Can they do this?

[Ohwhatswrong]

We found our dream home, put in offer, and it was accepted, they gave us four weeks to get our house on the market and sold. If we didn't within the 4 weeks then they would be open to other offers, that's all fine.
Less than two weeks later and only on the market for 1 day the estate agent called, (listed with the dream house agent for ease), someone has put an offer in on the house they are proceedable and 5k more so sellers have said yes.
We are devastated, what about honouring our agreement?
We feel so let down and now don't trust the agent, can they do that?

No, they didn't, and even now it's still on the open market

And is yours sold, or even under offer?

But the did honour the agreement. They gave you four weeks and then said it would go back in the market. I would not have accepted your offer myself.
I have been gazumped twice - when you have had an offer accepted, you arrange survey, commission searches, arrange mortgage… only for another buyer to hop in and offer more and I was ditched! But this was t the case with you. First time I was a first time buyer too (and was rather gleeful when the sale fell through and they came back to me but I’d already offered on another place).
The property system in this country is awful. I’d make offers legally binding, with conditions (or without - more attractive to seller). Timeline is stated at offer stage so survey must be done by X date, mortgage approved by Y date, exchange by Z date. Penalties if either side back out (conditions excluded). I have had three sellers back out after I’ve spent thousands - if they had to recompense me they might have not have!
If they haven’t listed the property as under offer yet then get to selling your asap. One in three sales fall through so get yourself in position in case it does.

I hear you all, we need to be proceed-able but they never said that. The house is in probate.
My DH got a new job and I'm 9months pregnant, baby will be here in 3 weeks, we saw the house and just went for it.
We have someone who wants to buy ours, as a buy to let. So we will hear back from them today if they want to go head.
The house isn't worth more than what's been offered really.
I tried so hard not to get attached.
I think we are going to put it on with someone else if the buy to let buyer doesn't work out.

you werent a serious buyer

your house not on the market and put on the market 2 weeks later

dont blame the sellers

You are about to have a baby!!
Have baby first
You could have issues be in hospital for weeks who know
You don't want to be moving house right now !

I'm sorry this has happened to you.

However, of course they can do this, their mistake was coming to any loose verbal agreement with you. At this stage you have nothing to offer. & someone willing to pay more & having the means to do so has made an actual offer.

Do you need to move first DH's new job? Or was it more like he has a higher salary so you can move up the ladder?

unless you ^have* to move for his job I would focus on the baby & give him time to settle into the new job. I don't know how you're even contemplating moving this heavily pregnant!!

He will have a higher salary so we can move up the ladder.
We have our mortgage ready.
Everything takes a while so we wouldn't be moving until October and by then I should be able to help with moving.
But I think maybe the best thing to do is, keep the house in the market/ waiting to hear back from the buy to let buyer.
I dread the idea of having viewings with a new born. I feel like that's impossible.

I think you would be lucky to be moved by October. More likely November, December, January.

I was a no chain, first time, cash buyer and it still took 3 months due to delays on paperwork. Add in mortgages and buying/selling chains and that can get much longer.

Do you really want to move right now? Most people would either plan to move several months before a baby was due or leave it until the baby was older. Why do you suddenly feel so keen to move? Was it the particular house which tempted you?
How have you managed to get your mortgage organised if you have only just put your home on the market and haven't yet had an offer accepted?

I would wait until you hear from the investor and if they are serious then you are in a proceedable position and you can decide if you want to try to outbid the current accepted offer. Or wait it out and see if the other buyer withdraws or sale breaks down.
It does seem strange the seller accepted an offer from someone unable to proceed so wonder if the estate agent has played on words/misinformed you in order to get your business.