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The mkiv Supra Owners Club

Selling Houses


Matt Harwood

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We sold our house back in April (11 days on the market so we were very happy). Normal sized chain, first timer at the bottom, then someone who didn't need a mortgage, then our buyer, then us. We found a run-down bungalow on a large plot that we wanted to do up and extend if we got planning permission.

 

Finally a call yesterday from our solicitor-We will be exchanging today to complete next Friday (8th)- excellent we thought. Ran around organising storgage units/vans/insurance etc. At 2.30pm, phone call to say that the 2nd person in the chain has said our solicitor took too long so they are pulling out! That's it-they won't rejoin the chain even though we were 30 minutes from exchanging and they won't negotiate apparently. Our buyer has asked us to give him a month to re-sell his house and the bungalow we're buying have said we can have 2 weeks before they put it back on the market.

 

Our buyer put his property back on the market yesterday at a lower price, they live in Sutton St Edmund in Spalding-does anyone know what the market is like up there at the moment?

 

We've not had a nice couple of days, I would say sorry if you've not been able to get hold of Matt-but that's not unusual really is it? :D

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My girlfriends mum and dad live in that area. The house prices are cheap compared to where i am (Northamptonshire).

You usually find its people from big cities that buy them.

Its a nice quiet area over there if you want to get away from life in the fast lane.

 

Should sell quickly though, you dont see many house for sale over there coz they go so quick.

 

Hope you get it sorted.

:cool:

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Yeah, it is a PITA, but nobody died, so it's not the end of the world. :innocent:

 

I'm totally up for the Scottish regulations. I can't see why our system is so unregulated... Gotta love this country!

 

Chantelles car is all nice and fixed now thanks. No more annoying squeaks!

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I know your pain. Thing is with the scottish thing, it works well if you're the buyer but on the other hand, if something happened and you did want to pull out then it would be a different story. Our sellers messed us about something cronic and we so nearly told them to stick it, wouldn't have been good to know we had no way out then I tell you!!

 

Sorry to hear about it though, gutted when you've found the perfect place :(

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i also work in this industry, i'm a mortgage advisor and where i work i'd say something like 1 in 4 may be even 1 in 3 house sales don't go through for one reason or another. All that money down the drain, dreams shattered and soo much stress. Plus i don't get paid either !!! (sorry thats just selfish of me)

 

The good news is that the government is soon to introduce a house sellers pack where the seller has to pay for some of the legal costs up front i.e. the local searches and surveys etc (sort of like a MOT for your property) so this should get shot of all the time wasters and make it more affordable for first time buyers. Whether this actually helps the house sale process at all nobody knows but something has to be done.

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I heard something about this, is it kind of along the lines that the seller pays for the survey which can be shown to/used by the buyer. This would stop people losing money on wasted surveys when chains break and deals fall through.

 

Sounds like a good idea if it is, you wouldnt lose anything because the house your buying wont need to have a survey done on it :)

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The estate agents told us that this new law comes into effect some time next year.

I think it should help a lot, partly so you can see any problems with a property up front (instead of after you've already paid out for searches etc) and it should speed things up. Our problem has come about because we've had hassle trying to get hold of documents. Being a newly built development there are a lot of covenents in place ,this is a promise between the council and developer, so that when the developer leaves the council agree to take care of things like roads, footpaths etc. There are also some in place with various water authorities for drains and sewers. Problem is it could be any number of people that have them. The second person in our chain pulled out because the process took too long so if we'd had to have all this information before we sold, technically we'd be moving on Friday.

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UK Sellers Information Pack 2007

 

 

The UK Sellers Pack is a mandatory survey called a home condition report produced by a home inspector will be required for every home coming on to the market from January 2007.

 

The pack will cover everything buyers need to know before making a decision on a property.

_________________________________________________________________

 

Home Seller's Pack

Home Information Pack

 

The 'Seller's Pack' - everyone will need one

 

Like it or not, the Government has intervened in the housing market to introduce a level of standardisation. It falls well short of total regulation and some would rightly argue that it tinkers with only elements of the transaction. It is however a start.

 

 

There are bound to be further developments and the probability of other changes is almost inevitable. The Government have become involved, because the market itself was never likely to be in a position or able to dictate a total change of culture or a break with the traditional practices built around the principle of 'caveat emptor'- buyer beware. Whilst that principle is not displaced it will be the seller's responsibility in future and before the start of any marketing to ensure that a pack is put together containing all the contents required by regulation yet to be finalised. The plan is to offer a dry run in 2006 with a start for compulsory packs in 2007.

 

 

We now have a consumerist order where goods and services are available to all and it is therefore necessary to ensure that there are basic standards of quality and fitness for purpose. Whether the consumers are equipped without the benefit of independent advice to make the choices most appropriate to their personal needs is a separate issue.

If a property is going to be offered for sale in the future it must now be held up to inspection, and defects - apparent on the home inspectors pre sale marketing inspection report will need to be disclosed when the property is first put onto the market.

 

 

In many areas of the country this will make a radical difference over time, to the quality of property that is available for sale and the quantity of properties coming to the market may be affected.

 

 

In higher priced areas, it may impact in other ways, with the reduction of the number of sellers who put properties on the market speculatively and then withdraw them; also with buyers who dip into the market and then withdraw.

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nothing is set in stone yet but i'm assuming/guessing it will be something like the following:-

 

SELLERS COSTS....

 

Legal fees aprox £500+ VAT

Local Authority Search fee aprox £150

Environmental Search fee £35

Land Registry fee:-

 

£0-£50k = £40

£50k - £80k = £60

£80k - £100k = £100

£100k - £200k = £150

£200k - £500k = £220

£500k - £1m = £420

£1m + = £700

 

Homebuyers Survey (taken from Alliance & Leicester's survey price guide):-

 

£25,000 = £320

£50,000 = £335

£75,000 = £380

£100,000 = £410

£125,000 = £460

£150,000 = £460

£175,000 = £510

£200,000 = £510

£250,000 = £560

£300,000 = £620

£400,000 = £720

£500,000 = £810

£750,000 = £945

£1,000,000 = £1070

£1,000,000+ = £1570

 

...then i'm sure they'll be additional costs on top.

 

BUYERS COSTS......

 

The buyer will have the usual costs like Lender arrangement fees normally around £400 and the biggest con of all Stamp duty:-

 

£0-£120k = 0%

£120k - £250k = 1%

£250k - £500k = 3%

£500k+ = 4%

 

hope this helps!

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the only people that really benefit from this are First Time Buyers or people not selling their property but buying another. To the rest of us we shouldn't be out of pocket or financially gain from this.

 

If you're in a chain, you benefit from not paying these fees when you buy but you still have to pay when you sell. It should deter all the time wasters who put their property on the market, get almost to exchange date then pull out at the last minute and piss everyone off. (Matt's problem)

 

I feel that this is a good idea as long as surveyors don't accept the old dodgy brown envelope under the table jobbie from people who need to sell a moody house on the sly.

 

remember this isn't going to kick in till 2007.

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