AIBU to walk away from this house purchase?

[Quandaries]

Will try to keep this short.

Viewed a house and loved it 6 weeks ago. Ticked all the right boxes and was very good value for what it was. Offered asking price and it was accepted. Survey done, solicitor engaged etc so at the stage where it’s cost us some money.
Booking deposit has been paid but is refundable (not in Scotland).

We have a large deposit and mortgage is ready to draw down. We’re not in a chain.

Our solicitor was chasing theirs for contracts.

On Thursday I got a call from their agent to say they’ve allowed another viewing from a very insistent couple who are cash buyers and offered £8k more.

Agent now wants us to reoffer and increase on the new buyers’ offer so we’ll be paying £12k above what was agreed. He insists that the house will go for even more if it goes back on the market and says that houses are being snapped up before they go on the market as more people are working from home and this village is very popular for those with just an occasional commute.

I’ve had a look at Right Move and can’t see any evidence of anything other than price drops in the area. I accept that there may be houses selling before hitting the market and I don’t have this data.

My heart loves the house. It’s in a stunning village and really ticks all the boxes in terms of schools etc.

My head is saying we’re actually in a better position than the cash buyer as we’re 100% ready to go and can sign this week whereas they will need to have survey done etc.

Head is also telling me that if the sellers are going to screw us for £8k (for context, that’s a bit over 1% of the purchase price we had agreed), they’ll be a nightmare to deal with and it’s only a matter of time until they come back to us either with a new offer from the other bidders, or pushing to put it back on the market.

I’m also guessing that house purchases slow down a bit in winter, and it’s an area where more Covid lockdown measures are likely so putting it back on the market may mean there aren’t many viewings.

For additional context, we can afford to increase our offer. I’m just loathe to get into a bidding war due to how the vendor has sprung this on us.

But I love the house.

YABU- up my offer
YANBU- walk away

Well if they get into a bidding war then go with DH evil plan...

😂

I voted YANBU, but I'd offer £8k less before you do that. It would just be to acknowledge that you know they're playing you and you'll not stand for it.

We had exactly the same scenario- and we couldn't increase the mortgage offer so had to borrow from parents to increase the deposit. Felt awful at the time. But is was our dream home and we have no regrets. It depends if you are head or heart folk

Do what dh says.

These people will likely dick you around some more. And also the estate agent.

The EA obviously wants you to buy the house as it is in his/ her interest that they sell immediately and take their commission rather than wait on another possible which may or may not go to completion. Of course they want to keep you on side.

Yes it is a sellers market right now in many areas but that is very likely to change within a few months so they are taking a risk if they decide to sell to the other party and delay the sale.

It's up to you what you do obviously but I think you should strongly consider declining to get involved further.

I would be your DH..... How bloody frustrating. I'm wondering if the NB is a friend 🤔

This will be the EA playing their games. In context....
When I sold a house a few years ago, I had a bidder who made an offer, which I accepted. A few days later I had the EA on the phone stating that they had worked 'really hard' and had managed to get me an extra £2.5k. I asked why this was, when I had accepted the lesser offer. They kept trotting the line of 'we've worked so hard blah blah' to which i said you can go back to the purchaser and state that they could have the house for the original lower price. The EA called me all sorts of mad 'Why wouldn't I want the extra money' etc etc, but I stood firm.
I then asked for the purchaser details so I could advise them of what had happened, and they tried to pull the DPA crap, so I said fine, I'll wait until it goes to the Solicitors and I'll get the details that way and then inform the purchaser of what the EA had done.

Funnily enough later that day, the purchaser 'pulled out' of the deal on the basis that he knew who's house it was he was buying and didn't like the idea of this. All this on a purchase with a fixed fee too...not based on commission.

Utter shite from the EA.....it's a con trick for them to get more money, DON'T DO IT!!!!

I like your DH’s style @Quandaries

Your sellers must be mad.

The phrase; ‘a bird in the hand is worth two in the bush’ comes to mind here.

I would ask the estate agent to talk to the sellers (yes they work for the sellers but they would also rather get a sure thing sale than one that might never happen for whatever reason). Other than the fact that there are always going to be quite a few transactions that don’t make it from sold subject to contract to sold we are about to go into the worst recession we have ever been in. Dragging out a sale for the sake of £8k might be a seriously stupid move on their part right now. As I say, ask the estate agent to remind them of this.

Tell them that your offer stands but if they turn it down for another offer it will reduce by £20k and that you will look for other properties.

They're trying it on.
They shouldn't have allowed that viewing in the first place really if your purchase was in process.
It seems they've been offered higher but want to push you to pay the higher amount as you are ready to go. Even if they go with the cash buyers it would take longer than pushing you for that extra 8k at this point.

Tell them no. They've acted in a shady way and I wouldnt trust them. Dont reward their behaviour.

Normally I’d be aghast at your husband’s suggestion @Quandaries, but in this instance he’s exactly right. Offer them £30k more then thumb your noses at them the day before you’re supposed to exchange. The bastards deserve it.

Stand firm or walk, don't be played. Fwiw, if it's true, I think the agent who clearly continued to market the property, is the bigger liability here.

You sound like you're about to exchange contracts on this house! Get your solicitors talking with theirs. A cash buyer still has to do all the surveys and checks so unless they want the chain to collapse they're going to need to take your offer. With completion often being same day now, they are risking not selling their house at all. If someone is prepared to get everything done and push it with extra money, then the house isn't for you. It sounds as if the agent is trying to get more money here and I wonder if they've said something to the seller...

Tell them to Go F* themselves. Their behaviour is exploitative and dishonourable. There is always another house. There is probably no cash buyer. No matter how desirable the property you should never deal with someone who has shown themselves to be greedy and lacking in ethics. The estate agent should be ashamed of him or herself too. If you give in to these people you will lose ££££ and encourage despicable behaviour. Walk away and only deal with nice honest people.

Personally I would tell them you are ready to go with the offer agreed now and could sign tomorrow if they wanted the other buyer cannot do that due to surveys etc. If another lock down happens that will delay things further for them. If the seller refuses to stick to the current agreement I would tell them you expect them to cover the fees you loose as it is them pulling out of the deal.

If you are in Scotland and had your offer accepted, they cannot legally do this. Verbal agreement is binding in Scotland. Check with your solicitor, NOT their agent.

YANBU.

Smile, walk away.

I would be seriously pissed at having paid for a surveyor and would request that money returned if possible.

I'd offer 5K more max and make it a condition to remove the listing / no viewings, and as you aer ready to sign, also a condition to sign contracts this week (exchange).
If you love it and you said it was a good value, I think you'll regret it for an extra 5K.

A cash buyer still has to do all the surveys

They don’t. A lot of cash buyers don’t bother with surveys.

Felicis unfortunately they won't get the money bac for surveyor, no such rules.
I would have advised differetly (above) if OP already agreed on a top price for the area, but she did say it was 'good value' - slightly underpriced then!

We had this with our first house. We couldnt match the new offer that may or may not have existed but we agreed to meet half way. Not a popular move admittedly but it was about getting on the property ladder and we had 12 happy years there. However, now I wouldn't do it because this might happen again and I'm not emotionally invested in houses anymore. I fought tooth and nail for the house we are now selling and I shouldn't have. There are more houses

Most cash buyers still do surveys for a village house (rather than modern house/flat)! There could be all sorts of exoensive issues there - I definitely intend to when I get an offer accepted.

If you really really want the property I would ask for some sort of proof that this other buyer exists then I would match only. You are ready to sign the cash buyers aren’t. I would also let the agent know that showing someone else round was totally unethical

I would also let the agent know that showing someone else round was totally unethical

The OP has said the EA didn't. The NB contacted the vendor directly