I want to buy the flat I rent (privately from landlord). How do I come up with a price to offer?

Question

I need to get a realistic price on work that needs doing it (a survey maybe? Happy to pay for a full one if I have to?!) And a market valuation on it, would rather not have to pretend I'm the seller to some estate agent, want a completely impartial view. Also, what percentage to estate agents take off, so I can reckon this into a private offer, what are the legalities of making a private offer?? Sorry, lot of questions in one lump!

Answer 1

If you do go to an estate agents for a market appraisal(if they are not surveyors or valuers) or a valuation if they are. The agent might charge you for this service if they know the property is not going on the market! Which, is fair enough.

So it might be prudent for you to go to a surveyor/valuers to get this carried out they will carry out a market valuation and upon your instruction carry out a survey of the property.
You can also take a look at www.nethouseprices.com
The valuer will look at comparable data to ascertain a realistic but sometimes quite conservative figure.
Estate agents fees vary from 1.5%-2% for a sole agency to 2.5%-3% for a multi agency agreement.
You can make a private offer on the property at any stage and you are not liable until exchange of contracts. However, if the landlord has a letting agent and they introduced you to the landlord he will probably be liable for the said fee above!! Which will be outlined in his contract.
Once you have this information you can then approach the landlord and make the offer to them.
Hey may wish to actually go through an estate agent as this keeps everything separate from the landlord/tenant issue especially if the agency has its own sales progression department.

I wish you luck

Answer 2

I don't know whereabouts you are from, but if it's UK, you can register on www.rightmove.co.uk and you can see all past sold prices for flats and houses in your road. That should give you a fairly sound idea of a realistic offer and not an 'estate agent' valuation that makes it so difficult. As many have said, most estate agents fees are between 1.5 - 2.5% average. Rightmove prevented me from offering too high a price for a property where the seller was holding out for the asking price. I looked on there and realised the property simply wasn't worth it. Also - remember your landlord is likely to try and up your offer regardless so your always better making a lower offer rather than a higher. There is no problem doing a private offer. I bought my brothers flat off him. There were no problems. It generally just makes it easier. You just gain a solicitor to act on your behalf and tell them of the agreed price. I would also offer a price to your landlord and say 'subject to survey'. Then you only pay out for a survey depending on if your offer is acceptable. If there is more work that shows up on the survey than expected then you can always go back to your landlord and renegotiate (this is what would happen in a normal sale anyway). You don't want to be paying out hundreds of pounds without any idea if your offer will be ok. The only other thing (speaking from experience!!) - please be careful if the flat is leasehold. You just need to know how much the management charges are and if there is a reasonable length of time left on the lease or if it can be extended. Sometimes there are strange clauses in flat leaseholds!! If it's freehold - even better. Good luck!

Answer 3

First you'll have to check that the landlord is willing to sell.

Then agree a price with him - that's all that matters in the end, whatever an estate agent values it at. But if you want a guideline, I'd get in 4 agents, throw away the highest and lowest quotes and start off by offering 85% of the average of the other two (or 90% if you asked for the price "for a quick sale").

You're fine to make a private offer. No estate agent needs to be paid unless the seller signs a contract with them.

Answer 4

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Answer 5

Ask the landlord if he would consider selling before fidling around. If he will he can get a no obligation valuation. That valuation will be based on the properties current condition. Then get your survey and if it shows up any hidden faults or repairs, get quotes in and provide your landlord with the survey report and the quotations. Estate agents charge about 1.5% which the seller pays so askk him to knock that off the price, then all you need is a solicitor to do the searches and transfer the deeds.oh, get your morgage offer after the land lord agrees before the rest of it.

Answer 6

Look at any real estate search site and enter the data for bedrooms, baths, etc and see what comes up. Valuation has a lot to do with comparable properties for sale. You start there, then make adjustments for condition of the property and any other factors that make your property different from the others.

The owner has to be willing to sell, of course.

Answer 7

When getting Estate Agents valuations, make sure you state that the Property has a 'sitting tenant' (i.e. you :-) ) = that should be worth another 10% off ..

Answer 8

No. There must be a call for on the owner by skill of a loan employer to have ideal insurance for the valuables yet that's no longer your subject truly. interior the case you're able to desire to make a declare on your landlord it is as much as him a thank you to deal with the difficulty. If he has insurance he could bypass the declare to them, if he has no insurance thenhe could ought to settle the difficulty himself and any financial costs could be direct from him particularly than from an insurer. So no requirement, basically stable employer experience to have insurance

Answer 9

you need to at least negociate a 10-12% discount so you dont need to pay a deposit this is called a gifted deposit this would have to be done in accordance with the owner

Answer 10

Rent To Own Home : http://RentToOwnHome.uzaev.com/?wOtd