Selling a house for less than it’s worth might sound like a loss – but in some situations, it can be a practical or even strategic choice. Whether you’re selling to family, facing debt, or need a quick solution, this guide helps you weigh the risks, plan ahead, and stay on the right side of the law.
Why do people sell at a discount?
- Financial pressure or debts
- Inheritance where a quick split is preferred
- Divorce or separation
- Downsizing for health reasons
- Time-critical sales
Key risks and how to protect yourself
- Tax implications: If you’re gifting equity (e.g., to a child), it may affect inheritance or capital gains tax.
- Legal documentation: Ensure a full paper trail – especially for discounted family sales.
- Undervaluation flags: Mortgage lenders may refuse funding if the sale price is too low without explanation.
Creative strategies
- Deferred payment agreements: Allow the buyer to pay a portion now and the rest later.
- Lease options: You receive rent now with the buyer purchasing later.
- Vendor finance: You effectively ‘lend’ the buyer some of the value to complete the sale.
These are more complex but can help you get better value or structure a fair outcome.
If selling at a discount, transparency is key. It can be a useful tool but one to use with caution and advice.
What makes us different
We work with homeowners who need to sell below market value, whether to clear debts, avoid repossession, or move on quickly. We’ll talk you through all your options and offer a solution that puts your needs first.
Contact us today for a confidential, no-obligation chat.