Prices have increased since my house went under offer... what to do?

[meadowquark]

I put my house on the market in August, accepted a lowish offer (£285k off original £300k - London) in September as I was rushing to offer on a particular property - it did not work out so in October I offered on a "compromise" property. (in the meantime I accepted £1.5k discount on my house to fix non-existing damp - felt pressurized into it). We are in January and still have not exchanged but heading towards that direction (perhaps next month).

In the meantime similar houses to mine have appeared on the market priced £320-325k, one of them sold for 312k, another for £322k few months ago, couple of others SSTC for asking price £320-325k, you get the picture. My neighbour just put her house on the market, +1 bedroom but horrible condition, asking price £350k. You get the picture. I am feeling increasingly nervous that I am "giving my house away".

Not to mention that I was only able to get a "compromise" property as wasn't able to afford anything else at the time.. if I was buying a dream property, perhaps it would not matter that much.


What would you do??

[Floggingmolly]

I'd re market it.

[LoofahVanDross]

i would not get greedy tbh.

[AShiningTiger]

I would not get greedy but would not buy a compromise property.

[LoofahVanDross]

i;m one of those types who think it will all go horribly wrong if i try to get a bit more money, then live to regret it.

[Toomanyexams]

Do you need to move, or just fancy it? If you need to move, you would be taking a big risk to pull out. If you can wait just pull out, take your house if the market fir a bit and try again. That said house prices seemed to have cooled a bit in London compared to last year.

[JassyRadlett]

You don't be an arse, frankly. This is how long it takes, sometimes, and it sucks in a crazy market. I'd go back and renegotiate on the damp - get your own quote/expert and you can use the pressure of the increasing market to get a better deal.

But honestly, you remarket it and four months later you'll probably be in the same position.

I'm in outer London. Our sale and purchase took nearly six months thanks to useless buyers' solicitors. In that time, our flat probably increased in value by another 10, or even 15% because it's when the market went crazy.

But we sat tight, partly because it was the right thing to do and partly because if our sellers had suddenly asked for more, we'd have been worse off.

Your 'compromise' property will have increased in value, too. If you lose that because of putting your own place back on the market or losing your buyer, your next compromise may be even less to your liking.

[havemercy]

I'd re-market it too. And hold out for a property I really liked

[Avaline]

The mistake here, is the compromise property.

The other mistake here is giving way over imaginary damp.

The other stuff is just the way it goes.

Don't pay for imaginary damp.

Don't buy a property you don't want.

The rest, market fluctuations...ignore it.

[fanjobiscuits]

That is difficult. Maybe get a valuation and go back to buyers?

[RCheshire]

Personally I'd complete the sale as you have an agreed price, the process well underway and I have little respect for gazundering - this is no different.

Then I'd rent. House prices are ridiculously high, so if buying something ridiculously expensive why buy something you're not sure about?

[BauerTime]

I agree it sounds like you don't really want the compromise house. If you were buying your dream house would you even consider risking the sale of your current home for a few more quid?

Saying that if you do want to move to compromise house then what would that be worth in the current market? If that price would have also risen then does it matter that your house could be worth more now?

If you walk away from this then would you be able to afford any other suitable properties or have they all risen in price too?

[greenbanana]

Apart from the question of whether it's the right thing to do, if you are 'trading up' and in a similar area, you have to bear in mind the place you are buying will have risen by more than the place you are selling (same %, more £). So you haven't lost out in fact you've gained (obviously the gain is somewhat theoretical as you're not going to immediately sell the new house). The only people who lose out by sticking with a sale in a rising market are those downsizing or moving to an area rising slower than their current area, and then they are probably making enough not to care.

It sounds like this damp issue has made you resent the buyer - if you haven't had a proper damp report and something to justify the £1.5k I'd go back and renegotiate that, if it becomes a sticking point you know you can just walk away.

[specialsubject]

your neighbour can ask £350k for her house - question is, will she get it? You'll only know that at sale.

don't buy the wrong house. If there's no damp, don't discount for it. Otherwise I would continue, although it doesn't hurt to say that even though prices are going up, you'd like to complete this sale WITH the £1500 put back on.

[Efferlunt]

Bird in the hand and all that. I think you should either risk re marketing or stick with the original agreement. It's not right to hit your buyers up for more cash.

[Bowlersarm]

You are selling at £283,500? And similar houses are now actually selling at up to £325,000? That's an enormous difference. I would rethink, as I don't think you'll be happy in your 'compromise' property now.

[christinarossetti]

I agree that the problem is the compromise property.

Your offer would have been in a lower market, so the asking price of that property may well be higher if it was marketed now.

Do you really want to move into the house that you're buying? If not, walk away now.

[zipzap]

Talk to the estate agent and see what they say...

Talk to a couple of other estate agents and see what they say...

is there a reason why it has taken so long to get to this stage? If it was just a week or month difference between you accepting the offer and then discovering the other higher prices then you might have to accept it and blame estate agent for going for a quick sale. But given that it is several months and the market is shifting rapidly seemingly and they haven't got a date close for exchange yet, I don't think you need to feel obliged to honour the original price if you haven't signed anything yet - you could be putting yourself at serious disadvantage for your next house (ie you might have to downsize a bedroom rather than being able to move up a size) if you do take tens of thousands of pounds less.

WOuld it be worth getting a friend to ring up the estate agent to see what they say and see if they are still marketing the house to others?

[meadowquark]

Sorry for my silence, cannot use MN at work freely.

Yes I resent my buyer for discounting 1.5k. There are no obvious damp issues. I am too shy to bargain, and so I gave in too easily.

Houses similar to the compromise house are marketed for 305-220k, the prices have increased but I'd say slightly less than my current house.
The process has dragged as the compromise house is a probate sale.
I do not have to move, but I fancy it, it is meant for extra bedroom, better schools, safer location blah blah blah (sometimes I think I just gave into the snobbery).

I would be much happier if I got my 1.5k back, but I am terrified to talk to my estate agent as I pulled out with them in the past twice (but at much much earlier stage - couldn't find anything to buy & nearly divorced).

To add the cherry on the pie, another house just came back on the market that I had offered on, but my offer was about 10k too low. Their chain broke down. If only I had 10k more (plus some more as spent for surveys, solicitors etc.)

You are right to identify what I have done wrong!

[chockbic]

Can you ask original buyer for more money?

[meadowquark]

I am afraid my tongue will stick to my mouth if I call the agency to ask for more money, that's the issue with me, I just don't know how to bargain and then stupidly lose out.

[PigletJohn]

you are now in a cheerful position. If the buyer drags their heels or gets awkward, you will be quite happy to go back to market.

Make sure they know that....

[chockbic]

^^good one

[zipzap]

If you're not happy talking to your estate agents, why not email them? Just along the lines of what you wrote in your op, get us to look at it on this thread and then send it to them...

Take a big breath and go write! (and then post on here )

[whattodoforthebest2]

I wouldn't buy a compromise house. It has to be a fab house otherwise you may regret it sooner or later and it's a big sum to spend on the wrong thing.

I'd rent and tell the agents you'd like their opinion of your house's current value - they're working for you remember. Then ask for the £1.5k back on the price and say you're prepared to give your buyers a discount on current value, but not £40,000 +. If they're ready to go and you are ready to rent, find a compromise figure on condition they exchange quickly (agree a specific date).

You're giving away too much. Say it by email if you're nervous about phoning them. The agents will try and persuade you to stick with your current buyer as it's less work for them. Stick to your guns.

[meadowquark]

Thanks guys. Going to email the agency this evening. I have the "hard" evidence of similar houses selling for 312k and 325k late in 2014. The buyer's going abroad for 2 months but they are happy to complete when they are away (they say it is possible), but at the same time they will be out of reach for renegotiation.