AIBU to stick with current buyer rather than sell to tenants?

[Whotosellto]

I’m a landlord who currently selling a house. The tenants gave notice months ago and are due to move out soon. I received an offer on the house at asking price about 6 weeks ago which I’ve accepted. The tenants are now saying they would like to buy the house after the house they were buying fell through. They’re a family with 2 children and another baby on the way. They can’t match the offer already accepted, they’ve offered £10k less. They said they’re desperate. They’ve been ok tenants although they’ve missed rent a few times.

Would you stick with the existing buyer or accept the offer from the existing tenants? Would you feel more obligated to your tenants of a few years or to the buyer we have accepted an offer from already? Obviously the tenants could now refuse to move and cause issues which we need to bear in mind and they’ve offered less but we’ll save some costs by selling to the current tenants,
probably not £10k though.

Im thinking of sticking with the buyer we already have. AIBU?

Of course you stick with the current buyers. Honestly I have no time for gazumpers (though technically the tenants’ offer is lower…). Your buyers will have spent money instructing a conveyancer, a survey etc. already, not to mention it’s their first choice house (not like your tenants) so they’ll mentally be excited and dreaming of their new house. It’s cruel to take that away from them with no good reason.
Presumably your tenants had the option to make an offer first but they chose a different house, so now they are desperate they have decided that your house is better than nothing. Well, what if they see another house they prefer between now and exchange and pull out? Honestly it’s not worth the risk, especially not for LESS money.

Thanks. As far as we know, the buyer we have had an offer from is a landlord who plans to rent the house out so probably not excited about their new house in the same way someone who was buying it to live in would be, but yes I think everything else you’re saying is right.

Have you sold the house as vacate possession? Bit optimistic in the current climate to do so while it's still tenanted, even if the tenants had given notice. My worry would be the likelihood that the tenants won't find anywhere to go and you won't be in a position to go through with the sale.

Your update changes my opinion. Would rather sell to a family than a landlord. You’ll save estate agent fees etc, and won’t risk having tenants that refuse to move out, ruining the original sale. £10K seems worth eliminating the risk

Have you calculated how much you would save in fees, and have you asked if they can go up.a but, if not the whole £10k?

In your shoes, I'd have a good go at trying to see if selling to your tenants could be made to work as I'd much rather sell to a family than a landlord if possible. (But not at the cost of £10k!).

Have your tenants got a firm mortgage offer in place? Do you know why their other house fell through? Do you have their notice in writing?

This.
I would always sell for a bit less to a family before another landlord (we did with our first house)

I’d want to know why the other house fell through, and whether their offer is serious. You don’t want to turn down a safe offer, and then find yourself not only out of pocket but without a buyer if something goes wrong with this family. If your buyer is a landlord, why can’t the family just continue their tenancy with the new landlord until they find somewhere suitable? The fact that they didn’t immediately want to buy the house they’re living in when it went on the market would be a red flag for me, and it’s very cheeky of them to expect you to let them have the house at below the offer you’re selling for.

I would rather sell to a family than another landlord

You need to go with the person who is in the best position to proceed and who Is offering thr most money for your property.

If the new owner is going to be a landlord, tell the tenants this and suggest they negotiate a new tenancy with new landlord. That'll give them more time to buy another place.

Edit to add your buyer will also be happy as he will immediately get rental income.

Do you feel you have made enough money out of them as tenants already to take £10,000 less than your existing offer? Is the existing buyer expecting vacant possession? What will you do if they don’t leave? I’d be inclined to see to the family if I possibly could, rather than another landlord.

Your landlord buyer will try to drop the price after survey surely, and would want to jack the rent up so won't want your tenantswho now have more protectionunder law. Much easier to sell to the people already living there.

It’s a hard one. Not good that they have said they’re desperate though. Desperate people may not act rationally and as previously said, they didn’t want the house before and seems as though the money is tight so something could go wrong in the conveyancing process that they have no contingency for. They must be saving thousands in a situation where they don’t have to pay for moving costs at least.

The dilemma is from the risk they won’t find anywhere and not vacate. You will get replies that are biased because you’ve been a landlord.

My decision would be to stick with current buyer if tenants are flaky.

Yanbu. Your buyer may have already spent money on surveys etc 6 weeks down the line. And they aren't even matching the offer.

Your tenants are still in a position to buy a different property, or even rent short term. Just because their circumstances have changed, doesn't mean yours, and your buyer should have to.

Hope they dont mess you around by not moving.

The estate agent fees will still be due as the agent has sole selling rights and has found a buyer. If the vendor pulls out the fees are still due.

I'd go landlord - especially as the tenants still owe you rent!

As you’ll be selling to another landlord, yes you are being unreasonable.
As per another PP, the landlord is going to drop the offer once the survey is in.
Your current tenants may dig in and you lose the sale anyway.
Sell to the tenants.

Stick with your current buyer. The tenants will have to sort themselves out… and will hopefully leave as planned. It’s not as though you served notice on them to sell. They had choices.

Sell to the family!!!

You have the choice to sell to a family who already live there, ie to make their insecure housing situation secure, or to scooter landlord, whose intentions you do not know.

So many landlords are, quite frankly, terrible people, and I though I assume you have no way of knowing whether this person is or not, you have a chance to prove that you are not.

I rent and I hate it. I feel like it’s really impacted my kids’ stability, mental health and educational attainment, but buying has never been a realistic financial option for me.

I implore you to consider the impact you could have on this family, and even if the price you’d get from the landlord is higher, at what cost to your conscience?

If the tenants have no where to go you might find that they don't leave the property. They are often advised by the council to stay put until evicted by bailiffs. This could take many months. How will you coordinate the sale to your buyer with potentially defaulting tenants in possession?

Personally I would assess the offer form the tenants. Check that they are proceed able and give them a tight exchange age deadline. Eg 4/5 weeks. If they can proceed on that basis to with them.

Do the right thing and sell to your tenants.

Do the tenants really have a mortgage offer? In spite of missing rent payments? If they really are proceedable I would be inclined to go with them.

It's highly unlikely it's t it. If the missed payments were within the last six years they will still be on the credit file. My friends mortgage was scuppered by a. SKY CREDIT of all things. Because they didn't know they had it it was just left on the account and showed adversely somehow. It took a long time to resolve and they lost the good mortgage. Op be very careful

I don't even know if this is possible but could you sell part of the house to your tenants and rent the rest to them?