What to do after purchase collapse

[Squigglesonthebear]

Hi all. Six months after having an offer accepted on a purchase property, the chain above us has collapsed and our vendor has withdrawn from the sale. Our buyers (bottom of the chain) are hanging in there so we are desperately trying to find a new property. However, there is very little on the market and the few that we have tried to view are already under offer but haven't yet been removed from rightmove.

We are finding that prices have increased even further since we first came to the market and our previously decent budget just isn't enough. We really thought the offer we'd received on our little two bed was the ceiling price and that we'd never achieve more, but having done some research it seems we realistically could get £15-20k more. I would hate to ask our buyers for more, particularly as they've been so easy-going and patient, but we are at risk of being unable to find a new property due to being priced out.

With young children and pets (and a competitive rental market) renting isn't ideal for us and could excerbate our issue. I'm assuming the only other option is to pull out and try again maybe next year, but again I would feel terrible for our buyers.

You could be honest with your buyers - you’re willing to keep looking with your current budget but concerned you won’t find anywhere. They may have the budget to increase their offer and may be willing to do so to keep your little bit of the chain together, it will depend on their situation and how you present it to them I imagine?

Would £15k really make enough difference to allow you to get somewhere you’re happy with though? Or is there something you could compromise on instead…?

What a nightmare.
Normally I’d say to proceed with your sale , then you’d be in a great position to pounce on a property as soon as it comes up for sale. But the hassle of renting (and expense) plus the current market…,

What are your reasons for moving? If it’s a relocation due to work or something then you presumably have to move. If it’s a next step up in same area, perhaps not.

If you don’t have the budget for the next step up, it seems you have no option but to withdraw. It’s hard on your buyers, but you can’t sell at under market value just so you won’t upset them.

It's understandable to feel awful for your buyers, but the market has moved on in six months. You probably don't have much choice here, you're not being unkind or unreasonable to have to increase your sale price.

It's a big purchase, don't sell at a cheaper price just to be nice to strangers.

I'd give them a chance to up their offer first to that extra bit you need and if they can't then put it back on the market.

This was me a couple of months back, buyer hanging in for nearly twelve months, posted on here about it.
I had some very negative comments but also some nice, yes they were hanging because nothing else available and the market had increased.
If I could of found something I would of moved but nothing available, not possible to rent(mortgage free so using some of my house money ) pets to consider. Withdrew from the sale, still been looking at rightmove daily but still nothing 😱
I feel your pain OP.
Yes your buyers will hang in, not sure what they would say for an increase in price (probably hoping you'll find something so they have a bargain!).
I'm sure my buyer would of reduced their offer if the market started to drop.

I'm in a similar situation just from the other side. We've had our offer accepted way back in March and lost two lots of buyers since. Trying for third time now to keep chain together, fingers crossed they won't mess with the price.

Our first lot pulled out after it took us 6 months to find an onward purchase. Think as long as you're honest that you'll do your best and keep looking they can hang on as long as they can. If they pull out cause it's taking too long then it's their choice and you got nothing to feel guilty about. If they drop out you can relist at higher price and still keep looking, I agree prices are mental atm considering stamp duty is back on. Also most ppl only accept offers from proceedable buyers. At least that's the issue we had.