Should I accept this offer?

[Housely]

On paper this looks like a no brainer but I have no one to discuss this with and would be so grateful for opinions.

My house went live on Boxing Day, with an open day planned for last Saturday. One of the couples who viewed on Saturday have already been back for a second viewing, and have today offered full asking price on condition I cancel all further second viewings.

They are cash buyers and seem very nice and genuine. Do I go with it? Or, bearing in mind, it’s been less than a week, should I be sensible and just wait a bit? Tia.

@GloriaSicTransitMundi

Tell them you'll take it off the market if they put down a non-refundable £5k 'in earnest' deposit. They might seem very nice but could walk away and leave you having to start again.

That's really not likely to happen.

@senua

I would stall, to give time for others (if any) to make their offers. You can stall by asking them to prove their source of funds.

If you do accept then counter-offer. You will take it off the market if they do certain things within a time frame eg appoint solicitors, arrange a survey, etc.

As PP has said, it does seem to be a common tactic to offer FTB + full price + cash buyer which sounds great but then they mess about or gazunder later on. If it sounds too good to be true then it often is.

This makes sense. Even if I were in a hurry to sell, at a minimum, I would ask for that proof of funds before taking it off the market (they can provide that very quickly if they want), and I would ask for the other key actions re: solicitors and survey within a specified timeframe. I might also want to keep those second viewings that are already booked, but offer a verbal (ie not legally binding) commitment to stick with their offer if they respect the actions and timeframe. After all, a verbal commitment (ie not legally binding) is all they are offering you!

Depending how keenly priced your house is, and how in-demand, there is a possibility it could go for more than asking price if it goes to "best and final offers". I'm aware of a recent situation with seven offers, six sealed bids put in, and the house went to a cash buyer for almost 10% over asking price... not saying that's going to be you, but it could be!

GloriaSicTransitMundi

Tell them you'll take it off the market if they put down a non-refundable £5k 'in earnest' deposit. They might seem very nice but could walk away and leave you having to start again.

@SeasonFinale
That is a ridiculous suggestion and I don't know any buyer who would do anything nut walk away. They won't have had a survey done at this point.

@Mildura
That's really not likely to happen.

OK then, make it refundable conditional upon getting a survey. It will at least open the conversation and show how serious they really are. If they want the property held just for them, they need to put their money where their mouth is. How many times have we heard about dead-cert buyers who've walked away leaving the seller in the lurch?

www.mumsnet.com/Talk/property/4451642-buyer-screwed-us-over-today?

rc22
We've just had a buyer pull out of our sale at the last minute because of an issue with the property that we've been absolutely open about from day one. Fuming!!

A bird in the hand etc etc

I'd accept it on condition of proof of funds and instruction of solicitor. Then at least you can see they are serious (plus you can legitimately let the other people view in the meantime).

Would your estate agent be of use to ask? It's been a long time since we bought but when we out in the offer for our house, the estate agent actually advised the vendors to accept immediately, cancel all other viewings and remove from market. That said, they were fully aware of our position to proceed.

If they really are true cash buyers, I'd accept the offer.
I have a feeling you reap what you sow with house sales, if you do the whole old school my word is my bond stuff and agree the price, there's less likely to be any mucking about around exchange time. Certainly it worked for me last year, but ultimately only you can decide what is the right approach.

I would accept subject to proof of funding which most Estate Agents should do anyway.

@pilates

I would accept subject to proof of funding which most Estate Agents should do anyway.

Proof of funding is not proof of intention to actually buy! It's a start, but no more. I'd need something more concrete before taking it off the market.

The way the system works in England you cannot get anything more concrete. Preliminary deposits are not used by agents or solicitors.

Not usually used, @Pilates, but they can and have been used on occasion. That's how I know about this, my aunt sold a family property after probate at 10% below market rate on condition of a earnest deposit being paid into an escrow account. Buyer complied, sale went through quickly and everyone was happy especially the other beneficiaries who'd agreed the reduction in order to get their inheritance more quickly.

Pre-contract deposits are phenominally rare.

Possibly a bit of an incentive for a buyer to consider one if they were getting a 10% discount, but I do struggle to think why as a seller this would be a good idea.

@Mildura

Pre-contract deposits are phenominally rare.

Possibly a bit of an incentive for a buyer to consider one if they were getting a 10% discount, but I do struggle to think why as a seller this would be a good idea.

Why do you struggle with the idea of locking in your buyer to a financial commitment? If they're not serious, they can just walk away or try gazzundering you days or hours before exchange. If they are serious, an earnest money deposit should be no problem.

IMO should be used more in England, stop the whole gazzumping / gazzundering problem, which doesn't happen in Scotland because when an offer's accepted it's legally binding on both parties.

Don’t Kirsty and Phil do this all the time?

@Riverlee

Don’t Kirsty and Phil do this all the time?

They used to.

At the moment it's more of a sellers' market: have you not noticed that MN is on to the second thread of "Anyone not being picky - and STILL can't find anything?"

@stingofthebutterfly

I'd honour any second viewings already arranged, and ask the ea to confirm they are genuine cash buyers. Make anyone who comes for a second viewing aware that you already have a full price offer. Once that's done, you may get a higher offer. Decide then.

Yes, I’d want to see full proof of finance via the EA. We had had a few offers when we were in this situation and asked for best and final before stopping further viewings.

@GloriaSicTransitMundi

I am not struggling with the idea, I am highlighting the fact that as it is so rare in English property transactions there is no standardised agreement/contract that clarifies under what circumstances the deposit is retained by the vendor or returned to the purchaser, or who holds the deposit, meaning there can potentially be significant lengthy negotiations between respective solicitors before an agreement is reached.

I fully understand the concept, but without fundamental changes to the way property is bought/sold in England and Wales a non-refundable pre-contract deposit is unlikely to become commonplace.

That's normal ! If I want a house I don't want anyone else seeing it .

[quote Mildura]**@GloriaSicTransitMundi

I am not struggling with the idea, I am highlighting the fact that as it is so rare in English property transactions there is no standardised agreement/contract that clarifies under what circumstances the deposit is retained by the vendor or returned to the purchaser, or who holds the deposit, meaning there can potentially be significant lengthy negotiations between respective solicitors before an agreement is reached.

I fully understand the concept, but without fundamental changes to the way property is bought/sold in England and Wales a non-refundable pre-contract deposit is unlikely to become commonplace.[/quote]
Sorry, I was answering your 'but I do struggle to think why as a seller this would be a good idea' in your earlier response. Yes I absolutely agree that fundamental changes are needed to the way property is bought/sold in England and Wales. Also to the whole sorry leasehold situation, but they're too busy holding cheese and wine parties meetings in Downing Street to pass laws make things easier for us law-abiding plebs.

Get EA to check they have funds in their bank account. Once that is confirmed id stop other viewings and snap their hand off. No chain is worth a lot in my book.

If you allow second viewings and someone else offers FAP and it goes to final and next offers be aware once the BS valuer values it that is all BS will offer to lend, so getting higher than value offers sounds great in practice but they often get put back down by BS surveyer.

I agree that you must ask for proof of funds before it is withdrawn from sale. This is standard practice and your EA should be doing this automatically.

This means the buyer has to show the EA evidence they are a cash buyer. Any serious cash buyer knows they will be asked to do this and has the paperwork ready or at a push can get it sorted in 24-48 hours. If they can’t, it questionable whether they really are, or their commitment to buy.

During the period you wait for evidence, Inwoukd be prepared for no further buyers to see the house but it to remain on the websites as for sale and not to be marked SSTC.

It is totally usual when you acccept any offer to remove it from sale …..BUT wise buyers don’t do so until the Memorandum of Sale is produced. For this to happen the EA should expect to see (and buyer should insist on) proof of funds (deposit or full amount if cash buyer) and mortgage offer in principle and name of solicitor.

If you are a buyer, ensure you have this stuff ready to show when you make an offer. If you have, the chances if someone slipping in with another offer are reduced..you can never remove the risk of another offer entirely, but if you show documents, get the property taken off the market, instruct legal proceedings and reply to EA and solicitor requests for info by return of post, you give yourself the best chance. Delays are a key cause of problems creeping in. You want to keep it all moving forward.

Thanks so much for all further advice and opinions. I’ve decided, after so much fab advice here, to accept their offer, on condition that they can show proof of funds. Until then house will stay on websites.

Really appreciate everyone taking time to advise someone completely clueless!

Great update @Housely, and very best wishes that everything goes smoothly for you.