Been offered more for my SSTC house - what should I do?!(25 Posts)
Hi all I am looking for advice on the sale of my property. I went on the market last Tuesday with an online agent and had an overwhelming response to the house. Ended up with 30 people trying to view and 12 offers. On Tuesday it went to best and final and there were 4 offers 11k over asking and 2 were 12k over, we accepted the 12k to buyers in rented.
I have just had a call from the agent saying that one of the ones who lost out has now offered another 8k (taking it to 20k over asking), they are cash buyers and are willing to put a holding deposit on it.
Now what the hell do I do? They are gazumping these people, the market around here is tricky as there are more buyers than sellers which is inflating house prices, there is also not many decent houses in this price bracket. I have separated from my H so this is the marital home and we need every penny for our forward purchases. In my mind I am thinking the other couple will not have wasted any money on solicitors or surveys yet as we only accepted their offer 2 days ago, the other part of me thinks this is morally wrong and we should stick with them. Yet the part says this is a business transaction I will lose 8k over.
So I am asking WWYD in my circumstances?! I have never been in this situation before.
Take the 8k as it is very early on. You will need the extra money to buy another property. Although I do understand the moral issue!
Following - sorry I can't help much but we've been told we will probably be in a similar situation in the next couple of days.
If it's any use though, we've had a chat and will probably reject the new offer, much as we would like the money. I will tell our estate agent to mention it to our buyers so they don't mess us around at survey time etc! We'd probably reject it as it is morally wrong. Even though it's frustrating!
Good luck making a decision.
Ask for proof they are cash buyers. Surely they'd have mentioned that before and you'd have chosen them over the renters if there was only 1k in it?
We nearly lost our current house to a couple who said they were cash buyers and offered more and when asked to prove it turned out to have a house they needed to sell which wasn't even on the market.
Yes they had said they were cash buyers previously but we still went with the 1k to the couple renting, every penny and all that! She did say they were willing to put down a 10k holding deposit too via the solicitors but I have absolutely no experience of that.
I will not be messed around by them and would put the house back on the market at the first whiff of being so, hell its not like I was short of buyers and there is not a house on the market that I could buy at the moment so I am in no rush. I do very much take the point though that it is morally wrong, more so if the other couple were far down the buying process and had spent money, yet I do not want to be greedy and it bite me on the arse later on. Gah I don't know what to do. H is saying bite their hands off!
Take the higher offer.
Buying and selling houses isn't about morals!
Tell the estate agent to tell the people whose offer you have accepted that you have received a higher offer. They may increase their offer. Ask both sides for bank references & proof they can proceed quickly. Ask for proposed time scales. Have you found a property to move into?
That's a lot of money and you're in a situation where 4k could make a big difference. I'd take the higher offer but feel bad about it.
Agree with a pp that you need proof that they are cash buyers and make it clear that you will not be reducing the price come survey time.
Tricky one. Them offering more at this stage defeats the purpose of "best and final offers". If they wanted the house that much they should have offered their best at the time.
I would probably take the higher offer though, as long as they are verified cash buyers.
Be wary of people getting a mortgage paying an inflated price though. Whilst the market may be hot, there is a high risk of their bank valuing the property at less than what they are paying for it meaning they may not get the mortgage. In that sense, the cash buyer would have the upper hand.
It's been less than 48 hours, I would take the higher offer.
8k is a lot of money to turn down just to be polite. Yes it would be crap for the current people to lose out on the house but you have to do what you gave to do
8k is a lot of money to turn down just to be polite.
It's been two days, if it was two months I would struggle with the decision but after two days they won't have spent any money and will only be a bit disappointed.
It's rude but it's not immoral.
And I say this as someone who has been gazumped at a very late stage of a buy.
Be wary of people getting a mortgage paying an inflated price though.Whilst the market may be hot, there is a high risk of their bank valuing the property at less than what they are paying for it meaning they may not get the mortgage. In that sense, the cash buyer would have the upper hand.
Yes this also worries me greatly, I will definitely get the agent to confirm.
Thank you all for your replies, I will update later when I have had a chat with the agent.
OP I was the "gazumped" buyer in a situation just like this a few years ago - the house went to best and final offers, ours was accepted, but we received a call the next day to say that the sellers had since received a higher offer which they had decided to accept.
I was annoyed and disappointed, but I actually don't blame them, and your buyers are very unlikely to have incurred any costs at this stage.
Perhaps explain the situation and give them the opportunity to match the offer, but make clear that you are not initiating a bidding war.
Interestingly the sale of the house we lost out on fell through just before exchange - I don't know why but I have to say it did make me feel a bit smug (we'd found a better house by then anyway!).
Yes, I'd be wary of cash buyers. My friend's parents told people they were cash buyers but when it came down to it they "just had to sell their house first to get the cash". So yes, mortgage free eventually, but not quite in the spirit!
Hard to say what I would do here but BigGreenOlive's suggestion is good.
Superking I don't want karma to bite me on the ass over greed either and I am worried these buyers will dick me around last minute and state they will pay less, if that happens I will not sell it to them and will put it back on the market. They have been looking for a long time though and had a sale fall through just prior to completion a few months ago so I know they are pretty keen to find a place. I think people get desperate and emotional over houses don't they? They clearly loved it and they came back twice to view it.
Nameless I know they in a rental in the city centre but yes you are absolutely right I need to get the agent to check their financial position. Its so much over what I expected I am considering just getting the sale through asap and going into a rental for 6 months.
Biggreenolives No have not found anywhere, I have a specific search area due to senior schools, around 18 houses sold on the estate last year so I am confident something will come up soon. This is the issue with the area, its a sellers market which is great but not a buyers. Bizarre really the difference across the country.
When we bought our current house we paid I think a 10% deposit and had to prove we were cash buyers - I sent through scan copies of shareholder documents. We also had to agree a move date. This was all laid out in a contract. It meant our vendor had the security she needed to move into the flat she wanted, and we were happy to buy the house before we wanted to move to ensure we got it.
She had an asking price offer before we viewed, so we just pitched high enough to avoid a bidding war. I've always been slightly worried I might meet the people we outbid at school gates - as we were moving for schools - but never have.
I agree with previous posters. If they are 100% verified cash buyers and can prove it with bank statements, I would take the higher offer and accept the 10% deposit paid to the solicitor subject to them being a cash purchase and a 30 day exchange. A genuine cash buyer will not object to this. The PP who stated that what buyers are willing to pay and what banks are willing to lend can be poles apart is quite correct. A cash buyer will be more certain and much, much quicker. With a divorce looming you need to eliminate any sources of stress and a bank valuation can be one of those areas. Aside from the £8k, if they are cash buyers they are the safer bet of being as close to the agreed price as possible. Good luck with everything.
Take the higher offer. The original people haven't spent on it yet.
Make sure they are prepared to wait for you to find something though, if it'll take a while.
We had this some years ago. It was very slightly later in the process so we turned the new offer down. We lived to regret this though when our buyers messed us around all the way through, meaning that the move went way over schedule and I had to stay in B&B for 3 months to start a new job.
wow, i though the housing market was stalling. where are you? selling a house is business. if they're prepared to put down a deposit i'd go with the higher offer.
I am in the West Midlands. It's a popular area with families as lots of good schools. It's definitely supply and demand though in my price bracket.
Have spoken with the agent just now they have made a formal offer and the agents are checking out their financial position. Feel shitty for the others and wouldn't consider it if we were further down the chain but we will see.
I agree with previous posters. If they are 100% verified cash buyers and can prove it with bank statements, I would take the higher offer and accept the 10% deposit paid to the solicitor subject to them being a cash purchase and a 30 day exchange.
I get where you're coming from OP- I would probably go with the higher offer, so long as their position can be verified.
And I say this as a FTB who- we had our offer accepted last month, paid for survey & valuation, homebuyers report got done.
Then the vendor ditched us to go back to their original buyer, who had pulled out initially for various reasons.
We were absolutely fuming and were several hundred ££ out of pocket!
Its not fun out there as an FTB! We're in London where prices are insane.
I am sure that our vendor will get some karma coming their way in the future
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