Ready to exchange and a much better property has come on the market for the same price

[curtainst]

The house I'm buying needs quite a bit of updating. Everything is decades old and shabby, although well maintained and serviceable. I'm happy with it and we're scheduled to go ahead. Lo and behold a new house comes on the market, the exact same house a hundred metres down the street, with everything updated and brand new. Kitchen, bathroom, flooring, ceilings, lighting, new doors and windows etc. At the same price. What do I do in this scenario? I feel like I'm being shortchanged by this. Should I go to estate agent and negotiate a reduction? Or is that considered unethical at this stage when everything's ready to go? Or do I drop out and go after the other? Or see if house 2 will accept my offer first (it's their asking price so I think they will!) and then break off with current seller? FTB here and very clueless.

Is the new house on with a different EA?

OIEO is definitely a thing, when I was looking it was common practice to make the initial number low to get viewing traffic through on one Saturday usually and then it’s best and final offers Monday morning. I know the market is different now but depending on the area it probably still happens - especially if there’s not much coming on the market these days

If there are better houses in the area for less money a lender will down-value it anyway, people often make offers that are not going to be backed by their lender, the old EA tricks to start "bidding wars" are almost certainly a thing of the past in most areas I would think.

yes it is one if those times where you have to be 'a big girl' (especially difficult as a FTB, but with no property to sell you're likely in tge best place ever to buy a house & you need to make the best choice possible. Is there anyone sensible & honest/truth telling that you could take with you?

The Estate Agent is only interested in getting his commission, quickly. He won't want to re- list it. You can just ignore his 💩

yes it is hard on the seller of No1, but one of those houses are very incorrectly priced, you need to work out which.

are they listed with the same agency??

I’ve done this twice….pulled out near exchange when another better property came on market….I live in England….it’s allowed 🤷‍♀️

Back gate is very very much a big bonus

if No2 is OIEO, it's a different prospect that a listed price. You might not get it for anything like that price.

still you've decided to view it, so do that ASAP, that's your first step.

Having had a seller pull out on me before I would not hesitate to look at this other house.

Yes it's 'allowed' but it's a bit shitty to make it sound like you don't feel bad for the sellers. It's 'allowed' but can be life changing for a seller, so not to be done lightly.

I live in a very popular area with not much on the market. Despite that prices seem to falling, and I’ve seen several houses relisted at a lower price.

It might be the same in your area.

Prices are falling.
Renovation costs are sky high.
Go and see the other house. If it's to your taste and done well it would be a better bet. Unless there's something wrong with it like an airbnb party house next door?

2 questions which you may have answered so apols if I have missed.

1. I think you said it’s on the same side of the road so presumably you know which way the sun hits/ future planning etc
2. Is it DEFINITELY within the same catchment area for any school your potential House Number 1 is? Or a better or not -so-great-at-the-mo-school?

All that glitters is not gold. The other one might have been tarted up cheapy before putting on sale.

As a seller who has an offer and going through the process. I am fully prepared to be in this scenario as I know it can happen. It will hurt if it does, but I would do the same if I got a better offer.

Go and see the house and do your due dillegence about what is important to you and the resale of the house. As you are desperate the things to consider the most is

1. How quickly can you move in on the second house?
2. There may be renovations but it might not be to your taste anyway when you see it in person. Its much better to buy a house "with potential" rather than someone elses style.
3. How much money will you lose in rent etc... if you have to wait another 3-5 months.
4. Can you put an offer in while still exchanging on the other house- it's not something I know.
5. What would be a worse scenario for you that you take the house you currently have or that you lose the house to a higher offer?

But definately go and see the other house first.

Don’t be a dick. There’s always the risk something else comes up but you have gone too far to pull out

It's definitely a thing.

It's happened to me. The property came on the market and seemed to be excellent value (just like your second house). I went to view it. It was excellent, a real bargain. Put an offer in at the asking price. They said they'd had multiple offer at asking, as expected because it was so reasonably priced. Bidding ensued. I got it. For less than my top end budget, but still way over the original asking price. I think they do it for a quick sale. I'm happy that I'm here, but I do sometimes think I overpaid and should have held my nerve a bit better. Also a first time buyer and didn't really know what I was doing.

Oh dear.

yes 'it is 'a thing' & was mentioned much earlier in the thread & if my memory serves me correctly you said there won't be a bidding war here (or similar)

I think you need some RL HELP, from someone that has bought a house (preferably more than one) but 1 recently. I wish I could send you Kirsty's & Phil!!

I've just realised I saw a newer post of your before I saw this older one & your comment about a bidding war was made after, but my point still stands & bidding wars do hsppen.. Frequently.

@Scaramoosh221 raises a really good point about school district.

The other point that came to my mind when I read the OP was what are the neighbours like? Because there will be a reason why house 2 is the same price as house 1.

Go and see the house and then you will be in a much better place to make an informed decision.

They happened frequently in late 2020-22/23 but very infrequently now, more often it's reduction after reduction now!

Push for a viewing of the second goose asap and if perfect make an offer and go for it

I would urgently view the second house.

Absolutely go and see it and if you like it, put an offer in.

why would you go through all the stress and mess of all the work that needs doing if someone has already done the work. Like the garden layout too! I think it’s a no-brainer

It's probably a London thing but we have always lived in terraced houses with no access from the back or side. I feel more secure from burglary that way. No big deal for us taking garden waste out through the house.

Depends if the house is as OP would have done it. We once viewed a house which a builder had refurbished for his family to a very high spec but not to our taste or needs. Lovely house, great position, but not right for us. Mind you, we were looking for a house to stay in for decades. If OP is looking for a stepping stone and needs a place she can resell quickly and easily, house 2 may be a better bet even if it isn't exactly what she would have chosen.

Did for me 6 months ago.

For us (as sellers) it worked really well. Feedback from a number of EAs was that the value was probably between two RM bands. So we could go for the higher and expect to accept a lower offer, or market at the lower one in the hope it gets more interest than expected and pushes the price up.

We went with the latter and ended up getting a price (and selling at the same price) just below the upper band and higher than the price suggested by the EAs who saw it.

It's probably a good tactic in a slow market tbh.