Pull out of property purchase

[ChampagneLassie]

We’re in process of buying the house we rent. And now our ideal house has come to market. The main difference is cost. The house we’re currently buying is 5 bed huge garden. And is 20% more expensive. Whilst we can afford it that obviously comes at a cost to other lifestyle choices. I posted before as it’s more than we wanted to spend but we’ve been looking for 2 years and not seen anything we really wanted. Until now. It’s ideal, it’s 4 bed, a decent sized garden. I actually prefer the look of it, wooden floors throughout, nice period features. And it’s 20% cheaper. That saving would make such a difference to our lives.

But the dilemma if we pull out our current landlords will obviously be very disappointed. I’d offer to cover their legal costs and be hugely apologetic. Do you think that would be sufficent recompense?

we’re about 1-2 weeks away from exchange.

i worry about bad karma. I worry that if we switch and the new property perhaps the sellers pull out / change their mind (they’re looking to downsize), it would serve us right. Thoughts

Well that wouldn't be legal so

Personally i think with all the blather about "forever homes" we've come to see our housing as needing to be some kind of aspirational idyll. But if the location is already great for you and the house itself is one you already live in and are fine with, I dont get why you'd move over some floorboards

“A buyers market”
that really depends on where the property is and the type of property. DS has been looking for nearly a year Herts/Beds border, and keeps being outbid on properties around the £600k mark. They rarely stay on the market for long or are sold before being openly advertised.

Communicate with the people selling to you. Say you think the market has fallen as you can get a better option elsewhere so are thinking about withdrawing. They may negotiate they may not.

What have you got to loose?

Changing to the other house seems very risky. I'd take the sure thing that you're already in the process of buying. Plus it's bigger and has more potential to add value over time as you have bought under market value with no moving costs. It sounds like a better financial decision, just not an exciting new one.

This. You've been looking for 2 years and are finally on the brink of exchanging. If you pull out now, there's countless things that could go wrong with trying to buy the other house. I think this is a last min grass is greener wobble making you think you 'could love' the other house, but if it had never come up, you'd be forging ahead with the purchase and thanking your lucky stars to have it.

I think there is no other situation in which you would pay 20% more for something that you weren’t in love with. I would offer on the second place and I would be very apologetic but explain the finances. I wouldn’t say that I’m not in love with the house-but I would emphasize how much it will help your bottom line in the long run. I would probably lead with something like this house is beautiful and it’s perfect but it’s a bit of a stretch financially and you found something that is perfect for you. That is a more comfortable fit for your budget.

do you have somewhere to go if you don’t get the other house and get an eviction notice for this one?

Buy the house you want. Put yourself 1st. All the very best.

Leaving aside the moral side what feels right? Would you be more upset going forward as is or going with other one knowing it is risk. You could lose both.

You could go along with new one and then doesn’t happen and burnt bridges with LL. Circumstances may change and the bigger property may have been better. It would be just down the road and constant reminder.

Think you need to go through all scenarios and decide what would be best/worse. From a practical rather then emotional/moral POV.

Go with the home that suits you best. Its a risky time to load up on a mortgage so if the cheaper house also ticks your boxes then thats the way forward. Don't be too worried about inconvenience for the Landlord. Its just business to them.

Is your interest in the other property a sign of cold feet? You're so close to the sale going through and already living in the property you were going to buy, I'd be going with the bird in the hand in your circumstances. There could be all sorts of issues and complications with the four bed and who knows if you'd even be highest bidder. I would make sure that it isn't just anxiety about spending the money and committing to the mortgage that's making you want the other property before going any further with it.

Ah ok. Still it seems much more robust against drop outs.

ESPC has revealed that property sales in Scotland fall through far less frequently than in England, according to the latest data.

Recent research from Quick Move Now found that during July-September 2023, one in four (27.3%) property sales in England fell through, due to a variety of factors including gazumping, difficulties in securing a mortgage and buyers getting cold feet.

By contrast, according to ESPC data, just 8.7% of properties for sale with ESPC during July-October 2023 experienced a collapse and went back onto the market - this amounts to around one in 12 sales.

You need to think this is a business decision. You need to go for what makes sense to you. You can’t be stuck in a house you don’t love for years when you know something better is coming out. This is a very important decision for you and your family. The landlord is not someone you own anything to. Offer on the other house, tell your landlord the truth and go from there. The worst that can happen is you need to rent somewhere else till you find the perfect house. The best is you get the house you like. It might also happen that the exchange with the house you like falls through, you still buy your current house. That’s life.

If the Budget next week changes interest rates or affects the sales market you may still lose out on “Ideal House” and not have a fallback if you pull out of buying the rental. Not a good time to stretch yourselves.

Do it.

Definitely do what's right for your family, but does the other house rely on a chain, it's much more risky.

If this is your forever home - then you must feel happy with it. This house doesn't sound like you are fully happy with it. Buying a home, any home? is a big commitment and if you are potentially over extending yourselves then it may not be ideal.

I speak as someone whose house sale fell through FOUR times before selling. All of them within 'two weeks' of exchange.

If the house is on the same street... does thec20% lower price seem reasonable for slightly smaller but in better (visible) condition?

Or is that a fair orice for a 4 bed vs 5 bed in your area?

Were you looking to buy anyway? Or did your landlord tell you his intentions and you offered to buy it? Or even worse still, did you approach LL to sell?
Id say you need to be sure that you definitely get the other house before pulling out. Is it owner occupied could you have a private conversation to find out their position etc?
Yes someone will be upset but ultimately a house isn’t something you can buy on whim.

I think take things one step at a time - go and view the property first and make sure you do actually love it as much as you think you will.

Find out the chain information of the other house as well and what the owners intend on doing. As PP have said, just because you have an offer accepted, it doesn't mean you are moving in. Especially in this market, especially if there is a chain.

You are in a good position as a buyer as you have no chain, again in this current market, no chains are very appealing to both Estate Agents and sellers.

Finally, buying your current, larger house, under market value will actually future proof you more than the other house. It will mean that if and when you come to sell it, there will be more of an uplift in price.

Regards what other people think... be selfish. Buying a house is the most expensive thing you will likely ever do. Make sure it is the right one for you and your family.

Proceed with both and then decide depending on paperwork progress, surgery results on dream home, and get as close to exchange as possible before pulling out of the one that is your landlord’s house.

As for your landlord deciding to evict you if you cancel the sale, sure they can but a) they deprive themselves of rent when trying to sell and b) you don’t have to go when the notice period ends, it’s a horrible thing to do but due to lack of council flats and houses the council would tell you to wait until the bailiffs arrive and that takes months
were I live.

Presumably we are talking about tens of thousands, if not hundreds of thousands pounds difference? That is a lot of extra money, extra years working to pay the mortgage etc etc. Do not feel guilty, do what makes most sense for you financially and emotionally.

This is what i thought.

My first instinct was to wonder why a house on the same street, similar but smaller type, is a whopping 20% cheaper - despite the fact it has one less bedroom. that along with the fact your LL has sold to you slightly under market rate

I think there are reasons for this - they are struggling to sell for some reason

Exactly this, the Landlord will just chalk it up to a business experience that didnt work out. You have to remember these are investors not owners. They may be briefly annoyed yes, but quickly back to the reality of making a living. This is not the same situation as backing out late from a owner occupied purchase with a chain. Not at all.