Reinstating offer?

[NotMeekNotObedient]

Hi

After a bit of advice please.

Offered on a property but our buyer pulled out of our sale last minute.

Our house went back on the market and we got a low offer (agent said market had dropped) but we accepted to try keep the property we wanted to buy. Our seller, of the house we want to buy, agreed to drop the price of their house a little bit, but with us taking up the majority of the shortfall so the sale could proceed.

We've since found out the low offer isn't proceedable, mortgage problem. We have got a second offer on our house, another £25k more and accepted that.

Now the agent of the house we are buying is asking us to reinstate our original offer. I am wrong to say no?

For context the property we are buying was put back on the market too - the new price we agreed was £2k under asking, which was based on current market value. It represents a £12k drop for them over all.

The second offer is £15k more than our original offer so we will have a little change now.

There is no 'right' answer.

The EA is simply trying to get the highest price they can for the vendor they work for. And if the vendor knows you now have a higher offer than before you can see why they might feel you should offer higher (again).

On the other hand the market is changing and most house price indices are showing quarter on quarter falls. If I read it correctly that seems to be why when the vendor put the place back on it was at a lower price than before.

If it were me and there were other houses I could offer on then I would stick to the lower offer and say that is what you consider to be current market value. But if I really wanted this particular house then I would consider slightly increasing the offer.

I agree - it comes down to how much you want to hold the chain together really.

If I understand you correctly, you're now paying them £12K less than you were, but you regard it as a £2K reduction because they remarketed unsuccessfully at a price £10K lower than the original price. Since you ended up selling at £15K more than you were originally selling for, that means what you're calling "a little change" is in fact £27K.

If my arithmetic is right, tanking the chain for the sake of hanging on to all of that seems a bit shortsighted tbh. If you reinstated the original offer, you'd still have £15K "change", right? And if you tank the chain, nobody gets anything anyway.

Personally, I'd do it. They sacrificed some cash to hold the chain together when it was you in a hole.

How far into the process is the new offer? I.e has the valuation and survey been done?

If not you may find there's a price drop yet to come. I'd want to get past this before agreeing any change in your offer.

@Calmdown14 Survey and valuation hasn't been done with this offer on our property yet. The last offer eveyrthng came back fine.

We wouldn't expect a valuation drop to be fair as it's been priced to sell ASAP. The offer we've accepted, the higher one is probably £15k under market value I'd say.

Thank you for everyone's input, I'm a bit out of my depth here. I do want to be fair the the person we are buying from but also don't want to overpay, a few thousand means a lot to us. But this property would be hard to replicate so don't want to loose it.

I think I'll say we will match the original offer on the condition that the valuation/survey come back OK.

Thank you so much