Seller backing off after accepting an offer

LOLAF

Hi there,

I am 7 months pregnant and we have been looking for a property for a while but until now were unsuccessful.
This week we were very pleased to have finally agree a deal on a property - in a bidding negotiation between us and another buyer, that lasted a few days, we ended up improving our offer 3 times to 1.8% below asking price and the seller accepted our offer.

We were told by the agent that one of the key reasons our offer was accepted was the fact that the wife met us and our situation (baby arrival time) meant we are serious buyers. We had both our lawyer and mortgage bank ready to close within 4-6 weeks.

Since the offer was accepted we made various arrangements relating to moving out of our rental property, giving a green light to the lawyer and mortgage broker, etc.

When we called the agent yesterday to arrange another viewing this weekend to take measurements of the flat (for furniture buying) we learnt that after the sellers accepted our offer they received a higher offer (asking price) and did not even bother to tell us that they are moving forward with the other offer.
I understand that until an exchange is made we do not have a legally binding contract. However, surely there is something that can be done. We are so stressed now that we suddenly have nowhere to live.
We even called the seller today who basically told us that this is the system and she is doing us a favor by talking to us as she does not need to explain herself.

We understand that this is a commercial deal and the seller is there to maximise the sale price. However, there used to be a time in this country that someone's word meant something.... To accept an offer and continue negotiations with another party is just WRONG!

Is there a suitable place to complain and/or a forum with names of this type of sellers to warn other buyers in the future?

BTW - is the fact that we have an email from the agent congratulating us on securing the property can be considered as a written agreement?

Blackpool_Saver

All you can do is give back word on your rental, put solicitor on hold (they will be used to that), get your mortgage in principal and wait until the next property, I KNOW how frustrating it is !

LOLAF

I just cannot believe that people are behaving like this. Are we really in an era where until a contract is signed people allow themselves to behave without any sense of dignity and their word is useless?

Errata

A seller is at liberty to change their minds about an offer as is a prospective buyer. That's the way it goes. Can you increase your offer?

cycloneuk

So what would have happened if you can't get a mortgage? it's a bit premature to be giving notice on your tenancy at this very early stage. Any number of things can go wrong right up to exchange, the estate agent should however have let you know that an higher offer had been made.

Blackpool_Saver

Yes, don't give notice so early again, and yes we are living in a country where people are taught to behave badly....

joerugby

If you are 7 months pregnant you are not going to buy a flat and move in before the baby arrives - it will take longer than 2 months

catfish50

LOLAF wrote: »

Hi there,

I am 7 months pregnant and we have been looking for a property for a while but until now were unsuccessful.
This week we were very pleased to have finally agree a deal on a property - we met the seller's wife (who is well aware of our situation and need to settle in before the baby comes) made a few offers and the last one was accepted on Tuesday.
Since the offer was accepted we made various arrangements relating to moving out of our rental property, instructing a lawyer, applying for a mortgage etc.
When we called the agent yesterday to arrange another viewing this weekend to take measurements of the flat we learnt that after the sellers accepted our offer they received a higher offer and did not even bother to tell us that they are moving forward with the other offer.
I understand that until an exchange is made we do not have a legally binding contract. However, surely there is something that can be done. We are so stressed now that we suddenly have nowhere to live.
We even called the seller today who basically told us that this is the system and she is doing us a favor by talking to us as she does not need to explain herself.
Is there a suitable place to complain and/or a forum with names of this type of sellers to warn other buyers in the future?

The combination of offering low and not having your finance in place probably didn't make you a star buyer in the eyes of the seller. A buyer with no finance in place could fall out of the picture at any minute. It's not very decent of the agent not to update you on what was happening, but there's not a lot you can do about that, since you're not his client.

Sometimes it gets a lot worse. Rival buyers can get involved in a "race to contract". The first one to exchange gets the property, and the loser loses the property and all his costs. Buying houses can get very unpleasant. Makes a lot of difference if you're lucky enough to buy from, or sell to, someone who values treating other people with respect.

BTW - is the fact that we have an email from the agent congratulating us on securing the property can be considered as a written agreement?

No.

LOLAF

catfish50 wrote: »

The combination of offering low and not having your finance in place probably didn't make you a star buyer in the eyes of the seller. A buyer with no finance in place could fall out of the picture at any minute. It's not very decent of the agent not to update you on what was happening, but there's not a lot you can do about that, since you're not his client.

Sometimes it gets a lot worse. Rival buyers can get involved in a "race to contract". The first one to exchange gets the property, and the loser loses the property and all his costs. Buying houses can get very unpleasant. Makes a lot of difference if you're lucky enough to buy from, or sell to, someone who values treating other people with respect.



To make things worse - we offered 1.8% below the asking price and have a mortgage conceptually approved! The sellers backed off for 1.8%.
They received an offer from buyers from another agency. Our agent was left in the dark as well.

The sellers are managers at top UK companies. I hope these companies run their businesses with a little more dignity.

Sambucus_Nigra

LOLAF wrote: »

The sellers are managers at top UK companies. I hope these companies run their businesses with a little more dignity.

Dignity? It's about the bottom line.....and securing income. Not about feeling sorry for someone.

You were never going to be in in 2 months with no mortgage secured.

catfish50

LOLAF wrote: »

catfish50 wrote: »

To make things worse - we offered 1.8% below the asking price and have a mortgage conceptually approved! The sellers backed off for 1.8%.

If 1.8% was significant enough for you to be unwilling to meet the asking price, why are you surprised that they considered it significant enough to accept the higher offer? Next time (my suggestion), if you want the house and are able to meet the asking price, do so and save yourself grief.

They received an offer from buyers from another agency. Our agent was left in the dark as well.

Buyers don't have agents. The agent's contract is with the seller.