Offer accepted but vendor hasn’t found a place. Any advice

Helpiamconfused · 2021-02-28T21:30:50+00:00

Hi everyone, I have an offer accepted for a nice 3 bed house that I really love. Problem is vendor still searching. I am a first time buyer so no experience on house purchases. Estate agent is surely working for vendor so I can’t rely on their advice. Have you been in my position. What did u do? Should I apply for mortgage or not? Should I begin searches? Should I do survey? Any advice is very welcome. Thanks all

heidihigh · 28/02/2021 21:38

Yes, we have had offers accepted on 2 houses where the vendor hasn't found anywhere to live. Unfortunately, they both resulted in the vendors pulling out of the sale as they were unable to find anywhere.

That's not to say that's always the case though - as far as I am aware, many estate agents will not let people view properties (especially at the minute) until they are in a position to proceed (I.e are under offer on their current property)

I personally would decide how long you are willing to wait for them to find somewhere. Would also probably hold off from investing massive amount of money on searches/solicitors etc.

Original poster

Helpiamconfused · 28/02/2021 22:14

@heidihigh, thank you so much. I will hold off on solicitors and searches.

What do you think of mortgage application? I have agreement in principle and my finances are stable

OP posts:

heidihigh · 28/02/2021 22:20

Mortgage application is a difficult one - on one hand it's good to have it sorted and in place and some lenders are taking a few weeks to process applications and offers at the moment. On the other, mortgage offers have expiry dates (think ours is valid for 6 months) and although I believe most lenders will extend the offers for you, I know ours is subject to another valuation which we will be charged for.

Sorry, that's probably not much help. It's a really awkward position to be in, I don't envy you!

Hallyup5 · 28/02/2021 22:44

What Heidihigh said. It's not unusual for estate agents to prevent viewings from people who don't have an offer on their house, and it's also likely that, even if they did allow viewings, the vendor would be sensible to reject any offer from someone who wasn't proceedable.

Depends how desperate you are to move. Give the vendor some time as the market is pretty flat at the moment. Personally I'd start searches and surveys as a sign to the vendor that you're serious. If I was totally in love with the house then I'd be willing to risk some cash for it.

Original poster

Helpiamconfused · 28/02/2021 22:45

@heidihigh, thank you. You told me the truth, and that is what I need right now. You have been really helpful. Thanks

OP posts:

Strangestthings · 01/03/2021 07:06

Agree with above. We have just accepted an offer on our house and we’re now looking for our own to buy. No estate agents would let us view till we had sold so this is not unusual right now.

TierFourTears · 01/03/2021 07:15

When was the offer accepted? Are you talking days, weeks or months?

Roselilly36 · 01/03/2021 07:24

We have recently moved, we accepted on offer on our house, took us a couple of weeks to find the property we wanted, if we hadn’t of found somewhere we really loved, and we would have pulled out, thankfully it all turned out ok.

Iamtooknackeredtorun · 01/03/2021 07:32

I agree with everything above. A couple of other observations as well.

If the stamp duty extension goes ahead the market will probably pick up again which should give your seller some more options.

Also I sold mine to FTB and I know they were anxious about me finding somewhere. I wanted to sell mine so worked as quickly as I could to find a place. We completed last week. A lot will depend on how keen they are to sell.

Mumtothelittlefella · 01/03/2021 07:36

We’re 3 weeks from exchange and found out at the weekend that the tenant now doesn’t have any where to move to. This has been covered off early in the process so we’re gutted. We’ve spent a huge sum on a property that wasn’t ever sellable to start with. The tenant has had six months to find a new place but is going to fully exercise their rights to stay. The vendor and agents should have been on the ball. We’re now back to square one and a couple of ££££’s down.

NameChangedForThisFeb21 · 01/03/2021 07:37

Different scenario but when I bought my vendor’s new home hadn’t been built, they’d just purchased the plot of land!

We negotiated and got a lot off the asking price with the argument that we’d have to rent somewhere as we were in a position to move immediately. In the end we moved in with DPs parents for 10 months while the vendor’s new house was being built. This got delayed but we’d drawn up a contract of them having to move out by x date so they stayed in a caravan for a bit.

So don’t be afraid to negotiate if you have to. People frequently move in temporarily with friends/family or rent/air B and B if they are serious about selling.

Maxellious · 01/03/2021 08:04

Personally, I wouldn't spend any money yet. I'd tell the agent that I was waiting until the chain is complete. Give them your solicitors details but ask your solicitor to wait. The problem is you spend quite a bit of money upfront with house buying. I'd also mention to the agent that you will be keeping your eye on the market but will hold off viewing anything else for 2/3 weeks.

If you do apply for a mortgage, make sure to add any fees to the mortgage. That way, if the purchase falls through, you don't loose the mortgage fee money (most lenders won't refund if you pay upfront)

MyCatLovesFish · 01/03/2021 08:32

Yes don't spend any money yet. You can only move as fast as the sellers' purchase anyway so once they have their offer on somewhere accepted is the right time to start your conveyancing process.

As they might not find somewhere I would also keep looking yourself. There is no rule against it.

DespairingHomeowner · 01/03/2021 08:45

@Maxellious

Personally, I wouldn't spend any money yet. I'd tell the agent that I was waiting until the chain is complete. Give them your solicitors details but ask your solicitor to wait. The problem is you spend quite a bit of money upfront with house buying. I'd also mention to the agent that you will be keeping your eye on the market but will hold off viewing anything else for 2/3 weeks.

If you do apply for a mortgage, make sure to add any fees to the mortgage. That way, if the purchase falls through, you don't loose the mortgage fee money (most lenders won't refund if you pay upfront)

Agree with all this & @MyCatLovesFish

Check in after 2 weeks, then another 4 to see what progress there is, but if you can, don't spend on a survey until the vendors have found a house to move to.

If nothing happening in about 3-4 weeks, make an excuse to go back & see if there is any sign of them preparing to move (my house I was offering on had stuff in boxes as people wanted to move!)

My sister had an offer accepted on a house, vendors were 'starting looking' but not v active. 6 months later they have pulled out, she has paid for survey, lost chance to get SD exemption (probably), its not cost them anything...

DespairingHomeowner · 01/03/2021 08:50

Just to add, I think 1 month to find a house is quick, 2-3 months is dragging their heels (I found my place within 3 weeks of getting offer accepted on mine, but that was a rush)

To give an idea of timings recently:

Mortgage offers - mine & buyers took 5-7 weeks to come in (before xmas) which is a long time. 3-4 weeks would be more typical. also waiting 3 weeks or so for buyers survey, 2 for mine, searches were taking around 10 weeks but you can check that with your EA as they will have an idea

Are the vendors willing to go into rented to complete the sale if they have not found a place within a certain timeframe? I think this isa a reasonable question to ask before you start spending money.

Sister's place they said they would after a certain timeframe (though eventually pulled out due to redundancy). I think they behaved poorly as they knew (it was consultation period) but let her pay for a survey...

Persipan · 01/03/2021 08:52

If nothing happening in about 3-4 weeks, make an excuse to go back & see if there is any sign of them preparing to move (my house I was offering on had stuff in boxes as people wanted to move!)

I've accepted an offer on my flat and am searching for a property right now, but there's not a lot coming on, and I'm conscious that even when I have an offer accepted, those vendors will probably need to start searching and who knows how long the chain will end up? I most certainly have not started putting stuff in boxes.

OP, what my EA has agreed with me is that we'll check in every week or so, so they can keep my buyer updated about my search progress. You might ask for something similar. It's slow going at the moment due to covid, though - most agents won't allow viewings until buyers are proceedable, so it's like dominoes in treacle.

sunnydaleslayer · 01/03/2021 08:53

I think it's standard practice these days to sell your house before you start looking, which they have done.

As you're a FTB the vendor's position in the chain is favourable so if they do find somewhere and there's any competition they will be in a good position to have their offers accepted.

I wouldn't worry too much. It's just the nature of the house buying chain.

GU24Mum · 01/03/2021 09:08

OP, don't spend any money yet. The only thing you might want to do is find a solicitor and go through their new client checks so that you're ready to go but otherwise you're really risking your money. It's always a risk even in a completed chain but you've no guarantee your chain will ever even get off the ground.

I'd be looking now though trickier if a property is for sale with the same agent.

Original poster

Helpiamconfused · 01/03/2021 09:44

Thanks everyone.

@DespairingHomeowner, I have asked the vendor what will happen if they don’t find a place soon, they said they will just keep looking. They told me they don’t have anyone to take them in (I didn’t push the rental option for them).

OP posts:

DespairingHomeowner · 01/03/2021 09:58

@Persipan: agree not everyone does, but if people are highly motivated to sell the clutter they get rid of for viewings does not come back!

This is case for me, neighbours, houses I have offered on in past etc - particularly when people are relocating, so more motivated to make it happen. Talking to friends & family, these kind of local/upsize moves are the ones more likely to go off if people dont' find what they want in budget, so always good to find out what is going on

In your position, I would be looking at other houses (with other agents) & give them a timeline in my head of 4-8 weeks.

How 'hot' is your area? Could they very easily find another buyer if you pulled out (in which case, they will be working to their timeline not yours) - which it sounds like from the answer you gave

I overpaid a bit for the house I am buying (i think by 5-10K) but I felt more comfortable to do so as it was VERY obvious the people were moving (they had a 'giveaway' pile of books in front garden, clutter boxed up etc), and they stated from outset they were going to move into a rental - these are times when you can be more confident.

You have nothing to lose by looking around, and you might find a better house, OR even one where the sale has fallen through & they need a new buyer to complete the chain which puts you in a better position (saw a couple of those too): i'd just do it with a different agent

Home buying/selling is so uncertain/stressful: next time I hope to move into rented myself

DespairingHomeowner · 01/03/2021 10:00

@Helpiamconfused

Thanks everyone.

@DespairingHomeowner, I have asked the vendor what will happen if they don’t find a place soon, they said they will just keep looking. They told me they don’t have anyone to take them in (I didn’t push the rental option for them).

In this case, they should not be putting you under any pressure to spend money, & I would push back if they do

RainingBatsAndFrogs · 01/03/2021 10:18

I would ask the agent if they would be willing to move into rental if they have not found somewhere within your preferred deadline.

They might, or might not, it is worth asking. Do you have a date by which, ideally, you need to have moved by?

Persipan · 01/03/2021 10:27

@DespairingHomeowner I did get rid of clutter for viewings. If I started putting stuff in boxes is be creating a load of box-clutter that would hang around getting in the way for a timescale that cannot be less than months. I'm perfectly motivated but I don't particularly want to live in the warehouse from the end of Raiders of the Lost Ark just to prove it to my buyer in the offchance she happens to decide to view again.

OP, the thing I would say about looking at other properties is, unless you look exclusively at chain-free properties, you could perfectly well end up in exactly the same situation just resetting the clock with a different vendor. I do agree that there comes a point to move on, but it's a balancing act, especially at the moment

LeaveMyDamnJam · 01/03/2021 10:30

You need to set expectations with the vendor. Consider when you would like to complete and work from there. If you are vague about your end of this business deal - which is what it is - they won’t act with urgency.

starfishmummy · 01/03/2021 10:35

@Helpiamconfused

Thanks everyone.

@DespairingHomeowner, I have asked the vendor what will happen if they don’t find a place soon, they said they will just keep looking. They told me they don’t have anyone to take them in (I didn’t push the rental option for them).

Based on this, I definitely wouldn't spend any money on surveys and searches yet. And I'd keep looking.