What does vendor suited mean & are they preferred?
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When it comes to buying or selling a house, most people will end up on Rightmove or Zoopla, looking for properties on the open market.
Most property listings will be relatively straightforward, but some properties may be labelled as “vendor suited”.
Vendor suited properties are ones that are legally involved in a property transaction, where the property seller is buying onwards, and if you decide to purchase their property, you will be involved in a property chain.
It’s important for potential buyers and sellers to understand what vendor suited means as it can impact a property transaction timeline, or the conditions related to a sale. In this article we will cover all things vendor suited properties and how you can sell one!
Is a vendor a buyer or seller?
A vendor is the legal title for someone who is selling a property, be it residential or commercial. The vendor tends to be the owner of a property, and is looking to transfer ownership to a buyer in exchange for funds and payment.
The property vendor is responsible for ensuring that they are the legal owner of a property and that they have the right to sell it. If you are selling a property, you will most likely see the term ‘vendor’ within legal documents such as the contact of sale and sales agreement.
As the property seller and vendor, you will need to show your buyer all the necessary paperwork to sell your property including; property title and property information forms.
What qualifies you as a vendor?
In order to qualify to be a vendor of a property, you will need to prove that you are the legal owner of the property you are selling. You can prove that you are the legal owner of the property by presenting your property Title Deeds to your solicitor, and they should handle the rest.
If you cannot find your Title Deeds, you may want to check with HM Land Registry, your solicitor, your mortgage company or your insurer.
What does vendor suited mean?
Vendor suited is property jargon for the process where a vendor or property seller is already in the process of purchasing another property.
If a vendor is vendor suited, it may have implications for the timescale of your house sale, as this is the legal term for a property chain.
For example, if you are buying a property from a seller that is vendor suited, then they will be purchasing a property once the funds from your house sale have come through.
What are the pros of buying a vendor suited property?
Motivated sellers
If a seller is already involved in the purchase of a property, they will most likely be a motivated seller as they look to sell their current property as fast as possible.
Transparent seller’s timeline
Sellers who are vendor suited will most likely already be well into buying a property and will have a timeline to sell from their sellers. This will be able to help the buyer create a rough timeline for when they can buy their property.
Opportunity for negotiation
In return for a fast sale, some suited vendors will provide opportunities for negotiations for the buyer to potentially get a slower sale price – they may even be willing to include certain furnishing or appliances to facilitate a quicker sale.
What are the cons of buying a vendor suited property?
Increased risk
Due to vendor suited property transactions being in a property chain, there is an increased risk of delays or other complications as there are more solicitors, mortgage companies, insurers and potential buyers/sellers involved within the house sale than normal. More people usually equals more margin for error.
Less flexibility
Most vendor suited sales have extended timelines as the seller looks forward to their completion date before they can move out of their current property.
Higher competition
If the vendor-suited buyer is highly motivated to sell in an area with low housing stock, there could be much higher competition from other potential buyers.
This higher competition could end up in a bidding war and make the house price unachievable for most buyers with a budget.
What should you consider before buying a vendor suited property?
Although the term “vendor suited property” means that the seller is in the process of purchasing a property, this label does not inform you of how far into the process they are.
Some vendor suited property owners are in desperate need to sell their property, but sometimes they are fairly relaxed about the process. You may be able to press the estate agents tied to the property sale about the process of the sellers, but they may not explicitly tell you how far through the process they are.
The other thing which needs some consideration, is finding out where the seller’s seller is in the property chain, and if there are any legal considerations to take into account. All of this could create a chain break, or delay the property transaction.
The sales process works for a vendor suited property
The sales process for a vendor suited property is pretty similar to the traditional route to selling a house through an estate agent, just with the added onward purchase for the property seller and all the complications that may bring.
The sales process will look something like this:
- Mortgage in principle
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Obtain a mortgage in principle via the viewing house process.
- Proof of funds
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Provide proof of deposit or cash funds depending on your payment option.
- Make offer
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Make an offer on the house via the estate agent.
- Mortgage application
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Submit a formal mortgage application and wait for mortgage approval, if applicable for you.
- Conveyancing process
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Start the conveyancing process with your solicitors and your solicitors will carry out conveyancing searches and enquiries.
- Exchange and complete
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Exchange and set a completion date as normal.
Here are some more articles which will be able to guide you through the house selling process:
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What considerations should property vendors think about?
When property vendors are considering selling their property there are a few considerations that they may want to think about, like being as transparent as possible, having a contingency plan and making sure they have a negotiation plan ready.
Clear communication
Property vendors who have a clear line of open communication with their solicitors, estate agency, and any potential buyers will benefit a lot from damage control. When we say damage control, we mean the minimised risk of a property sale falling through.
Clear communication can also ensure that the process is kept on track. By establishing transparent and honest communication from the outset, as a property vendor you can be proactive and make sure your estate agent and solicitors are reaching their agreement with you.
Contingency planning
Property vendors should always have a contingency plan in place in case there are delays or issues within the property transaction. Most vendors will face no issues when selling their house, but 1 in 5 property vendors may face a chain break.
Having a contingency plan could include having a cash buyer at the ready (like us), or having connections at an auction house, just in case the sale does go through. You may take a hit on the selling price of the property but at least it sells on time.
Negotiation strategies
Although many estate agents will carry out the negotiations as part of their service, it may be worth the property vendor having some negotiation skills as well.
Unfortunately, from time to time, some estate agents will push a house sale through at a lower price than the vendor originally wanted to sell. They do this because your agreement with them is coming to an end, and they would rather get some money from you than no money.
How can The Property Buying Company help?
If you are a motivated seller and don’t want to bother with the open market, then why not sell to us? We are a motivated cash house buying company who pride ourselves on providing exceptional customer service.
We can purchase your property in as little as seven days, all while covering all the fees usually associated with selling your house.
We do work on a below market value cash offer service, but since you are looking to sell as vendor suited, you would probably take a hit on the house price anyway … and we can buy your house much faster than any potential buyer on the market!
In fact, as of December 2023, the average UK house sits on the open market before being sold for over 100 days, and that’s before the conveyancing starts! We can offer you a swift property purchase, with a seamless conveyancing service and all on a timeline that suits you.
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