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

I don’t think she’s cutting off her nose to spite her face either. She made an offer and it was accepted.

TBH I think that it’s because people are prepared to give in to these demands for more money that vendors are able to get away with this sort of thing.

TBH I actually think that anyone who offers more on this basis is unreasonable. If it was just accepted that once you accept an offer then things would proceed assuming there weren’t any issues there wouldn’t be situations where sellers can claim that they’ve had higher offers or start to just demand money in the hope that the buyers will pay.

Omg I can't believe this has happens when your so far along with buying the house and the seller has agreed a sale with u...I think it's really disrespectful of the sellers to do that when the house is sold subject to contract...it's a hard decision but being played like that I would have to walk away...our house is currently on the market and the selling malarkey is a horrible game xxx

There is definitely a domestic happening in that lovely house today...

Reading this thread all I can say is, thank God for the Scottish system of marketing, surveying, valuing , buying and selling property.

And the ridiculous ‘offers over’ system, where it’s a guessing game as to how much a vendor actually wants?

Well I'm sure everyone has enjoyed whipping up an indignant frenzy but meanwhile this is the OP's potential future home that she could be missing out on for the sake of taking a principled stand.

My eyes almost just rolled out of my head.

@AnotherEmma you are a bitty over invested because you overpaid for a house in a competitive haze
There is no such thing as the one, the house. Getting emotional about a house leads to financial folly and panicked decisions

If it was just accepted that once you accept an offer then things would proceed assuming there weren’t any issues there wouldn’t be situations where sellers can claim that they’ve had higher offers or start to just demand money in the hope that the buyers will pay.

That’s pretty much how it works in Scotland however it’s not the case in England

As despicable as it it, the vendors are legally, if not morally, free to do this and the OP needs to decide how much they want the house

Who’s to say it won’t happen with another property - house prices, particularly on larger properties, are rocketing because working from home is the new future so people want to invest in bigger houses that they can work from, now they don’t have to pay to commute

I’m not condoning what the vendors are doing but I do agree that most of the posters on here are whipping this up into an indignant frenzy but they’re not the ones about to lose a house for 0.5% of the asking price

From what OP said earlier, although there were several people making offers, they weren't offering as much. I don't think there was any question of a higher offer, which I imagine the OP would have matched at the time.

I think I would ask the estate agents to point out that for the sake of £251 they have missed on a guaranteed sale that could be completed this week. That £251 will undoubtedly be less than the council tax they will pay while waiting for the other buyers to complete. I hope they get gazundered.

Sorry wrong thread! Have reported

[quote SentientAndCognisant]@AnotherEmma you are a bitty over invested because you overpaid for a house in a competitive haze
There is no such thing as the one, the house. Getting emotional about a house leads to financial folly and panicked decisions[/quote]
Not over invested, no, I just have an opinion that happens to differ from the majority on this thread.

My opinion is influenced by my own experience but isn't everyone's?!

I've looked at a lot of property listings and viewed quite a few houses since buying mine years ago... still haven't seen anything I like as much as this house (although it's far from perfect) and will be staying here and doing improvements.

It wasn't "a competitive haze" or even an overly emotional decision, we needed a house and had to pay a high price for the one we wanted. People say there are always other houses but actually in some areas and streets, it can be rare for a house to go on the market. People love living there and rarely sell.

If they’re shifty about this, they will be shifty about something else and mess you around further down the line. Such a tough decision but I think you’ve done the right thing.

If they’re shifty about this, they will be shifty about something else and mess you around further down the line.

Which is exactly why any increased offer should be conditional on an immediate exchange

The OP has said the deposit has been paid (although it seems odd the EA has been asked to return it and not the solicitor) so exchange must be imminent anyway - there’s limited time for the vendors to further take the piss

@Quandaries do you know if EA has verified this NB can afford their increased offer?

So we were in the sellers position last week. Had accepted offer on our house and both had instructed solicitors, both progressing nicely.

Originally we had an offer from a young couple where they offered under asking so we rejected. They viewed the house twice and clearly loved it so we were surprised they came in lower. At same time we got an asking offer which we accepted and forgot about couple.

Two weeks ago the young couple knocked on door offering £10k more to us if we sold to them. We ummed and aahed about it but said yes in principle but asked our EA to do due diligence to ensure they could afford this asking offer plus £10k if we went with them.

Low and behold after we really pressed the EA to confirm with couple they didn’t have the right mortgage offer or proof of funds to cover this £10k. Glad we checked before we booted out the original offer because we would have been up shit creek. I’m shocked at the audacity of some people?

I think the vendors were always stalling for a higher bid. OP said her solicitor was chasing contracts in her OP, so this house deal could have been done already.

I also think the OP might have made a mistake. Yes, they lost out on a sale for 250 pounds, but the OP has also lost out on a house she loved for the sake of 250 pounds. The availability of property varies enormously depending on where you are and this assumption that there is always another lovely house coming along is not necessarily true everywhere. The OP has said it is a sellers market where she is buying. I hope another lovely house does come along quickly, but who knows...

Definitely dodged a bullet there OP. There'll be another house (with hopefully less grabby vendors)

What a shit situation! I hope the other buyer finds something better! Greedy bastards!

Sorry OP

I'm so torn for you, OP. Buying is the most stressful!

We are in US, so different system but still horribly nerve-wracking. Last move was horrible. First dream house, we offered $50k above asking price, it was gone before our offer was even read. Next house, we offered $100k above asking, and they countered, asking for another $50k. We offered another $25k, but that was our last offer. We did not get it. Last (actual dream house!) we went in determined to get it. It was perfect, in location, size, condition and style. Tons of interest, and we knew it was going to be a tough one. We went in as high as could go - offered $225k over asking price. The greedy bastards came back and asked for another $18k. 1.1% - in order to 'choose us' over 2 other buyers. We were cash buyers, offering a close as soon as 5 days, and deposit to be full purchase price. $18k more. I said no. I said HELL NO. Luckily, our agent persuaded the seller's agent to throw it in from their commission, so we got the house. The buyer got their stinking $18k more - having already made a killing on a house they originally purchased for $40k! The agents made out very well in the deal.

We are very happy in this house. Last week we did a drive by of the 'ones that got away' and I feel even more convinced that we got the best house. We paid the most, but it was what we were willing to pay and we do not regret it. It was a good decision for us.

Sorry. Long story. I do hope you are happy with whatever house you end up with, and that you don't have to swallow bitterness to spoil your joy.

After you buy the house you won't have to have anything to do with the vendors ever again, but you will own a lovely house.

If you and a couple of other pps RTFT you'd realise that the vendors are staying in the village the OP was hoping to buy in and would have to see them daily at the school gates!

I did read the OP's posts and read that.
So what? You don't have to talk to everyone at the school gates do you?!

Wow @2018SoFarSoGreat, that’s just crazy! Can I ask what price ranges we’re talking about if offers are ending up six figures higher?

For all of those saying I’m walking away from a house for the sale of £250, I’m not. They want £12k over what we’ve already agreed. I’ve pretty much met NB’s bid. The sellers haven’t asked for an extra £250, they’ve asked for an offer over NB’s.

Just dawned on me tonight that if they’re not answering the phone to the EA, they’re not getting updates about NB either as that offer is with the agent also.

I’m starting to think that NB is a friend of the vendors who did a viewing to drive a dummy bid.

[quote Palmtree76]@Quandaries do you know if EA has verified this NB can afford their increased offer?

So we were in the sellers position last week. Had accepted offer on our house and both had instructed solicitors, both progressing nicely.

Originally we had an offer from a young couple where they offered under asking so we rejected. They viewed the house twice and clearly loved it so we were surprised they came in lower. At same time we got an asking offer which we accepted and forgot about couple.

Two weeks ago the young couple knocked on door offering £10k more to us if we sold to them. We ummed and aahed about it but said yes in principle but asked our EA to do due diligence to ensure they could afford this asking offer plus £10k if we went with them.

Low and behold after we really pressed the EA to confirm with couple they didn’t have the right mortgage offer or proof of funds to cover this £10k. Glad we checked before we booted out the original offer because we would have been up shit creek. I’m shocked at the audacity of some people?[/quote]
You're aware you're the party in the wrong in the scenario you've posted about, right?