Should I sell my home to a contact or give it to an estate agent?

Gráinneog

New Member
Messages
5
Good afternoon all,

I’m delighted to see this wonderful site is still going strong, as it truly is a great resource for people. I’m also pleased as I have a question that I’d be grateful to receive some replies on.

We are living outside of Ireland and are presently renting our Irish home. We bought a little before the financial crisis and have been waiting patiently for property prices to improve in our area. Now, we’ve decided to sell the property for a number of reasons and would be looking to put it on the market next year. The question is - should we wait to put the property on the market with an estate agent when the time comes next year and sell it to the highest bidder? Or should we consider to sell to an interested party now if they can arrange to buy it, and, if we can agree on the asking price?

If we sell through an estate agent next year, it's impossible to know if prices will rise or fall or remain stable in the meantime. While it certainly seems to be a seller's market at the moment, and that seems unlikely to change in the near future, there are many other factors that can affect demand. If we have to get the property ready for sale on the market, we will likely have to make a number of trips back to Ireland. There are direct flights and it's not far, but still...it equates to holidays, cost of flights, accommodation, car-hire and so on not to mention money to be spent on cleaning, painting, skip-hire etc. We have an idea of those costs but can imagine there will be additional costs that we haven't thought of or some that just pop up unexpectedly. Not to mention estate agent fees... Additionally, by selling to the highest bidder later via an agent, we may or may not make more money than we would by selling it now. It may turn out that it wasn't worth all the trouble in the end.

If we sell to an interested party now, we may sell at a lower price as there will only be one buyer instead of potentially a few bidders if we sell on the market. This could equate to a significant sum, that we could put to good use. Also, the transaction may not be as simple as we imagine - such is life; we need to do some more research on what is involved for each type of sale. On the other hand it may be better to sell to an interested party now, if we can, when we cannot be certain we will do better on the market next year - this is the quandary. When it comes to property, our timing always seems to be a little off somehow!!

Listening earlier this year to Eoin McGee on the Claire Byrne show, the main message I took is that while it seems to be a seller's market, no-one can predict the future. And yet all I hear and read is that there is a shortage of this type of property - which makes me wonder what to do, what to do... We would like to take a measured approach to selling the property, so that's partly why I'm posting here today.

The question is are there any points we should consider with regards to either of the above scenarios that we may have overlooked or that we may need to look further into as we decide which way to go?

Thank you in advance.
G
 

Thirsty

Registered User
Messages
3,091
If you have a buyer, willing to take it as is, you're happy with the offer and you want to sell - then sell!
 

huskerdu

Registered User
Messages
2,261
You have two decisions to make , and you shouldn’t mix them up -
1. Sell now or sell next year
2. Put on the open market or sell privately to this “interested party “

if you want to sell now, the buyer you have will avoid the hassle of selling and the cost of an estate agent , assuming you are sure they have finance. The down side is that might get more on the open market . You should Definitely get the house valued by a local estate agent to decide if the current offer is worth taking
 

Gráinneog

New Member
Messages
5
Thank you for your replies. We may have an interested party already but it's early days yet. Before we get into one-to-one discussions and possibly raise hopes on either side, we wanted to consider our options first and try to get a feel for which would be the best route to take.

Thank you for the suggestion to get the property valued. We would like to have an idea of what we can realistically expect/hope to sell the property for, even if we finally decide not to put in on the open market. It would certainly help us to weigh up the pros and cons of each approach to selling. Remembering of course that a valuation from an agent is not a guarantee!
 

NoRegretsCoyote

Registered User
Messages
2,667
We may have an interested party already but it's early days yet.
In your shoes, a private sale today is worth maybe 5% less than what you'd expect on the open market in a year's time.

You'd have no estate agent fees, less expense clearing up for sale, less risk of sale falling through, a bird in the hand, etc.


So something around 95% should be your breakeven for accepting a private offer.
 

LS400

Registered User
Messages
642
even if we finally decide not to put in on the open market.

Your doing a bit of tyre kicking, so to speak. No harm in that, but,
I can’t really garner if you have someone actively interested in buying your home, or if you have just had an exploratory conversation with someone over a cup of coffee.

What I can say, is that in my experience, if you have had a serious enough conversation regarding the sale of your property with an individual, that to me is worth more than the possible increase in price from the open market.
I don’t see seeking the advice of an estate agent in valuation of the proper helping much, they tend to vary somewhat. I would though look up then recent sales prices for the area and add or subtract depending on condition.

I say that, and although I don’t have the actual figures, but again, in my experience, a lot of sales fall at the last hurdle for one reason or another.

Some folk talk about Estate Agents with venom, and how they are a only step up from clampers, but it must be so soul destroying to have invested so much time and energy in a sale, when either side can thwart it at the last minute without any penalty. I actually don’t think the booking deposit should be refunded if one side pulls out without a valid reason.
 

cremeegg

Registered User
Messages
3,509
You are way over thinking this.

Get 3 auctioneers valuations.

Tell you interested party they can buy the house privately for €x, give them a month to decide.

Give the house to an auctioneer. Don't worry about getting the house ready for sale, thats not really a thing.
 

Brendan Burgess

Founder
Messages
43,749
You are currently renting your home.

I presume that the interested party is the current tenant?

You can put the house on the market now if you want, but you would be selling it with a tenant with a lease. This would limit the interest in it.

If you are going to sell it to someone else other than the tenant, you will need to get vacant possession first, unless it's another investor. This could take some time. You have to give notice. They could object. They could wreck the place.

So, if it is the tenant and if they have been a good tenant, then you should certainly try to facilitate them.
Tell them that your plan is to sell the house but you are not sure when. Would they have any interest in buying it?

If they don't want to buy, ask them when does it suit them to move out? Tell them that they can move out when it suits them and you won't hold them to the lease. Tell them you will put the house on the market when they move out. They will probably start looking now.

If they don't move out or show any signs of moving out, then you will need to check the rules and issue them formal notice.

Getting a valuation is tricky. If it's a house in an estate and it's comparable to others, then it might be easier. An estate agent will probably overvalue it hoping that you will give the sale of it to them. Even if you tell them that you want a valuation as a basis for a private sale, they might put it at an overprice so that the buyer can't afford it and you will then put it on the market.

Brendan
 

dubdub123

Registered User
Messages
80
You can also check propertypriceregister to see what similar houses have sold for recently, although there is a lag. Or phone up and enquire if there are similar properties for sale currently to get an idea.
 

NoRegretsCoyote

Registered User
Messages
2,667
If they don't move out or show any signs of moving out, then you will need to check the rules and issue them formal notice.
In this case tenant should move asap. If you want them to vacate you should issue formal notice immediately. Informal discussions count for nothing with the RTB.

With a tenant in place for as little as three years you now have to give 180 days notice. A lot of landlords don't realise this.
 

Brendan Burgess

Founder
Messages
43,749
If you want them to vacate you should issue formal notice immediately.

This would be the right approach if the OP wanted to sell ASAP.

But in this case, the OP is not in any hurry to sell.

So do it informally first. This is good for everyone. Avoids hassle.

But when the OP decides on what date they do actually want to sell, then they should issue the formal notice 6 months before that date.

Brendan
 

NoRegretsCoyote

Registered User
Messages
2,667
If they don't want to buy, ask them when does it suit them to move out? Tell them that they can move out when it suits them and you won't hold them to the lease.

If the tenant doesn't want to buy, and the landlord wants to sell, then the landlord should move immediately to issue formal written notice.

A landlord should then seek tenant co-operation within the framework of the written notice.

You might not be in a hurry to sell but written notice period could be six months. If they fail to co-operate you could be looking at another 9 months before the RTB gives them an order to vacate.

The long term can really creep up on you with the new tenant protections in place.
 

lff12

Registered User
Messages
359
Good afternoon all,

I’m delighted to see this wonderful site is still going strong, as it truly is a great resource for people. I’m also pleased as I have a question that I’d be grateful to receive some replies on.

We are living outside of Ireland and are presently renting our Irish home. We bought a little before the financial crisis and have been waiting patiently for property prices to improve in our area. Now, we’ve decided to sell the property for a number of reasons and would be looking to put it on the market next year. The question is - should we wait to put the property on the market with an estate agent when the time comes next year and sell it to the highest bidder? Or should we consider to sell to an interested party now if they can arrange to buy it, and, if we can agree on the asking price?

If we sell through an estate agent next year, it's impossible to know if prices will rise or fall or remain stable in the meantime. While it certainly seems to be a seller's market at the moment, and that seems unlikely to change in the near future, there are many other factors that can affect demand. If we have to get the property ready for sale on the market, we will likely have to make a number of trips back to Ireland. There are direct flights and it's not far, but still...it equates to holidays, cost of flights, accommodation, car-hire and so on not to mention money to be spent on cleaning, painting, skip-hire etc. We have an idea of those costs but can imagine there will be additional costs that we haven't thought of or some that just pop up unexpectedly. Not to mention estate agent fees... Additionally, by selling to the highest bidder later via an agent, we may or may not make more money than we would by selling it now. It may turn out that it wasn't worth all the trouble in the end.

If we sell to an interested party now, we may sell at a lower price as there will only be one buyer instead of potentially a few bidders if we sell on the market. This could equate to a significant sum, that we could put to good use. Also, the transaction may not be as simple as we imagine - such is life; we need to do some more research on what is involved for each type of sale. On the other hand it may be better to sell to an interested party now, if we can, when we cannot be certain we will do better on the market next year - this is the quandary. When it comes to property, our timing always seems to be a little off somehow!!

Listening earlier this year to Eoin McGee on the Claire Byrne show, the main message I took is that while it seems to be a seller's market, no-one can predict the future. And yet all I hear and read is that there is a shortage of this type of property - which makes me wonder what to do, what to do... We would like to take a measured approach to selling the property, so that's partly why I'm posting here today.

The question is are there any points we should consider with regards to either of the above scenarios that we may have overlooked or that we may need to look further into as we decide which way to go?

Thank you in advance.
G
A bird in the hand is worth two in the bush

What you're really asking is whether or not you're saving money by selling as is to an interested buyer without needing extra work.
I'd say probably, yes. As long as they accept everything as is, then you might be saving yourself a little. There is no guarantee you will get the extra money and estate agents cost thousands of euros. I've heard of sellers putting 20k into properties and doing them up (particularly "tired" rentals), but buyers are probably going to want to put their own mark on the place anyway. I'd go with the interested buyer as long as its accepted as it is in its current condition and they have the cash or mortgage to go ahead with the purchase.
 

lff12

Registered User
Messages
359
Actually 180 days only applies to tenants there just 3 years. If they are there 7 years its 196 days and 8+ years 224. That's up to 7.5 months and assuming you have a compliant tenant.
 

Gráinneog

New Member
Messages
5
Thanks again for all the replies. It all helps, truly. Like putting together little pieces to get a clearer picture.

We're aware of the notice period and we have already issued a formal notice to our tenants as required.

As to the potential asking price, we have looked at the property register but indeed give the previous 18 months, there are not many similar properties/sales to compare our property to. There's not a lot on myhome at this time either. We were thinking of asking for a couple of valuations so that we know where we stand...keeping in mind that the estate agent may over-value the property.
Just one question really to Brendan - why do you say in your first reply that getting a valuation from an estate agent is tricky? Thanks again all!
 

Brendan Burgess

Founder
Messages
43,749
An estate agent will think of what value suits themselves best. If they are the only person you are asking, they will put a low value on it, so that when it sells for more than that, you will think that they are great. If you tell them you are asking for a valuation and a proposal from 3 different agents, they will hype up the property so that you give them the business.

If you pay a member of the Royal Institute of Chartered Surveyors to value a property for you, they have nothing to gain by putting too high or too low a value on it.

For residential property it's not an exact science. Two similar houses could sell for very different prices.

Brendan
 

Gráinneog

New Member
Messages
5
Thank you for clarifying, Brendan. We would rather work with realistic amounts, otherwise we will still be second-guessing. We will look into obtaining a valuation from a surveyor listed with the SCSI. Thank you for the suggestion.
 
Last edited:

cremeegg

Registered User
Messages
3,509
We were thinking of asking for a couple of valuations so that we know where we stand...keeping in mind that the estate agent may over-value the property.
An estate agent will think of what value suits themselves best. If they are the only person you are asking, they will put a low value on it, so that when it sells for more than that, you will think that they are great. If you tell them you are asking for a valuation and a proposal from 3 different agents, they will hype up the property so that you give them the business.
While there is no chicanery that I would put past an estate agent mostly they just want to sell houses and sell them quickly.

They have no desire to have vendors with unrealistically high expectations on their books for months until the vendor gets sense.
 
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