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Developer or the agent is actually really good at their job?
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My question is why would anyone offer £1M on an £875K property? I'm not complaining, but it makes no sense to me.
It's not that much more money, relatively speaking of course. 13%ish over asking.
Feel free to buy everyone on LFGSS a round with the windfall :)
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Competition innit. People have been bidding against each other. The agent is, indeed, doing their job.
Probate figures tend to be conservative, much easier to pay tax on a lower number then top it up if the house makes more than to pay on a higher number and ask for it back if the house makes less.
They’ll leave that note on there until exchange just so you can’t go back in the future and accuse them of underselling it as the equity release firm don’t have any real incentive to sell it for any more than the outstanding debt. Same thing happens on repossessions.
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@Markyboy
I've been in the process of settling my late aunt's estate for the last few months. It turns out she'd done an equity release deal on her house to top up her pension (shitty deal, but she has no children, so not an issue really). Anyway, the house was valued at £900K for probate/inheritance tax purposes, but it falls to the equity release company to sell it. They put it on with local agents who have marketed it at £875K - fair enough, so far so good...
The agents website now says "We are acting in the sale of the above property and have received an offer of £1,001,000 on the above property. Any interested parties must submit any higher offers in writing to the selling agent before exchange of contracts takes place." with the original advertised price still on the ad.
My question is why would anyone offer £1M on an £875K property? I'm not complaining, but it makes no sense to me.