Offer accepted... but...

WeBeBroke

acg83 wrote: »

Congratulations on finally selling your home, I can appreciate your previous frustrations.

However, I don't think your situation is comparible to the one here as mortgage falling through is an effect of the estate agent/vendor pushing and pushing on the bids as well as the issue of whether or not there was a rival bidder. If anything, pushing the price up and up can only really increase the risk of sales falling through.

Say they had accepted an offer £20k under asking, then there'd be a lot less risk involved because I would have had more contingency for anything raised in the survey. Having been pushed on the asking price, my contingency is greatly reduced and so any money needing to be spent as a result of the survey will have to be found through a reduction in the offer price. Given how insensitive the absolute deposit amount is to the purchase price for a given LTV, any significant expense will require a significant drop in offer price.

That's why it's important to fix a top buying price where you know how much you have to spend and what the house is actually worth to YOU. If you stay level-headed and don't get emotionally involved then the estate agent's bluster and blather won't get to you. The broker by the way doesn't have control over the mortgage survey so it won't make a difference going with their broker in that respect. The mortgage company does the valuation survey. However, I wouldn't necessarily go with just one broker - shop around and do your own mortgage research to see what's out there. Brokers attached to EAs are not usually whole-of-market.

It may be horrible to lose a house to another buyer but there will always be another house.
And if you think it's frustrating buying a house...try selling one.....:mad:

betmunch

acg83 wrote: »

Congratulations on finally selling your home, I can appreciate your previous frustrations.

However, I don't think your situation is comparible to the one here as mortgage falling through is an effect of the estate agent/vendor pushing and pushing on the bids as well as the issue of whether or not there was a rival bidder. If anything, pushing the price up and up can only really increase the risk of sales falling through.

Say they had accepted an offer £20k under asking, then there'd be a lot less risk involved because I would have had more contingency for anything raised in the survey. Having been pushed on the asking price, my contingency is greatly reduced and so any money needing to be spent as a result of the survey will have to be found through a reduction in the offer price. Given how insensitive the absolute deposit amount is to the purchase price for a given LTV, any significant expense will require a significant drop in offer price.

I think the point they were making was that having 3 buyers coming along at once can happen.

I too would like to add to the opinion the EA's dont always make offers up out of thin air. In the last 3 years I have worked in aproximately 10 different branches covering 2 different large corporate EA's and none of them have ever invented a rival offer that doesnt even exist.

I accept the practice does happen, but I think its to a much lesser extent than the feeling on here. In the current marketplace there are not enough buyers to risk forcing a good one out for the sake of a little extra commission