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

This happend to us!
I was so cross, greedy home owner and estate agents!
We walked away, and what a laugh we had as it was another 6 months and a price drop of 12k, before they eventually sold!

We also found a better house 3weeks later too!

I wouldn’t walk away, but I’d say you’re ready to sign this week at the same price you offered and had accepted. That they are welcome to go with the cash buyer offering £8k, but if that falls through and it might because it’s early stages, that you will be long gone. Your offer is a take it or leave it with no second chance.
You need to put it back on sellers. Take the guaranteed sale with you at £x OR pass you over for a risky possible, might fall through sale that is only £8k more.

And cash buyers make no difference whatsoever at this stage, you've got a mortgage offer and ready to proceed.

So why when your ready to proceed, would cash buyers be any more preferable?

@DGRossetti

a decent estate agent

No such thing.

Stupid comment.

Every time I've sold a house I've had someone tried to screw me at the last minute. I always refuse. They generally fold. Even if they don't, plenty more where that came from, and despite houses selling easily, prices don't seem to be rising.

I was in that seller's situation this week. I stuck with the original buyer..

In your shoes I'd stand firm and be prepared to lose it.

An estate agent once invented a cash buyer when we were trying to buy a house in order to get us to up our offer. When I said he could let the cash buyers have it as I wasn't prepared to up our offer, the cash buyer mysteriously changed their mind..................

I agree it’s about how much how much you really want the house.

If you do, offer a little more money buy say it comes with the proviso that no other offers are considered and that you are ready to sign the contract ASAP where as others will need surveys etc.

Lay it out as a clear deal x

Not sure why I put a x😂

I’m getting familiar OP

I always say I will only make the offer subject to the house coming off the market. It doesn't stop them legally selling to someone else but it does give an idea that I don't expect to be mucked about with.

I wouldn't buy it under those conditions as they may up it again. You may well find something better if it falls through as often happens.

Off topic but what on earth is a "booking deposit"?

If you need to update your mortgage offer to cover the higher price, that will take time and delay the exchange. I would point this out, say you are ready to exchange at the agreed price this week, but as a compromise will also pay them an extra (e.g.) £3000 in cash as well, on completion (assuming you can afford to). If they refuse I would wish them luck and walk away.

I wouldn’t offer any more. If they wanted more they should have priced it accordingly

@Lazypuppy

I'd say meet in the middle as you can sign contracts this week.

If they want the full £8k they'l have to go back to beginning
Surely if you are that close to signing they must be mostly packed up etc ready to move? I don't understand why they would want to delay moving

The house is completely vacant. They moved out of it last year as they inherited a larger house in the village when a parent died. They have quite a few children so I can see it made sense to move into the larger property.

They then renovated “my” house completely and it’s in turn key condition.

Agree to the higher price and then on the day of exchanger withdraw it and offer a lower price!

This is evil but I love it!

I don't think you need to walk away - I think you need to say the offer stands as is, you're ready to complete this week and it's up to them what they decide. That doesn't stop you offering more or walking away later but stand firm for now. I think it's terrible behaviour from them.

We had similar happen to us. We told them to get fucked and pull out if they want. They didn't and sale went through at agreed price.

DGRossetti

a decent estate agent

No such thing

Stupid comment.

You can be stupid and correct you know. I worked with enough estate agents in my life to stand by my comment.

There are certain rules I live by, and one of them is that I won't play games with others and I don't expect to be played.

Before we bought our house we'd actually put an offer in on another house I fell madly in love with. The EA came back and did the "they've been offered x by another buyer" and tried to convince us to increase - stupidly I did and then it turned into some kind of haggling situation that I got so stressed about. I viewed our current house a couple of days later, put an offer in immediately and let the EA for the other house know we'd withdrawn. The owner of the other house then called me saying "we really liked you, we'd love you to buy our house, if you could offer £5k more we'd shake hands today" and like a real lady I told her to go fuck herself because I refuse to deal with people who aren't honourable.

Friends of ours had similar when they moved a year ago - she asked me what I'd do and I said I'd walk away in a heartbeat. I wouldn't hesitate now to tell an owner to piss off if they tried it on.

Ugh.

If I were you I would have to walk away. This mysterious last minute purchaser with his pockets bulging with £800,000 in used notes may or may not exist. Regardless once proceedings have got this far down the line it should be yours.

Gazumping may not be illegal but it is immoral.

The integrity/greed side of it wouldn´t bother me at all

And that is exactly what is wrong with this country - Thatcher's legacy.

Walk away, I don’t think there is another buyer. Every estate agent I have ever dealt with has been underhand and duplicitous. Good luck.

It doesn't sound like the vendor is in a rush to sell. If you love the house enough I would up my offer. But be prepared to walk away.

It's terrible form of the vendors to still be conducting viewings when they had accepted an offer and you had spent money on solicitors and survey.

Out of principle, I wouldn't increase my offer, but let them know what a strong position you are in, and when you can complete by.

Odds are, you can complete faster then the other buyers, if they even exist.

Stand firm, remind them you're ready to sign now and the cash buyers are not and be prepared to walk away

OP it’s annoying but perfectly plausible if the location is as popular as you described. The market is hot right now. People saying walk away on principle are just giving the default self righteous response, not grounded in pragmatism or reality.
This is a financial transaction, maximizing the sale price is perfectly rational thing to do, though I agree that for them to keep showing the house after they agreed the sale is not ethical. I agree with the posters saying meet them half way and offer a little more with the condition for them to make up their mind ASAP and proceed. Not worth losing a house you live so much over a few grand.