Top tips for buying a property from separating vendors
Divorce used to be one of the three main drivers of the property market. But nowadays, a considerable number of properties are appearing on the market as a result of separations that don’t always involve divorce.
A lot of jointly owned properties are now bought through a business arrangement, often to help others get onto the property ladder as they’re unable to afford to buy on their own. The high initial costs of purchasing a property have forced an increasing amount of people to buy property jointly because they can’t afford to do it on their own.
But whenever you’re buying from joint owners, whether a couple who are divorcing, a separating couple, or a pair of young professionals who have bought property together as an investment, you should keep in mind that joint owners might each have different goals which could make negotiations difficult.
Knowing & understanding the reason for the sale gives you an advantage and often helps in negotiations with the vendor. Buying from separating vendors can add a whole range of additional complications, such as one party may not want to sell while the other one does, which can cause problems when it comes to viewing the property. Even after viewing the property problems can occur. The property may be overpriced and the sellers might be less likely to accept a lower offer. There is also the risk that, even after your offer has been accepted, one partner manages to raise the funds to buy the other partner out.
Here’s what to look out for if you are buying from separating vendors:
- Try to find out from the estate agent what the vendors situation is and reason for sale as early as possible. This way you’ll know what to expect when dealing with the vendors and it may help you when it comes to negotiations
- Make sure you’re not getting conflicting information. Essentially there are two vendors, so even though you might be told one thing from one partner, it may not be the full picture. Also, it’s worth making a note of any fixtures and fittings you’re told are included, as the other partner may have other ideas!
- If you decide this is the property for you, move fast! The more prolonged sales process, the greater opportunity for complications
- Accept that the deal may be more complex and susceptible to problems. With this in mind, keep your options open and keep an eye on other properties that might come onto the property market in the area, just in case
- Stand firm; don’t feel pressured to move on certain conditions, such as price, timing etc.
Post courtesy of Property Reporter.