Walking away from a property

[CountessFrog]

We have put three offers in on a property and they’ve all been declined. The property needs a lot of work but is priced as though it doesn’t. It doesn’t have any heating at all, for example.

It’s been on the market for eleven months without offers or reductions. The EA told us what the seller is looking for, which was 30k more than we think it’s worth. As we did want the property, we increased our offer by 24k, thus coming in just £6k below what he wants., but he still rejected it.

In truth, we could find the extra 6k, and we would save 8k in stamp duty if we bought the property before March, but nevertheless, this is still a property requiring modernisation, even though we’d eventually get that money back. And we think it’s hugely overpriced, which is likely why it hasn’t sold.

Everyone has told us to walk away. I’m finding it very hard to do that and could really do with a good mumsnet taking to!

Opinions?!

I honestly don’t think the buyer will suddenly turn around and accept. There was a strange quality to the negotiation...

We put in the first offer - rejected within hours. No counter offer.

Second offer - 48 hours elapsed. Phone call from EA at 5pm on the dot saying ‘no.’ EA then tries to convince us to buy a different property that we’ve already viewed and discounted. Seems very pushy about it. Seller refuses to give counter offer.

We then pushed the EA to tell us what the seller wants. Like getting blood out of a stone. Finally tells us what he wants.

Third offer - 6k below what he wants - 48 hours elapsed, EA phones at 5pm on the dot to say no, commiserates and asks us again about property B.

Standard ??

I think this is standard for someone trying to push it or not at all fussed about moving.

Yeah. Hard to know which!

If it ticks all those boxes with parking etc and you don’t think another house of that size in that location will come up in that price range then maybe it is worth the £6k extra?

Walk away. The house is still very overpriced and it doesn't sound as if the seller is serious about selling.
Two reasons to walk away!

Shopgirl, may have got it wrong but it sounds like it isn't 6k, it's 6k extra on top of already being very over priced.

I agree, sounds like seller is in no rush to sell, and probably happily testing the water.

Depending on your local market, and how many boxes this house ticked, it’s probably best to walk away, unless you know you won’t find anything as good (even with all the work required).
Wishing you the best

When we bought our last house it was similar op. We eventually pulled out and found an alternative. 3 months later i had the EA on the phone asking if we would comsider putting an offer back on the table but we were ready to exchange and had found a better house at a much better price. I looked on rightmove and the price had increased since we were trying to buy it and was still on 18 months later before and didnt sell. Soke people just wont budge either because they cant financially or emotionally they are attached

You lot are so wise.

When we first saw it on rightmove, we were amazed at the price. We felt it was overpriced by 50k. And that was before we had two viewings.

The viewings revealed many issues - no heating, damp, 1960s electrics and water cylinder, badly designed kitchen needing attention, old kitchen appliances, filthy carpets.

So our ‘top’ offer was 20k higher than our first offer. Abd I didn’t think we should quibble about, say, 5k. So I convinced DH to add 5k to our top offer

The seller wants another 6k above that. That’s what we are struggling with. It’s only 6k, but we already added 5k wriggle room to the maximum we were comfortable with. So this is now 11k. And we didn’t want a renovation project, either.

And we think he’s deluded, And the EA is lying. But I know that’s irrelevant in the long run. But still, paying 11k more to a deluded seller and a lying EA sticks the throat. What I can’t work out, is whether that’s just too much to put up with.

Walk away then if it’s not worth that money to you. If the seller is in no rush to sell he will just wait until someone comes alone who is happy to pay it.

Along , not alone!

I'd be wary in case you offered the asking price, paid out for surveys etc and the seller ended up pulling out anyway. Sadly happened to us in an almost identical situation.

Has the EA actually got a 'no' from the vendor on your offer? Or is trying to push you up (for commission) or to buy property B that he seems keen for you to buy?
Can you speak to the seller direct?

I don’t think there’s any way of approaching the seller directly. They rent the property out, they don’t live in it.

I’m trusting that the EA is putting offers forward. He has to, legally. But I think he’s of the opinion that we can be persuaded to buy property B, which he’s strangely pushy about. This second property was bought and renovated by somebody who has spent too much on it (for the road). He’s trying to recoup what he spent, but he was foolish to spend it in the first place, and I don’t want to pay for his mistake. The location is also nothing like that of property A.

Why are you so sure it's not worth what he's asking? You've gone pretty close to what he wants if you're only £6k below. Properties are worth what someone is prepared to pay and if you can't find anything comparable or better at the price, it sounds like it is worth more.

On our first home we desperately wanted to buy a house the vendor was in no rush to sell. She was determined to get full asking price. We were FTBs and not in a rush but loved the house. We tried to buy it for a year but she was stubborn and wouldn't budge. In the end we bought it for the asking price. I just wish we had not wasted that whole year.

Only you know if this house is worth that much to you.

I guess it is only worth buying for two reasons, currently, and both are related to the pandemic - stamp duty holiday and lack of supply.

It's quite obvious that house B that the agent is trying to push, was done up by a developer who is a regular seller or a friend of the EA.

Hmm the way you describe the house, who would want to rent it??
The only way to find out if seller actually wants to sell is to offer full asking - they know you are very keen hence trying to squeeze you. But I think he would accept your offer if you waited unless he's simlpy mad (sorry but you have to be after getting no offers for 11 MONTHS).
Mind you, if the rare parking is important to you, and you'll recoup the money, I'd just go for it and rise above his being unreasonable, though only on the proviso that tenants are given notice ASAP if it's still rented.

Oh and no, it's not normal for the EA to take days to reply to your offers when it's an ongoing thing, and always push the other house - so frustrating to have both a slippery agent and no access to direct contact with seller!
Also it's best to subnmit your offers by email so there's a lot less room for dishonesty and they will be obliged then to pass it on, otherwise no proof that you've offered or they rejected. I had this with EAs in particula location - they said that if you want to officially offer, please email, otherwise they treated as tentative/not serious unless it's asking price - though not the case everywhere.

If the vendor isn’t motivated to sell then you might find that the stamp duty holiday passes before you complete and then you’ll be paying £24k more than you think it’s worth plus the £6k he thinks it’s worth plus £8k in SD.

Also, if he’s being difficult at this stage then it’s likely that the purchase process could become long and drawn out with him quibbling over other bits in the future.

Finally, you haven’t mentioned your situation regarding mortgage but it could be that the mortgage valuation is more in line with your view on what the house is worth and it doesn’t sound like this guy will renegotiate at that stage either...

Walk away...

I’m getting my walking boots on!

(Large deposit and small mortgage, sorry, I didn’t say. So the bank is likely to lend, it would just be us getting ripped off).

Who on earth are they renting to if the house is in such a state. That is so depressing ☹️

I put in an offer 6% below the asking price on a house that was sound but needed complete redecoration, new flooring and new kitchen. Offer was rejected out of hand, they didn’t come back to me with a counter-offer so I walked away. The house had been for sale six months with that estate agent but also six months with a previous estate agent. Six months later it sold, after the owners had recarpeted and redecorated one room and reduced the asking price by 5K. I’m dying to find out what the owners got for it.

You know you need to walk away.

I do really.

You could find out what it sold for on rightmove!

Two people have mentioned this house renting out in its current state, but it’s let out as a holiday home, so it’s not quite so depressing!

Yes, the sale hasn’t completed yet but when it does I WILL KNOW.