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Just about to set an exchange date and DP wants to pull out!

(18 Posts)
Miserablemary Tue 10-May-16 23:56:01

In a small chain, selling to a ftb who offered on our house in Dec 15. House was marketed in April 15 and accepted an offer (and our only offer after very little interest on the market at that time) about 10% less than the asking price. We are now near to exchange (date still to be agreed) and now our next door neighbour in a mirror image of our house has been marketed £25000 above our original asking price and an asking price offer accepted 2 days after being marketed. My DP is livid, he doesn't want to undersell our house as the house we are buying is currently priced at the top end of the sale price for the area. The house we offered on needs quite a bit of work too so need every penny to make house work for us. I am so confused, has this happened to anyone else, what did you do - did you pull out and remarket? Tyia

wowfudge Wed 11-May-16 07:49:13

Is the house next door comparable though? Does it have something yours doesn't? If you've been on the market a long time then it does affect what someone will offer. You don't know that your neighbour is telling the truth and if their buyer needs a mortgage there is no guarantee the valuation will come in at £25000 higher than yours.

Toooldtobearsed Wed 11-May-16 07:55:31

And what if the owners of the house you are buying did the same?

House prices fluctuate, that is a fact, But every time the market goes up or down, the effect is basically the same if you are selling AND buying in the same area.

Sell and move. Or punish your poor ftbs by potentially pricing them out of the market - remember, they have no one to pass the price hike on to.

We sold many years ago. Similar to you, the house prices rocketed in the couple of months following accepting an offer. We still went ahead with the agreed sale price.

dynevoran Wed 11-May-16 10:03:13

The thing is your completion dates would be e.g. 3 months apart. So youd expect some increase there. Also there may be aspects that make theirs worth more. It may get undervalued if it is more than the recent comparables. To be very honest i think you would be greedy and dishonest to pull out now. If you thought it was worth more then you should have not accepted the offer.

dynevoran Wed 11-May-16 10:04:40

Also - their offer might not even go as far as survey. And you might struggle to find a buyer again and you might lose your onward purchase.

specialsubject Wed 11-May-16 11:21:08

obviously you don't want to undersell your house, and you haven't exchanged so you are within your rights to up the price.

you will piss off your buyer and may lose your sale as your vendors may not want to wait - and will see you as 'messers-about'. How long will it take to find another buyer?

is it worth it for the chance of more cash? That's your decision.

DiggersRest Wed 11-May-16 14:31:18

As pp have said, it's been accepted but it's not a done deal, their bank might so no.

I was just reading today there has been a crash apparently hmm

Where are you OP?

JeffreySadsacIsUnwell Wed 11-May-16 15:27:45

So you pull out and relist for £25k above your asking price, viewers still hate the way you've decorated (or whatever), nobody offers. Your seller relists the house you want to buy because you've made yourself unproceedable.

Meanwhile your neighbours' would-be buyers get their mortgage valuation done, the surveyor looks for comparables, sees that your house went under offer with an asking price £25k lower and that the sale fell through. Surveyor assumes that given the time lag and that you're still trying to sell, surveys and searches revealed your house wasn't worth that lower price and your buyer pulled out, and devalues neighbour's house accordingly.

Bank refuses to lend. Neighbour's buyer can't/won't stump up the difference and pulls out.

Neighbour goes back on the market at a lower price, undercutting you.

Neighbour gets a lower-than-asking price offer from buyer who sees two neighbouring properties with fallen-through sales, one of which having been put on the market over a year ago so clearly the one to avoid.

You are then left with a property that hasn't shifted, no buyer and no option but to reduce - possibly to lower than your current offer.

You might get lucky or you might be in a much worse position than you are currently. However, you might also find that your EA refuses to relist - and if you're looking in the same area, will favour other buyers... Or that house prices have indeed gone up so much that you can no longer afford to offer on the house you're buying, when they remarket because you can't proceed, or indeed on any others.

Up to you whether you take that risk...

QuiteLikely5 Wed 11-May-16 15:30:44

The valuation that was done a year ago would not be valid now would it?

You really must compare your home to next doors objectively and see if you are being realistic?

MiniCooperLover Wed 11-May-16 17:41:37

I would genuinely tell your DH to stop being a twit. What is he going to say if the people you are buying from tried to say they wanted £25K more? I doubt he'd be any more impressed at their behaviour than I am at his.

ThroughThickAndThin01 Wed 11-May-16 17:52:03

I wouldn't pull out.

You might not get another buyer.

The house you are buying wouod go back on the market. You could well lose it.

DailyMailAreAFuckingJoke Wed 11-May-16 18:25:44

And how would your DH feel if the owners of the property you are buying, did this to you?

JonSnowsBeardClippings Wed 11-May-16 18:41:19

Great post Jeffrey

Brainnotbrawn Wed 11-May-16 18:46:25

A bird in the hands springs to mind. Sell and never ever look back.

KingJoffreyLikesJaffaCakes Wed 11-May-16 18:48:10

Next door's house might be 25K nicer.

New floors, fancy kitchen and whatnot.

Donatellalymanmoss Wed 11-May-16 18:50:13

A bird in the hand is worth two in the bush.

Are you prepared to lose the house you're trying to buy? Because even if you can get another higher offer straight away will your vendors wait another 3 months for you to complete that sale.

Miserablemary Wed 11-May-16 19:20:12

Thank you for your replies, very helpful and very valid reasons, along the lines of how I have been thinking. i am hopeful that we will carry on with it all as it has been a long time coming.

whois Wed 11-May-16 19:23:53

What JeffreySadsacIsUnwell said!

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