Accepted offer, now old buyer returns

[Paralambra]

We started trying to sell a small first time buyer type property at the end of October. This is not the house we live in, but provides a home for a family member and children who would otherwise be homeless. The first estate agency told us it would sell easily. It was originally up for £220,000 on their advice. We got plenty of viewings, dropped the price again and again, as we needed to sell asap in order to buy again and move the family to another area, which is necessary. On 2 or 3 occasions we had offers, but they fell through, due to buyer flakiness, etc. it never got to the survey stage. Once we had an offer of £190k from a first time buyer which the agent scoffed at and basically told them to go away, which we went along with on their advice. The other offers were higher but didn't materialise. After Christmas I was getting frustrated and thinking we had chosen the wrong agent, then they came along with a buyer who made a good offer but had a flat to sell. ~So not in a position to proceed! They kept pushing this buyer, first they had sold their flat, then they hadn't etc. Their offer was at £200K which would have been great if they could have proceeded. I got fed up and gave notice in February and swapped to agent 2. We put it on at offers over £195k.

After about 3-4 weeks we got an offer via agent 2 from first time buyers for £183k. We thought this was disappointingly low and said so. They increased to £186k and said that was as high as they could go. We accepted, as they were first timers who seem keen and genuine. Also prices do seem to be falling and nothing is moving in the market, at least in this area.

But now we had a call from agent 1, the buyer who offered £200k is back as they've now sold (apparently) but would have to reduce the offer to £195k as they got less than they hoped for their flat. I said what a shame, but we can't accept now as we have an agreement with the new buyers. Was that the right thing to do, do you think? It is nearly £10k more, but it is less secure as obviously they're in a chain. We should definitely stick with our first time buyers, right? But I do feel slightly agrreived they've got it for so little, but we were getting desperate.

What would you do? I can't ask either agent really as they are each out for their own commision so their advice will be based on their own interests.

Ignore it. The agent didn’t act properly for you last time so don’t trust them again this time

You did the right thing, as well as your new buyers having the advantage of of no chain, if the original buyer is selling a flat there are so many things that could potentially scupper their sale and you could be back to square one.

PS wondering which agent you are using as this rings so many bells with the ones I used in London?

No this was in the Midlands @Karmatime

Thanks for confirming I have done the right thing

Should I let agent 2 know what happened, do you think? Just to reiterate what a good deal new buyers have got, in case they try and reduce offer later based on the survey, although it is reasonably modern property, hopefully that won't happen.

I think it’s worth letting agent 2 know even if they don’t convey to the buyer at this stage- just in case the first agent gets pushy.

Thanks @Karmatime . I will call them. I do feel annoyed with agent 1 as they knew what the situation was from the start (how we needed a quick sale). And to keep pushing a buyer who hadn't sold! Pretty sure that back when the market was booming, they wouldn't have been allowed to view even. That would have spared me all this angst. And to tell us to dismiss the first time buyer who offered £190 k, well that was bad advice as now we've had to go even lower. Maybe due to local buyers being aware the property was hanging around, so thinking there might be something wrong with it.

Oh and apparently they didn't do anything wrong as they got us a high number of viewings. Irrelevant if they don't lead to a sale really. And to say that the market is falling is nonsense apparently, the manager got a bit annoyed when I mentioned that. But it is!

What did your agent do to you?

What agreements do you have with the agents? If Agent 2 has found a proceedable buyer then is their fee still due, even if you go with Agent 1's buyer i.e. you end up with two sets of costs.

I'd stick as you are. You could end up with 2 lots of fees.

Ah, my agents 1 are very local only in our county I think, so I don't think it's a good idea to out them on here! They haven't done anything illegal.

I think perhaps as their business has only been around a few years they just don't have any experience of a falling market, and refuse to believe it. Its just a blip apparently. I suppose anyone can set up as an estate agent, they don't have to have a wider grasp of economics or anything. Not that I am any kind of expert at all! I have been following 'Moving House with Charlie' on YouTube, he is predicting massive falls. He seems to know what he is talking about, but who knows? But the economic situation is not improving for anyone, that seems to be the case definitely.

Your experience sounds quite similar, but I can't understand why both your and my agents stopped bothering, they must know a non proceedable offer is unlikely to go through, don't they want their commission? Baffling.

Oh blimey, I never considered that at all. There was something about if we sold to someone they introduced then their fee would be due, and they sent a list of everyone who had viewed through them. Agent 2 accepted that and said in that case they wouldn't charge their fee. But nothing about if they have a buyer but we don't accept. You mean like the 'ready and willing buyer' clause? I thought that was discredited now.

We sold one house stc and whilst the board was still there, had someone knock on the door and offer a higher price. It felt morally wrong and we said we were sticking with the buyer we’d accepted.

@Bluevelvetsofa I know what you mean, we have shaken on the deal (as it were) and I wouldn't want to let the first time buyers down. As well as that, if we changed our minds and went to the offer via agent 1 it could lead to problems (a chain, and the possibility of being liable for fees to both agents).

I just hope our buyers feel the same way, though, as in the English system there is nothing to stop anyone from backing out right up until exchange. We have already been messed around by one 'buyer' back with agent 1 (not the ones who have reoffered now).

Other countries, including Scotland, arrange these things better I hear.

They could drop you down further during the process. For the sake of 10k, I would proceed with your current buyers.
If the sell falls through then you’ll be in contact otherwise it’s gone.