Potential bidding war - WWYD

[PlumDumpling]

FTB here so any advice greatly appreciated. NC due to details. Slight rant, sorry!

We viewed a property last summer. It'd been on the market 2+ years.
We registered our interest with the EA, explaining we were waiting for DH's new job, to be in a better position for a mortgage. We kept in touch in the meantime, got our AIP and made offer in March - low, but an amount the EA said all along would likely be accepted.

Were told the vendor was away for a few weeks so not to expect a quick response. Waited 2 weeks, called the EA and discovered someone else had had a higher offer accepted (and the amount) over a week before. He said he hadn't let us know as we'd said our offer was the best we could do.

Immediately made a higher offer, were told the vendor would consider it for a few days.
Discovered we knew vendor through mutual friends, and that he'd had a minimum amount in mind all along, so our 1st offer was never in the running. (Also discovered he'd accepted our 2nd offer on the spot, not said he'd need a few days!)

Instructed solicitors, began full mortgage application.
A week later, EA called to say he's going to ask the other buyers for a higher offer, so please can I make a higher offer now, so he can take both to the vendor and 'get this over and done with'. I declined, as there seemed no reason to go higher til we were outbid!

The other buyers have now made a higher offer, best & final. He won't tell me the amount this time, and apparently hasn't told the vendor either, but vendor again said he'll take the highest (fair enough).

Apparently the other buyers submitted their AIP with their offer, around 2 weeks ago, their application is being dealt with by underwriters right now, and they'll have a formal offer on Monday morning, then all they have left to do is the valuation.
How can they have a mortgage in place if they don't yet have the final price of the house, or a valuation?

We can afford to increase our offer by a little bit (as we really don't want to lose it, we're taking from money we'd set aside for improvements)
In my position, would you:

• Contact vendor (he's said he's happy to communicate with us) and find out what amount would take it off the market - is there any way of making this formal? I don't know how I'd phrase it.
• Make our actual best & final offer to EA - it may be well above the other buyers' and we'll end up spending more than we could have?
• Make only a slightly higher offer, and say it is best & final, as that's what EA is insisting on, run the risk that it's too low - do we have the right to keep coming back with more even though he's asked for best & final? The other buyers may also be lying when they say their offer is final.

Aargh, TIA!

[PlumDumpling]

Thanks Rae!

Thanks for advice wow - yes, that was a mistake. We were naive, and complacent with it having been on for so long! We explained we were using money set aside for works, and I will repeat that.
You're right, I think the seller falls into both of those! Wouldn't have wasted time with the 1st offer had the EA been honest about the seller's minimum from the start. So weird.

EA says the other buyers will have their mortgage on Monday, then "all that's left" for them to do is the valuation survey I questioned him but he just kept repeating it. Think he's trying to scare me.

[MyKingdomForBrie]

He's trying to scare you - there's a whole legal process to go through first!!

[lalalonglegs]

You can scare him right back by asking to see other places on his books (obviously you would be mad to consider buying anything through this firm but let him know that you are prepared to walk away).

[StepAwayFromTheThesaurus]

The other buyer cannot possibly 'have their mortgage' on Monday if there hasn't even been a valuation survey yet. The valuation survey is a crucial part of the bank deciding to lend you X amount to buy this particular house. All you can have is an agreement in principle until a vendor accepts your offer and you go to have the proper mortgage application process started (which costs money, so people don't do it for houses they haven't had an offer accepted on and may not get due to a bidding war).

I really think the EA knows you aren't familiar with the process and is talking bollocks to scare you. Either that or it's a dodgy gazumping situation orchestrated by the vendor on some poor sods who are part way down the conveyancing process.

[FinallyHere]

One possible scenario that you might want to keep in mind, is that your offer is accepted, all goes ahead as planned until you are almost ready to exchange, when you find out you have been in a race to exchange, as they have accepted more than one offer with the intention of going with whoever is ready to exchange first. Not much you can do about it, at that point.

Hope it works out for you.

[BeaufortBelle]

Put your final offer in writing. Note that if it isn't accepted and the house removed from the market by close of business on Monday the offer is withdrawn.

If I were you I'd withdraw now. This will always taint the house for you. Vendor and EA sound horrendous. But you have messed them about a bit too. A house is worth what you are prepared to pay for it. You might keep a tiny bit in your pocket for negotiating and up an offer once but you have rather created expectations here too.

[PlumDumpling]

Thanks so much for all the replies, I took everything on board today.

We couldn't let the property go so we made a final offer on the condition it's taken off the market and no more offers are entertained (thanks to advice on here!) It was accepted this eve and I'm expecting written confirmation on Monday morning.

Of course it's possible they'll go back on their word, in which case we'll walk away, but both EA and seller insisted and promised negotiations are over. I spoke at length to the seller and do believe he wants to get on with the sale.
It's been crap, but I don't think it'll change how we feel about the property, it's so perfect for us.

Thanks again, time now after a nail-biting day!

[WonderingAspie]

Hope it works out for you. I'm confused as to why the vendor accepted your offer before than asked the other party to up theirs. Once they find out yours has been accepted, they may offer a lot more that the vendor cannot refuse. Try not to get carried away just yet as there has been a lot of game playing.

[RaeSkywalker]

Fingers and toes crossed for you Plum!

[wowfudge]

That's if the other buyer exists at all Aspie.

[PlumDumpling]

Thanks Wondering, yeah we were confused! I think he realised he could get more out of us both, so decided to go to best & final offers. For the moment I have to trust that's the end - but agree, we're not celebrating yet!

wow I'm fairly certain they do... we heard about them from a 3rd party, but EA could definitely have fabricated the last offer - we may never know.

Thanks Rae!

[PlumDumpling]

Thanks baby that is helpful, will chat to conveyancers on Monday morning.

[lalalonglegs]

I have to disagree with babybarrister: taking a property off the market - sometimes for a limited period of, say, six weeks - once an offer has been accepted is pretty standard.

[wowfudge]

What usually happens around here (NW) is that the property stays on RM, etc. marked under offer or SSTC but the EAs won't allow other viewings as they don't want to jeopardise the sale. It shows they've found a buyer and means if anyone does express an interest there's a potential back up plan if the sale falls through.

[StepAwayFromTheThesaurus]

That's what usually happens here too, wowfudge.

[PlumDumpling]

Thanks for all the replies.
Yes, when I spoke to the EA he said they always take properties off the market, so no more viewings etc (he didn't specify how long for).
With the length of time it's been on/slowness of market in this area, I'm not too worried about new interest, but I am worried about the other buyers coming back with a higher offer! So perhaps the conveyancers can help me fend them off?