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Original poster

Rant about house moving...

20 replies

minko · 11/05/2010 17:34

We are due to exchange tomorrow on a house in a new town. We want to live there as the schools are much better and it's a lovely town.

The sale of the house went to sealed bids and we 'won' but the cost is a real stretch for us. The survey, the searches and even the vendor's estate agent recommend we ask for a reduction in the price to allow for the price of re-wiring/ removal of lead pipes and what have you. It is a pensioner's old house and all a bit antiquated and it needs a lot of work. However the son of the previous (now dead) owner sounds like a complete nazi and is likely to pull out and put the house back on the market if we ask for a reduction when we exchange. However, we are cash buyers with no chain and really ought to be quite valued customers... Though the family who came 2nd in the sealed bids are still keen if we drop out so he could go to them, he'd just have to wait a bit longer for the cash.

In the meantime the schools admissions man still hasn't confirmed if DD has a place at the local school we like.

What would you do??

OP posts:

Original poster

minko · 11/05/2010 17:35

By the way ... Aaargh!!! I am in stress hell!

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ageing5yearseachyear · 11/05/2010 19:01

sounds like last minute nerves

tbh, if you wanted to negotiate on price, it should def be done before exchange- exchange is where you are agreeing the contract between you and that includes the price.

ignore what the vendor might do- are you happy with the house- do you want to live there? can you see your family growing up there?

he probably went to sealed bids because he didnt want to be involved in horse trading between potential buyers- also if there are others involved in the estate it is easier because no one can come back and say he didnt get the right price.

if you really are not happy with the deal and want to look at others then dont exchange tomorrow. But you are right, the situation is that there is someone else who wants the house so you do not hold the upper hand in this.

would you be stressing as much if you knew that dd had the school place/when will you know?

WoodenFish · 11/05/2010 21:18

I think the whole point of sealed bids is that you can't then negotiate on price.

As someone who has in the past 'lost' on a sealed bid I would have thought it totally unethical if the highest bidder then negotiated a lower price.

Original poster

minko · 12/05/2010 08:13

Many thanks for your sage advice Ageing, I think you could be quite right that this is last minute nerves - thanks for making me aware of this! However the seller has been rushing the process through so fast that we only got the mortgage survey and searches in the last 2 days and both advise asking for a reduction in price.

Having had the evening to consider it all. We are going to ask for the reduction, to which the answer will probably be no but we feel we are entitled to at least ask. The fact that it was a sealed bid is neither here nor there. If the mortgage company is not going to stump up the full value because they don't think it's worth what we're paying then we have no choice - we find that out today too. We do love the house and it's in a great location and I could see us being very happy there.

I've hassled the school admissions man and he is calling back this morning. It's all go... It does have a lot of bearing on whether we complete to be honest as our primary reason for moving was to improve on the schooling situation where we live now.

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whatname · 12/05/2010 08:42

on first reading I thought maybe he would drop you and go for the other buyer as he probably wasn't in a hurry. But sounds like he wants it done fast, so that's probably in your favour. I think if you go with a sealed bit, I don't think it's unreasonable to want to change it after the survey is done, what if it needed £100k spending on it?
I can't believe you are due to exchange this quickly, how long has it been?

Original poster

minko · 12/05/2010 09:07

We first saw the house on 10th March. Bids were put in about 10 days later. So all in all about 6 weeks to process. It needs about £50k spending on it - that we know of, it could turn out to be The Money Pit. It is qbout 80 years old.

If the vendor goes with the 2nd lot of buyers he might find himself in the same situation in a couple of months time when they get the survey...

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Original poster

minko · 12/05/2010 11:01

Am sitting next to the phone waiting to hear from the school admissions man. And waiting to hear if the vendor might reduce our costs a bit. Am shaking with nerves about what to do.

Please everyone, cross your fingers....

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HonestyBox · 12/05/2010 12:17

Hi, just popping in to say that regardless of sealed bids etc. I think it is unwise to ignore the surveyor's valuation and, as you said, the mortgage lender is unlikely to lend more than the valuation. The other buyers would likely be in a similar situation if they were nearing completion. It is essential to ask for a reduction and to state the reason why - namely, surveyor's valuation.

Just my opinion btw .

Original poster

minko · 12/05/2010 12:22

Thank you!
We seem to be dealing with the most inconsiderate vendor in the history of house buying though. The estate agent has put our reduction to the vendor, we are waiting to see what he says. The worry is that he might not want to sell the house to us at all anymore...

Hopefully not though as the school man has phoned and we are IN!

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traumaqueen · 12/05/2010 12:39

Until contracts are exchanged nothing is fixed. He can dump you, you can dump him, you can ask for a reduction, he can say sod off, he can accept an offer from someone else who just says 'i will pay £5k more' etc etc.

Decide now - if he says 'no reduction' what will you do - pay up? pull out? Have a plan.

Put yourself in the seller's shoes - he's selling a property so he can get his hands on the cash. He has no chain to protect or school place to badger for. He wants as much money as he can get, and as quickly as possible.

He will be thinking - £xk less now, or go to another buyer and get more money but wait an extra 6 weeks? BUT the next people in will want to know why your purchase fell through and their survey will say what yours said so he will be back in the same situation in 6 weeks time. And with the new government anything could happen.

I would play hardball here. Hold your nerve. If necessary walk away and see if he comes running. Get back on the internet and look at some other houses.

traumaqueen · 12/05/2010 12:40

ps - considerate/inconsiderate isn't relevant. He's not doing you a favour and you aren't doing him one either, and why should either of you? It's all about hard, soulless cash!

spingspong · 12/05/2010 14:14

I'm confused - in your first post you mention that you are cash buyers but later say that you're waiting for the mortgage survey.

Surely if it's the latter you can't exchange until the mortgage offer is in anyway?

Sorry if I've misunderstood.

LadyBiscuit · 12/05/2010 14:17

I think cash buyers means they haven't got another property to sell rather than they have £200k sitting under their mattress!

Original poster

minko · 12/05/2010 14:29

Sorry, I meant we have nothing to sell. Would be nice to have £200k under the mattress right now... Still waiting for vendors decision to exchange right now...

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spingspong · 12/05/2010 14:30

I see - thanks for clarifying.

spingspong · 12/05/2010 14:31

and good luck - hope you hear back from vendor soon!

Original poster

minko · 13/05/2010 08:09

Quick update - it's all good. DD is into the school AND the vendor has agreed to £3k towards the costs of re-wiring etc.

Hurrah - we are exchanged!

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whatname · 13/05/2010 10:34

yah! congratulations!

spingspong · 13/05/2010 17:16

That's good news! Glad it all worked out for you.

LadyBiscuit · 13/05/2010 23:05

Hurrah! Am v pleased for you

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