fuck and bollox been gazundered

[plim]

need some advice please, been gazundered two days before exchange by ftbuyers. They dropped their offer by 17k this morning stating the reason that it's going to cost them more than they thought to convert the office, outhouse and to do some remedial work like damp course, electrics and repointing.

The house is an absolute bargain already as we dropped the price by 40k to get a quick sale so we can get the house we want in time for my two children to start schools in september. We previously had tenants in there and they have now left, we have given notice on our tenancy for where we are living and are due to move in two weeks (completion date).

I immediately told the ea to stick it straight on the market and there has already been 3 viewings tonight, meanwhile, ea are trying to salvage the buyers offer by pointing out that there is electrical and damp certificates and a new damp course that was installed three months ago.

I am so, so devastated, don't know where we are going to live and god knows what to do about the kids school!!

fuckity fuck fuck

rant over! :(

I still don't understand what difference the timescale of the survey is. There is no way I would sign a legally binding contract before I knew what was wrong with the house. Only an idiot would do so IMO.

The timescale is irrelevant.

SoupDragon,

I agree with you, contract to be signed after survey. Hence my question, how does an average survey take? Can a motivated buyer get a survey done quicker?

and the survey isn't the only part of the process that can throw up problems, land registry search, local authority search etc. Exchange is signing the contract, you don't exchange until you're happy to do so, I can't understand how you'd be in a position to sign a contract but not to exchange.

When we bought our current house (which appeared on the surface to need updating) we put in an offer for everything we had (12% off the asking price, towards the end of the rising market). It was accepted.

The survey revealed significant extra work - rewiring, complete replumbing, new windows - which we had not included in our original offer.

We obtained estimates for all the work, and negotiated for everything to come off the purchase price.

We would not have signed any kind of contract, or put down any money, until after the (full, structural with extra investigations) survey - and nor would anyone else with any sense buying anything than the most pristine modern box. Certainly nobody buying an older property or anything needing any kind of work would ever do such a thing - it would be really stupid to do so. Had we not been able to get the full extra cost of the work taken off our offer (we eventually settiled on 20% off the asking price) we would have had to walk away .. and I believe that any 'contract' or 'deposit' requirement would have made this house unsaleable.

Question,

What I don't understand is the differentce between your proposed contract, and the current contract which is exchanged on ..... exchange of contracts. Signing and exchange of contracts happens once everyone is happy that there are no significant problems ..... and nobody would sign any kind of contract until they knew there was no significant problem, so there is no need for two types of contract... or am I misunderstanding you?

Bittons,

In the Scottish system, though, for finance reasons the buyers usually have to do a survey as well as the sellers in order to secure a mortgage. Mortgage providers don't usually accept sellers' surveys as they carry too much risk of not uncovering problems.

So prospective buyers end up spending lots and lots of money on surveys of different houses - and this can get very pricey indeed if you are looking at 'older' properties and need proper structural surveys

I don't think you can commit huge amounts of money like the usual 10% deposit until you've had surveys etc - as teacher points out the survey can throw up all sorts of things that the vendor may well not be aware of and require renegotiation. I think that's reasonable. What I object to is what is happening to Plim, what happened to us and what happens to loads of people both buying and selling and a small deposit of £2k or so to cover costs if one party pulls out without a valid reason is a good way to go. It won't stop all the messing about, but it might make people think twice before a) offering and b) pissing about!

Buying a house is a huge financial and emotional investment and requires serious consideration, unfortunately there are people who are happy to try and pull a fast one if they think they can get away with it and currently, mostly, they do.

I think if the seller got a full survey before the house went to teh market then all teh facts would be there and the price would bear relation to the survey and its contents. The choice then would be for the seller to get any works done and then market at a higher price or sell as seen

So in that case what happens when the land registry search reveals a right of access you weren't aware of, or the local authority search reveals the loft conversion has no building regs, or the coal mining search reveals there's been a claim for subsidence?

A survey takes as long as it takes you to book a surveyor. After that it can be a case of "how long is a piece of string" as you might need specialist surveys. I also agree that there can be other legal reasons not to pursue a purchase.

I would not trust a survey done by the seller, who has no interest in getting the full facts.

The survey done for the home reports in Scotland are usually accepted for mortgage purposes now that home reports have bedded in. The days of having to pay for survey after survey as a buyer are long gone. And although the offers over system we have Can be a bit there is no gazumping or gazundering, no chains made of paper. Make and offer, offer accepted, missives done, house is yours!

Good luck plim.

That is the other benefit of the Scottish system - no costly survey after costly survey.

Thanks for pointing that out GlaikitFizzog

But how comprehensive are the surveys in Scotland?
In England a valuation survey generally is acceptable by the mortgage company, but we wanted a more detailed survey to check house was all okay...

There are different levels of survey. The seller can chose which they put in the home report, but ime the standard is middle level, suitable for mortgage purposes, but just stops short of a full structural survey. If people are selling an older period property, they put in a full survey as it can sometimes look like they are hiding something by not. I would say that around 80% of buyers don't have a further survey done. But mortgage companies can request another survey if they have concerns.

Basically what it has done here is remove the cashcow surveyors had going during the boom where they were maybe doing 20 survey reports on one property for different buyers and charging them full whack each by making the sellers responsible for providing that information. One report one charge. Of course you are well within your rights to have your own surveys done, but you can make an offer subject to survey and then negotiate from there if it flags up any problems.

The Home Reports are essentially a Valuation+ Survey - and iirc includes the various searches required. If I were buying in the current market, I would probably look at the Home Report and if I were still keen, then choose to get a full structural done (because I think a house purchase is such a major expense it doesn't make sense not to do so). I wouldn't make an offer until that survey was done as I would be held to that offer. If the house is "going to closing" (ie a few people are interested, so there is a deadline by which sealed bids need to be in), surveyors are used to being called up on to go and to do a survey at short notice - and will usually give you verbal feedback if required.

Even before the Home Reports, the whole system moved much more quickly - because the solicitors up here are used to that expectation.

It is possible to pull out of a sale up here - there are elements of the English system creeping in :( - but normally it would need to be something serious for a "Sold subject to Concluded Missives" to fall through. Having said that, the house across the road is "Under Offer"

The other benefit of the Scottish system is that in practice there is no such thing as a chain, as each link is complete in itself. Does mean the potential need for bridging loans and/or short term renting though. But that is minimised by putting into your bed when you expect to close (or when it goes to closing, that requirement being communicated to the potential bidders).

I don't understand why they need the mortgage re-approved. Surely they just get mortgage they originally applied for and put in $3.5k less cash?
Hate to be cynical, but I would be double-checking that their original mortgage application was definitely approved and they're not just trying to buy time while they try other mortgage providers?

Whattodo - The mortgage approval will include the purchase price. Also, if they put in £3.5k less deposit, it will change the loan to value ratio. It does all need re-approving if the price changes in most cases. There is often a small leeway, but not always.

Plim, I agree with everyone else who is telling you to tighten the screws on manhead size baby couple. You can hold the silly cunts to your order now. I'd give them till 12pm tomorrow to exchange. They sound like a bunch of fuck muppets, so don't have any sympathy for their current self induced 'troubles'. Tell the people with thd offer on the table that you'll let them know by tomorrow lunchtime but let them know now that it will need to be a 2 week turnaround. Good luck and rooting for you. You have been treated awfully and karma says that you deserve your happy ending!

Ah, youlllaugh that makes sense. Guess i'm too cynical and ready to mistrust!

Haven't read all the thread - sorry. We gave in to gazunderers a couple of years ago and I have regretted it every single day. Don't do it!

We are about to sell our flat in Scotland-homebuyers report will only accepted by purchasers bank if in an approved surveyors panel, do cut price ones off t'internet do not work. I hacr just forked out nearly £500 quid for one
Op sorry this is do stressful for you, but did snigger at: "Now noone tries to take my smeg range cooker so we said no again"

It was about like Churchill's 'we'll fight them on the beaches," I sensed that demand was the final straw...

Everything crossed for you plim

Agree I would be tempted to go in all ballsy and tell arsewipes that since you have now had two full asking price offers over the weekend from proceedable buyers, if they want the house, they must pay the full agreed price by 12 pm tomorrow.

Alternatively fi you do still think they are best bet (which they prob are) then to avoid the having to get mortgage offer re-offered, could you agree to give them £3.5 K cashback on completion. That way they could exchange immediately.

plim ... any update?