Property sale - how to handle?

[Lily27]

Dear Mumsnetters,

As someone who is a relative novice in property matters, I’m seeking some advice.

In a nutshell, we are selling our property outside London and buying one in London. The budget is tight but just about doable.
Unfortunately, the outside London property is not getting the high offers we expected as the market is down, but a local property developer has come forward willing to pay slightly above the asking price. All other offers are below the asking price. The agent (well reputed locally) says they have done business with the developer before, that he is a cash buyer and we should accept the higher offer. In fact in recent days the agent has put off other buyers who were interested in the property, as they were informed that there is a buyer offering above asking price.

It has now occurred to me (literally, in the shower this morning as I am not savvy on property matters) that the property developer may have offered a higher price to push away other buyers but eventually try to knock the price down once the sale process is underway (using survey and other issues). Presumably, he would be quite skilled at doing this (compared to say, a family who is looking for a place to call home).

Is it unreasonable of me to ask the property agent not to push away any buyers and to continue to show the property to interested people, as would need a pool of potential buyers who we can turn to if negotiations with the developer get tough?

What do you think? Is it a done thing to continue to show a property to viewers while it is under offer? Is there a rule against it? I read somewhere that some buyers insist it should say sold STC once an offer has been made. How much leeway do I, as a seller, have to decide what happens here?

The estate agent should not be pushing away other potential buyers. If they have sold their own homes and are in a position to offer on yours your estate agent should be letting them view. However, if you have already accepted the developer's offer and he wants your property taken off the market that is normal practice.

I'd want backup interested parties in case the developer does start to push for a lower price. Having been burnt myself by both estate agent and developer I don't trust them at all.

Thanks, that's really helpful. I don't trust the developer or agent either. Would really prefer to sell to a family. I suspect the developer is looking for good deals in the area, and is quite seasoned at playing the property market. I wish i could find a way to keep the property on the market for a while longer even when it is under offer.

I actually think the developer is less likely to beat you down on price. Presumably they’re buying it either to demolish or to renovate, in which case they’re less likely to try to negotiate a reduction because of problems thrown up by a survey than people buying to live there. They’re also a cash buyer, so you won’t have a the problem of a bank’s valuation coming in lower than the offer and reducing the buyer’s mortgage (a common problem in competitive areas when the market is unpredictable).

It would be quite unusual to keep showing a property once you’ve accepted an offer. There’s no rule against it - the agent might not want to do it but remember they work for you, not for the developer! Worth considering that it might suggest to your buyer you’re not serious about proceeding with their offer and they could decide it’s not worth paying for surveys and searches if you’re just looking to pull out, and then you’d lose your highest offer.

Thanks, that's an interesting perspective that I hadn't thought of. Just don't know what to do! Do you know how long it would take before we know, I mean, presumably such discussions regarding price come up quite early in the sale process? So if the developer does turn out to be a tough bargainer then we can say ok, we are putting it back on the market and still not jeopardise our London purchase.

It would be quite shitty behaviour to accept an offer, hide this fact and show your property to other buyers without letting them know it’s under offer.

We wouldn't NOT let other buyers know that it's under offer. Thanks for the strong language though!

On how long, people can negotiate on price right up until you’ve exchanged contracts - its bad behaviour to try to chip the price the day of exchange, but people do it! So you won’t have certainty until then, and you won’t want to exchange until you’re ready to exchange on your new house as well. The whole house buying process (which isn’t fit for purpose really) involves risk and all you can do is pick the lowest risk option - generally a cash buyer who is not in a chain is going to be the lowest risk option.

Yes, agree it so stressful and there's risk involved. Thanks again, for your input. It's extremely helpful.

Once you’ve accepted an offer the usual thing is to stop allowing viewings.

Think about it from your own point of view - how would you like it if the people you were buying from were still allowing viewings from other people? While you were spending money on a solicitor, survey etc.

Proper developers can be more straightforward to deal with than individuals so as they have given you an above asking price offer I would be happy with that personally & not risk upsetting them.

Thanks, good points

You should push for a rapid exchange - so the price is locked in and you can stop worrying about him chiselling you

I would think a developer is not emotionally involved and would have offered a price he is happy to pay whereas a family that might be more emotionally involved and offer more than they want/can afford and then think over time they have overpaid. I would stick with the developer.

We were in that position, a builder offered the best price, but then slowed right down and didn't seem interested in getting the sale through. I think he had other projects, so was in no hurry and started wanting to bring in his architect, his electrician etc, to draw up plans, how long all of that was going to take was very open ended. We went back to the EA who contacted someone else who had offered slightly lower and they willingly came up to the builder's offer and wanted to proceed quickly so we went with them. I would be a bit concerned about a developer now, I assumed it was a very safe route to start with, cash buyer, no chain but...

Thanks for all replies

I'm thinking that too - push for a quick sale so at least we know early if it is going to fall apart, and hope we can find another buyer

Thanks for sharing that -- that's my worry too. I've emailed the EA today. Let's see he says.

Super weird that a likely seasoned buyer in the name of a local developper who probably know the agent personally decides to offer over asking while there isn’t any other offer at asking (and in this super slow market) Anyway, no harm in accepting other than wasting time if it turns out he never intended to pay the agreed price.

Yes, my spidey senses are twitching quite badly! I only hope that the EA and developer aren't too pally.

yes, isn't it? not sure what to make of it. e.g. why did he offer above asking price? I'm suspicious that he has done it to get us to accept the offer and rule out other buyers, while he has no actual intention of paying that amount

This. Accept the offer subject to exchanging within two
Weeks.

This is pretty good advice, but I'd really like to check that the EA hasn't undervalued the property and sent thru a couple of stalking horses offering low amounts, just to make his pal look good.

Check houseprices.io to see if your price looks/feels right.

two weeks? is this possible?

checked it, and it's about right

4 weeks is probably more fair. He should have no need to hold up for finance or survey, so just needs the conveyancing done.

Also, if you have had several offers, you could ask the agent to ask everyone for “best and final” offers . Just in case a nice family increase theirs.