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

Your relationship with your landlord is purely transactional. Do you think they’d stretch themselves to be ‘nice’ like you’re thinking you may? Business is business, so make the offer and if your landlord thinks you’re “shady” so what? Your family finances are important, not your landlord’s feelings. You are a commodity to them, that’s all.

And karma? It’s not a real thing.

Did you get a survey? That will have an idea of value. You seem sure yours isnt an unmissable bargain but the new one is. You might be right, but you need to check.

Have you looked at the EPC reports for both?

Id go for a viewing, but realistically going for the property you know, youve spent on legal & survey fees already, and its the bird in your hand is the safe option... unless you LOVE tge other one.

I don't think they need to tell the LL which house they are buying instead. The can just say a different one.. without giving the address.

The OP is already paying reliable rent to the LL.
Because it was a private sale, I don't think they would have cost the LL as much in fees at this stage. It's more the fees for survey and mortgage that the OP would have paid. (not an expert but she could ask her solicitor for that.)

Also she offered to compensate them for fees spent. And she could facilitate new viewings, she has a six months notice during which she'd still be paying rent.

Also.. the OP originally said she would rather buy the other, cheaper house than that she wants to get the LL to cut the price on their property.

I think she needs to get more information on local house prices and on the condition of the other house. To find out how big a risk the whole thing is.

This is very interesting

theres a good amount of variability on the street. Period, size, etc. the new house is very keenly priced (I think deliberately they want it to go straight away, get a bidding war). Our current house is more unusual…and I don’t know if we’re paying over odds or getting a bargain. It’s an unusual property and it’s not gone to market.

I don't think it's unusual to have a bit of a wobble and get cold feet close to exchange, to think something else might be better, and house buying is stressful which can lead to rash decisions!

But, with the high proportion of house sale failures, if you pull out of this one, and the other one falls through, you are risking losing out on both. Is there a decent supply of alternatives in your preferred area?

I would ignore all talk of karma biting you and other such woo nonsense. If you prefer the other house go for the other house, you have to live there and might forever have regrets if you pursue it.

You might irritate the landlord but it is after all a business transaction, they are offering to sell goods that you want in the form of a house and you have agreed to purchase at an agreed price. Until exchange of contracts occurs both parties can walk away, if you are in England.

Th fact that it is on at a lower price is appealing, however be realistic about the cost of building/renovation costs. Labour and materials are significantly more expensive than they were 5 years ago. Maybe now is the time to sit before a blank piece of paper, listing pros and cons of both and realistic renovation costings before deciding upon a way forward.

It will always be the one that got away unless you try

It sounds as if you are going to view and bid, but if they have priced low you may be in a bidding war. If you are weeks away from exchange on your current home when are you planning to pull out - now, after an accepted offer, after the survey and mortgage offer?

I’m not sure the kind of community in which you live, but where I am we have our neighbours emails and phone numbers, even when they are renting their home and living abroad so I think we would know if a renter did this and someone would likely inform the LL. it would be better if the LL heard from you first.

Have you viewed it? Sometimes its not as great in person. Also location matters alot more than you think. You need to do whats best for you.

The true dilemma for you is that you might pull out (which is an entirely reasonable thing to do) and then things might not go through on the house that has taken your fancy. Where would you stand then?

OP, one thing I think is important to your decision is the actual value of your rental. From the sounds of things you haven't had a valuation survey (I dont mean an Estate Agents suggested market price, I mean a RICS, which can be done quickly and costs a few hundred).
With this information you will know if your landlord has really given you a deal, or if as is more likley, your overpaying on the house. This will be very relevant to your choice imo. The fact that a local 4 bed is so much cheaper suggests to me you might be paying over the odds. If it was me I need to know.

We had a valuation survey and full structural survey…and various other surveys. I think we are agreed a fair price for our existing property. But we don’t need the extra space. I’ve viewed the new property it is everything I expected. But I’ll be honest all the wrangles just fill me with stress. I imagine we could jump ship and be left high and dry because it doesn’t happen in time /. Seller changes their mind/dies / whatever. I’ve barley eaten today and I’m really struggling as the cost differential is huge. But it’s hard to feel large sums of money. We obviously can afford the house we’re buying…it just means compromises on things, less cheaper holidays. Various other things.

That is indeed the true dilemma. I feel so time poor. I’m running a business, my partner has a very demanding job we’ve got kids aged 2 & 4 with no family support. Just standing still feels hard but doing new things feels very hard.

I don’t think this would happen. IF we offer we’d make a very high offer. Should someone else come along and try to gazump, if the seller was that way inclined presumably they’d come back to us. The new property is so much cheaper we could pay way over odds for it and still be better off, if that makes sense.

update I’ve viewed house. It’s everything I expected. It’s not a dream but I’m not a princess. It’s got pros and cons. If we’d viewed it before deciding to buy our rental it would have been an easy decision. I really don’t want to move twice. Or add to my mental load. But the cost differential is huge. They both need work and money but obviously buying cheaper we have more money. And a larger house everything costs more. I’ve felt more stressed today worrying about doing right thing. And the risk of jeopardising this house and the new one not completing. If I summarise my dilemma I think it is monetary and it’s just do we want to spend that much.

Doesn't sound like a slamdunk. Probably go back to first principles - what you wanted to achieve with your purchase and whether current house gives you that, or new house with risk of not getting it but still being free to keep looking does. Presumably as you've got so far with current purchase you had committed to spending that much, so I incline to the stick with it camp. But only you know...