First time seller needs advice

costello66

Sorry for this long-winded first post but I'm after some objective advice about my dilemma.

I have had my flat on the market since Feb 2010 (selling only not buying a new property). I accepted an offer fairly quickly from a first time buyer who then messed around for a while, got cold feet and withdrew her offer.

In June 2010 I accepted an offer from a buy to let landlord who kept saying that he was ready to exchange contracts and then delaying. It turned out that he was having problems raising the cash and eventually I put my flat back on the market. At the end of last week this buyer got back in touch and said that he can exchange immediately but not complete until the end of March 2011.

However, today I received an offer from another buyer (also a buy to let landlord) who has a mortgage in principle but would obviously need to get a firm mortgage offer, have the flat valued etc before he could exchange contracts.

My dilemma is do I exchange contracts with the first buyer and have a guaranteed completion date 3 months away or do I risk accepting the offer from the second buyer who should be able to complete sooner but also taking the risk that the sale could fall through before exchange.

I really need to get the sale completed asap as I usually work outside the UK and am unable to accept a new contract at the moment as I don't feel that I can leave the country until I am at least close to completion.

My gut instinct is to stick with the first buyer as at least once we have exchanged contracts I will not have to worry about the sale falling through .... however this buyer has seriously peed me off in the last few months with all his messing around. I'm tempted to go with the second buyer because we might complete sooner meaning that I would be able to move on more quickly. I'm therefore interested in an outsiders perspective on the pros and cons of both options.

Thanks,
Costello66

DVardysShadow

I get a bad feeling about this first buyer. He has failed to get finance and effectively, he still can't as I see it.

satchmeister

DVardysShadow wrote: »

I get a bad feeling about this first buyer. He has failed to get finance and effectively, he still can't as I see it.

The first buyer says he can exchange immediately which commits him, only an idiot would exchange (and finalised the completion date) without being able to complete given the penalty costs involved. However he may be that idiot but if he has other property then maybe not. If he wants to exchange and not finalise a completion date then this is a different story. Also 3 months from offer to completion is fairly typical.

PasturesNew

DVardysShadow wrote: »

I get a bad feeling about this first buyer. He has failed to get finance and effectively, he still can't as I see it.

That's how I read it.

satchmeister wrote: »

only an idiot would exchange (and finalised the completion date) without being able to complete given the penalty costs involved.

My money's on him being an idiot.

G_M

What reason is given for he long gap before Completion? Is it a reasonable explanation?

DVardysShadow

PasturesNew wrote: »

... My money's on him being an idiot.

Mine too. But looking at a more positive possibility, he may be selling another property and may have a contract.

I think the thing to do is to keep him on board by asking via solicitor for proof of funds.

But I would proceed with new buyer, survey and all of the rest of it - lucky to have 2 buyers. Solicitor will insist that both are informed and normally there is a contract race - or I think the Law Society protocols demand that the criteria for selecting the winner are made explicit to the competing parties [what do I know really?]. I would suggest that you declare you will exchange 28 days before completion with the buyer to offer the earliest completion date.

Doozergirl

Have both offers properly verified and then if that doesn't cause one of the to fall, best and final offers. Exchange does sound attractive though although the man doesn't!

savanajhones

I feel for first time sellers it is always better to choose the platform through which it will be easier to track people who are interested. Also, before handling it to anyone, first insure all the formalities and paper work is done in time. Some time there may be the chances of fraud.

costello66

Thanks for all the advice given above.

The decision about what to do was actually made for me as buyer 1 now says he can't exchange until the end of Jan. Those of you who said he is probably an idiot may well be correct. I'm going to proceed with buyer 2 and hope that on my third attempt I actually get to exchange.

Doozergirl

Good Luck!