Chain question - are we being reasonable? **UPDATE**

Cristy

Our house has been on the market since last Thursday and has so far received a fair amount of interest. We have had 7 viewings, one second viewing and, today, an offer (by someone who has only viewed once).

This person has offered us the full asking price, but they are in a chain. Here's how it is (so far):

Us
SELLING TO
lady who is downsizing and will require no mortgage once she has sold
SELLING TO
a friend of hers privately, who requires a mortgage but who has no agreement in principle yet
SELLING TO
A FTB couple - no mortgage in principle yet

After hearing story after story about chains collapsing due to people not being able to afford the mortgage they thought they could, we think that it would be wiser to only take the house off the market once the first two links in the chain have obtained at least an agreement in principle. While this hasn't been provided, we will continue marketing the property.

Do you think this is a reasonable request? Are we within our rights to ask this? (We certainly wouldn't have a problem with providing proof of the agreement in principle of our mortgage).

Also, do you think this chain is too long? At the moment, we have our eyes on a no chain property ourselves, so at least it wouldn't go any further than that.

muffle_2

That chain involves two people with no mortgage agreement, of course you are being reasonable. If another buyer comes along with cash in hand or a confirmed buyer then you should ditch this lot.

Personally I'd be very reluctant to take a property off the market until contracts had been exchanged.

bobsa1

Totally agree with you. I think you would be stupid to take the house off the market until at least survey and mortgage offer on your property and the others in the chain

Ian_W

If you do go for an unoccupied property the chain is not IMO particularly long. 4 transactions I would have thought is fairly average - maybe even below average length.

I can understand it from your point of view, particularly with the interest you've generated but if I was the potential buyer, who has offered full asking price, I'd be reluctant to spend money on a survey until you took it off the market.

There is always areas of uncertainty with chains and mortgage AIP aren't all that cast iron, it's mortgage offers that are. What is your EA's take on what you should do?

AndrewSmith

Whe the shoe is on the other foot and it is a potential buyer asking for advice, I aways get them to make their offer conditional on the property being withdrawn from the market.

In my experience you are more likely to lose a buyer if she knows the property is still being marketed. You are demonstrating no confidence in her and leaving her exposed to being gazumped. Look at it from her point of view. She will be committing money to a survey / valuation (possibly although not all cash buyers do this) and to solicitors searches etc up front. If you don't give her exclusivity on your property where is the commitment from your side? What would you do to this buyer if you subsequently receive another offer the same or indeed higher?

As IanW rightly says a chain of 4 is not particularly long, I have dealt with much longer ones in the past.

The concerns you have are just the same as anyone selling in todays market but unfortunately it is whats called the property game.

Most buyers these days will expect it as standard that the the property is taken off the market. If not you may find that the buyer will, in the same way that you continue to sell, she may continue to look at other properties also. I have seen this happen so many times before and chains fall apart as a result of a seller continuing to market their property after accepting an offer.

You are lucky that you have a closed chain below you (admittedly in it's infantcy). Also don't forget that you are not holding all the cards as, although you are looking at a chain free property yourself, you have not yet found and offered on a property.

My advice to you is accept the relatively short, stable chain, take your house off the market and concentrate on doing your bit now and closing the top of the chain.

Get your agent to check the stability of the chain below you also.

Hope this helps

Andy

Cristy

Right guys, thank you for all your very good points and opinions. I think I should clarify (this was ambiguous from my post) that I have not yet formally accepted an offer - my agent is still verifying the chain. I was just wondering whether I could reasonably say that my acceptance of the offer is subject to the presence of a mortgage agreement on the first two people in the chain. I did not mean to imply I wanted to continue marketing AFTER I accept an offer - wouldn't want that done to me, wouldn't do it to others...

Anyway my EA has advised us to wait until he has finished checking all the details. He did confirm that an AIP is not the be all, end all, and that the length of the chain as is is still quite good, especially since it is closed. Apparently the FTBs at the bottom are still shopping around for the best morgage deal. Ultimately he did say, until completion we're all on a wing an a prayer, and would be so even if we were selling to a FTB directly. The lady who wants to buy is a cash buyer so at least that is one less mortgage to arrange

Thanks for your views, I shall keep you updated on the developments!

AndrewSmith

Thanks Cristy,

Best of luck and hope it goes well

Cristy

Well, the offer has been accepted, all mortgages in the chain are AIP and the house is off the market! (phew)

Hope it runs sommothly from now on. Off to find a solicitor!

[Deleted User]

Good luck, I hope it goes smoothly!