Should I Sell My House to a Property Developer?

News at Waterfords | 11/06/2022

Should I Sell My House to a Property Developer? Pros and Cons

Selling your home to a property developer through part exchange can be very different to selling to a homeowner or first time buyer. Even though a sale is a sale, there are certain things to consider before deciding whether it’s right for you. 

As your expert Land & New Homes specialist in the Camberley, Chobham Fleet and Yateley areas, 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. Lower Offer

Property developers are in business to make a profit, so it stands to reason that their offer on a part exchange home may be less than the market value. The independent valuations aim to offer a “selling price” rather than an “asking price”. If you’re determined to get the best possible price for your home, selling to a developer may not be for you (although bear in mind the money saved on estate agents fees, mortgage repayments etc.).

2. 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.


3. 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 and this could be stressful.


4. Sentimental

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. If you have an ambitious sales figure in mind then the traditional sales method is probably the way to go. However, if you want a quick and straightforward sale it is worth considering.

It's worth getting valuations from a trusted local estate agent and the property developer to make an informed decision about the best way to sell your home.

If you need help deciding how to sell your Camberley, Chobham, Fleet or Yateley home, Waterfords Estate Agents your local property experts and we’d love to chat and help you make an informed decision. Our advice is free and without obligation.

Call your friendly, local property experts:

  • Camberley: 01276 66566
  • Chobham: 01276 858589
  • Fleet: 01252 623333
  • Yateley: 01252 870222

CLICK HERE to email us