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

And I have a feeling those posting saying walk away won't be bidding on those kind of priced houses anytime soon. Walk away if it was £200k not £800k

I'd walk away and ask them to get back to me if that deal falls through and I haven't got another place lined up but also state that i wouldn't be playing games. I thought gazzumping was illegal?

Stand form and walk away if needs be. I really doubt there's another offer. Cheeky bastards!

I wouldn't walk away from a dream home for an extra 1%.

In some areas at the moment it's a sellers' market.

I'd walk away and see if the cash buyer magically also withdraws. 🤔🤷🏻‍♀️

The seller is not greedy any more than you are greedy wanting a house "for cheap".

What bollocks. The op was paying asking price.

What weasels they are.

Every time I have had an offer accepted (and especially if I was paying a deposit) I have asked them to put it in writing that they will take it off the market, not do viewings etc.

I would tell them no, and you are very surprised that they have done this given your deposit.

What does the T&C of the deposit say?

People can take a house off the market up until the moment of exchange. But this is shameless gazumping.

Is it still worth it to you at 12k more?

If so I’d definitely offer less than the 12k as you’re in a better position, maybe 10k. I’d also want some assurance that there’s no more viewings, house is off the market, etc.

@ihatethecold

The seller is not greedy any more than you are greedy wanting a house "for cheap".

What bollocks. The op was paying asking price.

If there's a few people willing to pay more then that's fair game. Just because asking price was met doesn't mean it can't be bettered.

You snooze, you lose.

A year or two ago we were about to exchange on the house we now live in. We had sold our house to supposed cash buyers, another local family, someone with whom we have mutual friends. Late in the process the buyers took out a mortgage (fair enough I suppose but I was annoyed because the agreed price was based on them being cash and ready to go). Just as we were about to exchange they tried to add their property on to the chain (it wasn’t marketed for several weeks after ours was). I was furious, and it was all about principle. The principle being that we agreed the sale price based on them being no chain cash buyers, the whole deal was done on that basis, and I thought it disingenuous for them to change the goal posts in this way. I instructed the agent to tell them that they had 24 hours to exchange or that our (old) house wasn’t for sale to them and never would be. I knew that I risked our purchase and a whole chain could collapse. And I knew that my name would be mud in the neighbourhood for a while. But I didn’t care. And funnily enough they exchanged less than 2 hours later. And their property which they tried to tie in took a further two months to complete.

Hang in there. Do what you need to do. But I wouldn’t judge you for whatever you chose.

I would give them until 5 pm today to come to a decision. I'd say that you two have acted with integrity and would be able to move fast. Say that they made that agreement and if they have to let you down, so be it, but you are not increasing your offer based on a threat of a higher bidder.

gazumping starting again - a decent estate agent wouldn't let someone go in & remind estate agents that cash buyers may not be cash buyers (we were told this with one of our purchasers - some mean they can get a mortgage & they don't have anything to sell - not the same thing.
tell agent they can take it or leave it you are not offering more

And say to the estate agents, "Let me know what else comes on the market. As you know, we're cash buyers and ready to go."

I know its just so annoying but dont cut your nose off to spite your face. If you love it just do it. All the best x

And I have a feeling those posting saying walk away won't be bidding on those kind of priced houses anytime soon.

Meow.

I'ld say you are withdrawing - I would do that on principle - and hopefully they will drop their demands. If not then consider if you would buy it at the higher price or not. I think they'ld be foolish if you are at exchange stage nearly to change to the cash buyers if they exist and I also think if they did they should pay your costs to date though obviously not required.

I’d stand firm, remind the agent that the sellers have accepted your offer and you won’t be amending your offer at this late stage. I would say to the agency that you do hope they aren’t encouraging this kind of behaviour

I'd actually advocate a middle way, TBH. I think you're right to be wary, but I also think most people selling a house want to get the maximum they can, especially if their EA is pushing them in that direction. It doesn't make them awful people per se.

It's not personal, just a financial transaction. Even though it feels so personal because it's a home and sh*t-ton of money!

So if I were you I think I'd take a breath, and write a cool and calm, grown-up email to the EA offering a compromise solution. I'd suggest:

• offer to match the £8k but more don't go to £12 (that's nuts!)
• explain why your position is arguably as strong/stronger than the other buyers
• express your strong disapproval that a viewing took place after they let you paid for a survey, and confirm that you're prepared to walk away if there are any more unreasonable demands from the vendor/EA
• confirm you're committed and want to move forward quickly on the basis that this is your best and final offer

Then do really be prepared to walk if they try anything else!

I think that this approach would give you some peace of mind and a good chance of getting the house you want at a price you're prepared to pay.

There are no certainties of course, in life or property, but at least if you do go ahead and they try something else on, you can just forward the email from your sent box and point out that your position hasn't changed!!

Best of luck

Wish them the best of luck with their new and insistent buyer and look for some else

Perhaps offer to sell your survey to the new buyers - seeing as they’re so insistent

You are being played. 100%

Full asking is enough to take the property off the market and expect things to go through

They’re up to something and they know you’re not the kind to gazzunder

You had a deal

Walk away. Likelihood is this cash buyer doesn't exist.

They will no doubt come back to you. At that point, offer 5k less than your original offer. Their fault for being greedy.

It's business. They may have taken a gamble, maybe there is a cash buyer. Either way, I wouldn't be upping my offer at all.

It’s business
The agent will not be bluffing

And a cash buyer offering more? Trust me they are more appealing that less money and a chain.

I would calmly state that I was still interested and my original offer is still on the table. If they are prepared to take the risk of going with the other buyer instead and returning to the beginning of the process, with no guarantee that they won’t continue to look around (having already looked at and gazumped on one SSTC property), you will walk away and look elsewhere. If they want to continue with a motivated, reliable buyer, you will look forward to completing the purchase.

Who will fund this additional cost, you or the mortgage?

They were still showing their house having accepted an offer, and the holding deposit paid.
That's seriously not on: with that in mind, I wouldn't trust them as far as I could throw them and either stand firm, or walk entirely.

Im sorry this has tarnished what otherwise should be exciting for you.

It doesn’t reflect badly on seller

It’s £8k and a more straightforward transaction