Have two offers but which one is best?

wilhelmina1010

Hi Forum,

Thank you for any advice given. I've had my house on the market for a couple of months and have had two previous offers which fell through. One due to a complete timewaster and the other a young couple who changed their mind.The later happening this morning.

When the agent rang me earlier she told me that I have two other offers. One at the asking price by a gentleman who hasn't his mortgage arranged but has a 15% deposit, he has previously owned a property but now rents. The other offer is from a young lady who has viewed my property twice, she has made two offers already which have been very low which I have rejected. Her offer is £5k less than the gentleman's but she works for a bank and has her mortgage in principal approved by them. She is a first time buyer.

The thing is, since accepting the offer that fell through this morning, I have made an offer on a property that I really want. I haven't seen anything else that I would want so it's very important to me that this time things proceed.

Would it be unreasonable to tell the gentleman that he would have to have a mortgage in principal in place by Monday morning and instruct his Solicitor? He doesn't know of the other offer but was aware of the previous offer being on the table, that's why he has offered the asking price. I don't want to lose the lady buyer if the higher offer falls through.

shar46y

Having an agreement in principle doesn't really mean anything and probably won't make the process any quicker. The buyer still has to apply for the mortgage, and there is no guarantee they will actually get it.

rakkibeth

I think it is totally reasonable to ask the gentleman to get an agreement in principal before accepting his offer.

We had a problem with the first offer on our house, in that we were told there was an AIP, but actually they wasted 6 weeks of our time trying to get a mortgage with bad debt records... they failed and pulled out 8 weeks after the offer was agreed.

However, the lady may have a deposit higher than 15%, so she may be in a better position, as well as already having the AIP, so you can move to the survey stage quite quickly.

Can your estate agent find out more information on both parties? eg, if they are renting, when is their tennancy end date? And how quickly do they realistically want the purchase to go through? Is there any deposit money (either for exchange or for the mortgage) coming in from family / other properties that could hold things up for you?

Good luck xx

wilhelmina1010

So although the agreement in principal is no guarantee the sale will go through the gentleman will at least have proved he is as interested as the lady. Would expecting him to have this in place by Monday be unreasonable?

ceh209

Would expecting him to have this in place by Monday be unreasonable?

Not at all I don't think, AIP's can be done online so shouldn't take half an hour. If he's serious he'll do it.

Then again, you could now legitimately go back to the lady and say you've had a higher offer (possibly adding you would prefer to accept from her as she's in a better position) and would she care to match it?

Congratulations on having so many interested parties, seems rare atm! :T

wilhelmina1010

Thank you for all the replies. I've covered both angles and will see what happens over the next few days. I've instructed my agent to ask the Gentleman to have his AIP arranged by Tuesday and inform the Lady that she is my preferred buyer but she has to up her offer.

I guess I'm fortunate having as many offers although it hasn't felt so when two have withdrawn. I've approached it to sell and made sure it's the best property in my market at the price offered. I've also chosen an agent who's focus has been internet based (premier listing on Rightmove wide angle lens on camera shots).

Seanymph

On the basis that any sale can fail to proceed I think I'd just go for the highest offer regardless.

wilhelmina1010

Well almost three weeks have past and I now find myself in the position that the man who offered the asking price and got his AIP sorted by the following Tuesday, now won't answer his phone to the EA. He had said he would be applying for his mortgage two days after his AIP was approved on the Tuesday but when I hadn't heard anything in two weeks I rang my EA and asked them for an update? She finally got through to him and he said he was applying for his mortgage on Thursday past. Since then he won't answer his phone to her.

Apart from my disbelief that people would find it acceptable to behave in this way, I now have the problem I have applied for a mortgage and had it approved on the property I want. The valuation is almost underway, I have instructed a solicitor (although have not gone any further than have her send the forms to complete as she only works part time and is on holiday) and have rejected an offer I would have accepted had I known I was dealing with a time waster.

If my other offer is still on the table would there be a way of allowing my new buyer to catch up and confirm their seriousness of intent to buy without stalling my purchase.

Although I've found through my own experience, that many people find it acceptable to "string along" vendors I am not someone who would do this.

Would it be reasonable to inform the agent about our purchase, the solicitor and our mortgage company that my intention is still to buy but I would like sometime for our new buyer to confirm her ability to buy my property if she is still interested ?

Also, it is myself who has been driving the sale of the house I have to ring the agent for updates, Never hear from them first and the solicitor they recomend is legal assistant who only works 3 days a week.

Is it time to look elsewhere?

GDB2222

Personally, in your position, I'd have accepted both offers, and told both buyers. Nothing like a bit of competition to move things along at a good pace.

wilhelmina1010

I didn't know you could do that, don't think my EA would have went along with it. I am where I am now, though.

hcb42

Is the lady still around, the one who put in the offer?