Unusual proposal to sell my house

It's such a huge gamble, please don't do it. My inlaws have just sold their house, finally, after four years on the market, please don't give up hope just yet. I have moved 12 times over the past 21 years, and the stories I haveheard along the way are just awful. Some estate agents really can't be trusted, most of them, we discovered, will say to the buyer 'they are asking for £300,000 but offer them £280.000' because they want a quick sale and the commission - most are on commission only.

I bet if you do what he wants, he will be on a very big fat commission from the builder. Your house and land is probably worth far more as building plots, which are extremely scarce. Your house may be hard to sell, but knocked down, with a whole load of small terraced properties on it, it would be a goldmine. We tried to buy a 1/4 of an acre plot in the inlaws' village, for just one house, but were outbid - the developer managed to squeeze a dozen homes into that space.

Is the estate agent a member of The National Association of Estate Agents, which looks like the biggest trade association?

If so, the Association has a code of conduct, part of which says

"Rule 2(2)
No member shall do any act (whether in the business of estate agency or
otherwise) which:
(a) involves dishonesty or deceitful behaviour: or
(b) involves unprofessional practice or practices that is unfair to members of the public; or
(c) in any other way brings the Association into disrepute."

And if he is indeed acting in cahoots with the buyer, he would be disciplined by the Association. However, I don't think there is any obligation to belong to this, so he may not be. You also have to show that he IS being deceitful, which could be difficult.

The best plan is to find some other agents, checking that they belong to a trade organisation (The Association of Estate agents www.naea.co.uk/ or the National Federation of Property Professionals www.nfopp.co.uk/ There may be others)

Houseseller - if you hear alarm bells ringing (which you are or you wouldn't have posted the question), listen to them.

I sold a property of ours in Spain a couple of years ago and allowed the prospective buyers (who'd had to sign a contract that if they moved out before completion, the deposit was forfeit) to move in. I let them have the use of all my furniture and possessions until their own arrived (turned out to be a few months later). They then tried to charge me several thousand euros for disposing of my property! A reminder to them that they had no permission to dispose of my property let alone remove it from the house would land them in court. You can never be sure what people will do once they are living there.

I think that janerowena has given you a very good idea to look into given that land is at a premium now. Ask your solicitor to look into selling the land as an available building plot.

The problem with selling house is that if something does go wrong...dishonest agent, bogus solicitor etc etc..., even when you have been scammed, its a huge battle to get any monies back and you NEVER get back your piece of mind.

What you have to sell...a property with extra land...is very attractive even in these straightened times. The only way you must do this is through a reputable high street Estate agent with a decent office, manned by several staff and with an unblemished local reputation. As others have posted, there are organisation they can belong to but if its a small operation and it does go to the wall you will have the devil's own job getting any money back.
Getting a quote from an agent is easy enough....and if their valuations vary wildly go for the middle price. A decent Estate agent will have local knowledge and will usually have a fair idea about value. There will be commission to pay but that's just a fact of life...never go for anyone who offers to 'get around' that.

If you really are desperate to sell an un-modernised property I'd even look into having it put up for Auction with an Agent that specialises in that. You can state a firm reserve and even if that seems lower that what is being offered by others remember a you can only really compare two firm offers not vague quotes.

Please, please dismiss this proposal...its unethical, deeply problematic and probably illegal.

Can you get to your nearest Age Concern centre and ask them for advice. I sincerery hope you won't go ahead unless you check this absolutely thoroughly.

I agree with others - don't do it!
Another point against - if something went badly wrong with the renovations, your house insurers could well refuse to pay out.
Also, once in, the other person might simply refuse to move out or pay you. Then it would mean an expensive court case.
I've heard cases of both these examples.

Tricia is right.....your own Home and contents insurance would be null and void.

Hi all, thanks for all your comments much appreciated.
I decided to let these people look around just to see what gives.
They recon that they have done about 50 projects using this method. I asked if I could talk to them. I then asked what deposit they would put down and was told it would be minimal around a £1. At that I nearly choked. I asked about insurance should anything go wrong and was assured this would be in place. It also appears the developer is Australian and this method is widely used in Australia . It will be interesting what comes back.

Houseseller Don't touch this idea from your Estate Agent with a barge pole,what he is suggesting is not at all an idea any reputable estate Agent would suggest,get other Agents in to give you valuations on both your home and the building plot as individual sales.
Please do not proceed with this idea it is an upset waiting to happen and I do think you are being taken for a ride by this Agent.

It also appears the developer is Australian and this method is widely used in Australia

Really Houseseller? I have not heard of it, will ask my Australian relatives. There are some very dodgy deals and 'wealth-creating' schemes going on in Australia (or were), which sound like American-style imports.

There could be capital gains tax implications as well, which the developer is trying to dodge and pass on to you.

Houseseller, I cannot believe you are continuing to think positively about this. You have been given so much good advise. Why do you believe everything you are being told by these people? I am seriously worried that you are being scammed. You must step back say NO and if they do not leave you alone contact the police and Trading Standards.

P.S. to be honest ...being a sad old cynic..... I am beginning to think you are actually trying to sell this proposal to the unwary, rather than honestly asking our opinions and advise.

Hi Hilda, you misunderstand me I am not going through with it just curious what they come up with. It's my project now just for interest.

Houseller, This will be my last message on this subject as I find this all very troubling. You may be getting yourself into some serious trouble here, I do hope you have someone you can call on to back you up....such people as I believe you are dealing with, do not like being messed about.

Hilda I have just noticed your last comment, I am doing no such thing as trying to get someone to do this. I am no fool I just want to see how far people will go. I don't deserve to be spoken to like that. I appreciate what your husband said and have taken it on board. I may well go to the trading standards once I have more information

Trading standards are definitely the way to go and sooner rather than later.

By the way I think that you will find that the responses on here have been about having your best interests at heart rather than thinking you might be a fool.

However your comment that you "just want to see how far people will go" is somewhat disturbing - to what end might you do that? It does seem rather pointless as far as I can see.

Yes you are right I just thought if I can get something in writing I will have something to go with. Thanks for all your help it's probably time to put this to put the subject to bed.

Houseseller - Thanks for bringing this to our attention.
We are considering selling our bungalow in the UK and find all the advice on here very useful.
Hope you sell yours soon.

I come back to my original comment. Never do anything on the recommendation of an estate agent without getting legal advice and letting a solicitor (not one recommended by the estate agent, but one you find independently) see all the details.

Indeed a good way of testing the bona fides of the people suggesting the scheme is to say that you will want full details of the scheme to be looked over by your solicitor.

I did ask a lot of questions and said I would put their written proposals to my solicitor. I have just had a call from agent that indicates that they are looking to purchase in the normal way so I assume I asked too many questions. Waiting to hear how much the offer is. Also I had another developer viewing today who may be interested so please keep fingers crossed for me.

houseseller I hope you did not think I was being rude about your capacity to make a decision by my remarks. It sounds a bit patronising when I think about it now.

Not at all, I am glad for the fantastic response I got. It's one thing for a couple of people to say not to do something but when it is over 40 it needs to be taken notice of. I feel that my gut feeling that it was wrong has been confirmed.

Sounds like you asked exactly the right amount of questions Houseseller . My fingers are crossed for you.