Avoiding making the same mistake again...strung along by agents & buyer

[Greenfairydust]

So today I had a call from the estate agent about someone making a higher offer on the house I was interested in just as I was about to instruct my solicitor to start the buying process.

I had concerns about the process from the start and was interested in getting feedback from people on what I did wrong. I am not a first time buyer but previously had a shared-ownership property which is a slightly more straight-forward buying process.

I made an offer on a small house with a tiny garden, lower than the asking price but reasonable as it had been on the market for some time & was unlikely to attract families. I made my financial position crystal clear from the very start: I had a buyer for my property, the sale would complete this month and I would get a small mortgage to top this up.

The agent then wasted my time asking for more details and source, not just proof, of funds (which I thought should be done later in the process between solicitors) and intrusive details, even after I provided a mortgage in principle and I kept stating that my sale was progressing as planned.

My sale completed and I was so pleased that everything was coming together and then today I got this call...I told the agent I was not interested in over-bidding and wished the seller good luck. They said they would speak to the seller and get back to me.

I think basically they took advantage of my nativity and were always planning to play for time and try to get another buyer to pay more, although I had been told my offer was accepted or they are trying to squeeze more money out of me at the last minute.

They refused to take the property off the market while my own sale was still ongoing and while I responded to their endless demands for ever more intrusive information.

I know that gazumping is unfortunately perfectly legal but I wonder if I should have insisted that the property was taken off the market immediately and walked away then and there.

To avoid a repeat with another house, should I be:

• making it clear my offer is conditional to the property being taken off the market straight away
• not engage in detailed conversation with the agent about my finances beyond saying ''here is my mortgage in principle, the rest of the funds come from a recent sale and are on my bank account, any further queries (ID checks, source of funds) will be discussed between solicitors''.

Any advice is much appreciated. I have quite a tough year with anything from illness, job change, recent move into a rental and leaving an abusive partner so I am aware my exhaustion and overwhelm is making me prime target for pushy estate agents and I want to learn from this....

''@Twiglets1
You’re quite aggressive in the way you respond to people trying to help you OP and I wonder if that is one reason that your purchase failed.''

Totally uncalled for.

It is not being ''aggressive'' to have to correct the people who keep stating the same nonsense because they have not read the thread correctly (such as ''why didn't you provide a bank statement'') and who choose to assume that the seller must be in the right and the buyer must be the flaky/difficult one.

I am always with people politely but at the same time there is no need for me to respond in a friendly manner to people who have a bias from the start and don't check the facts provided first before making a comment.

I tend to find that in women assertiveness is also often describe as ''aggressiveness''...

You have been extremely slow to instruct a solicitor and organise the survey and apparently made a lot of fuss about the financial checks. Your vendors probably didn't believe you were fully committed.

You don't wait until your own sale is complete before getting fully engaged in the process - that's how chains work.

@LindorDoubleChoc
You have been extremely slow to instruct a solicitor and organise the survey ''and apparently made a lot of fuss about the financial checks. Your vendors probably didn't believe you were fully committed.''

Again, more assumptions.

The property has tenants in and organising a full structural survey isn't possible until January. And no I have not been ''extremely slow'' in engaging a solicitor. I was going to use the solicitor who handled my sale but only a fool would instruct a solicitor when a seller/EA are stalling about an offer.

Trust and commitment work both ways.

I did not ''make a fuss''' about financial checks. My position was made clear to the agent from the start.

I think this thread is just going in circles now.

So thank you to everyone who offered constructive advice.

For people who just came to it with the mindset that the seller is always right then I hope I also showed that buyers just don't like being messed around by estate agents or sellers who come across as too greedy and untrustworthy. if you accept an offer from someone, then make sure your agent communicates well and does not play games. If you are unhappy with the offer just reject it quickly and don't waste the buyer's time.

Sounds like the sellers were always hedging for a better offer, as normally you would aim to complete on both your old and new property at the same time.

I have always made offers subject to removal from the market immediately. Then supplied proof of id and finds immediately to the agent.

Ok so the vendor was "stalling" about your offer now. Does that mean it was never accepted? As a pp said you need to have a solicitor instructed to have an offer accepted. At this stage it is quite normal for EAs to take the property off active marketing, which is where SSTC comes in. I have a significant amount of professional experience in the business. Perhaps get yourself a bit more familiar with the normal steps in the buying process for next time.

Getting them to take the house off the market once they’ve accepted your offer yes, that’s standard and is something I would insist upon. But the ID stuff and checking source of funds is absolutely normal and not suspicious and it does sound a bit like you might have put them off by being a bit wary/ defensive about this. Just remember, it’s easy to slag estate agents off and some are awful but many just want the deal to get done and you have to work with them to get the best houses or get the deal across the line.

Right, so once again you are refusing to listen to what is being said to you. You are defensive and think lots of people are out to get you. I’m trying to tell you how you come across which is borderline aggressive rather than assertive. This may not be your normal tone but if it is I can see why it would lead to conflict with people. House buying is stressful enough without adding to the stress by assuming that the agent is out to get you when really they are just asking for the same information on your identity & financials that they ask everyone.

I thought nowadays agents wouldn't take off the market until solicitors had been instructed because it shows the buyers are serious. Sometimes takes a bit of time if they don't already have a solicitor/shop around for best deal.

Thank you again everyone who are giving constructive advice which I am definitely appreciating.

I am in a better position now having sold my property so I will take the approach of asking for the property to be removed from the market as soon as the offer is accepted and making sure the initial steps are completed as quickly (ID checks, proof of funds and so on) as possible as this show commitment on both sides.

As mentioned I have absolutely no interest in responding to the other type of messages that bring nothing whatsoever to the debate.

It's normal, because of money laundering laws I think, to check the original source of funds as well as where they actually are. Our conveyancer dealt with that- we just gave her the information she asked for and and allowed her to ask our financial advisor for any other information she needed. She told the vendors solicitors and house agents anything they had a right to know.
Asking for more money is a different thing altogether.

Once I’ve got an offer accepted on a property, I always instruct a solicitor with immediate effect. This demonstrates to a seller you are serious about the purchase and proactive.

I give all financial details to EA with immediate effect - again demonstrating you are a proactive buyer.

When selling, if a buyer is proactive and quick to instruct their solicitor, quick to order searches, quick providing estate agents with all necessary financial information etc then I wouldn’t take a higher offer as a good buyer is worth the financial loss.
If a higher offer (or even lower offer) came in and the current buyer still hadn’t instructed a solicitor then I’d definitely go with the other offer. I’ve had so many buyers who are slow to send details to EA, slow to instruct a solicitor and the extra money isn’t worth dealing with someone like this.

If you find another property:
-Offer what you are happy to pay and be clear on your financial position (how much is mortgage). Be clear on the fact you have nothing to sell and can complete quickly if needed.
-When you put the offer in advise EA you have proof of funds etc ready to send
-If the offer is accepted then send these to EA immediately and ask them to inform seller they have been received
-Advise EA you are happy to provide any additional information they require
-Advise EA you have a good solicitor who can complete quickly (if this is the case) and you are ready to instruct solicitor once property is marked SSTC.
-Be proactive in chasing your solicitor and EA. Ask solicitor to order searches early etc if you want, inform EA of solicitors progress.
-Be proactive in chasing mortgage company
-Communicate with EA to advise vendor where you are up to at all stages.

@MilkToastHoney

Thank you. Your list of best practice steps to take is really helpful.

'House buying is stressful enough without adding to the stress by assuming that the agent is out to get you when really they are just asking for the same information on your identity & financials that they ask everyone.'

Yes - moving is upsetting. People get upset.

Haha, that is funny "don't you come the verbals with me!"

Op, it is not clear to.me whether your offer was accepted in the first place. If it was, then you should have instructed immediately without any delay. If it wasn't (you wrote "seller dragging his feet") then I'm afraid that your understanding of an 'agreement' was just wishful thinking

@WEEonline

Thank you for your feedback.

I don't think it was just ''wishful thinking'' because they said they accepted the offer but were keen to wait for my sale to complete first and the agent called me every week to check that I was still on track to complete.

Again, I think I made it quite clear that there was no point in me instructing anyone under these circumstances if the offer acceptance came with a condition.

Interestingly the property is still showing as available on the agent website and Rightmove in spite of that supposedly higher second offer made 3 weeks ago so my feeling is that either there was no other offer and the agent tried to get me to submit a higher or that the seller is holding on for ever more money and is just wasting everyone's time so I am actually happy to be out of this game...

Are there still tenants in the property? If so, that might be another part of the delay. I'd want assurances that the tenants had plans in place before spending too much money on the purchase.

I sympathise that the financial checks are onerous. However having had a friend who has still not moved despite selling her house in January because people who couldn't afford her house kept offering and obviously it then fell through I can see both sides. I had to jump through lots of hoops and several times but in the end I really did want the house so I was prepared to dance to their tune. It is frustrating though. Especially where you feel the goalposts are changing and you are being lied to.

For next time, yes I'm afraid you'll need to jump through financial hoops but I would also insist on the property being removed from the market before I instructed a solicitor. I would get a friend to call up to ask for a viewing to make sure the estate agent is being truthful too.

My buyer insisted on it being taken off the market the day after their offer was accepted. That was fine by me.

@Chesure Thank you for your feedback.

I am in a better position now as the money from my sale is in my bank & with the mortgage in principle in place as well there is no issue with proof of funds.

I will insist on the house being taken off the market immediately next time I make an offer.

I do think it was a case of either a seller who is flakey and is always looking for a better offer or a dodgy estate agent. It does not surprise me the the property appears to still be on the market...either they are doing the same thing to a new potential buyer (playing for time and refusing to take the house off the market) or there was neither a higher offer in the first place. Their loss.

You say they are trying to squeeze more money out of me at the last minute but last minute in a house buying context would imply just before exchange.

But it sounds like the vendor hadn't even accepted your offer, and they were honest with you that it wouldn't be taken off the market.

How long between putting forward your offer and recieving the phone call about the other offer?

The EA didn't waste your time with the financial checks, that's perfectly acceptable.

It sounds as though you put forward your offer, it was kept 'on the table' and the EA did their due diligence. Then another offer came forward and they've let you know.

You're in a great buying position now with your sale completed and mortgage in principal.

If you do withdraw, then next time put forward your offer with an outline of your position and say you want to hear back within 48 hours, and if it is accepted then it is removed from the market, and reassure them you'll instruct a solicitor as soon as you receive the memo of sale.