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

Walk away. This happened to me...I didnt walk away and paid 10k more than was agreed because just like your situation the house ticked all the boxes. I have no evidence that the "other potential buyer" even exists. The estate agents were sarky bastards so this is probably one of their money making tools that work like a charm. Prices are falling and people want to buy now because of the stamp duty being on hold until march. Just be careful you don't get played like I did...

Wow and wow that’s appalling walk away tell them that your ready to go but if they want to go with the other couple go for it . I think your being played big time . Can I just say we lost a house and got a new house within two weeks and the house we got is much better and the neighbours are lovely we’ve been here for 23 years think if your meant to have the house it will be yours 😊

@Quandaries Your last post sealed it for me. Match the offer and get your dream house. You could find a better house, but odds are in a sellers market and with 18 months of dead time behind you, it likely won't.

I hate sellers like this and on principle I would walk- if it was not my dream house and nothing else has compared in my long search.

8k is 1% more. Its a drop in the ocean compared to years of happiness in your dream home.

“I’m a businessman and I need to accept the 8k extra offered”

That's one of those justifications that some people use - maybe even apologetically, as if it's beyond their control - that isn't actually a justification in any way. Just because they might be experienced in being ruthless doesn't mean that they have no choice but to squeeze everybody for the hardest deal possible, every single time.

It's hardly like a lion apologising to a gazelle who's about to become his dinner - "Sorry, mate, but I'm a lion, so I have to do this". The (theoretical talking) lion is giving a perfectly fair justification, but there's no excuse for a human to make out that it's their profession 'forcing' them to act like that.

Plenty of business people find it possible to make a good living by using their tough negotiation skills when the situation calls for it and also to act fairly and ethically when they believe it to be appropriate.

I don’t believe there is a dream home,there are many
It’s too emotional and high drama to start all That the one nonsense

This has literally just happened to us (you’re not buying in North Beds, are you?!)
Surveys and search booked. Vendor accepted a 12.5k higher offer. We’ve had an intensive 3 days but have found something else. Cheaper, no work to do unless we want to. We lose the village location but we don’t have time to sit and hope a similar property in our brackets appears in the villages.

I’m indescribably angry with the vendor, even more so as his last sale fell through so he knows how it feels. My bad part hopes his sale fails for him (I’m not sure the chain has been checked to see if funds are in place.

Sorry you’re going through it too. Walk away, fuck them.

We had this. Thought we’d found the perfect house then the week we were due to exchange they called to say they’d had an offer £7k above ours. We walked away. We didn’t trust them not to keep upping the price. A week later an almost identical house came on the market in the next road and in a better location in terms of proximity to the main road (1st house was other end of very long road, 2nd house low numbers). We’ve been living in the 2nd house for 4 years, definitely no regrets!

Incidentally, how is it the accepted case that EAs get paid a percentage of the value of the property being sold? I know the obvious answer is that they'll work harder to get the highest price possible, if they have the incentive to do so; but how is it more work for them to sell an £800K house than a £150K one? A buyer with an £800K budget is no more interested in the £150K house than the other way around. It's a bit like with clothes, where a customer is only interested in looking at items in their own size, however small or large that size may be, regardless of what amazing offer there may be on a pair of jeans that would never ever fit them.

If anything, the former seller is more likely to be further along in life, more experienced in buying and selling houses, more proactive, more realistic in values and what's possible, have a wedge of equity behind them; whereas the first-time seller (and their similar buyer) might be clueless, constantly on the phone to them with endless questions, completely unrealistic about the realities of what to expect and wildly over-optimistic in what mortgage they can borrow etc.

Wouldn't it be better all around if there were a set selling fee (possibly a few wide bands) for 'a house' and then they work on reputation, so that buyers can chooose an EA based on who is known for achieving the best market prices and avoid those whose reviews and reputations suggest that they don't bother?

Even if there were a standard set fee for selling up to an agreed minimum value for the particular house and then a percentage of any increase negotiated on top of that. The vast majority of the house's achievable value is based on its type, size and location - nothing whatsoever to do with the EA's skill. I know it will never happen, but there are some things that become so ingrained as 'the accepted norm' that I think we tend to just never question them.

I had this in 2018 when we moved.

The first house we had offer accepted on, instructed solicitors booked survey then the estate agent called and said they’d been offered £1k more and would we up by £1,500. Now, I loved the house and it was actually really small sum in comparison (we in south east and offer was £545k) but I was raging and told estate agent to tell them to stick it. I’ve no idea if they sold to the new people or if it fell through.

In any event we found another house which we bought and I love it so much more so turned out they did me huge favour!!

Walk away. I've offered on a house. paid for survey and searches, now 3 weeks from completion and the survey has thrown up some issues which are going to cost. I discussed with my solicitor who said to negotiate to recoup some of the money. The vendors are adamant they will not move on the price. So I am looking again which is stressful. Our house is sold, I'm a cash buyer and if they really will not move on price even with quotes for the work then I am going to do something I always said I wouldn't do and that is walk away close to completion. It sucks but the issues could mean my dream house becomes a money pit and I am not risking it.

@WeBuiltThisBuffetOnSausageRoll

Incidentally, how is it the accepted case that EAs get paid a percentage of the value of the property being sold? I know the obvious answer is that they'll work harder to get the highest price possible, if they have the incentive to do so; but how is it more work for them to sell an £800K house than a £150K one? A buyer with an £800K budget is no more interested in the £150K house than the other way around. It's a bit like with clothes, where a customer is only interested in looking at items in their own size, however small or large that size may be, regardless of what amazing offer there may be on a pair of jeans that would never ever fit them.

If anything, the former seller is more likely to be further along in life, more experienced in buying and selling houses, more proactive, more realistic in values and what's possible, have a wedge of equity behind them; whereas the first-time seller (and their similar buyer) might be clueless, constantly on the phone to them with endless questions, completely unrealistic about the realities of what to expect and wildly over-optimistic in what mortgage they can borrow etc.

Wouldn't it be better all around if there were a set selling fee (possibly a few wide bands) for 'a house' and then they work on reputation, so that buyers can chooose an EA based on who is known for achieving the best market prices and avoid those whose reviews and reputations suggest that they don't bother?

Even if there were a standard set fee for selling up to an agreed minimum value for the particular house and then a percentage of any increase negotiated on top of that. The vast majority of the house's achievable value is based on its type, size and location - nothing whatsoever to do with the EA's skill. I know it will never happen, but there are some things that become so ingrained as 'the accepted norm' that I think we tend to just never question them.

I've always thought this and won't pay a percentage. I've previously negotiated a fixed price with an estate agent!

I wish we had a US system where both seller and buyer have an EA negotiating for them.

I’ve been watching too much Selling Sunset.

So glad we live in Scotland, we viewed our house the day it went on the market, offered under asking price, vendor declined so went back and offered asking price as we loved the house, vendor agreed shook hands and house was taken off the market that day. Unfortunately the house we were selling we had already dropped the price and then buyers asked to drop another 5k , we agreed as would have been paying council tax on 2 properties which wasn't viable,we were just glad to get it sold. Good luck OP

100% agree with everyone saying walk away. It's not good to be attached to a house in a love way it clouds your judgement. It has to be a logical decision of what it is offering you is right for you now and in the future for you to grow with and it has to be practical. Love can fade and you could be disappointed later on with the house. I think what is happening is a sign this is not the house for you, there is a better one in your future and to let go.

I thought gazumping was illegal

Lemme tell ya, brokers at both ends of the deal ends up in a 6% commission, on top of transfer taxes (3% at your price range) and mansion tax (1%). You're better off suffering the sadness.

You were right first time. There will be other houses. Someone who will nickel and dime over 1% of the purchase price is someone who isn’t thinking rationally. That’s regret talking. Even if they proceed with you, they’ll pull out further down the line or quibble over fixtures and fittings to get that £8k because they’ll forever be thinking they could have got more or still could if they wait another few months. They’ve nothing to lose as they’ve already moved. Stick to your guns. Emotionally walk away now, even if you haven’t yet, in reality.

Quandries - you don't want a US system - a friend sold there. He had someone approach him wanting to buy (the house wasn't on the market at that point), they employed a realtor and spent 6 months to a year tweeking the house. It finally went on the market and sold within 1/2 hour to the guy who had initially approached them a year before. I really have no idea why they went to so much trouble when no other buyes even saw the property.

Gazumping is not illegal, sale is not legally binding until the contracts are written and exchanged.
Homes are still marketed and viewed SSTC, you see it online and in EA window

One could request no further viewing until sale completes but vendor they’re not compelled to agree

Did the survey show anything at all op?

estate Agent still market properties SSTC
Unless you explicitly ask for viewings to stop they’re still able to do this

@kattekitt

Did the survey show anything at all op?

Nothing that will cost us money. A few minor things that the vendor agreed to remedy (very minor).

In the words of the surveyor “it’s a smashing house”.

As houses go, it’s perfect.

Reminds self:
Integrity.
A deal is a deal.
It’s just a pile of well-places bricks.
Have to be able to see these people at the school gate without muttering “cheating cunts” every afternoon.

I really feel for you. In my experience, every single friend who this has happened to, or their house purchase has fallen through for another reason, has gone onto finding and buying an even more perfect house. Still, continue with this one if you can financially, and see what happens down the line. At least then, you won't look back and regret not offering more if this house really is the one for you. I'll keep my fingers crossed and please do let us know how it works out.

Based on your updates (price of house, length of time looking) I would also do £8k increase, contracts exhanged within 24 hours.

Then enjoy shredding all their mail.

Wouldn't it be better all around if there were a set selling fee

Several of the estate agents in my local area do this: £699 fixed fee, for example, regardless of the sale price.

@Boysgrownbutstillathome

I thought gazumping was illegal

Why/how would it be illegal? You can’t be arrested for changing your mind about who you want to sell your house to.

There’s no contract in force until contracts have been exchanged, and even after exchange and/or completion, it would be a civil issue rather than a criminal offence.