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

Sucks this is allowed in England! In Scotland this is against the "code" for solicitors and they should not allow this to happen. Unfortunately, as there are no rules against it comes down to what you are prepared to pay... are there other houses in this village on the market you'd could fall in love with? How long were you looking before you fell in love with this place? It doesn't really matter whether or not we think you are being unreasonable to be annoyed or not (I would be raging) - it's essentially a business transaction. You need to be able to look back on this in a years time and have no regrets. If you are going to always be bitter about paying the extra, and there are other options, walk away. If it is your "dream house" and you think you will be able to put the extra 12k behind you, then go for it. Whatever you do draw a line under it after! Also decide now how much higher you're willing to go so you don't end up in that "bidding war" you are afraid of. Give them an ultimatum "final offer". Unfortunately cash buyers are attractive and they won't need, for instance, a survey (if they are comfortable with the risk) so may indeed be able to move as quickly as you. You don't know they exist - but your seller would be taking a big risk of they don't.

Appalling behaviour. We’re in the process of moving and if this happened to us I’d stand firm as you are. Good luck!

@DPotter

But how are you going to feel if you lose your dream house for £250? I get that you're angry and I would be too. Just beginning to think maybe it's worth paying the £250?

I doubt they vendors are thinking £250, they're thinking another £4k to bring it up to the £12k.

I wondered if the sellers were referring to £4k, and not £250, as well. Would make more sense.

@JacobReesMogadishu

I know it seems crazy that they might lose a sale over £250......although they still have a higher offer lined up.

But how are you going to feel if you lose your dream house for £250? I get that you're angry and I would be too. Just beginning to think maybe it's worth paying the £250?

It isn’t because that wouldn’t be the end of it. They’re absolutely despicable.

Following and wishing you luck!

@CakeRequired

The agent will not be bluffing

Agree on this point. It would be madness to take that gamble.

If they actually had a cash buyer with an extra 8k to give them, they'd just back out of the sale with op and take the cash buyers hand off. Cash buyers are easier to deal with than mortgage ones, you don't know if the mortgage will get refused or other issues occur etc.

I was actually in a similar situation with a much cheaper flat - the sellers said they had a cash buyer who'd offered £3k over our offer but if we could match it they would take us as mortgagees as they wanted a couple to move into the building for the benefit of the other flat owners (who they had a good relationship with) rather than cash buyers who were going to rent the property out.

I would walk away, feels like their trying to be a bit greedy by saying there’s another bidder but maybe there isn’t and they just want more? It’s a shame though if it’s a house you really love.

I'd be so tempted to increase my offer and the either pull out or ask for a reduction prior to completion, that's the bitch in me though!

I had vendors who withdrew property for sale the week of exchange because they changed their mind.

They came back 4 weeks later and having decided they did want to go ahead after all and I had great pleasure telling them I’d found something else.

When it did eventually sell 9 months later it was for £15,000 less than we offered. We’re much happier where we are.

Urgh, how horrible op. I've got everything crossed for you. They are being so greedy when they could exchange this week. You have been more than fair. I hope they aren't going back to the other buyer now to negotiate them upwards....

Oh god. Are they holding out for £250 or £4000, OP?

They are absolutely playing you, I'd have told them to make a decision by 5 or the deal was off. Can you imagine the local gossip, "yeah we got an extra 8k from then because we could.... Idiots" . That's what would be going through my head anyway.

Everyone is too emotional. Grey rock, analytical, level headed. This is not about "winning", outsmarting the other side or making friends/enemies. How much is the house worth to you. That's the only question that matters.

I would guess that they are nit-pickingly insisting you match the NB's offer so they can tell the NB it's deadlock in the hope the NB will up their offer and kick off a proper bidding war. I think you've played it perfectly to offer slightly less and neutralise that.

Oooh good point Stitchy

Id walk away.

Wow. I'd hate them forever more.

Hoping you get the response you want at 5 @Quandaries!

Anyone else dying for the 5pm update?

I hope that the vendors get wind of this and realise what scum suckers they are.

Good luck.

@LiveFromHome

Anyone else dying for the 5pm update?

I’m on tenterhooks waiting for the update 🙈

I do think you are taking the right stance on this OP, although it is very hard. I've bought and sold houses and wouldn't want to make it any more stressful for the buyer or vendor than it already is!

While I don't believe in Fate or preordained stuff, I have noticed in the course of things that quite often when this happens, the buyer who ends up walking away finds another property that's even better. It's happened to me too, I was gazumped and while I was disappointed I decided to start looking again. I did find another house that wasn't much different in price, but was even more ideal than the first one had been.

There was one house in the area I hankered after for years and we were unable to do anything when it went on the market, due to other circumstances outwith our control. I still pass that house regularly and think, "Yeah, nice house - but it's not in the best place and I'm glad we've got the one we have!"

If you end up walking away from this house, I do hope you find another soon that works even better for you.

So what's the outcome, @Quandaries?

@LiveFromHome

Anyone else dying for the 5pm update?

Me!

EA rang me at 17.20 to say they’ve gone AWOL. Both have phones off and are not returning his calls or emails, and WhatsApp just showing one tick.

It’s bizarre.

No idea what’s happening, other than I’m not buying this house.

Have asked the EA to release our deposit back to us ASAP. He’s agreed.