How to judge a fair offer on house in Probate

mattyfez

mattyfez

mattyfez

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Hi all,

Didn't want to post in the exchange thread as its not really about conveyancy/exchange.

Basically my nan passed away ealier in the year, and ultimatley her house will need to be sold. Its been valued for probate purposes* and probate has been applied for.

A 'friend of a friend' local to the house has expresed interest in buying it, I don't know what position they are in, mortgage, cash buyer etc. as I've not long learned about this potential buyer.

My initial plan was just to put the house on the open market and it sells for whatever it sells for, but if I can get a good price and cut out agents fees, its kinda tempting... I'm the sole beneficiary of the property so there are no complications from my side.

...on the other hand the potential buyer might be looking to lowball due to the probate situation and the market cooling a little bit.


So the question is, how do I play this? I don't feel confident naming a price, and likewise, if I tell them to make me an offer how to decide if it's fair or not. I'd need to get it revalued properly so I'm not lowballed i guess? - Just want fair market rate for it and zero hassle really..

The probate valuation from an estate agent simply says

of the opinion that the fair and reasonable Probate Value of xxxxxxxxx as at xxxxxx is in the region of xxxxxxxx.
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This price is pretty much slap bang in the middle of the Zoopla estimate, but there's a 70k difference in the Zoopla minimum and maximum estimated price.

I'm half tempted to simply say it'll go on the open market when ready and that's that , but equally I don't want to shun a potential easy sale either.

Any advice?
 
play the game with the estate agents.

Get them (multiple) round and ask them what they'd feel comfortable listing it for.

Then deal directly with the buyer based on a % of that.
 
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Yep just get multiple estimates and go from there, recognising any savings in fees. Its a negotiation at the end of the day between two parties, you and the buyer. If you're not happy with what's offered go open market.
 
Thanks all, yeah I guess thats the first thing to do. Just have to be carefull I don't let on to the agents I may not be going to market!
 
Mysterae_ said:
Get an independent surveyor / valuer in to assess the property if you have access to it. It'll be more accurate and won't raise the attention of any agents.
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This is literally the only correct course of action.

It might cost you maybe £300 but honestly in the scheme of things....
 
Valuing a house is not rocket science. You just start looking at similar houses up for sale, and can also reference historic sales on Zoopla etc to work out what is market value. This is all an estate agent would do, apart from they have the advantage that they are doing it daily. If you want to know you have got a "fair" price, then you have to do this research yourself. Once you have your fair price, then add on more to the price to give yourself negotiation room down so that can sell it for that fair price. You should always be asking for more than you actually want to sell it for, let's say around 10%, or whatever you think you might be asked to concede in the transaction. Then give your buyer this asking price and do the negotiation, dropping the price by your allowance if you have to. If the buyer won't pay what you have perceived to be "fair", then take account of what an open market sale would cost you and consider their offer again. If you still don't like their offer, put it on the open market.
 
Estate agents provide notoriously bad "valuations" a mix of best guess and tell people what they want to hear.

You need a RICS qualified valuer.
 
When my dad died a few years ago we got about 3 estate agent valuations and just went with one that sounded a fair price. They were all much of a muchness tbh.
 
Quartz said:
What is the situation with HMRC and inheritance tax?
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Depends on the value of the estate, in my case, No tax as I'm using my late grandfathers tax free allowance, who left everything to my grandmother, so both combined the estate is tax free up to £650,000.00.

The estate is probably only worth about 600k, probably 4/500k after tax deductables, so well under the radar of interest.
 
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Quartz said:
You're the administrator? I strongly advise you to use a solicitor despite the expense as right now you are personally responsible for the estate, especially to HMRC.
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Oh, child!

I'm already using a solicitor to administrate the estate, although I am executor.
You have a £325,000 tax free allowance on death, if married, it's combined to £650,000.

I strongly advise you seek a solicitor.
 
I have been an executor. You used language which indicated you were the administrator. And i did use a solicitor.
 
Quartz said:
I have been an executor. You used language which indicated you were the administrator. And i did use a solicitor.
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same, for what its worth if you are the only benificiary then its easier i had 3 other family members so the price had to be agreed before accepted,.
 
Are there no recent sales in the area you could benchmark off? I would advise that in the current market speed of sale is worth the premium. If the market was going the other way I'd say list it, but in this market I think you're smart enough to know a fair offer when it comes along. If your buyer has their finances in order I would consider their offer carefully.
 
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