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 hate it when chancers try to get one over you.

Even if you offer more, there could be a further bidding war or some other stunt pulled.

On principle I would tell them they if they’re not going to proceed at the agreed price, then you’re leaving it.

Walk away there is no other buyer,they’re chancing their luck.Greedy & duplicitous

I would walk away and tell them that you entered this contract in good faith.
As they are choosing to renegotiate the agreement you had, you are choosing to find another house.

I agree, if they are so difficult for a price increase of about 1%, they are going to be a nightmare (or they are so strapped for cash, they will be ready to try and gain on every little thing)

So the house has been lying empty for a fair bit and lo and behold you make an offer and suddenly up pops another buyer, hmm I think they’re chancing their arm.
I’d stand firm.

I would get a friend to call the estate agent and say they were keen on making an offer - really enlightening as another pp said.

Our first estate agent told my friend we had accepted an offer ( no we hadn't but EAs brother had made an offer and EA didn't tell us about the request to view as he wanted to leave the field clear for his brother).

That cost the EA dear as his fee was reduced to £0 in order to avoid a complaint to the Ombudsman.

Tell the EA your offer still stands and you are ready to proceed. I also think there is no cash buyer.

Just say sorry, cannot afford to do that and call their bluff. our seller had a cash buyer that they threatened us with and it turned out to be smoke and mirrors

Oh and don’t forget to ask for your booking deposit back, if the sale doesn’t go through.

I'd walk away, they've shown their colours by showing it knowing they had sold it.

Yep - it's a massive nasty game.

I wouldn't walk away if it was my dream house.

We've be played just this last week. We were expecting money in the bank at any minute but our buyer turned out to be a time wasting piece of p*ss. We heard all about it while he's sunning himself abroad. We didn't hesitate to drop him - we had 40 views over a two day period when the property was first listed and more than a dozen offers way above asking price.

We accepted an offer on that property £5,000 less than the highest offer just because of a 'cash buyer'. Ten weeks later they revised their offer down another £15,000 because they were struggling to get a mortgage

He was given until the end of the day to think about whether he wanted to keep to his original offer.

The house went back on the market the next day and we accepted another offer the day after that for £10,000 more than the previous highest offer.

The cash buyer (?) aka the liar, thought we would play along with them. But as we don't live there, we have all the time in the world.

It may be a sellers market in our area.

But I still wouldn't want to lose a dream home for 1%.

@LacroixstOuen

Oh and don’t forget to ask for your booking deposit back, if the sale doesn’t go through.

What on earth is a booking deposit? We've bought and sold numerous times and never had to pay this. Is this a new thing?

Speak to your solicitor first for advice and ask them to phone the other solicitor to find out the absolute earliest exchange date. Also get your solicitor to phone the estate agent and point out exactly what you've said here, you can evidence the mortgage, can exchange right away with no chain & that the new couple could look to recoup the extra at survey. He/she could also point out that as professionals the agency should be encouraging the sellers to go with the existing agreement.

I am so sorry op, it sounds stressful. For what its worth I couldnt go through with it, but can understand you might be able to live with it. But think how you will feel if it transpires there was no other buyer.

Four words to the estate agent and seller.

You accepted our offer.

I wouldnt concede to the demand but I would not go down without a fight for sure. I would absolutely agree with others to try and dig around to find out who is really pushing this and whether for instance, the estate agent has a rep. You have nothing to lose.

At the end of the day be philosophical though .....' whats for you wont go by you'.......this house may not be the one, Good luck whatever.

Walk away, they are full of shit. I loathe this kind of manipulation. Houses I looked at in February when I was buying and which were out of my price range have been slashed by up to £40k and are now all within my price range.
I'm not bothered as I got my house for an absolute bargain as the seller had to sell quick to go abroad and I'm very happy with it.
The houses I were looking at and the ones that have had their prices slashed are all in georgous villages on national trust land.

I would also take issue with the EA. They should never have shown a house that had an accepted offer on it. I would ask your solicitor to send them an email complaining that they gave been duplicitous and that you are going to name and shame. If I was desperate for the house I would go the extra money but ask them for something in writing confirming that there will not be any more increases.

was

Ok so I'm going to assume this house is pretty much perfect for you and you intend to stay there for a long time.

Firstly i think you need to assume the new offer is genuine.

Now of course you can walk away and there are some good reasons to do so, but the downside is that over the life of your ownership an additional 1% of the price doesn't strike me as worth losing your dream home over.

That said I don't think you necessarily need to agree straight away to up your offer.

They've got you off balance and frankly I'd return the favour.

My initial response would be that you're very disappointed they've gone back on the deal and given you've already invested money on surveys the timing is in very poor form.

As such you'll keep your original offer on the table for now whilst you take some time to consider your position as to whether you are prepared to increase your offer (and if so by how much) or to simply walk away.

Also point out that the new offer is subject to survey, could be reduced and cash buyers or not they are no more/less proceedable than you (in fact having surveys done you are ahead of their curve).

Let the owner and EA know you're not a "sure thing" and that they are putting a sure fire deal at risk by continuing on this path - make them sweat for a few days.

Then I'd go back and say that having nearly decided to walk away you'll make one more offer to match the new offer at an increase of £8k.

That's based on a guarantee of no more viewings and you expect the sale to proceed with speed.

At this point the other party might up their offer also - and tbh at this point I'd walk as you're just in a bidding war that's going to push the price beyond the property's worth especially in a market that everyone is experiencing to decline.

Haven’t read the whole thread. Ooh OP I’m angry for you!!

Instinct would say to walk away, seeing as you’re so far into the process it’s CF that they’ve allowed another viewing and are even entertaining another offer. Like you mentioned already they sound like a nightmare to deal with and going forward could cause more problems.

Of course you love the house which makes it difficult however that’s how EA’s make their money. When buying and negotiating we’ve always tried to put emotions aside and see it more as a business transaction, I know it’s a hone and not an investment but no one wants to overpay and end up in negative equity. Have you checked sold prices? That can give you a good benchmark.

We were in competition with a cash buyer, we were a little heartbroken when we ‘lost out’ to them, 3 months later the manager of the branch called to ask if we were still interested as the cash buyer had an issue with their funding!! I graciously pointed out they weren’t strictly a cash buyer... we ended up in a much better property.

Personally I think we’re in a bubble that will pop soon. If you walk away you might lose money which is horrible, although in the long run it could do you a favour as long as you can meet requirements of a higher deposit in the future (think they’re currently at around 15% leaning towards 20%) We’re yet to see the effects of furlough, unemployment, drop in GDP and when they pull the stamp duty holiday and Help to Buy, expect the market will start to struggle but like a pp pointed out, these are unprecedented times and there seems to be a shift to more rural locations so could be wrong. We’re in a village, prices are record breaking high for the area, property is selling but some properties are coming back on to the market and a lot are being reduced quite quickly, some properties have been hanging around for years because they’re simply overpriced. Obviously it depends on your area.

I would walk away to spite them (possibly not the best idea but then their lacking in basic manners and etiquette wasn't a great move either) seems your full asking price offer wasn’t enough but if you love the house and plan to stay there and not at risk of negative equity it might suit your circumstances.

If you want to stick to your offer I would say something along the lines of ‘sorry to hear the vendor has allowed more viewings, this is disappointing. We’ll need to have a think about this and get back to you’ ....

string them along for a bit and then say ‘unfortunately we’re unable to go above the full asking price, we’ll leave it with the vendor to decide what they want to do, just to make it clear, we are in a position to move quickly and are ready to go’.

Then ask to book some viewings on other properties. Hope it works out for you OP.

I don’t think there is a dream house. There are probably many just as suitable
It’s the emotional language of EA and reinforced by shite on telly.the dream house,the one. Blah blah
Essentially,it’s random, one buys what’s available and listed in your budget

Unless you have said you want the house taken off the market after your final bid, you can't quibble over other offers nor demand money back for the money you expend on solicitors or surveyors. Annoying as it is.

Another one saying let the EA knows your existing offer is on the table and that you can complete in x weeks. And wait.

Ask them to pay for your solicitors fee and survey. There should be a law preventing people being messed around like you have been.

I had this a few years ago, vendors asked for 10k more just as I was about to sign. I told them to eff off, ignored frantic calls from the EA for a few days, then I paid the original price.

What have you decided to do?

This is why England house buying rules need to change. This should never be allowed to happen!

I’d start househunting again OP. And I wouldn’t engage with the agent, let them figure it out when you don’t answer their calls. Tell your solicitor though, in case they spend valuable time on it.

If only there were a way to make gazumping/gazundering illegal ....