Would you relist?

[Tablechairtable7]

We listed our London property 3 months ago, and got offers over asking price. We went with one buyer who said they’d proceed quickly, and was the middle price and not the highest.

Three months down the line, they still don’t have their finance sorted. They respond quickly to questions, but they’ve had trouble getting a mortgage and still don’t have it in place.

Our solicitor says she hasn’t heard from their solicitor at all.

Now our EA is telling us our property is worth more than they’re paying, and that if we want to relist, she’s confident she can get a buyer quickly.

I don’t want to be unfair to these buyers, but we were supposed to have moved on June 30 (that didn’t happen) and now the July date we’ve given them probably won’t happen either.

I know a new buyer would take longer, but I feel a little bit like we’ve been strung along by people who can’t really afford our property anyway…

Should I relist? (If we do, the EA isn’t planning on re-marketing, she is going to go to her list of people and do off-market viewings.)

@Tablechairtable7

An update: my husband has just emailed the buyers to tell them we’ve withdrawn our acceptance of their offer and detailed why. And I have just emailed our solicitor and told her the same (including telling her about the buyer’s request to give us some of the money separately).

The EA is going to start marketing the property next week.

If the buyers reply, I will update you and let you know what they say!

Thank you all for your advice - this thread has been incredibly helpful!

I feel quite naive and a bit stupid, but also relieved to not have those buyers anymore!

I feel relieved for you, OP!

Please don't feel stupid, it's a stressful process and you naturally put trust in the 'professionals' around you - so easy to overlook things, and sounds like your gut was telling you it wasn't right.

Insist on knowing the full picture with your next buyers, and no fraud best of luck!

In case anyone wanted another update!

The buyers called my husband in response to his email. They asked him if they get everything done quickly, can they still be in with a chance at buying our property. I feel a little done with it all, so I was signalling “no”. He said we’re going to be using the estate agent to re-market it.

He had told them in his email that we are not comfortable about some money being paid separately, but he talked about it again on the phone. They said they could only get a mortgage for a certain amount and that’s why. Presumably because they’ll be borrowing it as a separate loan when the mortgage has gone through?

Anyway he said it’s something that would have to be squared away by the solicitors and not something we felt ok with doing. He also stressed that we are definitely re-marketing it. And they said they still really want to buy the property.

I had a quick look on Rightmove and I see why they’re desperate to still be considered. There isn’t anything on the market that is similar to our property for the price. The only real comparable in the area has an asking price at £50,000 more than they have.

I feel for them. And they seemed like nice people. We would have sold to them if they’d sorted it out quickly - and the sending extra money separately thing hadn’t happened.

Like I said before, our estate agent (the one we’re re-marketing the property with) is the agent who sold to us, and not the agent we used to find these buyers - we used an online agent for that, which is why we’re the ones communicating with these buyers.

Anyway, although I haven’t put the real property price on here, everything else is how it happened so if they read this thread I’m sure they’ll recognise themselves .

@Tablechairtable7

In case anyone wanted another update!

The buyers called my husband in response to his email. They asked him if they get everything done quickly, can they still be in with a chance at buying our property. I feel a little done with it all, so I was signalling “no”. He said we’re going to be using the estate agent to re-market it.

He had told them in his email that we are not comfortable about some money being paid separately, but he talked about it again on the phone. They said they could only get a mortgage for a certain amount and that’s why. Presumably because they’ll be borrowing it as a separate loan when the mortgage has gone through?

Anyway he said it’s something that would have to be squared away by the solicitors and not something we felt ok with doing. He also stressed that we are definitely re-marketing it. And they said they still really want to buy the property.

I had a quick look on Rightmove and I see why they’re desperate to still be considered. There isn’t anything on the market that is similar to our property for the price. The only real comparable in the area has an asking price at £50,000 more than they have.

I feel for them. And they seemed like nice people. We would have sold to them if they’d sorted it out quickly - and the sending extra money separately thing hadn’t happened.

Like I said before, our estate agent (the one we’re re-marketing the property with) is the agent who sold to us, and not the agent we used to find these buyers - we used an online agent for that, which is why we’re the ones communicating with these buyers.

Anyway, although I haven’t put the real property price on here, everything else is how it happened so if they read this thread I’m sure they’ll recognise themselves .

So they've confirmed that they don't have the money to buy the house without committing fraud.

If they have a chunk of money, then they put this into the deposit. This sounds like they don't even have the deposit money, they are trying to get a loan from another place as well as the mortgage, attempt to not declare it to the mortgage and commit mortgage fraud. With fraud on stamp duty there too. Trying to pay for a house cash in hand, illegally.

I really wouldn't be feeling for them here. They need to find a house they can actually afford.

If you sold via the first EA, wouldn't the one you are relisting with want commission? Or doesn't it work that way? It all sounds very confusing!

I'm selling a house. The buyer was slow to proceed but now all searches & enquiries have been done, etc, just waiting on a mortgage offer.

Your sale could still fail on the enquiries, so these should have been sorted. I would expect no chance of completing in a month with no legal work done.

If the ‘extra money’ is legit savings or a family gift or whatever, and us included in the total sale price in the contract on exchange, all fine.

But have they got all that money plus mortgage in place?

And will you get a higher offer by re-listing?

Tell them to go through new EA.

So they've confirmed that they don't have the money to buy the house without committing fraud.

If they have a chunk of money, then they put this into the deposit. This sounds like they don't even have the deposit money, they are trying to get a loan from another place as well as the mortgage, attempt to not declare it to the mortgage and commit mortgage fraud. With fraud on stamp duty there too. Trying to pay for a house cash in hand, illegally.

Yes they told my husband on the phone that they can only get a mortgage for the amount £600k, and not for the extra £15k they bid over asking price. He said something about fraud and money laundering and they said “no, no nothing like that!”. Perhaps they are also naive?

Anyway, I now want nothing to do with any of it!

@Back2Black

If you sold via the first EA, wouldn't the one you are relisting with want commission? Or doesn't it work that way? It all sounds very confusing!

Yes we’ll be paying the new EA commission based on a % of the sale. We negotiated a commission with her though.

Sorry I was vague upthread about the EA. I was trying to remain anonymous then, but have given up now!

@MarianneUnfaithful

If the ‘extra money’ is legit savings or a family gift or whatever, and us included in the total sale price in the contract on exchange, all fine.

But have they got all that money plus mortgage in place?

And will you get a higher offer by re-listing?

Tell them to go through new EA.

Our EA has told us she thinks our property is worth more money now. But I suppose we’ll have to wait and see. I’m never sure if they’re telling us what we want to hear or not.

She said she wants to get a bidding war going after the relaunch day from her list.

Your buyer isnt ready to buy... Its a shame your EA and solicitor didnt suss this out earlier. You seem a bit naive.
A person should have their shit sorted, ie mortgage agreed/savings ready before making offers.
Tell your EA to withdraw the property, and relauch it on 1st september for best effect.

Oh dear, your former buyers simply can’t afford your house. That is unlucky for them, but that is just the way it is I am afraid - and like everybody else, they too will have to cut their clothes according to their financial means.
Going behind the back of the mortgage lender to make some underhand- deal and try to pay the rest of the money from other sources (maxing out the credit cards, perhaps?) is not the way to go here. Where they planning to „buy furniture“ from you? And what would happen if they would refuse to buy the agreed „furniture“? That’s all very dodgy! I am sure you will be able to find new buyers, who can actually afford your property. All the best!

relaunch it on 1st September for best effect.
I can see that things might (normally) be quiet over the summer but (a) OP wants to get on with her life in the new rental and (b) it doesn't give much time before the 31st Oct school admissions deadline.
Crack on, OP.

I really can think of any example in which money legitimately available to the buyer to be used for the purchase can't be included in the deposit. I also can't imagine any solicitor would act for them to see through what they are proposing.

The mortgage company won’t accept money borrowed from elsewhere (ie a loan) as part of the deposit.

Even in instances where a cash amount is included, for example, as part of the deposit, there are strict rules, checks and paperwork involved to verify it to the satisfaction of a lender.

Including a "top up" amount and thus artificially lowering the official Land Registry sale price is not okay and rife with issues, and it's lovely you're thinking of your former buyers so nicely and sympathetically but I'd be very pissed off that they have been happy to string you along, bullshitting throughout, knowing the feasibility of affording your house was non existent.

I'll bet that they wanted to let it limp along to the point of exchange, and then reduce their offer.

Unfortunately being 'nice' isn't always the best way forward in a transaction as expensive, life changing and stressful as a house move. Thinking objectively will really help.

Take it off with the current estate agent and put it on with a new one as a brand-new listing at £625k (or relevant equivalent). If you go back on with the same agent it won't come on as a new listing it will look like you've had it on the market for three months and it will show if you put a price increase. Your current agent has advised you very badly and in the current market to not have a mortgage AIP is very poor practice. Unfortunately you often get what you pay for with agents and I'm afraid in this instance the cheap fee could have cost dearly.

Good luck op - are you going to increase the price when you resist? I would.

Your estate agent sounds useless. It's a basic common sense check to ensure the purchaser proves they had the means to proceed. You are paying them to do this.
Change estate agents and start again would be my advice.
If your solicitor hasn't heard from your buyers solicitor it's not good news. Sounds like this 'sale' is dead in the water

Hey @Tablechairtable7 a
I haven't been back online but seen your update about the part cash thing, for many reasons this is bad as PP have said so glad you have relisted! I have been in the property/conveyancing industry for 15 years so this send shivers down my spine!

How is it going? Are you back on market yet?

basically, their mortgage offer won't stretch to 615k, they will apply for a loan of 15k without declaring it to the lender after the checks are done and mortgage offer agreed, not allowed!
telling you that solicitors will use 615k figures on the paper, little they realise that solicitor is obliged to declare the real price 615k to the lender.

Allthehotchocolate the estate agent is going to do the viewing day this Saturday coming. She wants to get a lot of people coming and then a bidding war. Who knows if that’ll happen! We’ve lost money on this sale (our previous online EA fees, etc) so I’m hoping it’ll sell for a price that will make the money and time we’ve lost worth it! And the stress!

mumsy27 I think that’s pretty accurate. They emailed again yesterday saying how motivated they are to buy it and how they weren’t trying to do anything underhand etc etc, but we won’t do any cash separately and I don’t think they’ll be able to afford it otherwise. Anyway I think it’s all just gone on too long and been too dodgy that I’m put off and just want to start again with a new buyer, even though I know that means a delay of more months.

Why is your EA acting as though she is in charge of all this and you are merely bystanders?

Dont forget OP you are paying them a lot of money for them to provide you with a service. They should be working with you to get the right outcome for you

Well fingers crossed and good luck for Saturday! Let's hope you find someone in a better position this time around.

If you do need to relist with your current agent, as long as you have been off market for 7 weeks (which you have) they can contact Rightmove and get your property listed as 'new' quite easily by just forwarding the memorandum of sale that was issued.

Hopefully you won't need to do this but might be useful if so.

Will have everything crossed for you!

Sounds like your estate agent is doing an open house on Saturday. Good luck.

We had those when we sold our house, it was much less stress as we only had to get the place cleaned up and ready for one viewing. And when the buyers saw there was interest in our house they put in bids.

Hi OP

How’s the open house going? I hope you get an offer! Good luck