Types of Seller

Published on 2015-07-06

Private Individuals

Most properties being handled by estate agents are owned by private individuals – typically single people or couples. It is important to establish the reasons for sale as this will affect sale price, marketing and method of sale. Private individuals are free to sell to anyone for any price or accept any offer on a property, even if higher offers have been made or the asking price is below what might be expected. When an offer is accepted, the seller may wish to stop offering the property to other potential buyers or may keep the property available for others to make further offers.

Private sellers may be experienced or inexperienced and will need treating according. Some sellers have specific needs or circumstances to consider e.g. a divorce or negative equity which may require more careful management.

Trustees

A trustee is a person to whom legal title to property is entrusted to hold or use for another person’s benefit. When property is sold by a trustee, the trustee will normally want to obtain the best price possible, to enable them to discharge their legal duty in full.

Executors

An executor is a person appointed in a will to carry out the wishes of a deceased person. Where it involves the sale of property, the requirements of the executor will normally be the same as a trustee, i.e. to obtain the best price possible and keep the property available until contracts are exchanged.

Mortgagees in Possession

A mortgagee is a person or body who lends money to a buyer. The money is secured against the property by way of a mortgage to enable them to have sufficient funds to buy a property. Usually mortgage agreements allow the mortgagee to repossess the property if the borrower defaults on mortgage payments. If that happens, the mortgagee will usually instruct an estate agent to sell the property in order to pay off the mortgage. They will be seeking the best price for the property and a speedy sale may well be in their best interest as mortgage arrears and debt will be rising.

Builders or Developers

Builders or developers are generally in a similar position to private individuals, wanting the best price possible. They may be selling to a timetable linked to their building programme. The approach is more businesslike and less emotional than a private seller often involving reporting on market activity related to the properties being sold.

Orders of Court

An order of court may arise from a dispute that reaches a court and the judgement results in an order from the court requiring the sale of a property, such as in a divorce case. It may also arise when the court intervenes to protect the interests of vulnerable individuals. The court will be acting in a trustee capacity and will want to be seen to be obtaining the best possible price in the circumstances.

Corporate Bodies

Corporate bodies are organisations such as local authorities, commercial trading companies and utility companies. Some may be more like private sellers with a businesslike approach to a sale while others, like local authorities, are more like trustees where price is important but other factors like type of buyer and end use of property will be considered.

Categories: Residential Sales Best Practice