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

Is NB holding a gun to their heads and giving them three options:

A. Sell to me at the price I offered;
B. I'll blow your heads off;
C. Sell to others instead of me, who can match my offer exactly - as you'd already agreed to do before I came on the scene - and we'll all run along and have a pleasant day; but if you accept a pound less from them than I'd offered, see 'B'.

Just saw your update. Regarding new builds, be careful. They are not necessarily less faff , you might well spend the next 2 years battling with the developer to put right all the hidden bodges. This has happened to several people I know. The NHBC warranty is a rubbish system that favours the developer every time.

Honestly, it won’t be £8k as the other bidder will go higher. Find something else.

Is it possible they are trying to cover their capital gains tax as this isn't their main residence?

God they're cheeky fuckers! Glad you're looking at right move.

I like the suggestion upthread of making a couple of appointments with the vendors' EA to look at other properties just to underline that you're absolutely serious about walking away.

Op, new builds are not less faff, they’re a fucking nightmare that we’ve luckily managed to escape from .
We jumped through all their hoops , had to have an offer in our house before we could put down and deposit and then said “oh btw, house has been pushed back so now won’t be ready until next summer ..”
so they were expecting us to sell our house and then rent for 6 months.
They are absolute cowboys !
We kept our buyer and found our new house later that week .
We are hoping to be moved in by Halloween, so glad we didn’t stick with the new build as the company (Catalyst) we rubbish start to finish and rang so many alarm bells so the date move was a blessing !

Sorry to hear this OP. Take some time to think about what you really want - don't rush into a new build.

This happens to us way back in 2009 . The vendor asked for an additional 15k the day before we were due to exchange . We said Fuck right off. We were homeless as we were in rented and handed our notice in ( thanks to hotel Mum & Dad). 2 weeks later we found an even better, bigger house for the our original budget. On Zoopla our house is now worth 150k more than the house we were intending to buy but didn't. I truly believe everything happens for a reason . I would walk away 😁

Sorry for typos, Trying to type and eat toast !

Cheeky feckers ain’t they!

That's cheeky as hell, I'd walk away personally

@Quandaries

I think you need to go to the EA and say "as my offer has been rejected, I want you to return my booking deposit fully and immediately as it should not be held for a house that is going with another buyer, especially as I have been gazumped after the owner has allowed me to pay for surveys etc." you can even say you have a few houses you are going to request viewings for with other EAs and need to be in a position to use the booking deposit straight away.

They will either accept the other person or will cling to your offer.

I would also have been tempted to say "my offer is now reduced by £250 and will be reduced every time I feel pressured to up this"

It’s a tough one. You do take a risk by walking away, but a) it’s hardly unknown for agents to make up offers and b) even if it’s genuine, so many offers fall through anyway. I’m sure I’ve read 50%.

My ideal reply (theoretical, whether I’d have steely enough nerves is another matter) would be, ‘Sorry, but we’re not prepared to go any higher. Our offer remains on the table until 5 pm the day after tomorrow, so if we don’t have a firm acceptance by then, we will assume that the vendors are no longer interested and will look elsewhere.’

So if the higher offer was pie in the sky.....

I’ve heard of people who’ve walked away in such cases, only for the apparently genuine higher offer to fall through, for the house to go back on the market (vendors getting a bit desperate) and the original would-be buyers making a successful offer that was lower than the previous!
Karma!

Delighted with the offer, know in their heart of hearts that we’re the right people to live in their beloved house, really killing them to do this etc. but if we could just come up a tiny bit to better NB’d offer then they’d tell NB to piss off and we’ll all be happy and blah blah fucking blah.

Sorry, I think this is hogwash. They could have told NB there and then that they had already committed on a sale, and shown them the door.

@Quandaries

And they’ve come back.

Delighted with the offer, know in their heart of hearts that we’re the right people to live in their beloved house, really killing them to do this etc. but if we could just come up a tiny bit to better NB’d offer then they’d tell NB to piss off and we’ll all be happy and blah blah fucking blah.

I’ve said no, offer is as stands until the end of the day, at which time either they commit to having contracts couriered to our solicitor within 24 hours, or we’re out.

Going to hit Rightmove hard during lunch to see what else is out there.

Getting so tempted to just look at new builds where the development company have an appointed agent and there’s less faff.

They have shown you their true colours OP, good for you sticking to your guns.

If they do come back agree to your reviewed offer, which they probably will on reflection and f their solicitor gives them good advice , then you now have the advantage of knowing exactly what you are dealing with and will be in a good position to negotiate hard on the completion/moving dates you want without feeling any guilt or polite regret .

Ugh, do you want to be neighbours with these slithery people? I'd struggle to believe a word they say. I can sort of understand them being tempted by yhe extra £12 k (though presumably they are minted). But then in their position id also think - 'but these people are going to be my neighbours, i don't want to have bad feeling between us' and not mess you around, for that reason

And if they accept your offer, how long before they stop seething that you extorted £250 from them?

Take the emotion out of it. It is not personal - just business.

The house is worth what the seller can get for it in the time they want to use to sell it.

What is the house worth to you? Pay that and no more. Don't withdraw in irritation.

@EvilPea

I’d offer maybe 2-4K more So they feel a small win. But I’d point out your surveys done, you’ve not reduced as a result of that (which the new purchasers may) and your good to go.

But that would be it, I’d walk otherwise.

I would do this

Wow, how embarrassing for them. Although I doubt they're the sort to feel any shame.

NRTFT. Tough one @Quandaries. All depends how much you want the house and if you can afford the increase.

We must be the exception to the rule. We agreed to sell to a couple viewing our previous home, who had offered the full asking price. Desirable house in a popular pleasant area. We had several further offers that were 25k over asking, one offer was even house unseen. We sold to the first couple.

We would never go back on our word or gazump others. Then again we are old school with a moral compass.

Currently we are looking to sell/buy. After seeing a new build on Rightmove we arranged a viewing. The builder fessed up and said they were all ‘reserved’ (no deposit paid or exchange of contract) but if we were cash buyers we could have our pick. I felt sick to be honest. Even now, days later I keep thinking of the families who have reserved but in reality it could be sold from under them. What if they sstc and in the interim the builder let the reserved house go to a cash seller.

The house selling/buying landscape is changing so fast and unscrupulous practices are inching in. I despair.

Arseholes.
£250!!

I bet the NB haggle on some perceived slight on survey.

Just a note to say thanks everyone, you’re all fab and have kept me grounded.

At the end of the day, it’s just bricks and mortar. We have a big deposit, approved mortgage, and we’re not going to be homeless.

While it’s a sellers’ market right now, I think most sellers would value us in any market.

It’s a lovely house but, in my head, I’ve allowed the vendors one strike and if they push any more, they’ll get a very firm “fuck off” and a new offer of £0.

I work in an area that involves a lot of negotiation and integrity, and I can’t sit in a house (pretty as it is!) for the next thirty years knowing I dropped my personal standards because of a nice garden and some marble countertops.

Only read OPs posts

Ughh, what an annoying situation. One of my kids is buying a house and it’s sooooooo stressful. She has already had one seller pull out AFTER she had paid for structural survey and Solicetors fees. It cost her £800. Bastards. That’s a shit load of money for my daughter. Hopefully the current sellers won’t do the same.
Good luck OP. I’d be tempted to play games but I think if you want the house then you don’t have much control. It SUCKS!

If they reject your offer then I’d struggle not to have a little fun. You could tell them you are rethinking your offer, then keep them waiting as long as possible then offer really low. Just mess them about a bit.