To buy or not to buy? Being bullied into paying another 10k two days before exchange

[Matrushka]

I had an offer on a house accepted at 20k under asking price - on condition that it was taken off the market. There’s no chain, as I’m remortgaging my house as a BTL to buy the new house to live in and moving back down to Brighton from London. My son starts secondary school there in Sept.

I told the agent I would proceed as quickly as possible but needed to get my current house valued. I made my offer after a broker told me there was a great mortgage offer which would not only cover purchase price, but an extension too. After my offer was accepted, he found it had expired. He found me one that was not as good and meant the London property had to have high rental yield to meet the purchase price. Also maxed out on salary to make up the rest.

I was terrified that the house wouldn’t be valued at the right rental yield (the difference was £60k and revaluations are apparently notorious for undervaluing). This would have meant sale would fall through, so I pulled out all the stops, although builders mucked me around and it took seven weeks before it was ready to be revalued. Thankfully, at the right price. There was no word from the EA until just before Easter, I assured him that everything was OK and checked with my solicitor to see if they were happy with the process their end.

I still get RightMove alerts and on Tues, saw the house re-listed on Rightmove, with the other agents who were initially marketing it.

To cut to the chase, it seems the vendors didn’t think I was proceeding quickly enough. Perhaps they could have warned me?! As soon as I found out, I got onto my solicitor, established that there were outstanding queries which vendor’s solicitor hadn’t responded to, and put these to the agent who forwarded my email to the vendor. There was an indemnity policy which I needed for my mortgage which they refused to pay for. Disregarding my solicitor’s advice, I offered to pay the £300 on condition that the property was taken off the market immediately.

Next day, Saturday, EA calls to say vendors have an offer at the asking price but would proceed with me on condition that I could exchange by Wednesday. There was no way to respond as I needed to check with my solicitor and they were closed!

Today, at 9am, my solicitor ascertained that mortgage monies from reportage would’t be in place until Thursday. She suggested that I offer to exchange with a 5% deposit (the max funds I have) on Weds.

I immediately put this to the agent. Hours ticked by (vendor lives in Florida), eventually agent rang back to say vendor had received yet another offer from someone who viewed at the weekend. A cash buyer, also at full asking price. What a surprise. They wanted an extra £10k from me in order to proceed.

I offered an extra £5k, which was rejected, and now have until tomorrow to decide whether to pay the £10k. I can access this money but not until 16th May.

I know I’m to blame, for dragging my heels initially, but this was because I didn’t want to get too far down the road and find out I couldn’t proceed. But surely, if the vendor was worried, they should have warned me? I could have sorted things out earlier (queries were unanswered from two weeks ago). So I’m wondering whether they would have pulled this trick anyway.

I really like this house. Not much comes up in that price range in this area that doesn't need a complete refurb. I’ve been looking for five years!

They really do have me over a barrel, don't they?

the vendor knew exactly what was going on and the timing is deliberate.

tough call. The other buyer may not exist, or they may.

dirty trick but sadly not unknown.

When was your offer accepted?

House prices may have gone up in the time since you agreed the offer.

Offer was accepted at end of Jan. For sure, market is picking up again..

Not even sure that have the option of negotiating over completion. Ideally, don't want to move until June as DS has SATS and need to pay mortgage on both houses until at least end of that month.

I can understand where they're coming from but am annoyed with myself for trying to be "ethical" and getting my s* sorted out first because I didn't want to risk things falling down later, but also with them as I suspect what specialsubject says may be true.

Also found out that my solicitor knew (on 27 March) that they were getting frustrated and thinking of putting house back on market and didn't tell me. I think her excuse would be that they hadn't answered her queries. But, if I'd found out earlier, they may not have got to the point of re-marketing.

From the details youve put here, I have sympathy for both sides.
Hope you can get it sorted quickly.

Will be tomorrow roslet one way or another. It's 80% capitulate 20% tell them to b* off, at the moment. Probably will be a sleepless night.

My old broker used to tell me that 10k, or so, is a drop in the ocean if you find something you really like (if you can afford it, of course).

Can just about afford it but not until 16th May. What's the betting they'll want to exchange next week though?

I mean complete, of course .

only thing I can say is that one you agree to buy or sell a house the quicker the transaction gets to exchange of contracts the better - dragging it out for any reason what so ever is courting disaster - people change their minds, circumstances change, property market changes. I hope it works out for you.

I also have sympathy for both sides because January to now is a heck of a long time and as far as the vendor knew, you weren't going to complete any time soon. I accepted an offer at the beginning of March, under the asking price on the basis that she could complete quickly, and I'm frustrated that my buyer seems to be dragging her heels a bit. The market is going up and I'd be likely to get over the original asking price if it went back on the market now. However, I wouldn't do that without at least giving her a deadline to get her sh** together and agree a completion date.

It does depend on how much you want it but there's nothing to stop them messing you about again, or still insisting on a completion date you can't do. If you can bear the idea of starting again then I'd tell them to b* off. I'd be considering ditching the solicitors too - and possibly even considering a claim against them, as they failed to pass on to you information which could end up costing you a lot of money.

you have to do 2 things.

1 - decide whether or not you are willing and able to pay the extra £10k, accepting the fact that the other interested parties may or may not be fictitious.

2 - respond totally honestly with them. If its a no, tell them straight and let them know what you are willing/able to do re price and timescales. If its a yes tell them that you will pay but that you will not be able to complete until x date.

FWIW it seems like they are looking to lock you in to EXCHANGE quickly, rather than be in a hurry to complete/move. Which makes me think they are trying their luck WRT the price increase.

Also agree that your solicitor seems to be the party at fault here.

Now is solicitor's chance to prove her worth.

I decided - after sleepless night to give them the 10k - on condition that completion was delayed.

We've come to an agreement, agent was persuasive as he has a lot to gain (the other buyers are with another agent)

My solicitor told me last week that we were "good to go". But now has found an issue with the deeds for the house which is to be remortgaged to get the funds (and the deposit). Apparently, it's registered as two flats and my mortgage offer is for a house.

This is never-ending. Arggggh!

I think the fact that they've accepted a month's delay in exchange for £10,000 tells you that there is no other buyer, they are just 'charging' you for the additional delay ad I have some sympathy with them tbh. It is frustrating when things don't move.
I think you need a better solicitor though. She's still not on top of it and her delays and not pushing have cost you this £10,000

It's hardly been going a long time though if your offer wasn't accepted until end of Jan. Sounds a bit dodgy to me. It's appalling behaviour and one the Estate Agent should be discouraging. The Estate Agent should have been keeping you informed if the Seller was getting jumpy not just slapping a deadline on you. Even if they proceed with another buyer, it's going to be at least another couple of months before it will complete. Good luck.

I hope you are continuing to look at other houses.

Northernlurker - the two new buyers are with another estate agent
Winkworth, who charges a bigger commission. So I think they have weighed up the disadvantages of starting again and the fact that they would pay more commission, when they decided to slap on another £10k. Solicitor stayed up 'til midnight working on deeds. Yes, she should have told me that they were thinking about remarketing but possibility, as specialsubject said, that this was their plan all along.

pilates - yes very bad behaviour and I don't like condoning it by going along. Luckily, my last two purchases went very smoothly and were v. nice people so I know it's not always like this.

Yes, EA should have told me, but I think sellers were keen to test the market so didn't encourage him to.

PigletJohn - will be looking until the last minute - close of business tomorrow, when we exchange. But, as I've said in beginning, I know this area v. well and have been looking for five years.... it's all only going up as Londoners moving down to Brighton/Hove. It's top spot for that at the mo. And this property is v. near the station, parks and good schools...