Selling your home to a property developer can be very different to selling to a homeowner. Even though a sale is a sale, there are certain things to consider before deciding whether it’s right for you.
In this article, we’ll explore what the pros and cons are when selling to a property developer to help you decide if it’s the right path for you.
What Are the Pros?
1. Chain-Free Sale
Selling without a chain is often highly desirable. You can achieve this with a first-time buyer. But selling to a developer is another way of getting a chain-free sale.
Without a chain, your home can usually sell quicker (meaning you can move quicker). Plus, if you’re buying at the same time, your offer could be more favourable to other sellers.
2. Less Uncertainty
With every sale, there’s a degree of uncertainty. A buyer could pull out at any time – even a property developer.
However, generally, selling your home to a property developer comes with less uncertainty. Most developers will already have sufficient plans drawn up for your home and are unlikely to pull out at the last minute.
3. Quicker Sale
There are always hoops to jump through when selling a property that takes time.
But since developers likely invest in property often (and therefore have everything ready – including a solicitor lined up), you can usually get a quicker sale.
4. No Home Staging
If you’ve been approached when your home wasn’t listed for sale, you won’t have to deal with home staging entirely when selling to a developer.
What Are the Cons?
1. Risks of Fall Through
Just like every sale, there are risks that it can fall through. While selling to a property developer can be seen as a guaranteed sale, things can still go wrong.
With a homeowner buyer, pulling out is usually a big decision that people are more reluctant to do when they’ve spent money on searches and surveys. However, if your developer decides at the last minute not to invest, they may not be as concerned about money lost.
2. Being Out of the Loop
If you’re selling directly to a developer without an estate agent involved, this can have downsides. Even though you’ll be saving on estate agent fees, you could be left out of the loop about how the sale is progressing.
Plus, communicating with the buyer will be entirely in your hands – so if there are issues or breakdowns, you won’t have support from an estate agent to manage the situation.
We often have an emotional attachment to where we live. If you’ve lived in your property for many years, seeing it ripped apart may be emotional and not what you want for your home.
Even though you don’t have control over what happens to your property when you sell it, a developer will almost certainly demolish it or change it entirely. If you’d rather sell to a family, it’s your choice.
How to Decide Whether to Sell to a Developer
Ultimately, deciding whether to sell to a property developer is your personal choice. But if you need help deciding how to sell your Tower Hamlets home, Net Lettings your local property experts and we’d love to chat.
Give us a call today on 0207 183 1060 to speak to our friendly team for advice.
Posted on Monday, April 25, 2022