowances) , unless there was a lot of other assets, A valuation is needed for probate to confirm being under thresholds etc but that is all.