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Our Offer accepted but we have no buyer yet !
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CashSaver_2
Posts: 97 Forumite
I put my property on the market 5 weeks ago - but no offers yet.
However, I have found a house that is perfect. Have viewed 3 times and had a few lengthy conversations with the vendor. He is building a new property fairly close by which won't be ready until March 2007.
He has turned an offer down already as the proposed buyer wanted to move very quickly. The vendor, although wanting to secure a sale prefers to stay in his current property as long as possible.
He has now received a second offer for the full asking price (I have seen evidence of this). However, the person making the offer is again being pushy and demanding.
His EA is recommending he accept this offer but the vendor has told us he would prefer to pursue our matching offer. He has owned the property for 20 years and seen his family grow up there. Although at the end of the day it is a financial deal - he wants to feel that he is passing the home onto someone he likes, trusts and feels is right for the property.
Our weakness is obviously not having a buyer yet - but our strength is that we can give him more time in his own property.
It has been suggested by his Solicitor that we draw up a "memorandum of understanding" We would agree on the terms - for example agree a fixed price, subject to survey. We would pay a 1% deposit (approx £5,000)into a 3rd party account to demonstrate intent to purchase. The deposit would become non refundable if we either pull out or fail to complete on his property by a fixed date e.g. end of the year. Obviously, the terms need to be thought about and agreed by both parties. He would also agree to take the property off the market.
My solicitor has suggested that it may be a better idea to just continue with the normal buying process and amend the terms of the contract to fit in the above.
Has anyone any experience of this?
However, I have found a house that is perfect. Have viewed 3 times and had a few lengthy conversations with the vendor. He is building a new property fairly close by which won't be ready until March 2007.
He has turned an offer down already as the proposed buyer wanted to move very quickly. The vendor, although wanting to secure a sale prefers to stay in his current property as long as possible.
He has now received a second offer for the full asking price (I have seen evidence of this). However, the person making the offer is again being pushy and demanding.
His EA is recommending he accept this offer but the vendor has told us he would prefer to pursue our matching offer. He has owned the property for 20 years and seen his family grow up there. Although at the end of the day it is a financial deal - he wants to feel that he is passing the home onto someone he likes, trusts and feels is right for the property.
Our weakness is obviously not having a buyer yet - but our strength is that we can give him more time in his own property.
It has been suggested by his Solicitor that we draw up a "memorandum of understanding" We would agree on the terms - for example agree a fixed price, subject to survey. We would pay a 1% deposit (approx £5,000)into a 3rd party account to demonstrate intent to purchase. The deposit would become non refundable if we either pull out or fail to complete on his property by a fixed date e.g. end of the year. Obviously, the terms need to be thought about and agreed by both parties. He would also agree to take the property off the market.
My solicitor has suggested that it may be a better idea to just continue with the normal buying process and amend the terms of the contract to fit in the above.
Has anyone any experience of this?
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Comments
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I have heard of this. There are dangers, if house prices move down you have agreed a high price for the house your paying and may get less for your than you would hope /need.
If his building work is delayed he will want you to wait longer.
You could have problems lining up your buyer to complete to his timescales.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
silvercar wrote:I have heard of this. There are dangers, if house prices move down you have agreed a high price for the house your paying and may get less for your than you would hope /need.
If his building work is delayed he will want you to wait longer.
You could have problems lining up your buyer to complete to his timescales.
We intend to buy this as a 15 year plus property. The house has been reduced already and we feel that compared to other properties in the area - it is currently a bargain.
We will be negotiating a move-in time as we may find a buyer sooner rather than later. He is prepared to go into rented accomodation from October onwards.
The risk to us is not getting a buyer and not being able to complete by the agreed date - but we are happy to tke this risk.0 -
I can't give you advice, as I'm no expert, but we were in this position. In fact, we exchanged contracts on our new house and hadn't had an offer on our existing one. However, the new property is being run as a business, and the vendors wanted some time to finish their B&B season. We deliberately exchanged as soon as we could, but have set a date for completion of 1st September, which is mutually convenient.
We then did get a buyer who had sold theirs and it's all going through nicely. We should exchange on our sale next week, and our buyers are happy to fit in with 1st September too.
I think that if the house is right for you, then go for it. Be honest with the vendor; we have built up a lovely relationship with ours, to the extent that they get the Lego out ready for our kids to play when we go round.
My dad has talked about something called the Option to Buy where you sign an agreement giving you the option to buy the property on a specific date at a set price. I know very little about it, but I know solicitors and EAs hate it, but it is legal and worked for my uncle. I'll try to find out more about it.
Good luck!0
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