Vendor putting price up 10%

[WhatsGoingOnEh]

I'm a FTB no chain, living with family so can move any time.

In December last year, found a place I loved, offered asking price, accepted. The vendor said her partner had sold his property and they just needed to find a place to buy. I was happy to wait. We did all the survey, paperwork, my mortgage was ready to go. We were ready to exchange since about April.

The vendor's partner had not sold his place, just accepted an offer. He only sold it 2 weeks ago. (End of May.)

They found a place in March and got jerked around by the seller, for months. I waited and waited good-naturedly. Then it all went quiet a couple of weeks ago. My mortgage offer was about to expire but I found out I could get a new one (despite new mortgage rules) and left a message saying that but didn't hear back.

Finally I went round with my bf to find out what was going on.

They now want £25k more! Their EA told them prices have gone up 10% in the past 6 months - the months we've been waiting to buy it, even offering to buy it and let them rent it back from us until they completed -- and it's now worth more. Their purchase fell through so they're back looking again. They wanted to give us "first refusal" on the chance to buy it for £25k more.

We said we'd let them know. What would you do?

[Petrasmumma]

I agree with WannaBe.
And I'd just like to suggest that if you accede to this blatant grab now, there is nothing to stop them doing it again on the morning of exchange. Having a buyer who is where you are in the process is very valuable; perhaps the agent needs to get them to appreciate that.

[BristolRover]

last time I sold, our purchase was an utter nightmare so it was 7 months (in 2007) between agreeing price and completing on my sale. In reality, the (prime central London) property's value had certainly increased by a good £25k by exchange but the fact purchaser was so patient in waiting (& a neighbour of the place I was selling, who popped round and was friendly) just means I kick myself about it every now and then (fact he's since sold it for £250k more just makes me shallow breathe...) but at least i can look myself in the mirror. Karma's only a bitch if you are etc

[PrimalLass]

Tell then you are dropping your offer by 10% unless they exchange by your deadline.

[Bowlersarm]

I'm not sure they actually will get someone paying that. Prices seem to be levelling off, in reality. Let us know what happens, OP.

[Saltedcaramel2014]

Sorry that was all about me! But my point was, if they do it once, they can do it again - nothing to stop them adding on another £25k later. Find someone with scruples to buy from

[Saltedcaramel2014]

Exactly the same thing happened to us last year. The scumbags! We decided to walk away, it just soured everything that they had done that after we'd waited 6 months (with a baby born in that time). We found somewhere else, chain free and have never looked back. I was sad at the time as there were things I loved about it. I'm glad we didn't wait, they didn't sell it for another six months and in the end the price, in a year, had gone up £100k.

[MaryWestmacott]

Send an email to the ea stating what's happened and asking them to call you once they've establish if the vendors are pulling out of the sale.

Of course, I might be temped to email and say you've priced up "the extensive work needed according to the survey" and would like to reduce your offer by xyz, but then I'm a bitch...

[burnishedsilver]

You should never be negotiating with them. That's the agents job.

Besides, you've already negotiaged and agreed a price. You shouldn't have to do it twice.

[WhatsGoingOnEh]

I wish my dad was being more supportive! He says we should have gone over there and negotiated. Which is rubbish because he'd never have done that if he'd been put in this situation. Really infuriating. :)

[WhatsGoingOnEh]

So I haven't sent the email. What I will do later today is re-register with the same estate agents and mention why I'm back looking for a place. "Because you messed up the guaranteed sale, idiots. And did I mention I'm a FTB with a mortgage in place, nothing to sell, a 50% cash deposit and a big budget and a great local solicitor?"

[WhatsGoingOnEh]

I love all your tips! I'm sorry so many of you have been messed around too.

I've written an email to the lovely girl who was acting as the EA sales coordinator, but I'm holding fire for now. I want the reality of what they've done to hit home -- the viewings, the strangers traipsing through the house, the idea of putting offers in with no offer on their house, the fact they'll have to pack away all their cardboard boxes and rearrange the added furniture her partner has brought in, the uncertainty, the FTB with no mortgage, etc etc.

FACE LIFE WITHOUT ME, BITCH!

[CharmQuark]

If you still do actually want the house go back to the agent, say you will not offer more , partly beause of the Stamp Duty issue, and partly because you have heard that the market is now cooling (it is! EAs are reporting far fewer viewings and slower sales in the wake of the new mortgage arrangements).

Say you will go as far as offering an extra £1k for fixtures and fittings (so not incurring stamp dutybut no further) , and will still be available to exchange as fast as possible.

Unfortinately this kind of gazumping is common when an offer has been in place for ages and prices are rising.

[hollycomputer]

I'd have told them to do one as well.

It's just as infuriating having it happen in the opposite direction - I was selling my flat a few years ago to buy with DH. The buyers were FTBs and had messed me around for weeks, first with mortgage hassles, then with weird demands to keep coming back for viewings but without me there, then with demands about light fittings. IIRC, they also made a threat to pull out if I didn't leave the white goods behind. In hindsight, I should have just told them to do one there and then.

We got to the day before exchange and I got a call to say they had decided to reduce their offer by 5K. To say I was incandescent was an understatement. I'd tolerated their fucking around for weeks because I was trying to be nice and give them a chance. The EA seemed to think they'd been taking (bad) advice from their parents.

I told them to get lost and rented the flat out instead. My only consolation was that they'd also lost the money they shelled out in legal fees, lost their 100% mortgage offer and couldn't get another one so had to continue renting.

[Frustrated123]

Such disgraceful behaviour. We experienced this ghost gazumping a few months ago. Our vendor increased the price by 10k just 5 weeks into the buying process despite them suggesting the original sale agreed price. We decided to say ok to the extra, started househunting straightaway, found a much nicer house albeit slightly more money but doesn't need anything spent on it really and the other one needed loads. 7 weeks on and house owned by greedy 10k people still on market. KARMA!!! Hope it all works out for you OP.

[RumAppleGinger]

When you say "people like that", what do you mean?

I believe the correct term is utter bastards.

Glad you stuck to your guns and didn't increase

[ContentedSidewinder]

The thing about stamp duty thresholds is you have to be way above that valuation wise for someone not to knock you down the the stamp duty threshold. They are idiots.

A house is only worth what someone is willing to pay for it.

What is to stop you agreeing to the new price and then right at exchange demanding the original agreed price? Karma is an ass kicker

Personally I would let it be known that the only reason for the delay is their inability to sell his place and move from theirs. You have been ready and very very patient from the beginning.

Personally I am a walk away type of person, it makes you question how much more of an arse they can be between now and the completion.

[JassyRadlett]

The latest was this - London asking prices dipping slightly. In addition to new mortgage rules and strong signals of an interest rate increase in the next few months, I think your buyer is being very silly.

[WhatsGoingOnEh]

I do feel better, you lot have cheered me up IMMENSELY. Thank you!

[HamAndPlaques]

Sorry you've had this experience, OP, and good for you for telling the vendors to shove it. They may come to rue their greed; it is not the sellers' market that it was six months ago. I'd find somewhere else and keep a curious eye on the land registry records to see what it eventually goes for. I bet they end up accepting an offer below their attempted price hike.

[peggyundercrackers]

if you don't want to offer more then string them along for as long as you can. they are just being greedy.

[burnishedsilver]

They are not trust worthy people. Deal with the agent only. Toughen up and play hard ball. Point out any issues with the survey. Say you made you offer in good faith and it still stands but you are prepared to walk away. Set a deadline. They've really taken advantage of you and will continue to do so if allowed. Other potential buyers will have the same issue with the stamp duty threashold. It won't be as easy as they think to push the price up and I'm sure their agent knows this.

[WhatsGoingOnEh]

Ooh that's good, yes I got a great survey and some issues came up.

[whereisshe]

The phrase that springs to mind is "not negotiating in good faith". I'd tell her to get stuffed.

Given how much harder getting a mortgage has become since the new rules came in this April, she's being very foolhardy walking away from a done deal.

Did you get a full homebuyers survey? In addition to sticking to the principle that ghost gazumping is very morally dubious, can you come back with a litany of queries about the house's condition to justify maintaining your offer at it's current level?

[holidaysarenice]

Think if it's worth the extra to you.

If it is the it's hard.

If it's not id piss about with her massively. Giving g them dates and baking out. Reducing your price at the last minute etc.

She has fucked about and now she wants you to pay to make it up. Not happening

[mandy214]

With the benefit of hindsight, you should have forced exchange of contracts with a completion date at an agreed date in the future.

Agree with wannaBe, although use the same Estate Agents to book other appointments so they know you're serious about looking at other things!