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Property/DIY

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Original poster

Would like to offer on a house but haven't sold ours - is offering a deposit a bad idea?

14 replies

BendyBusBuggy · 21/07/2013 21:12

Our house has been on the market for three weeks. Lots of interest, one second viewing - nothing came of it- but no offer yet. Usually houses sell quite quickly where we are (first time buyer budget, walking distance to station).

We are looking in quite a small area and there is not an awful lot on the market at any one point in time. I wasn't in a hurry to sell as there was nothing I was keen to buy...until Friday. The most beautiful house has come on the market, it ticks all our boxes and I am very worried it will sell straight away, as this does tend to happen with the very attractive houses in this area.

I have read somewhere that we could explain our situation, make an offer and offer a deposit that the vendor could keep if we pull out (because we cannot find a seller). The deposit would be held by a solicitor and if the vendor pulls out we get our money back. I guess there would have to be some clause about them having to proceed within a certain amount of time once we've found a buyer.

Can anyone see any obvious problems?

Has anyone done something like this and has any tips?

Thank you!

OP posts:

vj32 · 21/07/2013 21:42

Are you willing to pay the list price or probably a bit more for them to wait? Plus the extra fees to solicitors to create a contract for this deposit?

Original poster

BendyBusBuggy · 21/07/2013 21:56

I'd pay the asking price. I imagine in the grand scheme of things the solicitor fees would not be very significant? (Or would they?)

OP posts:

didireallysaythat · 21/07/2013 22:06

If I was selling I think I'd keep on taking viewings - a proceedable higher offer may come along. But I'd have you offer as a backup.

Original poster

BendyBusBuggy · 21/07/2013 22:14

I guess we'd ask they take it off the maket if they accept the deposit

OP posts:

Poosnu · 21/07/2013 22:20

You could submit an offer, but it would need to be conditional on selling your own house. It isn't a proceedable offer at this stage and the vendor would most likely continue to take viewings.

We had a potential buyer like this for our property - they offered asking price but still had to sell their own house. We wished them a speedy sale but continued to take viewings on our property as there were no guarantees they would achieve the price they needed. TBH we used it their offer as leverage to increase the other offers we received; in the end we got a cash buyer for just under asking price. Their offer just pushed up the price that needed to be paid by everyone.

Perhaps if you paid a decent deposit the vendors may agree to take the property off the market for a specific period to give you time to sell. You would need to be careful of the estate agent marketing it informally though (to people registered with them).

If you are not comfortable going down the deposit route, you could tell the estate agent that you are interested, but can't submit an offer until your own property is under offer. If this takes a little time you might get a better feel for whether you might be able to offer under asking price.

didireallysaythat · 21/07/2013 22:26

If its only been on the market for 3 days its hard to tell how many second viewings its had and whether it will go fast (but it sounds like the market is buoyant where you are). I think the EA will recommend they see whether it will go fast and for the asking price (or more) by taking viewings past your offer being submitted.

The deposit idea may work if eg the sellers don't want to do a lot of viewings but I'd try and add strength to your position (mortgage agreed, solicitor chosen, local and committed to the area). Do you know why they want to move and how quickly ?

Original poster

BendyBusBuggy · 22/07/2013 16:24

The husband is a builder, the children are grown up and they are looking to buy a house to do up (I would imagine a bigger one). They've already set their eyes on something, which is not in our favour. I have an AIP (assumed our house would sell well below asking price) and have asked for quotes from solicitors...will look at them now...

I can see the point about it being maketed informally, it would then depend on the vendor keeping their word. Not sure they would accept something like this

I think I'll call the EA and explain our situation and make an offer anyway. At least it shows our intention.

OP posts:

TerrysNo2 · 22/07/2013 16:31

some friends of ours did this but it was a contract that the vendor and buyer drew up together as the solicitors said they didn't want to touch such a contract. It might have to be a very long contract to account for all eventualities so I can see why the solicitors were advising against it. FWIW it worked for my friends in the end though

Original poster

BendyBusBuggy · 26/07/2013 18:48

The house sold to a cash buyer

Ah well...

OP posts:

wishfulthinking1 · 27/07/2013 18:28

Bummer! Fingers crossed something better is around the corner.

Original poster

BendyBusBuggy · 28/07/2013 20:29

Thank you, that's so nice of you. DH said the place was probably mouldy

OP posts:

bimbabirba · 28/07/2013 21:25

Don't lose hope. A lot of sales fall through. We were in exactly the same situation as you and the house came back on the market a few weeks later just as we were accepting an offer on our house. Make sure the estate agent knows how much you want it so that you can be the first one to hear if the sale falls through.
We moved in last week

Original poster

BendyBusBuggy · 28/07/2013 21:47

Oh fantastic bimbabirba I'm so pleased for you! Good luck with your move!

Not really sure what's going on with our house, we have had it on the market for four weeks now, it's all a bit of a blur but I think we had roughly 15 viewings yet no offer :(.

The EA knows how I feel about the house.

OP posts:

matblack72 · 29/07/2013 11:13

We are in the same position, we were approached privately to sell our house which was great but the people who were interested hadn't sold yet, in fact the weren't even on the market at that point.

We started looking at properties, silly really but we wanted to be ready, since then we've seen one we really like but can't really make an offer as we aren't in a proceedable position yet.

Now I'm constantly on Rightmove hoping it doesn't go anywhere until our buyers have sold :(

Fingers crossed its still there when we are ready, the properties in our price range in that area seem to move quite slowly but it's nerve wracking waiting!

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